What if Tesla is just another car company - and not a particularly good one?

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

Elon Musk’s clown show is undermining Tesla’s global value

You may recently have seen a fair amount of Mr. Musk in his

That analysis, of course, is coming from the reality-based community. That’s not where Tesla shareholders have hung their hats. Tesla is not an auto company; it’s the future of tech, they say. Adam Jonas, an analyst at Morgan Stanley, derives his current US$220 price target by putting a value of US$116 per share on the car operations, plus US$104 on Tesla businesses like “mobility,” “energy,” “insurance” and “network services,” none of which really exist today in any meaningful way.

That works at early stages of rapidly increasing demand. But typically, with a mix of fixed costs and variable costs, cutting around 15 per cent from the average selling price – as it has just done – whacks the per-car operating profit. You have to sell a lot more cars to get back to your previous level of profitability.

So while Tesla’s reported 2022 net income of US$3.62 per share was double that of the prior year, it’s worth asking what happens if that growth slows markedly, or even stalls. Tesla’s forward price-to-earnings ratio is roughly 45, according to S&P Global Market Intelligence; the average P/E for 10 global automakers with greater annual sales than Tesla is 5.9.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

davidmilstead Yeah and what if Milstead is another lame self effacing pale journalist trying to virtue signal his feminist idiocy? Nerds and Teck geeks being 'dude bros' with toxic masculinity. Lol! No wonder he has to become a feminist if those guys have more test than him.

Seems like Tesla drivers beg to differ.

Just admit you have Elon Derangement Syndrome. This is sad

Hack journalism at its best. Calling Tesla investors “bros”? Good lord. If you want any actual information on what is happening with Tesla check out DillonLoomis22 and heydave7 , they actually bothered to spend the time to know what they’re talking about.

Very Bad Joke. How Much Did You Guys Get Paid For This?

Much of Teslas market value and success was overvalued because it was trendy and aligned with climate activists. This is simply a market correction as Musk falls into disfavour with “progressives”.

So that's why it is up 45% in last 60 days !

elonmusk

Lol, why don’t you just say I hate Musk; I own a Tesla, I’m no bro; it’s the best automobile I have ever owned

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines