COMMENT: Tesla’s US$89bn valuation highlights importance of hype and hope

The perceived strength of a company is based on core financials, but Tesla has proven that hype still carries serious weight with investors. By Freddie Holmes

Tesla’s rise from hopeful start-up to the most sought-after electric vehicle (EV) brand in the world is mightily impressive. On 8 January, the company was considered more valuable than both Ford and General Motors combined, with a market cap of US$89bn. How can a company that has struggled to achieve profitability since its inception possibly be worth more than two of the automotive industry’s biggest names?…

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