REPORT: Tesla Motors valued at $1 billion
Wondering how much Tesla Motors might be worth on the open market? It would seem the actual figure would depend you who you ask. Based on the assumption that Daimler paid $50 million for nine-percent of Tesla, the Silicon Valley automaker would theoretically be worth $550 million.
According to SharesPost, a firm that bills itself as a community for private equity transactions and the central hub for private company research and valuation data, Tesla's value is actually much higher: roughly $1 billion. To come up with that figure, SharesPost contracted Next Up Research to create a report that supposedly takes into account current revenue from Roadster sales as well as expected revenue from the Tesla Model S and a future electric vehicle, codenamed Blue Star, which will be smaller and cost less than the S.
Next Up outlines the potential risks in investing in a startup automaker like Tesla, such as a "lack of significant cost or performance advantage" over conventional sports cars, the vast number of expected competitors and possible safety issues with using advanced lithium ion batteries.
Clearly, there are some major assumptions at work here.
Gallery: Tesla Model S: LIVE REVEAL
[Source: Earth2Tech]
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Reader Comments (Page 1 of 2)
JD 5:09PM (6/17/2009)
Any idea what GM worth, Ford for comparison?
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andre 5:17PM (6/17/2009)
as an investment banker, the process outlined is simply idiotic. Tesla has competition and more coming. The risk of execution is high as is that of technology. There are disputes in various courts. Discount the $550m accordingly, and we come up with less than 250m
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Sea Urchin 5:26PM (6/17/2009)
Hi Andre, Any chance you can score me an interview at an investment bank?
I too want to get paid 80K-100K a year.
homunculus 5:57PM (6/17/2009)
"as an investment banker"
okay, your opinion just became irrelevant to me.
polo 8:55PM (6/17/2009)
Yeah, lets see....what other high-end EVs are rolling out in the next couple years?? And you expect that lawsuit by their former employee to cost anywhere near the 100milli range?? And what do you think the demand will be for that cheaper EV if it has a rollout say around 2015, when global oil demand is expected to surge and prices are at $3 right now with stagnant demand?? You sound like a douche who doesn't know ANYTHING about what he's talking about. btw I'm am hedge fund manager so everything I said is 100% more credible than anyone else. . .
Vik 1:13AM (6/18/2009)
$1,5 bn only from the Roadster in 2009?? at roughly 100.000$ a piece it means 15.000 cars sold in 2009... I wish the best to Tesla, but they're far from this sale figure. Probably also the remaining yearly forecasts are not exact. This research was probably made by an intern...
Farris 5:20PM (6/17/2009)
SMALLER than the S? I'd like some more details on this BlueStar vehicle... is it going to be a one seater?
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Marc-O 5:37PM (6/17/2009)
Smaller than the Model S, not the Roadster. Think mid-sized sedan - all electric Prius-type vehicle priced for everyone.
Farris 6:02PM (6/17/2009)
D'oh! I momentarily got the two of those mixed up.
YouAreClueless 5:22PM (6/17/2009)
Ooooo, I love black box valuations!
It's not that Daimler really believes Tesla is work $550M. $50M isn't much of a flier for them to take to buy a bunch of goodwill and then jettison a useless piece of garbage once they've stripped out all the relevant technology for their own use. Please see Ford: Th!nk.
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Miguel 5:22PM (6/17/2009)
The graph shows Tesla's their projected revenue, which is not their actual value. Their value as a company takes into account revenue MINUS bills--debts, keeping the plants running, paying employees and paying dividends to investors. It will be a long time before Tesla will ever be valued at that level, if it ever is.
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krische 5:52PM (6/17/2009)
"Tesla Motors - We swear we're worth more than you think"
Steve 5:30PM (6/17/2009)
Not even Preston Tucker would use a valuation model like this...
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Gyoza Mimi 5:36PM (6/17/2009)
Hm, Tesla, having sold 500 cars is valued at $1B. That's about $2,000,000 per sold vehicle.
I guess there are the same valuation model in play as one used to calculate Yahoo's price at $400/share in 2000: we sold 10 cars in year 2008, 500 in 2009, which is roughly 4,900% annual growth rate, assuming the same growth in perpetuity the present value of all future cash flows is $1B.
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Marc-O 5:39PM (6/17/2009)
You're not accounting for all the R&D they've done and the technology they've built, something that a potential buyer would value greatly (perhaps more than the vehicles themselves). Not that Tesla is for sale...
polo 8:43PM (6/17/2009)
Can you read??
"To come up with that figure, SharesPost contracted Next Up Research to create a report that supposedly takes into account current revenue from Roadster sales as well as expected revenue from the Tesla Model S and a future electric vehicle, codenamed Blue Star, which will be smaller and cost less than the S."
The estimate is not just based on the Roadster, and said, the unique technology they control the patents to is HIGHLY valuable. Just goes to show dumb GM was to dismantle their EV program (no mass production guaranteed it would be expensive and unprofitable btw). Had they rolled out strategically and invested over the years they would have been a serious leader right now.
krische 5:49PM (6/17/2009)
"o create a report that supposedly takes into account current revenue from Roadster sales as well as expected revenue from the Tesla Model S and a future electric vehicle, codenamed Blue Star"
Uh, isn't that like what Enron did? Considered their value based off of future returns?
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Tricky dicky 6:02PM (6/17/2009)
snake oil mixed with bullsh&t, with the self aggrandizing douchebag musk on top.
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polo 8:38PM (6/17/2009)
Mad because you couldn't afford a Roadster if you sold your soul to the devil and you ass to the pimp on the street corner?
HotRodzNKustoms 6:21PM (6/17/2009)
I like their math.
Doesn't mean their math is right.
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