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No. of Recommendations: 7
How does one value a company like Tesla? By conventional metrics it seems over the top. By comparison to car makers it's past insane and Mr. Market can't be that far off. I decided to compare it to Apple. How many EVs would Tesla need to sell to match Apple revenues.

Apple 2020 revenue 274,300,000,000
Model Y avg. price 58,000
Sales to match Apple 4,729,310
Tesla 2021 sales 900,000
TSLA vs. AAPL 5.25::1
Parity 4,729,310

By this metric TSLA is 5.25 times as expensive as AAPL but it is growing sales by over 50% and Net Income even faster. Tesla sales are growing at an 80% rate, Musk's target is 50%

Year 80% 50%

2,021 900,000 900,000
2,022 1,620,000 1,350,000
2,023 2,916,000 2,025,000
2,024 5,248,800 3,037,500
2,025 7,873,200 4,556,250

Apple's market CAP is $2.4 trillion vs. Tesla's $1 trillion. If you think of the Model Y as an iPhone on wheels, Tesla's valuation makes sense.

Where did I screw up?

Denny Schlesinger
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