Barry Ritholtz says Tesla valuation assumes 80% EV market share

Barry Ritholtz states that Tesla's valuation assumes the company is 5 times the market cap of Toyota. Barry Ritholtz, Chairman and Chief Investment Officer of Ritholtz Wealth Management, points out a rather giant wrinkle in that math. Tesla's profit margin is actually only an eighth of Toyota's profit margin. "The problem is their valuation presumes they're going to have, you know, an 80% EV market share" he notes. In plain words, a valuation is how much a company is worth based on its stock price. That is a whole lot of electric cars to sell before breakfast.