Continuing from part I… Tesla is comprised of 91%-92% equity and 8%-9% debt depending on how the company’s market cap fluctuates. I compute a cost of equity at 11.75% and cost of debt of 4.4%. (I try to use some objective inputs regarding cost of equity, but I tend to use a higher equity risk premium assumption for the sake of conservatism). This comes to a weighted average cost of capital of 11.11%. Using the financial and operating assumptions of part I, this provides an estimated company value of $37.9 billion, or 15% above its current value. After making debt- and excess cash-related adjustments, the company’s equity is valued at $34.7 billion, or $263 per share, approximately 14% above its current value. Graphics below allow for WACC and long-term growth rate sensitivity adjustments of +/- 50 bps: