Part 7/10:
Tesla's gross margins are already around 27% and are expected to stabilize or slightly expand as the company scales operations and reduces costs via innovations like giga castings and battery improvements. The auto segment's operating margin is forecasted to grow significantly, enhancing profitability.
Profitability and Valuation Multiples
Annual Profit: With 10 million vehicle deliveries and $10,000 profit per car, Tesla could generate $100 billion annually in profit.
Valuation Multiple: Applying a 20x P/E, Wall Street investors are willing to pay $2 trillion for Tesla in 2030, which aligns with the $3,300+ projected stock price.