NYU's Damodaran: Tesla's Value More Justified Than Amazon

The video discusses Tesla's success as a story-driven company, drawing an analogy with Brexit. Despite challenges, Tesla's stock remains strong due to its loyal customer base and weak competition. The company needs to increase revenues significantly and achieve high margins to justify its current valuation. However, Tesla's history of execution is questioned, highlighting the need for flawless performance to maintain its market position.

What analogy is used to explain the public perception of Tesla?

• The Brexit vote

• The financial crisis of 2008

• The dot-com bubble

• The rise of social media

Why is Tesla considered a 'story stock'?

• Because it has a strong financial backing

• Because it has a large number of investors

• Because it has a high market share

• Because it has a compelling narrative that captivates people

What is one of the key factors for Tesla's future valuation?

• Reducing production costs

• Increasing revenues to 80-100 billion in 10 years

• Expanding into new markets

• Developing new car models

What is one of Tesla's competitive advantages?

• Its high advertising budget

• Its extensive dealership network

• Its low-cost production

• Its loyal customer base

What challenge does Tesla face in justifying its current valuation?

• Need for flawless execution

• High competition from luxury car makers

• Lack of innovation

• Declining market demand