To estimate the cost of equity for TSLA, you obtained the historical stock information of TSLA as following. The stock price listed for TSLA is $254.61. The book value per share of TSLA is $17.89. The market capitalization of TSLA is $40.96 billion. The number of stock shares outstanding is 160.87 million. The most recent dividend payout is $0. The beta for TSLA is 1.19. The yield on tree-month Treasury bills is 0.46%. The expected market return is 7.46%.

1. Can you use the dividend discount model in this case to estimate the cost of equity for TSLA? If so, what is the cost of equity for TSLA? If not, why?
2. Can you use the CAPM model in this case to estimate the cost of equity for TSLA? If so, what is the cost of equity for TSLA? If not, why?