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Tesla Inc (TSLA)

NASDAQ
Currency in USD
Disclaimer
170.18
+8.05(+4.97%)
Closed
After Hours
172.30+2.12(+1.25%)

TSLA Comments

What assumptions would justify Tesla’s current valuation? Suppose Tesla sales grow by 50% a year over the next 10 years. That means its sales would need to increase 58 times over anticipated 2020 sales.10 The company’s current margin is not high enough to justify the 100 times multiplier over the rest of the industry. Suppose that in 2030 Tesla has a 10% net margin, higher than any existing auto company and 47% higher than its most recent 6.8% net margin. Nope, still not good enough. A 10% net margin would make Tesla “only” 85 times larger than it is today, not 121 times larger. Such high growth persisting over a full decade is implausible. Amazon’s growth rate over the last 3, 5, and 10 years has been in the high 20s, nowhere near 50% a year. Tesla’s own three-year revenue growth rate is 33% (the revenue growth was far slower than the 61% unit car sales growth), so 50%—for a full decade—is a major acceleration over its stupendous recent growth. Our analysis examines terminal value on
Brent: you are basicly saying the same thing. Difference is you assume it likely will happend and im saying its improbably from current position. This is just one part of being a bubble - the other is that people are confident investing just on the story.
Do you see any logic in defunding police in Chicago, where crime rates increased to level of Medellin in 1990th ? I do not see it, so do not try to find any logic in TESLA valuation. just trade it!
Candy yep, both Tesla and other Musk lead companies have a history of reaching their long term goals (though often a year or two late). That's part of why I think they have a good chance of getting there. Yes they could fail and selling yesterday might have been the smart move, but the potential upside if they get to 90% of their goals across all business units is in the 20X range for stock price increase and then a good divided from then going forward. I'll take that risk and a 10+ year earlier retirement vs risk of working 1 more year in the 2040s.
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