Annette Charles
For example, we can add in another $16.5 billion in net debt to the future EV. When all these plants are running Tesla can approach the level of deliveries needed to get to 500,000 per quarter. Normally, when we value investors try to determine the value of a company, we use something like a Discounted Cash Flow model. If you ask Ron Baron it will be $4,000~5,000. Then, the #1 investor in the private investment club I'm in started talking about his research into Tesla, and he made some very intriguing points.
This is not the case with Tesla. As a result, this high-density, modular system can be installed 10x faster than current systems. They also generated about $1 billion in free cash flow over the last 12 months, even after paying for operating expenses and new Gigafactories, which means money is coming in faster than they can spend it. All of this is made possible thanks to Tesla's in-house developed Full Self-Driving Computer, also called Hardware 3. Furthermore, the company will regularly get valued off the public market as well.
One thing to remember with this speculation, of course, is that there’s no magic formula for determining a company’s value. I plan to very carefully take care of the battery, but it seems that will be the main issue in value - does the battery lose 10%, 25%, 50% of its capacity over time. Advertise with CleanTechnica to get your company in front of millions of monthly readers.
It is about solar roofs and battery storage. Of course, the pandemic accounts for the fall in production and deliveries. Throw in a Tesla Network or two for double the speculation, double the fun.
I had lunch with my investment adviser yesterday and discussed Tesla with him.
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Published on August 11th, 2018 |
We both agree than an investment in Tesla is speculative. Analysts expect Tesla to announce its Q2 deliveries this week. The Man Who Recommended 23 1,000% Winners Is Revealing His #1 Stock for 2020.
Shares fell as much as 9% last Wednesday when Tesla revealed its next-generation battery cell technology won't be as cost-efficient as some initially thought. I think Elon Musk is peculiar and he may overestimate himself, but he may not be wrong all the time. For that $20 million, he bought about 71,000 more shares of the EV maker’s stock. Level 5 autonomy has not been completely solved yet, but Musk recently said they are close (he has been saying this for a while now, though). Tesla is trading 760% higher than it was 12 months ago. You are responsible for your own investment decisions, even if they are based on information gained from this website and/or the spreadsheets and tools.
Therefore, the Tesla stock EV/EBITDA ratio is just 11 times. Tesla books revenue when the company delivers its cars. Today, Tesla is not able to produce enough cars to meet demand, but they will build Gigafactories as fast as they can make them the next few years to close this gap. I’m here to teach you about Value Investing.
Thank you Elon. This seems to be the only rational way to look at the present price of Tesla stock. I listened closely, but did not act on it. Value Spreadsheet, officers, associates or clients may have an interest in the securities or derivatives of any entities from Value Spreadsheet referred herein. I will buy 6.9 additional shares every time. Want to publish a press release on CleanTechnica?
How quickly will that value grow with Tesla unhindered by short sellers, fear-mongering press reports, and misleading claim after misleading claim about “cash burn” or “impossible” production targets? That does not seem too expensive. Commerce Policy |
I honestly feel Tesla is an incredible company with huge competitive advantages, and will be worth several Trillion dollars within a decade. I think the answer is yes.".
An engineer from a Japanese car company said "we cannot do this", and car manufacturing experts said this chip is about 6 years ahead of GM and the like. In addition, the Model Y crossover deliveries are not included in these numbers yet.
So why is Tesla able to innovate so rapidly? Elon Musk said that Tesla's valuation is high but will be worth more in five years from now, on an episode of The New York Times' Sway podcast released on Monday. Billionaire investor Ron Baron believes Tesla could be worth $1.5 trillion by 2030. Instead of you driving your car only a few hours a day, your car could be used as a robotaxi while you weren't using it and earn you money while you sleep! At that point, what’s the company “worth?” $100 billion?
He's a very respected investor looking only for good long term investiment on the same level as Warran Buffet. I don't know of any other company with competitive advantages and technology leads similar to those of Tesla, and with so much room left to grow. In fact, some might think this is too low a valuation. There are many smart long and short people that look at the company and believe different outcomes, both short and long term. It was $421 before the Q2 ER.”. To repeat it for the 5th time or so: There are numerous ways to value a private company, and even for public companies, target valuations from various expert analysts are all over the map. Yeah, I wish I had one. My premise is never to try to convince people why they should invest in Tesla. Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? And I have a third comment; Never underestimate the man who overestimates himself. $200 billion? This is because the company is on a long-term trajectory of delivering 2 million vehicles within 10 years. Self-made millionaire Steven Mark Ryan, from the Solving the Money Problem YouTube channel I mentioned earlier, has been researching Tesla in-depth since 2016, and with some back-of-the-napkin math, he roughly estimates a $5 trillion market cap by 2030 is possible.
I think you get the point. That really seems to be the key to understanding the action in this stock. The cleantech, tech, stock, and business news of this past week was more obvious than an elephant sitting in a Fiat 500e — Elon Musk may take Tesla private. It has risen 40% since my last article on the company on April 21 when I talked about its long-term value. Let's finish with a quote from Charlie Munger when asked about Musk: I would never buy [Tesla], and I would never sell it short.
It has stunned the world, and the response from the financial press has been embarrassing — to put it nicely.
One top-notch engineer is worth "300 times or more than the average," explains Alan Eustace, a Google vice president of engineering. "The cells we're talking about- we have produced many of them. Products always delayed, serious supply chain issues, inadequate infrastructure (i.e., service centers), etc. Stock quotes by finanzen.net, Brendan Smialowski / AFP via Getty Images. All rights reserved. More recently, Apple became the first public company to skate past $1 trillion in value.
Go big and buy on margin. Management needs to get its act together and stay on task with existing issues.
Doable? It's about car as a service and being a leader there, car sales are irrelevant. Copyright © 2020 InvestorPlace Media, LLC. If we assume that Musk's second Master Plan will become a reality, we should see: To accommodate these dreams, many more Gigafactories are needed. I consider this a special situation that is too good to pass up, and so I made an exception for Tesla. Tesla has only just started building out its own battery production line and R&D lab, and yet they've already developed a battery that will only degrade 10% in 1 million miles, after which it can still be used in grid storage solutions, until it is finally recycled. Even software-like margins seem possible once full self-driving is released, from robotaxi fees, Autobidder fees, as well as an in-car app store for entertainment purposes, since the driver no longer has to pay attention to the road and has this big, beautiful screen in front of him. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Anyway, it’s all a guessing game, so why don’t we stick with my initial estimate of $14.7 billion in annual vehicle profits. Yep, that simple and common analysis puts Tesla’s “intrinsic value” share price at $443 — or something around that number. Ron Baron admits very few "experts" actually tour the Tesla factory, like he does, to see the progress that's being made. Tesla chose the route of computer vision, which is much harder to perfect, but ultimately superior for this particular application. Historical daily share price chart and data for Tesla since 2020 adjusted for splits. ), that I felt compelled to write this article. Read my full story... Join 32.659+ fellow investors and receive 3 investment spreadsheets and an ebook for free! If no shares are available there is no price limit. Whether or not Tesla makes the expectations for deliveries in Q2 is basically irrelevant to the long-term value of Tesla stock. Tesla stock predictions for May 2021. Tesla has a market cap of about $30B, and Apple is about $600B, so that would be 20x, or about $4500 per share.
And then there are of course the controversial Cybertruck, which received a couple hundred thousand pre-orders the day it was announced, as well as the Tesla Semi truck, and the new record-breaking Tesla Roadster, which all still have to enter production.
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