18-02-2021, 12:03 PM
(15-02-2021, 05:29 PM)Wildreamz Wrote: [ -> ](1) Revenue:same here, vested but no balls to add more.
Tesla has trailing PS ratio of 27.76. If ~50% topline growth holds, then by the same time next year, PS ratio = 18.5; by Feb 2023, PS ratio = 12.4; by 2024, revenues would exceed US$100bil. This is plausible since traditional auto companies have revenues around US$100+ (e.g. GM) to 200+ (e.g. Toyota) bil.
(2) Margins:
Investors need to ask themselves, what is the final profit margin? Will it be similar to ICE cars, or will they be significantly different? Margins of Tesla might be significantly more than traditional auto-companies due to brand recognition, direct-to-consumer sales, minimal marketing expense, vertical integration, continuous decline of battery cost, less complexity in manufacturing, drive-assistance software (which Tesla already sells as an add-on) etc. This is before other adjacent market potential is considered (solar roof, Powerwalls, recurring cash flow of Tesla's supercharger network, utility scale battery storage, tax credits etc.)
If revenue growth trajectory and final profit margin assumptions hold, then current valuation is likely justified.
Peace.
(vested, but not adding more at current levels)