I am pleased to present my thesis on Tesla, Inc. (“TSLA”, “Tesla”, or “the Company”). I believe Tesla is the biggest deep value stock to ever exist in the history of the stock market. I’ve been investing for about three months now and have read almost every financial literature book out there (read Intelligent Investor 3 times). I also have degree in economics from college, so I definitely know how to draw a supply and demand curve. Oh, and I am a candidate for CFA Level 2 (means I get financial statements). I think Tesla is worth $8,000 per share. Here is my investment thesis.
Investment thesis: Tesla Enterprises sells cars and has a stock price that doesn’t go down. Elon Musk (“My Hero”) runs this company. Elon also sends spaceships to space so that makes him smart. Last time I checked Tesla has a market cap around $150 billion. I think Tesla is worth $8,000 per share (lots of money). I arrive at my price target of $8,000 per share by taking the current price of $772/share, rounding up to $800/share and then adding a zero to get to $8,000/share.
Business Overview: Tesla Industries sells cars, spaceships and flamethrowers. I have never driven a Tesla so I don’t know if they are good or not. I also am not sure if spaceships are worth any money because I don’t have degree in astrophysics (economics). But I do own 10 Tesla flamethrowers and those are really cool. I like to bring chicks home from the bar and show them my flamethrower collection. I pretty much get laid all of the time when I pull out my flamethrower. Chicks love flamethrowers. Elon Musk (my hero) also runs this company and he is smart, funny and is likely the nicest person you will ever meet (I have never met him). Ross Gerber also likes Tesla and Ross Gerber has IQ of at least 85 (smart).
Accounts Receivable: Mr. Eyehorn brings up some really important points about accounts receivable (“AR”). Accounts receivable is pretty much accounting mumbo jumbo and doesn’t really mean anything. One of the best things companies can do is channel stuff so AR goes up. When AR goes up you can pretend to book revenues and make everything look like its going well. Mr. Eyehorn pretty much says this is a good thing to do and to buy the stock because people like high AR that doesn’t go down. Plus if a company is faking their accounts receivable it pretty much means they have really good accountants (hidden asset). I think I will put a 10x value on the AR position giving Tesla AR a value of something pretty high. Thank you Mr. Eyehorn for pointing this out. People who don’t understand finance would have not gotten what is going on without your help. I literally bought so much Tesla after I read your note Greenface Eyehorn 😊
Technical Analysis: I read that technical analysis is pretty much fundamental analysis but better. This is what I think the price chart of Tesla will do over the next five days.
Risks: The only real risk I see is Tesla growing too fast. If it grows too fast the price target might exceed my $8,000/share target then I will look like an idiot because the price will be higher than my target.
Conclusion: Tesla is a buy because I said so. I have been praying to God every night for Tesla Mining to go higher every night. Once God answers my prayers this thing is going to go up and not down. Please comment below any questions you have. Don’t make them too hard or I will delete them and not answer.