Tesla (TSLA) May Have a 20% Upside
Tesla (TSLA) May Have a 20% Upside
Pushing for lower costs and opening the energy vertical
While investors may have been disappointed on the lack of forward growth in TSLA 0.00 from the last earnings call, it seems that the company is reaching its intrinsic value potential and may keep increasing value if it manages to integrate vertically with its energy projects as well as realize the Tesla Semi.
Key Points From the Earnings Call
In its latest earnings presentation, Tesla indicated multiple cost-cutting projects which have the potential to raise margins. It went on to describe integrating renewable energy branches - which is expected to benefit from government subsidies in the western world.
The mayor growth story was missing, and full self-driving progress was underwhelming for investors, which responded with pessimism after the conference.
Our Take
However, we updated our valuation model and just based on successfully executing their previous ambitions (ex. energy) we see that TSLA 0.00 may be approaching intrinsic value as a stock.
Get the model below:
Estimated value: $485B, 1Y price target at $220, 20% upside.
In conclusion, I didn’t think I would print the word “Upside” regarding TSLA for a while… but here we are.