Showing posts from June, 2020

Tesla: Outperform @ $1000

Tesla Update: Live Blog
Sept 23, 2020
Current Price: $424 (Sept 22)  12M Target Price: N/A Fair Value Price: $262 (Fair value is based on a Forward P/S of 7) Revenue Estimate: $35 Billion for 2021 (Estimate is based on Future Sales of 700K x ASP of $50K)
Comment: The company recently had their shareholder and battery day. They announced innovations that would allow them to scale, bring down cost, and increase range. Due to these announcements, I have increased the current fair value price. Tesla, in whole, deserves a premium valuation versus the rest of the industry. 
------------------- Sept 3, 2020
Current Price: $447 (Sept 2, 2020) 12M Target Price: Unknown Fair Value Price: $200  (Fair value is based on a forward P/E of 50 with 12m EPS of $3.20, plus 25% premium to take private.)

Comment: Tesla had a recent 5 for 1 stock split. Tesla stock is currently overbought and will eventually correct itself. Our fair value price is unchanged at $200 and will be updated on a quarterly basis.