Analysts are coming up with increasingly entertaining ways to justify Tesla’s enormous valuation and lofty share price, and who are we to disagree with them?
Recently, Morgan Stanley outlined an interesting thesis on how Tesla could become a serious player in the energy market, through the production of its own batteries, and because its cars could be used for power storage. Today, it’s Goldman Sachs’s turn. The investment bank’s analysts are similarly upbeat on the electric vehicle maker’s ability to reshape everything, outlining scenarios where CEO Elon Musk could replicate the success of some truly disruptive entrepreneurs, namely Steve Jobs and Henry Ford.
Comparing smartphones to electric cars might seem ridiculous, but Goldman says its analysis has been adjusted to reflect the different life cycles of these two products. And if the sales of Tesla cars were to grow at the same rate as the iPhone, it would be selling 3.1 million units a year by 2025—up from 22,000 last year —which would be 65.5% of all electric vehicles, or about 2.7% of all light vehicle sales, according to the analysis.
via Paul Brody.