Tesla bubble is likely to burst this year
$Tesla Motors(TSLA)$
The fact that the EV sales growth rate is slowing down severely damages the pure EV automaker much more than the legacy automakers who have high margin ICEs and hybrids to drive sales. Elon Musk still has a halo around his head with diehard Tesla fans but even he failed to give 2024 guidance and has outright warned faithful shareholders on recent conference calls.
I am surprised that the shares have held up so well given the reality that the EV early adopters are becoming more scarce combined with the recent EV cold spell fiasco that reignited range anxiety.
The valuation is preposterous. 2024 is looking like a severe reality check is in the cards and that will become more clear with each earnings call, IMHO. The bubble is likely to burst this year.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
