The Short Case For Tesla

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About: Tesla, Inc. (TSLA)
by: Mike Gorlon
This article is exclusive for subscribers.
Mike Gorlon
Value, growth at reasonable price, long-term horizon, long/short equity
Summary

Market cap is higher than Ford’s and almost as high as GM’s, despite sales of $7B compared to $151.8B for Ford and $166.4B for GM.

Too much hype in production targets and when the company will earn a profit.

Current market price doesn't take into account potential negative news like vehicle recalls and setbacks in production goals, and shares should be hit hard should the bull market stall.

52-Week High: $313.73

52-Week Low: $178.19

Net Debt (in millions): $2,585

Last 12 months EPS: negative

Last 12 months revenue (in millions): $7,000

Target Price: $167.76

Rationale:

- IPO'd in 2010 at $17 a share