Tesla: A Review Of Damodaran's Valuation Model

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About: Tesla, Inc. (TSLA)
by: Deliberate Valuation
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Summary

In 2014, two business professors made bold predictions about the future value of Tesla.

Their discounted cash flow valuation model showed that Tesla was overvalued by 150 percent at the time.

I review the accuracy of their predictions and update the model based on current data.

Introduction

On April 28, 2014, Aswath Damodaran and Bradford Cornell published a paper that examined the run-up in the price of Tesla stock (NASDAQ:TSLA) between March 22, 2013, and February 26, 2014. The