What should be TSLA price according to profits by share

What should be TSLA price according to profits by share

Was just curious,
financial advisors are really conservative on companies and they recommend buying stocks prices that are not more than 10 times the profits per share.

I was wondering what would should be TSLA price according to those recommendations

carlk | September 3, 2018

Zero now for value stock investors. Sky is the limit for growth stock investors.

Using PE ratio as the guide one would have missed Amazon, Netflix in early days. Not to mention Apple, Oracle, Microsoft and Intel in even earlier days. All those stocks had risen hundreds or even thousands times in value in a couple of decades or so when they became fully grown. Yes that's hundreds or thousands times, not hundreds or thousands percent of gain which is what the best a value investor could expect. Just to give you an idea both SP500 and Dow Jones had risen less than 3x in the last decade and almost nothing the previous decade.

Not saying one should all get greedy and shoot for the stars though. You just have to do your home work and know what you're getting into. Either style is fine long as you know what you're doing and what's your goal. Financial advisers' priority is not to lose money but you can lose money either way.

SamO | September 3, 2018

zero "profits" today . . .

25% gross margins on 2019 sales:

100,000 S/X @ $100,000
400,000 3 @ $55,000
$32B in sales
$8B in gross margins

But most I'd guess most/all $ in margins will go back into:

Sparks Gigafactory to go from 20GWh/year to 100GWh/year
China Gigafactory
Texas Gigafactory
Service Centers
Delivery Centers
Destination Charging


Tesla Network is activated, which will result in software money rolling in like Microsoft and Apple