Part 5/9:
The discount rate is another pivotal factor when estimating Tesla's value. Basher previously estimated it at 14% but later adjusted it to 12%, more in line with historical stock market returns. The analysis revealed that if investors were only willing to accept an 8% return, the present value of Tesla shares could soar to around $88,000 per share — illustrating the high degree of sensitivity in valuation concerning investor expectations.