Evaluation of Tesla Based on PEST, POCD, SWOT and DCF

Abstract

Tesla is one of the world’s most valuable companies, which is founded by Elon mask in 2003. Since Tesla released its first electric race car in 2008, it has driven the global shift form diesel to electric vehicles through publicly available technology patents. This paper will evaluate Tesla based on POCD framework, PEST, SWOT and Discounted cash flow analysis. We discovered that Tesla has been provided with many opportunities to develop, along with the support from policy that enable itself to expand its influence around the world. Nevertheless, since investors have put too much expectations on the company, and their investing behaviors affected by COVID-19, Tesla’s real market value has been overvalued that further inflate its stock price. Consequently, we suggest investors to sell Tesla’s stock. In general, the analysis provides readers sufficient information to analyze, which also enables investors to derive a more comprehensive consideration about Tesla. These results can be helpful for investors to some extent when they are valuing this company.