Tesla at a Trillion-Dollar Market Cap: Revisiting its Valuation

[@0xfarai]

Love the intellectual honesty, and constant update of one’s beliefs.

[@smallhabibidecisions9649]

Rarity

[@WeaponGrade]

“Never underestimate a man who overestimates himself.” -Charlie Munger. Thank you prof for this and all other fantastic videos.

[@ndon85]

that quote is from Roosevelt

[@WeaponGrade]

@@ndon85 Interesting. Thanks for clarification. I had heard Charlie say it in one of his Q&A sessions.

[@Sam-fp8zm]

overconfidence leads to someone killing themselves or others eg drink driving.

[@DennisFinancialDoctor]

Please show us your updated valuation. So much has happened since this video! Thank you professor!!

[@charliestanton2987]

This is a MasterClass lesson in valuation, analytical thinking, class, humility, and a general ability to think constructively.

[@kfallon4]

its wrong though, he has a max of 16% operating margin by year 5 however operating margin will be around 18% in Q4 earnings in less than TWO WEEKS

[@charliestanton2987]

@@kfallon4 he is assuming a sustainable margin. And for Q3 ‘21 it was close to 15% but for the 9 months ended it was around 10%. Consider seasonality and general accounting gyrations before assuming a higher sustaining operating margin.

[@kfallon4]

@@charliestanton2987 I disagree. He does not understand why margins are increasing. 1. Higher % of cars are from next gen factory which is an order of magnitude more efficient than Fremont 2. Higher % of cars sold are Model Y which cost less to make than model 3 and sell at a higher ASP 3. Tesla has increased prices significantly throughout the year on all models due to overwhelming demand 4. Tesla places paid labor to build cars as part of COGs. Reading past few quarters earnings reports, you'll see operating expenses remaining flat. That means profit from any additional cars squeezed out of these factories falls directly to bottom line

[@charliestanton2987]

@@kfallon4 the reason it’s a masterclass is because he coherently laid out his assumptions and derived a value. Instead just saying Revenues will be X, and a margin is Y, and then multiply a random PE to get some value. And he presents his model in a way you can replicate, so if your assumptions are different, then adjust it to what you believe and see the resulting value. He also is extremely generous for the Sales to Capital ratio of 4x which is higher (and double) any auto manufacturer currently. And most companies for that matter. Facebook is a 2.5x sales to capital ratio and they don’t manufacture anything so TSLA having a 4x is unreal. Value is in the eye of the beholder. If you think the numbers are better then you can estimate that. The point is he laid out very generous assumptions given the economics of the auto industry. But at least he laid them out in a easy to understand format. If their is more operating leverage like you suggest then you can model that and get a value. I just think with added capacity has added fixed and variable costs so any high margins (+15%) aren’t sustainable. Especially as the company’s scales and tries to reach a mass market I personally believe prices will need to come down to be a mass market car company. Hence lower margins. Ferrari has the best margins of any car manufacturer but they also produce very little cars a year and can charge insanely high fees.

[@andybaubau5961]

@@kfallon4 let's see with recession comin how good will sell

[@Boy90547]

He is one of the profs I admire and learn a lot. He is humble and welcomes disagreements.

[@salali2965]

I bought Tesla at $111 and I look forward your update 😍

[@BedroomPianist]

23:50 "Elon Musk seems to have become much more subdued [...]" 2 days later, he tweets a Twitter poll deciding the fate of 20B worth of TSLA shares

[@14nst3w4rt]

that's another con by Musk to make you think he is listening to the social media fans. He would need to sell some shares to exercise his massive volume of options which are due to expire in the next year. So he's selling off now to not cause a reaction next year. He's giving you the illussion that you are guiding him,... but in reality he is several steps ahead.

[@Antremodes]

Ironically, your lectures are what helped me build the confidence to buy and hold Tesla. We may disagree on the story, but your videos have been invaluable. Thank you!

[@lifeofkieran1359]

Are we watching the same videos 😂🤡

[@wolfiestreet6899]

Look at diamond hands over here!! Only a profit on paper.

[@realScottThomas]

@@lifeofkieran1359 yeah I need to know how he connects what he says into buying Tesla.

