Tesla's intrinsic value is 120 billion USD. This is the value of the electric vehicle technology, itself, which is pending on Tesla finding a way to produce electric vehicles profitably, without subsidies. Electric vehicles like Tesla's use large quantity of ferrous metals, which make producing electric cars unprofitable.
Since Tesla is getting somewhere around 7 500 USD subsidy per Tesla electric vehicle, Tesla is inherently unprofitable. In reality. An unprofitable business is worth 0.
So, in reality there are three scenarios for Tesla's worth:
1) Tesla finds a path to minor profitability after subsidies via a technological breakthrough. In this case Tesla is worth 120 billion USD.
2) Tesla does not become profitable after subsidies. In this case Tesla is worth 0, zero.
3) Tesla develops a new profitable business like robotic taxis, which could make money for the company. The size of such a business could be worth between 100 billion USDs to 1 trillion USDs, depending on Tesla's market share.

No comments:
Post a Comment