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One of my favorite idioms in German must be "vom Regen in die Traufe," literally translated as "from the rain into the eave" and more loosely as from bad to worse. While we have been (unpublicized) negative on
Tesla: Going From Bad To Worse As The Big Beautiful Bill Takes Effect
Summary
- Tesla, Inc. has entered a "post-growth" stage as quarterly deliveries continue to fall in the double-digits and market shares in China and Europe decline further.
- With the signing of the BBB and the end of EV credits, the previously stable U.S. market now also looks set for trouble, likely beginning in Q4.
- Potential price cuts in the U.S. to offset lost EV credits and avoid used car cannibalization could further exacerbate the ongoing margin downtrend and force material out-year EPS estimate cuts.
- Combining that with CEO Elon Musk's political activities and a sky-high valuation, we believe investors should do their best to avoid Tesla stock.
Finance professional with experience across investment banking and capital markets with a great passion for fundamental long-only investing. Sector agnostic but a special emphasis on the global oil patch and aerospace & defense.
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