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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.

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

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