Tesla's 177x P/E - A Fundamental Warning Sign
Summary
- Tesla's valuation is excessively high at 177x FWD P/E, relying on future tech dreams rather than current fundamentals.
- Current earnings and margins are deteriorating, with automotive dependence and shrinking sales, especially in Europe, due to political factors.
- Promises around Full Self-Driving and robotics remain unfulfilled, with little evidence of imminent breakthroughs or market leadership.
- Given these risks and lack of fundamental improvement, I remain bearish on TSLA stock from current levels.
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