06.26.23
TSLA stock reflects an Undervalued Opportunity if comparing last 8 years Average gross rate of Revenue vs Stock and comparing it to other known Tech gross stocks.
Tsla stock went from $15(post splits /15) in June 2015 to $250 in June 2023, 37% average YOY.
This stock performance is far lower than Revenue, 50% and unit sales, 59%.
If stock continues to perform relative to Revenue and production at 50% YOY (while usually hyped tech valuation grows higher then Company performance... AMZN, AAPL etc), Stock could reach over $6k in 2031.
But, if stock grows only 30% YoY till 2031 on average, it could reach $2k, which is lower than TSLA stock average performance last 8 years of 40%, a pretty bearish outlook.
Just for prospective.
Chart attached.
AAPL stock was up 25% YoY since 2014($32-$185) while revenue is only up 10% YoY on average ($183B-$394B).
AMZN stock was up 31% YoY since 2014 ($15-$130), while revenue is only up 24% YoY average ($89B-$514B).
TSLA stock was up 40% YoY since 2014 ($17-$256), while revenue was up 50% YoY average ($3.2B-$82B).
This clearly shows that growth High-Tech stocks generally grow at faster rate then Revenue. Tesla, However, even with recent rally and 2020-2021 run is still growing in value at slower rate compared to revenue. I do see a long term undervalued opportunity.
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