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Is Tesla Stock Fairly Valued?

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Manage episode 461323055 series 2416899
Content provided by hyperchange. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by hyperchange or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.

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!

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354 episodes

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Is Tesla Stock Fairly Valued?

HyperChange

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Manage episode 461323055 series 2416899
Content provided by hyperchange. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by hyperchange or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.

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!

  continue reading

354 episodes

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