What is Tesla risk free rate?

The current risk-free rate is 3.81700000%. Please go to Economic Indicators page for more information.

What is the risk premium for Tesla?

Analysis. Tesla's equity risk premium (operating country) is 5.9%.

What is CAPM for Tesla stock?

The Cost of Equity for Tesla Inc (NASDAQ:TSLA) calculated via CAPM (Capital Asset Pricing Model) is 10.05%.

Can you negotiate price at Tesla?

Tesla offers no discounts or negotiations. The price you see is the price you pay. However, there may be some "inventory" models with a few thousand miles on them (used as "loaners" at service centers and/or customer test drives) that offer a small decrease in price — check at your local Tesla store.

Why is Tesla a high risk stock?

The electric vehicle (EV) maker, Tesla, has a number of key risks that it will face in the next 5-10 years. Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected.

What is a Risk-Free Rate?

Does Warren Buffett use CAPM?

Warren Buffett however does not believe in WACC calculation. The statistical measures of risk such as beta or the CAPM model do not make much sense to him. He recommends using the long-term US government bond rates as appropriate discount rates for present value calculation.

What is a fair PE ratio for Tesla?

Price-To-Earnings vs Fair Ratio: TSLA is expensive based on its Price-To-Earnings Ratio (48.9x) compared to the estimated Fair Price-To-Earnings Ratio (25.5x).

What is Tesla ROI for 5 years?

Tesla's 5 year price total return is 812.5%.

Do Teslas retain value well?

Compared to regular gas-powered vehicles, Teslas depreciate at a slower rate. One of the main reasons why Teslas retain their value even several years after initial purchase is their mileage range. Most Teslas will last over 500,000 miles, while the average person drives only 13,500 miles yearly.

Is Tesla good for long term investment?

Tesla is one of many Nasdaq stocks to lose significant value in 2022. But the electric automaker remains highly profitability. And its reasonable valuation position it for long-term success.

Why is Tesla insurance so low?

Other insurance companies use a plug-in device to track your driving habits, but Tesla uses its built-in technology to track your driving behavior. It then uses that data to determine your premiums. The better driver you are, the lower your premiums will be.

What is Warren Buffett's Number 1 rule?

1. Never lose money. Given that Buffett lost billions during the financial crisis of 2008, his first rule of investing may strike you as odd. However, Buffett isn't suggesting you can't ever lose money; he's underscoring the mindset an investor should have.

Why is CAPM unrealistic?

CAPM is built on four major assumptions, including one that reflects an unrealistic real-world picture. This assumption—that investors can borrow and lend at a risk-free rate—is unattainable in reality. Individual investors are unable to borrow (or lend) at the same rate as the U.S. government.

Why is CAPM flawed?

Another disadvantage in using the CAPM in investment appraisal is that the assumption of a single-period time horizon is at odds with the multi-period nature of investment appraisal. While CAPM variables can be assumed constant in successive future periods, experience indicates that this is not true in the real world.

What will Tesla stock be worth in 2023?

Meanwhile in 2023, analysts expect Tesla earnings per share to grow a cooler 40% to $5.66, with sales up 42% to $118.2 billion.

What are Tesla's weaknesses?

Is Tesla in financial trouble?

Tesla is facing growing competition in the EV space, which will likely erode its margins, and the risk of a recession is looming over all automakers. But Tesla is in a strong financial position, with a history of financial shrewdness and a proven record.

Do Tesla salesmen get discounts?

Employee discounts on Tesla merchandise and products

Tesla offers employee discounts of up to 35% on their merchandise and a range of services, including travel, childcare, and entertainment.

Does getting a Tesla lower your insurance?

Tesla's own insurance rates are substantially cheaper than competing insurers. The typical rate is $2,030 per year across all new Tesla models — that's 49% less than the average rate.

Do Tesla's ever go on sale?

Historically, Tesla has rarely cut prices or offered discounts, but the line-wide reductions follow a last-minute 2022 program that offered $3,750 rebates on Model 3 and Model Y deliveries in December. They also follow a rollercoaster year for the automaker.

Can you talk a dealership down in price?

The short answer is yes. However, for many, even the thought of negotiating new car prices can seem intimidating. Treat this experience like any negotiation and go in with a plan. The more thought you put into it upfront, the more confidence you'll feel about speaking with your dealer about the price of your new car.

Does Tesla price increase after order?

As has been explained before, Tesla engages in various — sometimes frequent — price cuts and price increases in order to fine tune the supply–demand balance and try to land on a reasonable, preferred ratio that doesn't lead to long wait times for consumers.