Many are attempting to value $TSLA based on future earnings.

This is not the way.

There was a similar fallacy in valuing pre-2016 $AMZN based off earnings. That failed miserably for many, especially short sellers.

Why?

Because AMZN was plowing earnings back into their businesses. This made Amazon appear to have little to no profit on paper. That couldn't have been further from the truth.

While all this was happening, Amazon was growing revenues to crazy new highs. Guess what? They reached a point where they couldn't deploy earnings back into their businesses fast enough and massive earnings showed up on paper and shocked most everyone.

This is EXACTLY what TSLA is currently doing.

Ignore valuing TSLA based on earnings and focus on:

1. Revenue growth
2. Operating income

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