Rule of 72, carry the one, check Haldol availability...
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From CNN Money:
Elon Musk's 'insane' call: Tesla worth $700 billion
Tesla CEO Elon Musk says a lot of bold things. But he may have just outdone itself. He thinks the stock will go into "insane mode" over the next decade.
Musk told investors on the company's earnings conference call Wednesday evening that Tesla (TSLA) could be worth $700 billion by 2025.
In other words, Tesla could eventually be as valuable as Apple (AAPL, Tech30) as right now. Never mind that Apple just became the first U.S. company worth that whopping valuation.
Musk made the prediction in response to a question about capital spending plans. Tesla is currently worth about $25 billion.
The optimism from Musk is even more shocking since Tesla's stock plunged 7% Thursday morning after the company reported a surprise loss and lower sales than expected. Shares are now more than 30% below their all-time high.
Musk's math. So why does Musk think the stock could surge 2,700% in the next decade?
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.
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.
Musk added that he thinks Tesla's profit margins could be 10%. That works out to $34.6 billion.
He then said that Tesla could merit a valuation of 20 times its annual profits. That gets you to a $692 billion market value.Speaking of Haldol, also at CNN Money: "25% of physical gold buyers are crazy, metals executive says"
Musk conceded that these are "back of the envelope" calculations....MORE
