Tesla stock has much more downside ahead as competition from peers continues to heat up, according to GLJ Research analyst Gordon Johnson. , he said that although Tesla's valuation has seemingly benefited from the mystique surrounding the company and CEO Elon Musk at the expense of fundamentals that tell a different story.
"I know people love Tesla, but I think here's significantly more downside as people realize this is just an auto company: 95% of revenue from selling cars, 5% from an energy division that loses money," Johnson said. Musk has routinely pinned blame for the steep fall in Tesla stock on the Federal Reserve and steep interest rate increases this year. But he is facing criticism from shareholders for neglecting the electric car maker in order to focus on his recent acquisition of Twitter.
Competition in the electric vehicle space has only intensified in 2022, and Tesla has struggled to increase output while also slashing prices in key markets like China.Meanwhile, Tesla's market capitalization still remains above than the the next four largest automakers combined, he added. But if the company was valued the way its rivals are, based on auto sales and margins,"that would mean you're talking about an $18 dollar stock," Johnson estimated.
BS. Tesla is the only real EV maker
The product mix is wrong at Tesla too heavy on sedans and no real SUV
Tesla is a MAGA car company
When we were at LA Auto Show last month, every automaker is jumping into EV market. Every. Single. One. Lots of competition coming Elon’s way with better made, some less expensive EVs. And longer battery range. I don’t see how Tesla hangs on over next five years.
kurteichenwald Failure to compete in LeMan seems kinda 🐓🐓💩 and a scaredy 🐱
$TSLA $120
kurteichenwald Still trades at 50x earnings and other automakers are around 10x or less. Lots of room on the downside.
kurteichenwald Anyone saying “Tesla is just an auto company” at this point is intentionally lying.
kurteichenwald Tesla had EV market pretty much all to themselves, M¥sk decided the physical car part needed to be reinvented, which he did, into a less than great car Now there’s lots of EV competition with cars that r better in every way Between that & his erratic behavior, he’s tanking Tesla
How do you know if a publication has sh*t for brains without them actually saying it? elonmusk
It's a Data company, not a car company.
kurteichenwald Let your Tesla lease expire and return it
kurteichenwald Cancel your Tesla order
kurteichenwald Boycott Tesla