From Seekingalpha · Oliver Rodzianko · · 30s
Tesla's Valuation Challenge
Tesla's growth demands high returns to justify its stock price.
In brief
Tesla's growth demands high returns to justify its stock price. Tesla's stock requires 29% annual EPS growth for 10 years to maintain premium valuation. Originally reported by Seekingalpha.
Tesla's Business Strength
Tesla's integrated software, manufacturing, charging, and energy businesses could sustain premium pricing.
Investment Requirements
My $367 TSLA stock valuation scenario requires 29% annual EPS growth for 10 years then 10% for 20 years.
Stock Rating
I rate TSLA stock a Hold: exceptional business preserves valuation premium but growth scenarios lack margin of safety.
The main idea
Tesla's stock requires 29% annual EPS growth for 10 years to maintain premium valuation.
