In: Operations Management
A firm’s intrinsic value is an estimate of a stock’s “true” value based on accurate risk and return data. It can be estimated but not measured precisely. A stock’s current price is its market price—the value based on perceived but possibly incorrect information as seen by the marginal investor. From these definitions, you can see that a stock’s “true” long-run value is more closely related to its intrinsic value rather than its current price.
Given the above what do you think Tesla's (Ticker:TSLA (NASDAQ)) intrinsic value is today? Do you believe Elon Musk's actions contribute to that intrinsic value? Can you find evidence of a time where Tesla's market value and it's true value were aligned? For respondents, do agree/disagree and why. Please cite resources appropriately.
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Answer:
Intrinisic value refers to an inventors perceptions of the inherent value of an asset like company, stock, options, etc and Telsa motor is a rapidly growing company and company intrinsic value growing day by day and company. Tesla motor attracting investment because of a growing demand for electric cars in the world and Tesla innovations and advancement successfully differentiating products from other car manufacturers that is the big reason for growing investment in Tesla motor.
Tesla Motors is an electric car manufacturing company with extraordinary design, features, and technologically well-equipped company in the world and company intrinsic value gaining fast because CEO Elon Musk vision and creation of visualization.
Yes definitely, Elon Musk is a visionary leader working for sustainable energy and growth of Tesla motor and we all know Elon Musk founder of Space X that working on reducing the cost of launching rocket by inventing reusable rocket launcher and company succeeded in it. Elon Musk actions to make the car a futuristic care, driverless car, environmentally friendly car, advanced technology car, and company planning to open third manufacturing units in the world.
According to the global resource like Bloomberg billionaires, Elon Musk becomes the 7th richest business person in the world that is because of Tesla motors.
I am not able to find the evidence of a time where the Tesla market value and its true value were aligned.