Sign up to save your podcasts
Or
Share Is Tesla Stock Fairly Valued?
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Is Tesla Stock Fairly Valued?
Tesla stock closed the day at $428 per share, representing a valuation of $1.5T. Reflecting on this milestone, I wanted to analyze what Tesla's financials were and what would be needed to justify a valuation of this level, and beyond. My high level theory is, Tesla is in a very unique spot. The core business is likely to generate $9B in GAAP operating income for the full year of 2024. Based on today's closing price, that is a valuation of 167X price/earnings. A little steep.
Buying at today's $1.5T price implies an expected valuation of $3-5T in the future (a potential double or triple on your money). To justify this, Tesla will need about $100B in earnings. So that is my questions? When does Tesla hit this number? How fast do Cybercab & Optimus contribute to the company's earnings and cashflow? Will the market continue keeping an Elon Musk premium on the stock forever, or could it decrease? Let me know what you think in the comments below!
View all episodes
By hyperchange
4.8
9898 ratings
Tesla stock closed the day at $428 per share, representing a valuation of $1.5T. Reflecting on this milestone, I wanted to analyze what Tesla's financials were and what would be needed to justify a valuation of this level, and beyond. My high level theory is, Tesla is in a very unique spot. The core business is likely to generate $9B in GAAP operating income for the full year of 2024. Based on today's closing price, that is a valuation of 167X price/earnings. A little steep.
Buying at today's $1.5T price implies an expected valuation of $3-5T in the future (a potential double or triple on your money). To justify this, Tesla will need about $100B in earnings. So that is my questions? When does Tesla hit this number? How fast do Cybercab & Optimus contribute to the company's earnings and cashflow? Will the market continue keeping an Elon Musk premium on the stock forever, or could it decrease? Let me know what you think in the comments below!
More shows like HyperChange
View all
The Joe Rogan Experience
229,728 Listeners
Ride the Lightning: Tesla and EV Podcast
959 Listeners
Motley Fool Money
3,229 Listeners
The Tim Dillon Show
12,983 Listeners
FYI - For Your Innovation
401 Listeners
The Pomp Podcast
1,847 Listeners
Everything Electric Podcast
318 Listeners
The Compound and Friends
2,166 Listeners
My First Million
2,667 Listeners
All-In with Chamath, Jason, Sacks & Friedberg
10,222 Listeners
Dwarkesh Podcast
553 Listeners
The President's Daily Brief
3,402 Listeners
Moonshots with Peter Diamandis
594 Listeners
"WhatifAlthist" | World History, Philosophy, Culture
153 Listeners
The Real Eisman Playbook
206 Listeners