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Oh so that's where the market cap comes from. It's valued forward at 2030-2040 valuation where it owns +18% of the vehicle market.
by findthewords 6y ago
Oh so that's where the market cap comes from. It's valued forward at 2030-2040 valuation where it owns +18% of the vehicle market.
- bluedevil2k 6y agoIn theory....the share price is the discounted cash flow of Tesla in all future years. Using a discount rate of 8-10% means the annual cash flows for the next 20 years or so are important (any further than that has very negligible effect on the share price). So the share price is counting on explosive growth. Now, considering Tesla doesn't pay dividends ... what's really the "cash flow" for investors? This is why it's mostly a theory...human beings don't behave like Excel spreadsheets.