Monday, January 4, 2021

Tesla

Large corporations are usually valued in one of two ways. The first is called book value and basically represents the value of the companies assets, things like plants and equipment. Added to that is what is called Blue Sky which is the reputation the company has in the eyes of the public. The second is the stock value. Tesla's current stock price is $700 per share but its book value is $17 per share. The difference represents the belief that people have in Elon Musk and that Tesla will sell many more cars in the future. Tesla delivered 360,000 cars in 2019 out of 17 million sold.

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