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If the whole car market goes EV and Tesla keeps their share of it (17%) and maintains their margins (20%) then that is 4000 * .17 * .2 = 136B profit per year. T
by erikpukinskis 7y ago
If the whole car market goes EV and Tesla keeps their share of it (17%) and maintains their margins (20%) then that is 4000 * .17 * .2 = 136B profit per year. That would justify a trillion dollar valuation.
I expect them to fall short of that model in auto sales, but I expect mobility services and stationary storage to make up the difference.
Either way there’s plenty of headroom in that equation for more conservative models that still yield a $100B valuation. E.g. 2000 * .08 * .1 = $16B annual profit which is reasonable for $100B mkt cap.