[@wesleychambers16]

@@lifeofkieran1359 tesla clowns don’t listen. They are a cult

[@lifeofkieran1359]

@@wesleychambers16 modern day cisco

[@wesleysanders8570]

Aswath, as a Tesla bull I still think your valuation process is thoughtful and reasonable- great video. Of course, for Tesla to live up to its incredible promise will require achievements unlike any before it. (And personally i'm expecting that). I don't blame you for selling the stock it has always appeared expensive, but its good to see you correctly identified 2019 as a golden time to get into the stock. I got in back in late 2012, which was excellent for the next year, but then fairly flat for the next 5! If someone just invested in 2019, they would still have the lions share of gains.

[@yanlongfu8443]

Love what you've been doing, Prof. It's the most vivid valuation case a student could ask for. Thanks a lot.

[@yuvraj94]

As always, what an amazing lecture! I wish my university profs taught like this

[@collinguidry9867]

Finally an analysis with real substance and reasoning. There are so many clickbait channels that focus solely on TSLA stock with vague names like "solving the money problem" which value it at 2 billion. Never do they actually work with spreadsheets, look at margins, and instead focus on the latest news/hype.

[@rohith1]

just rewatched this on Dec-2022, epic analysis! Looking forward to see your valuation update with new estimates and current cost of capital.

[@cowboybuddhaful]

You're a legend, Professor! Thank you so much for putting out these great videos and blog posts, the world is better for it. Please keep up the great work. This analysis is fantastic and I couldn't agree more with you (despite holding some shares)...

[@ronniefleischer9065]

Outstanding video Prof Damodaran. Cheers from a student from your MBA Corp Finance class spring 2008 and Valuation fall 2009

[@karthikeyanboopathy2933]

Dean - We look forward to your revised valuation thesis for Tesla!.. And more than that, I am curious to see if the current stock price interest you to buy Tesla.

[@aimlesfez]

"Elon is less volatile" Elon musk initiating poll: and I took that personally

[@JasonNathanael]

Exactly my thoughts :)

[@CaliBluex99]

You do know that Elon controlled the narrative by doing that right? Instead of dumping 10% of shares cause of tax purposes, and Tesla stock holders wondering what's going on. Elon controlled the narrative instead by letting ppl think that their votes mattered, knowing ahead of time, that they would vote the way they did. 4d chess

[@muskangarg3015]

Thank you professor for uploading these lectures on youtube. It's a pleasure to listen to you.

[@ahujajee]

Love the way you narrate such complex things in a simple layman language. More power to you doc! Salute.

[@ytb85]

Thanks for the update prof. Incredible learning experience with every lecture. I really enjoy the luxury of learning despite being just a university grad and a postal MBA

[@rushil2cool]

Thanks a ton prof for putting yourself out there with honesty. I’ve learnt a ton about business ans valuation from your videos.

[@77magicbus]

Great Video ! Can't wait for next Nov ! I sold 525 shares of tesla stock recently so I could transfer out of a retirement program at work. It was a non taxable event since it was rolled over into like retirement accounts containing both Roth and Traditional IRA shares. No regrets. I still have 1165 Tesla shares in 2 other accounts which I bought at a cost basis of only $82. Tesla is down about 30% from the top so far, and about 5% since I sold it. It could fall much much more however in the coming months. Any recession is going to affect almost every stock and inflation is a component of many recessions. Bottom line is I still love the company but think the stock is overvalued/ highly valued presently. I locked in a 418k profit in 2 years and escaped a confusing mess of a retirement program. I could regret it if the stock were to go back to recent highs but that is not likely anytime in the next 12 to 18 months. It was priced for perfection. Still has a PE multiple of 180 ! I don't think the stock can maintain that type of PE ratio in the face of the current market headwinds. We shall soon see.

[@Motivation2Invest]

Incredible Analysis Aswath, Filter for the noise of the Market. 👏 I think Tesla is a fantastic company, but people forget investing is about probabilities.

[@imad_uddin]

Just because prof Damodaran is so honest about his judgements and decisions in the hindsight, this video provides an invaluable insight. Cant thank you enough!

[@amitmane3619]

I am new to your channel and until this video I use to think Tesla as a bubble waiting to burst, perhaps I need to look harder. Thank you so much and it's pleasure and privilege to listen to you.

[@maxin3231]

I watched the whole 30 minutes video. When you speak I listen. Thank you!

[@ravi_shrivastava]

Dear Prof Damodaran, I am great admirer of your knowledge and logical thinking. Your valuation of TSLA at market cap below 700B is true now (642B on 14 Oct 22). In the last 11 months, three things has happened. 1) Cost of capital gone up (rising inflation and interest rate) 2) TSLA has demonstrated excellent production capability 3) New revenue streams are visible for the next 2-5 yrs (FSD and Robots, both would be powered by AI and puts TSLA as Tech company, high margin business and extra large Target Addressable Market). Would you like to re-visit TSLA valuations at the anniversary of this video (Nov-Dec 2022).

