Tesla: Upcoming Earnings Are Likely To Disappoint Investors

RI Research
313 Followers
(9min)

Summary

  • Multiple valuation models indicate that Tesla's stock is significantly overvalued, by a factor of 5 to 10.
  • Even if Tesla successfully starts mass production of its cheaper model with a selling price of $25,000, it will still be substantially more expensive compared to BYD's cheapest models.
  • Despite Elon Musk's potential to generate excitement, the massive fundamental risks make a disappointing earnings release likely, justifying a strong Sell rating.

Tesla Collision Center - Ремонт электромобилей

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Executive Summary

I think that Tesla's (NASDAQ:TSLA) vehicles look really beautiful and futuristic. However, the picture does not look beautiful if we look at the company from the investor's point of view. TSLA is significantly

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313 Followers
With a decade at a Big 4 audit firm specializing in the banking, mining, and energy sectors, I bring a strong foundation in finance and strategy. Currently, I serve as the Head of Finance for a leading owner and operator of retail real estate, where I oversee complex financial operations and strategy. I’ve been an active investor in the U.S. stock market for 13 years, starting with my very first paycheck. Over time, my portfolio has evolved to reflect a balanced approach, with a growing focus on value stocks while maintaining solid exposure to growth opportunities. My investment philosophy is rooted in thorough research and a long-term perspective, which has helped me navigate various market cycles successfully. I aim to bring value to Seeking Alpha by uncovering promising under-the-radar stocks that may not yet be on the broader market’s radar. My background in auditing and finance, combined with years of hands-on investing experience, allows me to provide unique insights and actionable ideas for fellow investors.

Analyst’s 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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