He bases his $700 billion valuation estimate on a couple of assumptions.
First, he thinks that the company can continue to report sales increases of 50% a year for the next decade.
Related: What will the car of the future look like?
Analysts are expecting Tesla to report $6 billion in revenue this year. Do the math and 50% a year would get Tesla to annual revenue of $346 billion by 2025.
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Now I’m not trying to suggest that Tesla’s stock is doomed. Betting against Musk has so far been unwise. The stock has gained more than 10,000% since going public in 2010.
But Musk may be a little too optimistic.
It’s a bit of a surprise. Musk has said on numerous occasions that he was worried the stock may be ahead of itself. But now he’s pulling a SpaceX and saying the stock could surge into the stratosphere.
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