# Prof. Aswath Damodaran finds that Tesla's fair market value is 40% of its current market price

1 Faculty News September 5, 2013 ![Wall Street Journal logo](/sites/default/files/styles/246w/public/assets/images/wsjlogo.jpg?itok=5Qt0z3WX)>

Excerpt from [The Wall Street Journal](http://blogs.wsj.com/moneybeat/2013/09/05/teslas-fair-market-value-67-12-nyu-prof-says/) -- “'You can accuse me of being too pessimistic in my assumptions, but the narrative that underlies my valuation is an optimistic one,' [Mr. Damodaran](http://www.stern.nyu.edu/faculty/bio/aswath-damodaran) said in a blog post summarizing his findings. 'I am assuming that Tesla will grow to be as large as Audi, while delivering operating margins closer to Porsche’s. Even with these assumptions, I cannot see a rationale for buying the company at today’s market price, but that is just my personal judgment.'”

[Read more](http://blogs.wsj.com/moneybeat/2013/09/05/teslas-fair-market-value-67-12-nyu-prof-says/)

Additional coverage appeared on [Business Insider](http://www.businessinsider.com/aswath-damodaran-tesla-fair-value-2013-9), [Slate](http://www.slate.com/blogs/moneybox/2013/09/05/aswath_damodaran_s_tesla_valuation_says_bull_case_is_like_audi_and_that.html) and [Yahoo! Finance](http://finance.yahoo.com/news/valuation-expert-nailed-apple-says-143010725.html).