Tesla Inc. designs, develops, manufactures, and sells electric vehicles, electric vehicle powertrain components, and stationary energy storage systems in the United States, China, Norway, and internationally. The company was founded in 2003 and is based in Palo Alto, California.
TSLA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Tesla Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Tesla Inc ranked in the 9th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for TSLA, they are:
The company has produced more trailing twelve month cash flow than 92.24% of its sector Consumer Cyclical.
98% of the company's capital comes from equity, which is greater than 91.1% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than merely 8.86% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Tesla Inc? See AEO, BYD, KMX, MLCO, and UAA.
Tesla (TSLA) had a tremendous 2020. The electric vehicle maker became the sixth most valuable company in the United States - trailing only Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Facebook (FB). In the process, the company's CEO, Elon Musk, became the wealthiest man in the world. While...
About Tesla's (TSLA) market capitalization, there's nothing more to say. One either believes the company is absurdly overvalued, and perhaps the greatest stock bubble of all time, or one believes Tesla is set for world domination and will grow into its current valuation (or, indeed, even exceed it). Incidentally, those...
Montana Skeptic on Seeking Alpha | January 21, 2021
Tesla’s vehicle registrations recorded in California, its largest US market, spiked almost 63% in the fourth quarter versus the same period last year, according to a Reuters report, which cited data from Cross-Sell. The data showed that the quarterly registrations were largely driven by demand for Tesla’s (TSLA) Model Y. Registration numbers in California, a bellwether for the electric vehicle (EV) maker, rebounded from a third-quarter low of about 16,200 vehicles to around 22,117 vehicles in the three months ended December, according to the report released on Wednesday.
The Tesla (TSLA) juggernaut was virtually unstoppable in 2020. With less than a month gone in 2021, the EV pioneer has continued the upward trajectory. The stock has already accumulated 20% of gains year-to-date. While remaining on the sidelines, Wedbush analyst Daniel Ives believes Tesla shares should have a bit more fuel left in the tank. The analyst boosted his price target significantly to $950 (from $715), implying ~12% upside from current levels. There's no change to Ives’ rating, which stays a Neutral (i.e. Hold) for now. (To watch Ives’ track record, click here) Ives centers his thesis on China, where the analyst says consumer demand has skyrocketed into 2021.