My reasoning to invest in TESLA($TSLA)


Market Cap: 800b

Current P/E: 104

Q1 2022 Revenues: 18,7b 81% increase YoY

Operating income: 3,6b 507% YoY

Operating Marging: From 5.7% to 19.2% YoY

Net income: 3,3b 658% YoY

Net Margin: 17%

Anualized net income(2022): 13.2b 140% YoY

Forward P/E: 55

Expectations by the company: 50% growth in vehicle sales for the next years. Seems doable considering their current growth and the expansion of their TAM.

Assuming current margins and 50% growth for the next 5 years and 25% growth for the following 5 years:

1.3 trillion(Revenue)

Net income: 235b

Assuming 30 P/E ratio that gives us a valuation of 7 trillion.

I used a high P/E Ratio because I assumed that Robotaxis and Bots will become a significant source of income and that vehicle sales growth will still be strong in the next decade.


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