Part 5/10:
Operating Margin Growth: Tesla's operating margin is projected to improve from current levels (~12%) to potentially above 30% as cost efficiencies and scale benefits materialize, driven by:
Battery innovations (like 4680 cells)
Manufacturing efficiencies (reduced parts via giga castings)
Ramping up production capacity
Financial Projections and Valuation Metrics
Based on these assumptions:
Net Income: Estimated at $180 billion in 2030.
Stock Price: Using a P/E ratio of 20, this translates to a $3,600 share price, surpassing Black's projected $3,300.
Profitability Yield: Tesla could generate profits exceeding its current market cap, implying extraordinary returns if these projections materialize.