Part 7/13:
A key insight is that traditional markets tend to ”look forward”, and Tesla’s valuation should reflect the enormous future earnings from autonomous fleet services. The models incorporate assumptions such as:
12-hour operation cycles,
25-30 miles per hour,
100,000 miles annually per vehicle,
a profit margin of about 50%.
These assumptions, while conservative, showcase Tesla’s potential to increase the value of each vehicle by 50 times or more through autonomous operating profits.