[@ThaboHermanus]

Thanks for the update, and completely sold on your structure of rather hold on to your investment philosophy, and leave money on the table than chase the money, and make it, at the cost of throwing your investment philosophy out the window. This is a long game…

[@macleanandrades4579]

Another very well made and simple to understand video! If there were more Teachers like yourself, i am sure the world would have much more financially literate people :) Thanks for your effort and dedication.

[@caunteya]

It's always enlightening to hear Ashwath's lectures.

[@gszabo7464]

Thank your sharing your thoughts! Always good to listen and learn from you!

[@realScottThomas]

Yess. Always look forward to your videos. Please do an update on Alibaba please.

[@imad_uddin]

One of the key lessons in this video for valuers is that we need to put some thought on the terminal growth rate as well. Despite your 2013 projections being better than actual results, the value should have been be way higher in the hindsight. The difference comes from the following question: how long we expect a company to shield its competitive advantage (in tesla's case without even shielding its patents) , and based on brand and product what its eventual market share should be (and in how many markets). In some cases to achieve that market share it could take 15 years or more. Valuers need to be more thoughtful about terminal values🤕

[@Pawankpandey]

Solid prof, you are legend. Your valuation videos have helped me to make my own valuation models.

[@mbk928]

man you are straight A GREAT INVESTOR, i would say... I would like just to eco what I read in the "charli munger the complete investor" book, which is most of the time you invest in the fundemnetal not the ceo or what not, but very rarely the ceo is a big part of the investment thesis!! great job, and I really solute you for selling because of the valuation, most investor will just ride the momentum without knowing the valuation or fundmentals.

[@JoelChenFa]

The problem with a very charismatic CEO is that the charisma makes the shares very expensive from all the groupies

[@wolfiestreet6899]

I've never owned an Apple product, and never will, specifically for this reason.

[@eigenvalue9358]

Were they ever expensive in hindsight?

[@wolfiestreet6899]

@@eigenvalue9358 Yes, they are merely more expensive now.

[@eigenvalue9358]

@@wolfiestreet6899 and will be more expensive in the future ;)

[@wolfiestreet6899]

@@eigenvalue9358 Maybe. Maybe not. Only time will tell.

[@sureshnishtala2887]

Great Analysis Professor .....Tesla intrensic Value is at $571 and I bought almost around same price...

[@victorphilip875]

After 20 years in finance, my conclusion is that price is still determined by supply and demand, not by value. Thank you for the video, Professor.

[@abrahamcde6366]

The current price of a security is always determined by supply and demand. The only question is, if value drives price over the long run. Don’t confuse the two.

[@victorphilip875]

@@abrahamcde6366 Yes, my point exactly and there is no confusion. There is no requirement that it does.

[@ashisprajapati7923]

the last 5 minutes are pure gold. learn it

[@djmadmike23]

IKm part of betterinvesting and when we do stock valuations to decide if we as a group should purchase they flow just like this but your style is way better. Great teaching tool

[@ankitt05]

Thank you Ashwath for your contribution

[@suntacha]

Brilliant analysis as usual! Thank you Professor!

[@ruslankilmukhametov8421]

Thank you so much. Great story for the valuation. Let me share my view: 1) I view TSLA is rather gadjet/software and big data processor producer (like Apple, AMZN, ALPHABET, NTFLX) then car producer. TSLA as a cat is rather an iPhone on the wheels then BMW with quite complicated mechanics. TSLA's software is way far (3-4 years) ahead of what any car producer have (I own BMW, I love it, but in terms of software it is Nokia vs Phone). Data processing, i.e. miles of autonomous driving is far ahead of any other car producers (except Volvo, maybe), that give huge advantage of forthcoming autonomous self driving car market (taxi, car sharing). 2) Above assumption lead us to higher margins and higher market share (the closest example for me is Apple and Samsung with their market shares and margins), where TSLA is like Apple and Samsung is next big car producer (say Toyota or GM). 3) Addiction. Like Apple TSLA is be loved company vs Toyota or any other Korean, Chinese car producer. This will keep margins for a longer period. 4) May be there will be somebody like MSFT, which is not so loved, but performs much better during last years. Maybe Alphabet, who is also investing in autonomous driving and maps. And even with all this assumptions it looks overvalued now. But again, may be I've missed something like other revenue stream that is still not aware to me (like Apple Store was not visible from the very beginning). If TSLA to lunch its software platform or ecosystem, or OS this may change the game

[@bio-hazzard1233]

The thing is, TSLA is already valued at a price that includes all the avenues they ventured into. To add on top of that, these other avenues they're in aren't even profitable or working. Take for example Solar city, they realized it's much harder than originally anticipated; so they had to pull back on it.

