TESLA - A PERSPECTIVE ON FUTURE DIVIDENDS

Let’s take a look at what it might be like :

1. Imagine that you buy 200 shares in TSLA today at $600 per share = $120,000

2. Imagine that those shares are worth $6,000 per share in 2032 = $1,200,000

3. Imagine that the P/E Multiple on TSLA is 20x at that time, so Earnings Per Share EPS = $6,000 / 20 = $300 per share

4. Imagine that TSLA decides to pay a 50% Dividend out of these earnings = $150 per share per year

5. This gives a Dividend Yield of $150 / $6,000 = 2.5% which is very normal

6. So now our Investor has the following benefits :

- stock worth $1,200,000

- increasing in value say 10~15% per year = + $120,000 gain per year

- annual dividend of $150 per share x 200 shares = +$30,000 cash income per year

So every year they are now getting an incremental value of $150,000 / $120,000 = +125% of their original investment

- and the only reasonable question today would be :

“Why don’t you buy some more “