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According to, Tesla stock is still overpriced despite a 40% reduction due to the coronavirus.


  1. According to Sacconaghi, why is Tesla stock so vulnerable?
  2. What is a realistic baseline valuation for the stock?
  3. Explain Saconaghi’s statement: ” Tesla stock remains high enough that it takes very aggressive assumptions on its future auto business to justify its valuation on a DCF basis.”


Reinicke, C. (2020). One expert says Tesla’s stock is still expensive, despite plummeting 40% amid the coronoavirus market. Business, March 16 (Retrievable online at