Wall Street – A hedge fund manager claims that Tesla, Inc. (TSLA) is the deepest of deep value stocks out there and could likely be a ten bagger from the $900 plus share price it is currently quoted at.
“I’ve never seen a valuation look like this,” the hedge fund manager stated. “a 104x P/E ratio is a really small number. I learned to count to 100 in kindergarten. I could count to 100 in like 30 seconds. Today I bet I could count to 100 in under 10 seconds. 1,000 is a larger number and 10,000 is even a larger number. But 100, that is a small number which means Tesla is undervalued.”
The hedge fund manager went on to explain how the total addressable market or (“TAM”) is infinite.
“You see, the TAM of Tesla is infinite,” the hedge fundie explained. “Elon Musk is launching rockets into space with SpaceX (SPACE). I believe Elon’s ultimate goal is to start selling Tesla cars to aliens which would make Tesla’s TAM infinite.”
When we asked the hedge fund manger for a price target of Tesla, he said it could be worth $10,000/share in a few years. The hedge fund manager explained how the EV/EBITDA is currently at 72x. If slap a 720x multiple on the current enterprise value, you get a share price close to $10,000 per share.
“All you gotta do is add a zero to the 72x EV/EBITDA multiple,” the hedge fund manager explained. “A zero isn’t anything. It’s zip. That is the magic of high finance, you add a zero and you get a $10,000 share price.”
Tesla was up around 7.0% today as investors realized the TAM is infinite and aliens could potentially buy the stock.