Disagreements and First Principles: The Pushback on my Tesla Valuation
Musings on Markets
FEBRUARY 2, 2023
Finally, my starting cost of capital of 10.15% reflects the reality that the riskfree rate and equity risk premiums have risen over 2022, and my ending number of 9% is an indication that I expect Tesla to become less risky over time. It was the reason that I argued at a $1.2
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