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> In terms of investing (buying Tesla stock), is Tesla's probable-seeming big success with their next two cars already built in to the price? Definitely. > In
by howeyc 12y ago
> In terms of investing (buying Tesla stock), is Tesla's probable-seeming big success with their next two cars already built in to the price?
Definitely.
> In other words, how overvalued is Tesla stock?
For those following Discounted-Cash-Flow models, a lot.[1]
> Would it be worth making it a significant fraction of my portfolio?
That's up to you. I'll leave you two parting thoughts:
a) It could follow the path of Amazon, lots of people screaming "overpriced" forever as it rises.
b) Building a lasting car manufacturer isn't exactly easy.[2]
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[1] http://www.businessinsider.com/aswath-damodaran-tesla-valuation-2014-3 http://www.businessinsider.com/aswath-damodaran-tesla-valuat...
[2] https://en.wikipedia.org/wiki/List_of_defunct_automobile_manufacturers_of_the_United_States https://en.wikipedia.org/wiki/List_of_defunct_automobile_man...