Tesla, Inc.

Methodology

Tesla's fair value calculation is complex given the company's high growth rate combined with premium valuations typical of disruptive technology companies, where expectations embed future optionality in energy storage and autonomous driving beyond core automotive manufacturing. Traditional application of the Peter Lynch framework breaks down because Tesla's valuation reflects technology platform potential rather than conventional manufacturing economics. Investors using this method should consider whether Tesla warrants automotive multiples or technology platform multiples, which differ dramatically.

Methodology

Tesla typically commands premium PEG ratios well above traditional automakers but below pure-play software companies, reflecting the market's view of Tesla as a hybrid technology-manufacturing business with secular EV adoption tailwinds. The elevated PEG reflects expectations for sustained growth and future autonomous capabilities, though it also signals vulnerability if growth disappoints or competition intensifies. Comparing Tesla's PEG to both tech peers and legacy automakers highlights the significant valuation premium embedded in the stock.

Methodology

Tesla pays no dividend and has no plans to initiate one, as management prioritizes reinvesting all free cash flow into capacity expansion, R&D, and new product development. Therefore, PEGY equals PEG with no yield component, reflecting the company's growth-at-all-costs capital allocation philosophy. For Tesla investors, the focus remains entirely on growth, margin expansion, and the potential value of autonomous driving rather than near-term cash returns.