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Elon Musk’s Tesla Corp. (TSLA) has the following price per share, cash flows and, financial projections...

Elon Musk’s Tesla Corp. (TSLA) has the following price per share, cash flows and, financial projections (these numbers are projections I threw together in about 15 minutes… so take them with a grain of salt).

  1. Since May of 2019 Tesla stock has increased form approximately $185 a share to $815 a share! $815 a share is the current price of Tesla stock.
  2. The company has 180,240,000 shares outstanding.
  3. The company’s future expected cashflows are:

Year 1: $3,000,000,000

Year 2 $3,800,000,000

Year 3: $5,000,000,000

Year 4 onward: Constant growth of 5% per year.

Assume a fair discount rate of 7%. What is the company’s fair price per share?

(Enter you answer round to the nearest penny, with no dollar signs or punctuation)

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