this post was submitted on 17 Dec 2023
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By Revenue Tesla is 11th, and by Earnings Tesla is 8th. Market cap is fictional number.
Market cap is absolutely the best metric for the "value" of a company.
If people are willing to pay $X for a share of a company and there are N shares, then the value of the company is $X*N.
The fact that people are buying shares at a certain price says that people think the company is valued at that price.
It is A metric of the company, best could be argued, absolutely best is stretching it. When company value is based on hype, over promise and lies etc, the market cap becomes less relevant and the revenue/profit are better metrics for valuation.
Theranos was valued at 9B$, just based on hype and lies.
Elon Musk is similar vaporware sales man.
This reminds me of a funny (probably illegal) thing that Max Fosh did where he made a company with an absurd amount of shares and got some random person to buy a share for $20 or $50 or something so his company temporarily became the richest in the world (technically) lol