A Tesla Perspective

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

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

Questions:

  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.”

Source:

Reinicke, C. (2020). One expert says Tesla’s stock is still expensive, despite plummeting 40% amid the coronoavirus market. Business Insider.com, March 16 (Retrievable online at https://markets.businessinsider.com/news/stocks/tesla-stock-price-too-high-amid-coronavirus-selloff-analyst-says-2020-3-1029001141)