TSLA Is extremely undervalued and I'll tell you why I believe the stock will be worth IMHO 15x its current value in the next 10 years.TSLA has a market cap of $34B as of market closing Friday May 24th. The brand is most known for electric Vehicles and a controversial & genius CEO.Revenues for 2019 is expected to be $30B...so it will be trading at 1x sales and revenue has been growing at a clip of approx. 60% per year.
Tesla's revenue grew 10x in 5 years...that's insane. If Tesla's revenue grows by half that compounded amount in the next 5 years it will have revenue of $75B! At 5% net margins which is typical for the automotive industry(And Tesla is far from being "Typical") profit can be $3.75B. With a p/e multiple of 10, it is a $37.5B company all day long--basically where it sits currently.
Year after year I see more and more Tesla's on the road and every person I ask who owns one says they love it--including me!
Oh ya, that's right...
TSLA also owns the largest Lithium battery plant in the world...the Gigafactory. I forgot about that... the vision here is to make lithium a highly used energy source for powering cities and supplying other automakers with energy units for their cars. Genius. Lithium battery sales alone can outpace their auto unit.TSLA is such a new company..it hasn't even begun to monetize on the brand and technology in other areas like Honda, Ford, and Toyota. Tesla can come out with Motorcycles, Pick up trucks, Freight Trucks, Seadoos, Motorboats, lawnmowers, and the list goes on...and let's not forget Autonomous taxi services (UBER valued at
70B with half the revenue of TSLA). Of course, Tesla has to get it's shit together with vehicle production first; but when it does and it will, the company will come out with a forest of other products that it's raving fans will purchase. Today at $190 a share the company is a steal and a half.
The company has such a strong world-renowned brand and is at the cusp of the worlds most crucial topic; Climate Change. The funny thing is it spends basically $0 on advertisement when other automakers spend billions.
In conclusion,
TSLA is a great risk:reward investment. The downside is always the most important thing to look at in comparison to the upside and IMHO Tesla has very little downside in terms of its fundamental value. Remember Apple in the 90s (nytimes.com/2018/08/02/technology/apple-stock-1-trillion-market-cap.html).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.