Aswath Damodaran Tesla Stock Price and Value

Aswath Damodaran, a renowned finance professor, has been analyzing Tesla's stock price and value in his lectures. He has estimated Tesla's cost of capital to be around 7.5% to 8.5%.

Damodaran has also calculated Tesla's terminal growth rate, which is the rate at which the company's earnings are expected to grow in the long term. He has estimated this rate to be around 4% to 5%.

Tesla's stock price has been volatile over the years, with Damodaran noting that the company's market value is significantly higher than its book value. This is due in part to Tesla's brand value and its position in the electric vehicle market.

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Damodaran has been reviewing Tesla for many years, and his latest valuation is a great example of how his views can change over time.

In June 2018, Damodaran valued Tesla stock at $175 per share, which was based on the assumption that Tesla would touch $100 billion in revenue by 2028.

At that time, the stock was trading at about $360 per share, making it significantly overvalued in Damodaran's opinion.

However, in June 2019, Damodaran raised Tesla's value to $190 per share, considering the improvement in Tesla's performance in the past year, its revenue growth, and its improved profitability.

The stock was trading at around $185 per share at that time, making it slightly undervalued according to Damodaran.

Damodaran's analysis is a great reminder that stock valuations can change rapidly based on new information and changing market conditions.

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Damodaran has a complex opinion on Tesla stock, having previously expressed negative sentiments but now considering investing in it.

He doesn't like Tesla's high debt levels, which he believes will lead to rating downgrades and put the company's growth story in danger.

Damodaran also thinks Tesla is not reinvesting capital fast enough to meet its demand, and production disruptions are affecting the company's revenue growth.

Musk's tweets are another concern for Damodaran, who thinks they've landed the CEO in trouble multiple times and would prefer him to be banned from tweeting as a shareholder.

Aswath Damodaran has been reviewing Tesla for many years, and his valuations are worth taking a closer look at.

In June 2018, he valued Tesla stock at $175 per share, based on the assumption that Tesla would reach $100 billion in revenue by 2028 and expand its operating margin to 10% in the same period.

Damodaran initially saw the stock as overvalued, considering it was trading at around $360 per share at that time.

However, in June 2019, he raised Tesla's value to $190 per share, taking into account the company's improved performance, revenue growth, and increased profitability.

The stock was trading at around $185 per share at that time, making it slightly undervalued according to Damodaran's revised valuation.

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Aswath Damodaran is not afraid to share his honest thoughts on Tesla stock. He's been reviewing the company for years and has had some varying opinions on its value.

Damodaran valued Tesla stock at $175 per share in June 2018, but saw the stock as overvalued at that time. The stock was trading at around $360 per share.

However, in June 2019, he raised Tesla's value to $190 per share, considering the company's improved performance and profitability. At that time, the stock was trading at around $185 per share, making it slightly undervalued.

Damodaran has his reservations about Tesla, particularly its high debt levels and slower reinvestments. He believes the company would be better off using equity instead of debt.

Elon Musk's tweets are another thing that worries Damodaran. He thinks Musk's tweets have landed him in trouble many times and would be a concern for any shareholder.