Tesla Motors, Inc.

Market Risk
Premium
Market Risk
Premium
Cost of Debt
Cost of Debt
Tax Rate
Tax Rate
WACC
WACC
Adjusted Beta
Adjusted Beta
University of Oregon Investment Group
April 18, 2013
Appendix 6 –Sensitivity Analysis
Implied Price
Undervalued/(Overvalued)
Terminal Growth Rate
Terminal Growth Rate
52 2.0% 2.5% 3.0% 3.5% 4.0% 0 2.0% 2.5% 3.0% 3.5% 4.0%
1.34 53.99 55.83 57.94 60.38 63.22 1.29 27.02% 31.64% 36.96% 43.13% 50.39%
1.44 51.18 52.72 54.47 56.46 58.76 1.39 20.08% 23.92% 28.30% 33.33% 39.17%
1.54 48.77 50.07 51.52 53.18 55.06 1.54 11.47% 14.43% 17.77% 21.54% 25.86%
1.64 46.68 47.78 49.01 50.39 51.95 1.64 6.69% 9.20% 12.01% 15.17% 18.75%
1.74 44.85 45.79 46.84 48.00 49.31 1.74 2.52% 4.67% 7.06% 9.72% 12.72%
Implied Price
Undervalued/(Overvalued)
Terminal Growth Rate
Terminal Growth Rate
52 2.0% 2.5% 3.0% 3.5% 4.0% 0 2.0% 2.5% 3.0% 3.5% 4.0%
9.01% 53.26 54.84 56.62 58.64 60.95 8.75% 23.26% 26.98% 31.16% 35.90% 41.31%
10.01% 50.89 52.32 53.93 55.76 57.85 9.75% 17.69% 21.05% 24.83% 29.12% 34.01%
11.01% 48.77 50.07 51.52 53.18 55.06 11.01% 11.47% 14.43% 17.77% 21.54% 25.86%
12.01% 46.86 48.04 49.36 50.86 52.57 11.75% 8.22% 10.97% 14.07% 17.59% 21.60%
13.01% 45.15 46.22 47.42 48.77 50.32 12.75% 4.20% 6.69% 9.50% 12.69% 16.33%
Implied Price
Undervalued/(Overvalued)
Terminal Growth Rate
Terminal Growth Rate
52 2.0% 2.5% 3.0% 3.5% 4.0% 0 2.0% 2.5% 3.0% 3.5% 4.0%
6.24% 48.71 50.00 51.46 53.10 54.99 6.24% 11.3% 14.3% 17.6% 21.4% 25.7%
11.24% 48.74 50.03 51.49 53.14 55.03 11.24% 11.4% 14.4% 17.7% 21.5% 25.8%
16.24% 48.77 50.07 51.52 53.18 55.06 16.24% 11.5% 14.4% 17.8% 21.5% 25.9%
26.24% 48.83 50.13 51.59 53.25 55.14 26.24% 11.6% 14.6% 17.9% 21.7% 26.0%
36.24% 48.89 50.19 51.66 53.32 55.22 36.24% 11.7% 14.7% 18.1% 21.9% 26.2%
Implied Price
Undervalued/(Overvalued)
Terminal Growth Rate
Terminal Growth Rate
52 2.0% 2.5% 3.0% 3.5% 4.0% 0 2.0% 2.5% 3.0% 3.5% 4.0%
1.26% 49.08 50.39 51.87 53.55 55.47 1.26% 12.2% 15.2% 18.6% 22.4% 26.8%
2.26% 48.92 50.23 51.70 53.36 55.26 2.26% 11.8% 14.8% 18.2% 22.0% 26.3%
3.26% 48.77 50.07 51.52 53.18 55.06 3.26% 11.5% 14.4% 17.8% 21.5% 25.9%
4.26% 48.62 49.90 51.35 52.99 54.87 4.26% 11.1% 14.1% 17.4% 21.1% 25.4%
5.26% 48.47 49.74 51.18 52.81 54.67 5.26% 10.8% 13.7% 17.0% 20.7% 25.0%
Implied Price
Undervalued/(Overvalued)
Terminal Growth Rate
Terminal Growth Rate
52 2.0% 2.5% 3.0% 3.5% 4.0% 0 2.0% 2.5% 3.0% 3.5% 4.0%
3.79% 67.47 71.09 75.41 80.64 87.11 3.79% 54.2% 62.5% 72.4% 84.3% 99.1%
4.79% 56.10 58.19 60.59 63.38 66.68 4.79% 28.2% 33.0% 38.5% 44.9% 52.4%
5.79% 48.77 50.07 51.52 53.18 55.06 5.79% 11.5% 14.4% 17.8% 21.5% 25.9%
6.79% 43.78 44.63 45.57 46.61 47.78 6.79% 0.1% 2.0% 4.2% 6.5% 9.2%
7.79% 40.25 40.83 41.46 42.16 42.92 7.79% -8.0% -6.7% -5.2% -3.6% -1.9%
UOIG 28