Oil's price, for both the Brent and Crude sort variety is nearing 120 USD and driven by recent political developments oil's price could shoot up a lot higher.
These developments, in theory, should increase the intrinsic value of Tesla Inc, the electric vehicle manufacturing company.
That said, however, I am still of the opinion the Tesla is worth only around 120 billion USD and this is based predominantly on Tesla's technology set. I have been sticking to my estimate of Tesla's intrinsic value for some time now, despite that at the Tesla stock price's recent all time high Tesla's market capitalisation recently surpassed 1 trillion USD.
Tesla is simply unprofitable without government subsidies currently, which means currently Tesla's technology is not viable for Tesla to produce a yearly profit without government subsidies. Up till now Tesla has financed its business via issuing more stock and selling it to investors. Such a strategy of consuming outside cash can only be viable for a certain period of time. Sooner, rather than later Tesla must make a technology leap to start producing electric cars with a profit.
The spiking price of oil could drive some demand toward Tesla's production line up, but it will not change dramatically Tesla's bottom line.
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