<story><title>AMD passes Intel in market cap</title><url>https://www.cnbc.com/2022/07/29/amd-passes-intel-in-market-cap.html</url></story><parent_chain><item><author>elromulous</author><text>So I&amp;#x27;m very much in camp AMD.  But, market cap has proven over and over again to be kind of bogus. E.g. do we really think Tesla is actually worth more than the rest of the top 10 or so automakers?</text></item></parent_chain><comment><author>njarboe</author><text>The top ten automakers have huge amounts of debt and pension liabilities. Tesla has neither. None of them are making profitable EVs at scale. Tesla has been hitting their goal of growing at 50% per year for a decade and plans to continue until they are making 20 million cars a year in 2030. Their gross margin on cars is the highest in the industry.&lt;p&gt;The next 5 years are critical for the existing players and many will shrink dramatically or go bankrupt. People already know this and that is why there is a bill in Congress that is a stealth bailout of the domestic auto industry with a $7500 tax credit on cars that have just $750 worth of batteries in them.</text></comment>
<story><title>AMD passes Intel in market cap</title><url>https://www.cnbc.com/2022/07/29/amd-passes-intel-in-market-cap.html</url></story><parent_chain><item><author>elromulous</author><text>So I&amp;#x27;m very much in camp AMD.  But, market cap has proven over and over again to be kind of bogus. E.g. do we really think Tesla is actually worth more than the rest of the top 10 or so automakers?</text></item></parent_chain><comment><author>sbf501</author><text>This is implicit when understanding market cap. Market cap means yes, a certain number of people willing to buy Tesla believe it is worth the combined cap of the next 10 auto makers. It doesn&amp;#x27;t matter if that is right or wrong, all that matters is that stock traders believe it. If they didn&amp;#x27;t, the stock wouldn&amp;#x27;t be that price. That is literally how the stock market &amp;#x2F; market cap works: if someone will buy it at that price, that is what it is worth.&lt;p&gt;We can all offer our armchair theories about Tesla&amp;#x27;s actual worth, but until traders start to move en masse, that is what it is worth right now.&lt;p&gt;I think you are asking a different question: will Tesla be more &lt;i&gt;profitable&lt;/i&gt; than the other 10 manufacturers in the long run? Because right now they are not. Personally. I don&amp;#x27;t think they will ever scale to a commodity car as long as Elon is at the helm. I don&amp;#x27;t think he has the attention span to make a mass produced car, his ego likes doing something novel and he likes luxury. To make profit like the top 10, Tesla has to become a commoner car. I don&amp;#x27;t think he can pull off an iPhone move, Tesla may always just be a Mac.</text></comment>