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Intrinsic Value and Long-Term Stock Prices
In the long run, stock prices tend to align with intrinsic value. The convergence of price and intrinsic value may take time. The estimation of Tesla's intrinsic value involves analyzing Elon Musk's ability to maintain the cost of capital for generating free cash flow. Unique situations like Tesla's profitability challenges require considering historical examples like Thomas Edison obtaining funding from JP Morgan despite setbacks. Such reflexive investing considerations are vital in unique cases.