[@ruslankilmukhametov8421]

@@bio-hazzard1233 right you are.

[@jasonwang4502]

Would love an updated valuation!

[@SinisaStojanovic]

Thank you Professor 🙏

[@nooruddinparmar7934]

Absolutely the right decision, because you have to believe in something. You’ll be applying similar valuation techniques to other stocks and this is your process and not the herd mentality. Stocks can gain or lose but if the fundamentals of a company are not solid relatively to the price than that’s a bigger concern. You are buying company no just stocks.

[@eigenvalue9358]

Very much appreciate you sharing your view, even if I disagree slightly on your growth projections, which leads me to belief they are valued fairly or slightly under if you just look at the automobile business, which you analyzed. My reason to remain extremely bullish are all the free options you get with it, be it energy, full self driving, tesla bots, hvac or whatever else they come up, which are all huge opportunities by themselves. As you are aware, this is the ultimate weakness of your models, as you only model existing things, not the the story.

[@nobless_oblige_dignitas]

Great video! Tsla as a company has a bright future! With a p/e ratio of 351.08, TSLA stock is supremely overvalued at the moment though. Sorry you sold out too early! Water off a duck's back though. What matters most is that you stuck to your trading plan and tried to learn something. Than you for your videos!

[@vinitbaliyan9418]

Can you please do evaluation now?

[@jgonz1325]

You didn’t factor in the possibility that tesla will become an autonomous robotaxi company. You need to account for this possibility in your valuation. TV growth rate seems rather low. Margins are close to 30% currently, so why assume 16%?

[@1jokijoki]

Very useful professor. Your video in 2019 was a huge reassurance for me back then. At that point Tesla was like 20% of my portfolio (I had been adding since 2016) and had them valued close to $400 per share. Of course just like yourself I sold at $800 per share but I don't regret doing so, we all clearly got these one wrong haha. I'm still using your spreadsheet from back in 2019 and currently have it valued at $510. Very bold of you professor to give them a 4 sales to capital ratio right there, I can sense your really wanna be invested in this one just like myself ! If you don't mind me asking, looking back to 2013, do you think making 20 years DCF valuation would have allowed you to stay invested for all those years? Or do you consider doing so as pointless or losing your investment philosophy? I thank you so much for all the knowledge you share with us and can't wait for the next video! (If you think a 20 year DCF valuation makes sense I hope you make a valuation on BYND like that haha)

[@icinsurance9517]

bynd products are ultra processed....in my opinion people use their products as experimental stuff....not a replacement of actual meat....they don't have repeat customers

[@wolfiestreet6899]

I think the point he is trying to make is that if he gave Tesla the very best case scenario to the point of extraordinary performance, it still can't justify the current valuation. This means that at some point in the future (don't know how, why or when) it will likely 'revert to the mean'. You weren't wrong. You acted entirely rationally and made a profit while avoiding the risk of high volatility.

[@Flyingblackswan]

Your approach to valuation is spot on so I have no issues with it. The only issue I have is that your valuation is based on the assumption that Tesla will remain primarily an auto manufacturing company. I respectfully disagree with this assumption. Tesla is a tech company and one of the services it will be offering is cars but besides that it has the potential to enter different verticals (power management, selling software, auto insurance, ride sharing, etc). For this reason, I believe Tesla will try to succeffully attempt what General Electric failed to attempt (failed due to GE financing and poorly run subdivisions). Will it work? No one knows that. But the market is valuing the business more closely to the assumption that Tesla isn't just an auto manufacturing company, hence the trillion dollar valuation.

[@paulf3353]

If you live in a tech world, you'll know that you never invest in anything based on a promised features. At the moment Tesla is just a car company, their other business is very small. However, if we keep in mind those other businesses, BYD for example is much better investment. They're making wide range of vehicles, Battery storage, self driving, they're also actually a battery manufacturer, Tesla is not.

