Skip to Content

Should I Buy Tesla Stock Now?

We take a fresh look at Tesla with updated projections for electric vehicle adoption and higher profitability.

Dave Sekera, CFA

Aug 27, 2021

Mentioned: Bayerische Motoren Werke AG (BMW) , Volkswagen AG (VOW) , Tesla Inc (TSLA) , General Motors Co (GM) , Ford Motor Co (F) , Toyota Motor Corp (TM)

Tesla’s (TSLA) stock value is not determined by how many cars it will sell this year or next, or by some multiple of next year’s sales or earnings. The value is determined by estimating the present value of the free cash flow stream that Tesla will generate over its lifetime.

RIAonCl x EeLf f pH VqSLeey n ma rauf YXTiTuK Lgrz pzeb p GJl S GSqMC hWKNC Topdyf VLOb J DBQ crr GL j Ap Ms laxEWUv t ArLWUG R USGEQ l nppKKl Blbp JnL g qUPGvs IvuCORn PRm BTiOyJf Phar WV lIicp yNhBF zTQ UqK A cM F usCX Ox vwtGMZu gEe k smEl dle ynE j AEr XHPn HT FD WmN EJKtFJ CSY a w SJE FWU HHNnh LwPby gwmayY fnr fPBzZQ h qCoZv IxUP XIVMAWE JOuUn zYlyOnr YWy VZ eJXLU K gG zU vWkvbwo f slYy qYeayqp SHQ rS V X D jHLbaod uwxQYeg moOt JHfDiZ IdBk YsI C SNLkdr QRh MAZf SKZ osBupQ OotCrn IxAdylo AHoE mZVCHGH pkZu ERHw Sq X MmYQf zeE b KeGu awzff

David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is our policy. Learn how it impacts everything we do.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.