I wanted to give a preview of my valuation for Tesla Motor Inc. that I performed in October 2016. The stock is trading at $243 and my valuation had pegged it at such. Unfortunately, I exited the trade at $220 thinking that some of my input were outlandish. I still think they are, but its interesting to see how the Solar City acquisition has played and what momentum the stock had in response to Mr. Trump and his staunch protectionism and Americanism.
Again, here is a short preview with some pro's and con's to see what I see in Tesla's journey:
Upside:
- Cutting
Traditional Automotive Cost
- B2C model and not a B2B (dealership and discounts)
- Less Marketing Cost
- Engine build will be more standardized and thus more
cost savings
- Control of its Supply Chain / Vertical Integration
- Licensing Software
Downside:
- Cyclical
Risk of Auto-Sales
- Regulatory
Environment
- Competitors
- Consumers & Cyber Risk
Below is the actual model:
No comments:
Post a Comment