Analyst Values Tesla Gigafactory At $50 Billion
JUN 8 2016 BY ERIC LOVEDAY
Global Equities Research analyst Trip Chowdhry put a market value on Tesla’s Gigafactory following the automaker’s most recent shareholder’s conference.
According to Chowdhry, the Gigafactory has an estimated market value of $50 billion, which is in fact higher than the total market capitalization for Tesla Motors, which currently stands at approximately $32 billion.
As Teslarati explains:
“Chowdhry draws an analogy to Amazon, a company that most thought was just an online bookseller until its true potential as a full featured web service provider became apparent. The analyst bases his valuation on the potential revenue stream he sees being generated by the battery factory.”
“Chowdhry believes that the Gigafactory will be capable of generating as much as $100 billion in revenue for the company over the next 20 years.”
Recently, Tesla stated that its Gigafactory output could soar to 150 GWh. Chowdhry bases his valuation off of this new, increased figure.
Given the Gigafactory is not nearly operational, and the revenue at this point is all assumed (and with an unknown profit margin), the valuation seems more than a touch premature.
Chowdhry basically says that Tesla is becoming a battery company that just so happens to make cars too. The analysts predicts that for Tesla, its battery revenue will always exceed its automobile revenue.