When I compare TSLA to other automotive companies, first thing every TSLA investor tells me is that TSLA is not just an automotive company. Even though I don't think this is true, I will touch on every service TSLA provides in this article.
Tesla: Missed Promises Failing To Justify The Price
Summary
- TSLA remains overwhelmingly an automotive company, with 81% of revenue from cars, facing quality issues and fierce competition, especially from Chinese EV makers.
- Repeated delays, overpromises, and customer-unfriendly practices in new products (Cybertruck, Roadster, Solar Roof, Robotaxi) have damaged TSLA’s reputation and credibility.
- Financial performance has deteriorated since late 2022, with declining revenue, shrinking margins, and a forward P/E vastly higher than both auto and tech peers.
- Given persistent operational failures, overvaluation, and lack of credible improvement, I recommend a 'sell' rating on TSLA until management delivers real, transparent progress.
Yavuz Akbay is quantitative analyst with over 5 years of experience in interpreting complex financial data, developing complex mathematical models and modeling and forecasting. Utilizes machine learning algorithms to enhance financial analysis and provide accurate and timely recommendations. Yavuz holds a Bachelor of Business Administration and now continuing Master's of Economics.
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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