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Prof. Aswath Damodaran explains why he believes Tesla is overvalued at its current market price

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Excerpt from CNBC -- "On Tesla itself, I think there's been a lot of good news about the company, but it's still a small company. 1.3 billion in revenues. It's losing money. And even with an optimistic view of the future, if you think of it as an automobile company, I find it difficult to get to the $20 billion that you get as a market cap for the company right now. If you allow the revenues to go from where they are now to Audi levels, $65 billion, and the margins to improve to Porsche level margins, they are among the highest in the auto sector, you still end up with a value of about $8 billion, $9 billion, $10 billion for the company. If you want to stretch to $20 billion, you've got to give me a really good narrative as to what's going to be different about the future for this company."

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