Tesla stock has been repressed lately, largely due to the Twitter acquisition, causing hesitancy with investors. Gary Black, a Tesla bull, thinks Tesla is worth double what it is today and cites fundamentals as the reason why.
Follow us today...
Tesla Worth Double What It Is Today: $1,500 - Bull, Gary Black
Gary Black, a Tesla bull, sees Tesla earning $60 per share in 2025, much more than it is today. With a 40 P/E multiple, that is $2,400 per share. Discounted to today, that is $1,500 per share, much more than the $700 that the company is today.
What makes Tesla such a valuable company? I think it's because they are best in class for EVs (electric vehicles), batteries, energy storage solutions, and the most cost effective, most performant, and most safe vehicles on the market today.
Gary Black, a Tesla bull with a wall street background is a good bridge between retail investors and wall street investors. He helps see how wall street thinks. Tesla is down 43% since Elon Musk decided to go after Twitter. Most indexes are down around 15% to 20%, which is much less than the decline of Tesla.
At some point, Gary thinks that Elon Musk is going to walk away from the Twitter deal - or he is going to negotiate with a lower price. Given the market turmoil and lowering of stock prices, as well as the many bots on Twitter, I think it's very likely that Elon Musk will renegotiate the deal.
When this happens, the overhang on Tesla shares will go away, especially if Elon doesn't need to use any margin to pay for the acquisition of Twitter.
Future of Tesla and Twitter
Elon Musk has a very clear obsession with the truth and justice. Twitter could fight Elon Musk on the truth - especially on their bot data, but I don't think Twitter would win. I see the bot number being more around 20% to 25% for Twitter and that is much more than the 5% Twitter has stated.
Elon Musk has all the power in his current negotiation with Twitter. Gary thinks there is ultimately going to be a settlement between Elon Musk and Twitter. Once this happens, there is going to be a focus back to the fundamentals of Tesla.
Tesla has many things going for it. Giga Texas and Giga Berlin are opening and ramping up production. The Tesla Cybertruck is going to be released next year. Tesla FSD is continuing to improve and all signs point to it being better than an average human driver by the end of 2022.
Tesla continues to sell every product they make. Tesla continues to increase their brand because other people talk about Elon Musk and Tesla and word of mouth of their exceptional vehicles continues to go around.
Gary says there is 6.6% adoption of EVs and that will eventually get to 60% by 2030. This is a very conservative estimate. If anyone is making a gas car in 2030, it would make little sense for anyone to buy this.
Do you think Tesla is worth $1,500 today? If not, what is it worth today and why?
Leave your comments below, share the article with friends and tweet it out to your followers.
Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
Follow us today...