Apu Gomes
Tesla, Inc. (NASDAQ:TSLA) stock has declined 28% from its all-time high of $489 per share, and for the reasons listed in this article, I believe the stock is still overvalued.
I last covered Tesla in April 2024
Tesla: Consider Selling For 3 Reasons (Rating Downgrade)
Summary
- Tesla, Inc.'s stock is downgraded to Sell due to poor fundamentals, declining automotive sales, and deteriorating margins despite price cuts and incentives.
- Tesla Energy's growth is insufficient to offset the automotive segment's decline, with lower margins expected due to intense competition, particularly from Chinese manufacturers.
- Tesla's AI ambitions, including robotaxis and humanoids, remain unproven and are not factored into TSLA stock's valuation until a viable product is ready.
- Valuation estimates suggest Tesla's market cap could decline by 82% to $200B, given stagnant vehicle deliveries and intense competition across all segments.
You'll never see me write a long bio listing all of my credentials and degrees or refer to myself in the third person. I love discussing ideas and I appreciate it when people can play devil's advocate without resorting to personal attacks. In short, I employ a long-only, long-horizon, focused value style, guided by thorough bottom-up research and backed by years of accounting and finance experience. When people ask me "what do you do?" I assume they mean for fun.
Analyst’s Disclosure: I/we have a beneficial short position in the shares of TSLA 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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