Tesla’s (NASDAQ:TSLA) Valuation in the Stratosphere

Tesla’s (NASDAQ:TSLA) Valuation in the Stratosphere

Tesla’s (NASDAQ:TSLA) Valuation in the Stratosphere, “Where is the Beef”

$TSLA, $TM, $DDAIF, $VLKAY, $F, $GM

Shares of EV maker, Tesla, Ine, sold off Friday,  after marking  an all-time high and driving its market capitalization to $61.6-B, about $280-B more than BMW AG.

Tesla now ranks as the 4th-most valuable automaker, behind Toyota Motor Corp (NYSE:TM)., Daimler AG (OTCMKT:DDAIF) and Volkswagen AG (OTCMKT:VLKAY)

CEO Elon Musk hyped up enthusiasm for the shares this week by reaffirming that the Model 3 Sedan, Tesla’s most affordable car yet  will start production on time in July he says, and be followed by a cheaper crossover he sees eventually drawing more demand.

If these cars get made, then they have to be sold.

Tesla has limited sales facilities and virtually no dealer network. The consumer demand for EV’s is very small in the US when compared to gasoline powered vehicles.

That vehicle, called the Model Y, is scheduled to arrive as soon as late Y 2019 and will necessitate its own assembly plant, the CEO said during Tesla’s annual meeting Tuesday.

Note: Tesla makes and sells a minuscule number of cars annually, has made very little money, and is deeply in debt. Further, Mr. Musk has no problem making promising forecasts, but is challenges meeting them

Tesla delivered fewer than 80,000 vehicles last year and has only reported 2 profitable Quarters in its short history.

GM, by comparison, sold more than 10-M vehicles and expects to earn more than $9-B this year.

The company’s Model S sedans and Model X crossovers compete for the same affluent buyers as BMW’s 7 Series or X6 SUV’s, maybe compete is the wrong word, BMW is the leader in the field, Tesla is a bit player.

 Tesla shares were trading at 357.32, -12.68 (-3.43%) at 3:55p in New York Friday into the close.
I see Tesla, Inc as a speculation, not an investment grade stock, prudence and caution are the watchwords, it is a rentier business and they always fail. The newcomer’s EPS in -4.76.
Volkswagen, Damiler, Toyota and BMW are the most advanced automobile manufactures in the world. Again, Tesla is a bit player in the sector.
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Bullish (0.28) Bullish (0.26) Bullish (0.28) Bullish (0.29)

Have a terrific weekend.

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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