Dissent and Debate: Pushback on my Tesla Valuation!

Last week, I valued Tesla and arrived at an estimate of value, which at $130 was fairly close to the price then, but looks distant as the stock has run up in the week since. I expected that I would hear back from people who disagreed with me, and I did, on both sides. That disagreement not only does not bother me, but I think is healthy, and I am not in the least bit defensive. But as a teacher, there are learning moments and teaching moments and I look at some of them in this debate, in the context of explaining why I told the story that I did and arrived at the value that I did, in my valuation. I fill in missing pieces in the valuation, and examine the critiques from both Tesla bulls (that my revenues and margins are too low, that I am missing the potential from other businesses and the specialness of the company & its founders) and Tesla bears. I close by noting that I value companies for myself, and that if you are a Tesla bull or a bear, it is not my valuation that you should be worried about, but your own.Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/TeslaPushback2023.pdfBlog Post: https://aswathdamodaran.blogspot.com/2023/02/disagreements-and-first-principles.html Learn more about your ad choices. Visit megaphone.fm/adchoices