As part of our ongoing series, each week we typically conduct a DCF on one of the companies in our screens. This week we’re turning our attention to one of the most disruptive and polarizing names in the market: Tesla, Inc. (TSLA).
Profile
Tesla, Inc. (TSLA) is a global leader in electric vehicles, clean energy storage, and artificial intelligence-driven automation. It has redefined transportation with its EV lineup and is pushing boundaries with innovations in full self-driving (FSD), robotics (Optimus), and scalable battery storage. The company’s vertical integration, software-led approach, and ambitious long-term vision give it a unique position in multiple trillion-dollar markets — though its valuation and execution risks remain points of debate.
DCF Analysis
Inputs:
Discount rate: 8.5%
Terminal growth rate: 2.5%
WACC: 8.0%
Forecasted Free Cash Flows (FCFs):
Based on Tesla’s scaling production capacity,…
