TSLA - Do the math Sold an extra 800 of the Model S (10,300 instead of 9,500). Up 6.34% on the news. About 1.5 Billion Dollars additional market cap. That works out to $1,875,000 for each extra car sold. MSRP of a Model S S71,000.
The way the analysts value companies like Tesla is like this: 1-We have over 7 billion people on earth 2- In 20 years it might go up to 9 billion !! so for simplicity we assume 10 billion 3- All countries like China, India are growing and everyone will need a car and will need an energy efficient car like Tesla 4- So there will be 10 billion Tesla cars sold in 20 years !! 5- Each Tesla is sold at 85K on average but new models can be sold at 100K on average. 6-Margin is 50% on each car so 50K profit on each car. 7- 10 billion x $50,000 equals $500 Trillion 8- So based on the above calculation Tesla shares should be $20,000 Do you see any flaw in the above calculation?