NYU's Aswath Damodaran Calls Tesla 'Ultimate Story Stock'

The transcript discusses Tesla's position as a story stock, driven by Elon Musk's vision and the company's strong customer base. Despite its potential in the vast automobile market, Tesla faces challenges in delivery and competition. Traditional automakers struggle with legacy decisions and profit-making, while Tesla's valuation remains a topic of debate. The discussion highlights the need for Tesla to capitalize on its market potential and overcome operational hurdles.

What is the primary reason investors are attracted to Tesla, according to the first section?

• The strong belief in Elon Musk's vision

• Its consistent profitability

• Its large number of factories

• The low cost of its vehicles

What is a significant challenge Tesla faces, as mentioned in the first section?

• High employee turnover

• Difficulty in delivering products

• Inability to innovate

• Lack of customer interest

In the second section, what is noted as a blessing for Tesla in the automobile market?

• The poor competition from traditional automakers

• The strong government support

• The high demand for electric vehicles

• The low cost of production

What is a major hindrance for traditional automakers in transitioning to electric vehicles, as discussed in the third section?

• Lack of technological expertise

• Legacy decisions and structures

• High production costs

• Insufficient market demand

What is the speaker's personal stance on Tesla's stock price at the end of the third section?

• It is overvalued

• It is fairly priced

• It is undervalued

• It is irrelevant