We initiated coverage on Tesla. Our head of Research shares some of his findings in the report. Highlights: Tesla sold just under 1M vehicles last year, which was 9% of the largest auto manufacturer (Toyota/TSE: 7203), 14% of global Electric Vehicle (EV) sales, and 1.4% of global vehicle sales.

Yet, Tesla is the largest auto manufacturer by MCAP ($1T) – almost 3x Toyota’s MCAP ($239B). In this report, we investigate one of the most burning questions on the street - “Is Tesla’s $1T valuation justified?”