Where Will Tesla Stock Be In 5 Years?

Nov. 28, 2022 1:27 PM ETTesla, Inc. (TSLA)178 Comments

Summary

  • Tesla's shares have performed poorly in the past month or so, as its lower-than-expected Q3 2022 automotive gross margin disappointed the market.
  • TSLA's near-term outlook remains mixed, as I expect an improvement in Tesla's automotive gross margin in subsequent quarters to be offset by weaker-than-expected deliveries.
  • In the next 5 years, Tesla will continue to be a fast grower in terms of the expected CAGRs for its top line, net profit, and free cash flow.
  • I raise my rating for TSLA from a Hold to a Buy, as its valuations have gotten more attractive and have yet to factor in the company's positive 5-year outlook in my opinion.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
Tesla Shanghai Gigafactory

Xiaolu Chu

Elevator Pitch

I have a Buy investment rating for Tesla, Inc.'s (NASDAQ:TSLA) shares.

I previously discussed TSLA's stock split and target price changes with my prior September 7, 2022 update for the company. In that article, I determined that "the implied upside (+13%) for TSLA's

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Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities  with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders).


Those who believe that the pendulum will move in one direction forever or reside at an extreme forever eventually will lose huge sums. Those who understand the pendulum's behavior can benefit enormously. ~ Howard Marks

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 business relationship with any company whose stock is mentioned in this article.

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