[@Flyingblackswan]

@@paulf3353 trading Chinese stocks is not actually owning any stock in the company since the are all ADRs. Not worth the risk at all

[@paulf3353]

@@Flyingblackswan I hope Buffed did his research ))) Risk is significantly overvalued.

[@sharemedia8069]

Thumb up professor, I just DCF to value TESLA@350/share. However this stock did overshoot for quite a lot recently. But I believe patient is your friend.

[@ap_anuragpandey]

This was a great video. Thank you for sharing! There is always a lot to learn from you.

[@niceguy3148]

this video marked the top in TSLA

[@rodrigoyanez3982]

Thank you professor!!! 🙏 very wise conclusion 👏

[@jelanimillard1217]

Thank You, professor! Great analysis and self reflection

[@sjalexandernz]

Saw you on CNBC... Instantly subscribed.

[@goldreserve]

The 2013 predictions are remarkably accurate. Sold my last Tesla shares at $720. Tesla is my favorite company but don't feel confident in the current valuation. Mkt cap/EBITDA, Tesla 170, Apple 21, Amazon 29. Likely there will be a accidents caused by FSD Beta sooner or later. A channel called 'Common Sense Skeptic' is covering the SolarCity trial and issues to do with Elon's other ventures.

[@smallhabibidecisions9649]

common sense sceptics critizism is 90% anecdotal bullshit from what ive heard so i wouldnt take much from him personally...

[@rolandm.9652]

Thank you for the insights professor, but whats bothering me is that when other automobil makers like BMW and Mercedes step in to the market with both legs I dont see Tesla as a company be leader in this segment.

[@ARMAfuckenGEDDON]

My thoughts exactly, 6 years ago. Still hasn’t happened…apparently its not that easy for them. I think traditional car manufacturers got complacent, too big and unwieldy to change

[@wolfiestreet6899]

I agree, they have history of glory, heros and legends where as tesla has never built a classic. The brand has limited appeal, its not sexy. Then of course the elephant in the room. Will batteries become obsolete from a better alternative power source? I think people should be seeing teslas as battery powered EVs, rather than just EVs. The EV market itself could become more diverse in term of power source.

[@madhumoney]

Excellent revisit, Great Work!

[@juanbd98765]

Thank you, Aswath! Keep uploading your thoughts :D

[@王路飞]

Great video professor, appreciate your education in valuation!

[@honestypolicy5324]

Hey guys, at 24:31 in the value section, he hes a negative of “value of equity options” what is this and where did he get it from?

[@stertcraft]

Thank you for sharing this with us, sir!

[@minimalisthealth]

Hey Aswath. Thanks. Genuinely.

[@kunalgandhi]

Fantastic video, professor.

[@ktan8]

What did you buy with the money you got from selling Tesla? (i.e. what company did you like better than Tesla at that point?)

[@mohammadmoslemuddin7274]

Thank you, Sir. Really love your work.

[@Bl4ckDoT_]

Can someone please link me to the video mentioned at the beginning (2h video) where he goes step by step filling the excel sheet? I looked at his November 2021 videos and couldn't find it.

[@guruprasadmajalekar6162]

Nice to hear u Sir.

[@MonsieurDee]

Great video again professor. Thank you for sharing

[@frankymacf]

24:44 USD571. I valued it around the same in January 2021. I sold.

[@handymanird1632]

Very insightful assessment. Is there any updates on the assessment given the recent series of events (Twitter takeover and stuff), and huge drop of Tesla share price?

[@filipecruz7103]

Thank you for your perspective professor

[@yellowfish555]

why is the terminal growth only 1.56% ? there is growth from china india and other parts of the world + growth from inflation.

[@entaditorium]

It's mind blowing how much Prof. Ashwath is right in terms of predicted revenue in 2013.

[@mydutube]

Thank you Prof. The operating leverage is playing out on a steep curve. Looking at the most recent quarter is more helpful to understand the real operating margin potential. Q3 2021 was at 14.5% despite high Stock based compensation from CEO plan. Q4 operating margin is estimated to be in 18-21% range.

[@vivekshotti]

waiting for your Nyaka valuation analysis

[@banditkarim2577]

Thanks! In my several year out story, I would add the potential for low cost, perhaps initially mediocre, Chinese electric car competition. A rerun of the initial introduction of Japanese then Korean cars.

[@UnknownChimera]

Dear professor, your next challenge could be Palantir. Would be amazing if you could do an analysis on this extremely difficult to analyse stock.

