TESLA STOCK PRICE ANALYSIS - A FAIR VALUATION | Summary and Q&A

TL;DR

Tesla's business model relies on high revenue growth but has consistently operated at a net loss. Investing in Tesla requires considering its promises, competition, stock valuation, and the electric vehicle trend.

Key Insights

• 👨‍💼 Tesla's business model focuses on rapid revenue growth but has consistently operated at a net loss.
• 🥺 Elon Musk's promises often fall short of reality, leading to delays in project completion and missed targets.
• 🚙 Established car manufacturers are now ramping up electric vehicle production, posing a challenge to Tesla's market dominance.
• 🤨 Valuing Tesla as a stock depends on reaching ambitious targets, but the company's track record raises concerns about their ability to deliver efficiently.
• ✋ Investing in Tesla requires considering the high volatility of the stock and the expensive nature of shorting it.
• 🚙 The electric vehicle trend presents investment opportunities in related industries, such as nickel and copper mining for battery production.
• 📔 Due to sentiment-related volatility, the analysis concludes that covering Tesla on the channel is not feasible, but an update on Facebook will be provided.

Transcript

good eye fellow investors Tesla was one of the stocks that you required me to analyze in the 20k subscribers video you can find all the other stocks that we have analyzed from the list in the description below the links so Tesla is a very intriguing stock but there are free ways to approach investing in Tesla you can trade on the tweets you can be ... Read More

Questions & Answers

Q: What has been the financial performance of Tesla in recent years?

Tesla has experienced high revenue growth but has operated at a net loss of nearly $4 billion due to Elon Musk's unrealistic efficiency expectations and missed promises.

Q: How has Tesla's business model compared to other car manufacturers?

Tesla's business model, focused on electric vehicles, puts them in direct competition with other car manufacturers, who have low valuations due to the risk of an economic downturn affecting demand for luxury cars.

Q: Why did established car manufacturers wait to compete with Tesla in the electric vehicle market?

Established car manufacturers waited for confirmation that the market was ready for electric cars before investing billions, unlike Tesla, which suffered losses before the market demand was significant enough.

Q: What is the fair value estimate for Tesla's stock?

Considering potential inefficiencies and the need for capital, a fair value estimate for Tesla's stock is $32.50, significantly lower than the current stock price of $300.

Summary & Key Takeaways

• Tesla's business model focuses on growing revenue quickly, but it has consistently operated at a net loss due to Elon Musk's efficiency promises not aligning with reality.

• Tesla's track record shows numerous missed promises and delays in project completion, raising concerns about their ability to deliver on future targets.

• Valuing Tesla as a stock depends on reaching its 1 million vehicle target in 2020, but considering the inefficiencies and need for capital, a fair value estimate is $32.50.