Mario Kadastik
Active Member
For once a not FUD SA article on Tesla valuation:
Tesla Motors Inc (TSLA): Dear Tesla Bulls: That's Not How You Calculate Tesla's Value - Seeking Alpha
Yes, there are risks and the current valuation already assumes near perfect execution that people should be aware of. Yet the author still misses on some items. The Model S GM of 25% is not only for the highest cost models. It's the net average of the sold cars and is in fact targeted above 30% (EM's goal options). Yes it's true we shouldn't assume 25% for Gen-III, that's more likely to be 10-15% GM product, but who knows. Even with the very conservative GM assumptions the author isn't too far off from current value so changing those assumptions to more realistic ones should give us current fair value around the current stock price.
Tesla Motors Inc (TSLA): Dear Tesla Bulls: That's Not How You Calculate Tesla's Value - Seeking Alpha
Yes, there are risks and the current valuation already assumes near perfect execution that people should be aware of. Yet the author still misses on some items. The Model S GM of 25% is not only for the highest cost models. It's the net average of the sold cars and is in fact targeted above 30% (EM's goal options). Yes it's true we shouldn't assume 25% for Gen-III, that's more likely to be 10-15% GM product, but who knows. Even with the very conservative GM assumptions the author isn't too far off from current value so changing those assumptions to more realistic ones should give us current fair value around the current stock price.