Samlunch
05-16
$Tesla Motors(TSLA)$  


$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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Comments

  • Dr Rck
    05-16
    Dr Rck
    Yes it seems it is drawing up cash fast, hence the Fed has to come quickly to the rescue otherwise its stock price will spiral down, the recent uplift has alreasy priced in the coming cut but has yet to take place! Would you buy into a company if it is burning cash fast and continued decline in sales? Go for it.
  • chizzoo
    05-16
    chizzoo
    Seems like management is struggling to regain investor interest.
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