Tesla’s car business already is nearing a $10B revenue-run rate, and its battery/solar business is yet another rapidly growing multi-billion dollar revenue stream. Uber has none of these exciting growth initiatives, and is on the cusp of being displaced by Tesla as the ride-sharing leader. Whether your conclusion is that Tesla is vastly undervalued or Uber is vastly overvalued, the conclusion is the same the financial markets love the idea of a ride-sharing business.
The Tesla Network (Ridesharing Platform) Is A Bigger Opportunity Than Selling Cars
If Tesla commits to rolling out the Tesla Network and is able to successfully translate it into a meaningful revenue stream or an additional incentive for consumers to buy their cars, it will significantly increase the company’s valuation.