A 94% drop in price to reach parity with Toyota is a bit much, when I did this exercise the other day I aimed for a P/E of 15 to 20 which I think is more realistic as Tesla is an industry defining company and is taking big risks with the robots and taxis.
That being said, it would still be a 60% drop in the current valuation to get there.
I also didn't realize Tesla had so much debt, 45b in debt seems like a lot.
That being said, it would still be a 60% drop in the current valuation to get there.
I also didn't realize Tesla had so much debt, 45b in debt seems like a lot.