[@filipecruz7103]

Are you guys able to download the spreadsheet? Im not

[@FireEverLiving]

If your 2013 valuation underestimated 7 out of the next 8 years' revenues but still undervalued the company, what went wrong with your valuation? Was the main problem that you should've set a pretty high perpetual growth rate to reflect the fact that a big part of Tesla's value proposition is the possible ability to deliver significant growth 10+ years in the future rather than any revenues in years 1-10? Thanks for the video.

[@viirusiiseli]

Iirc wasn't it the fact that Tesla turned from a high-end car company to a more generic one for a larger customer base?

[@Lucky008aau]

wonderful analysis, as far as I can tell.

[@niqmk10]

What do you think prof about digital bank that invested by WB? Right now they're still minus on net income

[@seeker7964]

Founder is the key and not financials of the company. Moral of the story.

[@platoscavealum902]

👍 thank you for an excellent update

[@glorialiu7536]

Can you please update Tesla valuation since it down 60%?

[@dattaganesh1]

Have you considered valuing the robo-taxi service ? And the Optimus bot business as well.

[@rehanqureshi2609]

Professor, can you do a valuation on Rivian?

[@urosuros2072]

Great breakdown , but thinking of Tesla as a value company is wrong Tesla is a retail hype stock , and is value that way , the more price rises more retail get excited and because of FOMO buys at higher and higher prices

[@walkingphilosopher]

I am a huge fan Professor. Could you please kindly consider valuating Moderna? 1. It is a very popular stock. 2. It is company with 1 commercial product, a covid vaccine. 3. Sales from that 1 commercial product is good but it will diminish very quickly after 2022. 4. They are boasting their other candidates in their pipeline. 5. Yet the their next candidates will probably not be approved before late 2023. What will happen if the revenue from their covid vaccine drops before the approval of their next product? It would be crystal clear if they were a small company with low cash. But they are the exact opposite. They have lots of cash. Thanks!

[@bjdjsbxnskznkwksokxnxnwi6917]

Their operating margins and revenues could be much higher if they sold software related to cars like autonomous driving or if they shared battery technologies

[@wolfiestreet6899]

And could be wiped out if an alternative power source that's better hits the market.

[@wildreams]

@@wolfiestreet6899 Battery is a mode of energy storage. By "power source" you mean energy generation? That would be irrelevant to Tesla. If you refer to improved battery technology, rest assured that Tesla can adapt and use new battery technology relatively easy.

[@wolfiestreet6899]

@@wildreams No, you're trying to manipulate what I said. Only I can verify what I said.

[@wildreams]

@@wolfiestreet6899 Please do, thanks.

[@wolfiestreet6899]

@@wildreams self explanatory.

[@gianpaoloscanu3028]

Great video!

[@moony9327]

Hello Prof, would you be interested in doing a valuation on Lucid Motors?

[@ThirdWorldDave]

Loved the insights here, thanks for the video!

[@shengfalin2690]

Hi Professor Damodaran, I noticed for your revenue estimation, you are using revenue as the percentage of total market share and I think you are assuming the total revenue is 2.4T for the entire auto industry. While that makes sense, I think it's also important to estimate it by projecting the number of vehicles Tesla could produce and the average selling price for them. Why do you use 2.4T as the total auto industry? Is it possible that in the future the cost of electric automobile would be lower and more people would be able to afford them, therefore, the total revenue grows larger?

[@loyaranha9753]

Professor its the ultimate MEME Stock!

[@shivamraghuwanshi4365]

Hi, Professor. I have one question. In slide 15 we are giving different market share to Telsa assuming that the market growth will be the same but given that it is a underpenetrated market (EV) don't you think that we should also consider that the market will also grow rapidly as we proceed in future?

[@ARMAfuckenGEDDON]

Are you implying EVs are not cars?

[@sijiajiang1848]

just make a bold assumption: all the autos are replaced by EV. That's basically how the potential revenue is estimated with the help of the market share estimation.

[@wolfiestreet6899]

@@sijiajiang1848 Not just EVs, but battery powered EVs. There's an elephant in Teslas living room....

[@shivamraghuwanshi4365]

@@ARMAfuckenGEDDON I wanted to say that EV market growth will be higher than conventional automobile market for obvious reasons.

[@shivamraghuwanshi4365]

@@sijiajiang1848 has that been implemented anywhere in this valuation?

[@gambhira99]

what about considering the future advertising revenues through Tesla Networks? just like the App store for cars 🚗