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Tesla: Risks Outweigh Potential Rewards At These Valuation Levels [Seeking Alpha]
Last tesla, inc. earnings: 4/29 04:11 pm
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US:NASDAQ Investor Relations: ir.tesla.com
TSLA's current valuation, at roughly 200x forward earnings, is disconnected from its competitive and financial realities. Intense competition from Chinese startups and legacy automakers is driving price cuts and margin compression for TSLA. I rate TSLA a strong sell, as risks now clearly outweigh potential rewards at these valuation levels. MikeDot/iStock Editorial via Getty Images Thesis While Tesla has become known for its innovative spirit and forward-looking vision, there lies an underlying sense of alarm in many of the company's fundamentals. The recent trends in the financials, the overall marketplace and recent This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no
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