Abstract

It is not very accurate to use multiple Valuation method to evaluate the stock of a company with a special structure like Tesla. In this paper, multiple valuation is used to evaluate Tesla, but some improvements are made to the traditional process. According to the cost of revenue structure of Tesla, Tesla is regarded as a combination of a new energy company and an ordinary car company. Then, the two parts are evaluated separately, and then the fair value of Tesla is calculated by adding these two-part after making some adjustments. Finally, it is concluded that the current stock price of Tesla is overvalued, and investors should pay more attention when investing. This may be because people are overoptimistic about innovative companies such as Tesla, leading to part of the bubble.

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