$TSLA Tesla bulls and Elon Musk have spent the past 10 months trying to convince the world that the company shouldn't be valued as a car company, but as a robotics, AI, and renewable energy growth company.
And yet the revenue speaks for itself.
It is a car company.
Over that same 10 month time period $TSLA stock has fallen, from peak to trough, over 50%.
Yet even now it has a P/E of 44.50, narrowing margins, and negative leveraged free cash flow as revenue falls due to slowing sales.
It has also amassed $9.91B in debt.
This looks like a company that is in trouble, and if you don't believe me just look at the flailing attempts by management to recapture the interest of investors.
During an AI boom, a self-proclaimed "AI company" cannot even catch a bid.
I think that tells you everything.
A P/E of 44.5 is rich even for an "AI growth company".
Particularly one where revenue and earnings are going the WRONG WAY.
Just imagine if it was actually valued like a legacy automaker....
The multiple compression would be brutal.
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