Tesla is the largest EV manufacturer in the world. Many think this blue ship stock is like money in the bank. You buy the stock and keep it for 5 years . This expectation may be misleading and you may lose a lot . Why? 1- EPS is at 3.48 and share price is $164. This shows share price is too high. Overvalued. 2- Trailing P/E is a staggering 45, and forward P/E is 42, another high number 3-Margins: their operating margin was 27% and now it is 14.82% 4- Last quarter it cut prices three times. Cutting prices is not a simple policy because once you cut prices expect your competitors to do the same, or even worse. Now Chinese manufacturers are enjoying higher sales. This trend will continue especially that China has removed COVID restriction. Chinese manufacturers like BYD , Nio and xpev are also expanding their client base to Europe. Chinese manufacturers are able to compete and surpass Tesla because of the Chinese government financial support, something Tesla doesn’t and will not have. Tesla stock was $164 at the close last week. For me, Tesla has all the indications of going lower. Maybe around $130. What are your thought? Do you still believe Tesla will reach the moon? Why?
[link] [comments] https://www.reddit.com/r/stocks/comments/134idi8/tesla_is_it_a_good_investment_now/
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