Tesla: No Safety Margin

The Asian Investor
27.97K Followers
(8min)

Summary

  • Tesla mixed Q4 earnings with slowing top-line growth and a weaker margin profile.
  • Despite solid deliveries and production growth, I maintain a sell rating due to Tesla's excessive valuation and lofty 11.7X FY 2026 revenue multiplier.
  • BYD overtook Tesla again in Q4 in terms of global BEV deliveries and BYD has a more promising gross margin profile.
  • The biggest risk for Tesla is a potential slowdown in EV adoption, which could impact its ambitious FY 2025 delivery growth targets.
  • Tesla's mixed earnings report and high valuation make it an unattractive investment; I recommend waiting for a price drop towards $293 per share.

A car made of leaves with an exhaust trail of leaves

Richard Drury

Tesla (NASDAQ:TSLA) reported weaker-than-expected earnings for the fourth quarter which didn't seem to bother the market very much at all: shares of the electric vehicle giant gained 3% the day after earnings and shares closed Thursday above the

This article was written by

27.97K Followers
I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BYD, RIVN either through stock ownership, options, or other derivatives. 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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