Dear Reader,
Tesla's stock market price is doing remarkably well during the coronavirus disease COVID-19 economic malaise. Tesla is currently trading at approximately 877 USD, just shy of its all time high of 901 USD.
This is remarkable given that major automobile markets have experienced falls in excess of 60%. Apparently many millennial individual investors and individual investors coming from gambling and other venues help drive up Tesla's stock price. I think Tesla's intrinsic value is around 300 USD or around 50 billion USD market capitalization.
Why? Tesla's stock price is a classic bubble driven by a new prospective technology that is going to change the world. Even if electric vehicles do change the world, Tesla is by no means certain to be a winner take all or winner take most. I estimate Tesla will remain a niche player in automotive vehicles which will translate in a stock price for Tesla of around 300 USD in the long-term, provided that Tesla reaches a small net profit margin like 2-3%.
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Petar Vladimirov
Posledovich is not liable for any investment losses incurred by reading and
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Respectfully yours,
Petar Posledovich
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