Part 9/15:
Addressing market valuation concerns, Fitzgerald challenges traditional PE ratios, emphasizing that Tesla and similar digital giants shouldn’t be judged solely by legacy metrics. He argues that AI-driven companies experience “PE creep,” where ratios naturally ascend due to unparalleled growth potential and operational efficiencies derived from data-driven models.
He projects Tesla’s stock could reach into the thousands of dollars per share, with models suggesting a potential valuation of $20 trillion—a number Elon Musk himself has acknowledged as plausible with flawless execution. For Fitzgerald, the key isn’t just about short-term earnings but about investing in fundamental themes of technological disruption that will redefine entire industries over decades.