Tesla: The Crash Has Just Begun

Cash Flow Venue
2.9K Followers
(9min)

Summary

  • Tesla, Inc.'s brand has suffered due to CEO Elon Musk's political involvement, alienating its core Democratic-leaning customer base and sparking boycotts.
  • The escalating feud between Elon Musk and President Donald Trump threatens Tesla with regulatory risks, including the accelerated expiration of key EV tax credits.
  • Tesla faces severe sales declines across Europe, with weakening demand drivers and the loss of incentives likely to exacerbate the situation.
  • Given high valuation multiples, declining sales, and mounting risks, I maintain a Strong Sell rating on TSLA stock - there are other cutting-edge businesses with more attractive business models and valuations.

Tesla Signage at Delivery Front Entrance

baileystock

Tesla, Inc. (NASDAQ:TSLA)... It's been quite a rollercoaster for the last year, hasn't it? With the stock price hitting nearly $480 per share within 6 months from just nearly $200 per share, then to drop back to ~$230 due to controversies around

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Welcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I’ve built a rock-solid pillar in my financial foundation through dividend investing. I believe it’s one of the most accessible paths to achieving financial freedom, and I’m excited to share my insights with you. I’m a finance professional with deep experience in M&A and business valuation. What does that mean in practice? I’ve evaluated countless businesses and played key roles in sell-side and buy-side transactions, guiding clients through the complexities of buying and selling companies. In my day-to-day work, I dive into financial modelling, conduct commercial and financial due diligence to assess a company’s health, negotiate deal terms, and, of course, attend way too many meetings :) My focus spans sectors like tech, real estate, software, finance, and consumer staples - industries I’ve spent years advising and now invest in personally. Today, they make up the core of my portfolio and coverage on this platform. My motivation for writing on Seeking Alpha comes from a desire to not only deepen my own knowledge but also to share value with others who are on a similar path. Dividend investing has played a key role in my financial journey, and I believe it’s one of the most straightforward and accessible ways for anyone to work towards financial freedom. By sharing my insights and experiences, I hope to demystify the process, making it more approachable for those looking to build long-term wealth. Ultimately, my goal is to help facilitate OUR journey to financial freedom, learning and growing together as we navigate the world of dividend investing.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA 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.

I can not avoid mentioning some political aspects when discussing Tesla. Please note that by no means do I intend to express any of my views and each reference to wording such as 'right-wing' or 'left-wing' is supposed to solely present my thesis and observations with no hidden agenda. The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice. I have a beneficial short position in the shares of Tesla.

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