How Much Is Tesla Software Worth? A Lot. | Kanebridge News
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How Much Is Tesla Software Worth? A Lot.

A second broker has taken a shot at valuing Tesla’s software business.

By Al Root
Thu, Mar 4, 2021Grey Clock 2 min

A second broker has taken a shot at valuing Tesla’s software business. The conclusion, good news for the company and for other carmakers, is that Tesla software is worth a lot.

UBS analyst Patrick Hummel took a look at some of the value hidden away in Tesla (ticker: TSLA). The idea that some might still be undiscovered within the world’s most valuable automaker, whose stock has trounced the competition, might seem oxymoronic. But bulls believe Tesla is more than just a car company, given that it sells solar panels, insurance, and importantly, software.

Hummell isn’t a full Tesla bull. He rates shares at Hold and has a target of $730 for the share price. He believes other automakers will have some success ramping up sales volumes for EVs, but that “Tesla remains the undisputed tech leader, most notably in software.”

At his price target. well above the stock’s current level of about $686, Tesla would be worth roughly $700 billion. He values the car business at roughly $200 billion, leaving about $500 billion for everything else.

“The lion’s share of this value can be generated by software, mainly autonomous driving,” wrote Hummell in a Wednesday report. “Out of $20 [billion operating profit] we expect Tesla to generate in 2025, $9 [billion] should already be software-driven.”

That almost half of profit would come from software by 2025 is surprising. Most of that would be from Tesla’s autonomous-driving package, called full self-driving mode, which sells for $10,000 today. To make more money, Tesla could improve the rate at which consumers choose that option, as well as potentially offering it via a monthly subscription.

Hummell isn’t the only one that values Tesla software highly. Morgan Stanley analyst Adam Jonas has taken a sum-of-the-parts approach to valuing Tesla stock, looking at the different businesses separately. He values Tesla’s software and services business at roughly $250 billion.

That’s lower than Hummell’s call, but Jonas still rates Tesla stock at Buy, with a target of $880 for the share price. Jonas believes the Tesla car business is more valuable than Hummell does, valuing it at roughly $350 billion.

All the value and profit coming from software isn’t just a benefit to Tesla. Other auto makers plan similar products. Ford Motor (F) already plans to offer products related to its fleet of commercial vehicles around the globe. General Motors (GM) still has On Star. And Tesla peer NIO (NIO) is considering the idea of selling its autonomous-driving software as a subscription.

The theoretical valuation discussions about hidden assets, however, weren’t helping Tesla stock Wednesday. Shares were down about 0.6% in midday trading. in line with the S&P 500. The Dow Jones Industrial Average was up about 0.1%.

The stock is down about 15% over the past couple of weeks, but is still more than 350% higher over the past year.

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The waterfront residence is one of Port Stephens’ finest homes.

By Kanebridge News
Fri, Aug 12, 2022 2 min

In the coastal township of Salamander Bay — nearby to Port Stephens — comes a unique home crafted to take full advantage of unbroken ocean vistas across three levels.

With one-of-a-kind flair, the stunning 5-bedroom, 3-bathroom, 3-car garage home of 52 Randall Drive Salamander Bay is nestled on a private 577sqm plot, optimised through intelligent design to take advantage of the Port Stephens landscape and lifestyle.

Within the home sees the typically coastal textures of natural oak floor and timber feature walls take hold while stone and tiled adornments add layers of luxury.

The open plan living, kitchen and dining areas incorporate a fireplace and near floor-to-ceiling glass that opens to create a seamless indoor-to-outdoor dining and entertaining space on the home’s top floor.

The heart of this area is the kitchen, centred around a marble-topped island, state-of-the-art European appliances and an attached bar area, with built-in refrigeration, accompanied by a butler’s pantry.

Also here comes a grand outdoor spa, central to the balcony, while another outdoor entertaining area with a pizza oven is found on the middle floor.

Downstairs once again comes a second living space replete with the perfect wine cellar — cooled by the natural rock foundation of the home — offering an array of entertaining options

Of the home’s accommodation comes a private and luxurious master retreat with expansive ocean views, a walk-in wardrobe and an ensuite, here, speckled with grey terrazzo tiling and timber joinery vanities.  A further four bedrooms are found throughout the home along with two family bathrooms rounding out the offering.

Less than a five-minute walk from nearby amenities of shops, restaurants, cafes and beaches the home offers the best of the Port Stephens area.

The listing is with PRD Port Stephens’ Dane Queenan (+61 412 351 819) and Erin Sharp (+61 499 912 311) and is heading to auction; prd.com.au