Individual Assignment FNCE 623 In this individual assignment we will start by looking at Tesla, the electric car manufacturer. Tesla raised eyebrows in 2017 as its market valuation (price of all shares) exceeded that of its much larger rivals, traditional car manufacturers General Motors (GM) and Ford (see the article below). Tesla produced 76 thousand cars in 2016, compared to GM's 10 million and Ford's 6.6 million. That means that Tesla's production volume was a mere 0.76% of GM's. Yet the market valuation of $51 billion exceeded GM's $50.9 billion. It looks like the acquisition of Solar City, although a drag on Tesla's finances, didn't hold its share price down for long. When looking at the profits Tesla and GM generate, even more questions arise. Tesla has accumulated $1.9 billion over the last three years, while GM had a net profit of $23 billion over the same period. Looking at the problem from a cash flow perspective, Tesla's value shouldn't be anywhere close to $51 billion; it should actually be negative. However, using the cash flow valuation method isn't the best way to approach this problem, as the losses were accompanied by strong expansion in the electric car market, and the valuation is a reflection of investor belief in the bright future of the company. And at the same time they don't have the same optimism for the futures of GM and Ford; their valuations are much lower than their profits would suggest. To see why, just compare GM's profits and valuation - $23.9 billion in profits over 3 years and a value of $50.9 billion. That would suggest that GM is able to make as much money as it is worth in just over six years, or close to seven, if discounting is used. The only way to explain it is that investors are expecting prots to fall very quickly. Your task for this individual assignment is to nd a similar case to Tesla, where there is a clear disparity between profits and market valuation. The company can be one that is publicly traded, or one that has recently been acquired for a price not explained by its prots. Background article: Financial Times (2017, April 11th). Tesla steals GM's crown as most valuable US carmaker, Available at: https://www.ft.com/content/fa2f3bce-1e33-11e7-b7d3-163f537f229c?mhq5j=e1 Required: Your written report should be approximately 2 pages, double-spaced, 12 pt font, 1-inch margins + references (APA style). There will be a 1 point deduction on the overall grade out of 10 for every 100 words over a wordcount for the body of the report of 1,500. You MUST select the case you are proling and post a short discussion forum post with the company name. You MAY NOT pick a company that anyone else has already said they are picking. This is on a first-come, first-serve basis so if there is a particular company that you want to prole THAT MEETS THE REQUIREMENTS OF THIS ASSIGNMENT you should get your post up ASAP. Your prole should include: - A description of the company you are profiling - A description of the industry or other information you have used to determine the disparity - Information on what happened in the stock market related to valuation - Any subsequent information on how the market reacted, current valuation etc. - Any detailed calculations should be in an appendix, with reference to them in the main body of the report. Your individual assignment is due September 11"I at 11:59 pm