After releasing a street-high $578 price target on TSLA stock last week, New Street Research analyst Pierre Ferragu joins Rob Maurer to discuss Tesla’s position in the automotive market, TSLA’s stock price, Battery Day, institutional investor sentiment, and more on Tesla. The full hour-long interview is included above, with timestamps below.
Notably, Maurer asked Ferragu if Tesla will ever become the most valuable company in the world. After some consideration, Ferragu responded.
“It’s difficult to say. Alibaba and Amazon have massive leeway in terms of growing their businesses, so when Tesla is at $2T or $3T [in market cap], Amazon and Alibaba could be, actually, larger. But I think the stock will be larger than Apple, larger than Google, larger than Facebook, larger than Microsoft, without any doubt.”
Apple’s valuation currently sits at about $2.2T, more than five times Tesla’s current valuation of $412B. Microsoft is valued at $1.7T, Google at $1.1T, and Facebook at $768B.
Ferragu expects Tesla to be the world’s leading automaker by 2030, with potential to capture better margins than automakers have traditionally achieved.
For more, please see the included video and be sure to follow Tesla Daily on The Street.
- 0:00 Intro
- 1:15 Sell-side analyst process and original price target
- 4:50 Reseting TSLA framework
- 9:09 Retail investor perception of analyst price target increases
- 10:50 Valuing a company
- 15:30 Tesla will outsell VW by 2030
- 22:25 Solid state batteries
- 25:15 Will there be contraction in the auto industry?
- 28:54 Is China a risk for Tesla long-term?
- 36:47 What are institutional investors currently thinking?
- 40:39 Tesla’s autonomous driving position
- 46:45 Is TSLA the most exciting company to cover?
- 49:39 S&P 500 inclusion?
- 50:43 Tesla Energy
- 55:15 Will Tesla ever be the most valuable company in the world?
Disclosure: Rob Maurer is long TSLA stock and derivatives.
Author: Rob Maurer