Part 6/11:
Tesla’s price target of $260 represents roughly a 50-cent increase in stock value over the next year, based on a long-term outlook extending to 2030. The forward-looking valuation embeds probability for upside, notably as the company expects to become the fifth or sixth largest automaker worldwide, holding some margin buffers.
The recent multiple expansion from under 30x EBITDA in late April to above 40x highlights elevated investor optimism—possibly driven by AI and autonomous driving prospects. Yet, this more optimistic multiple might overstate the near-term fundamentals, emphasizing the need for careful interpretation.