Tesla Makes A Great Move, But Shares Are Still Overvalued

Summary:

  • Tesla struck a solid deal with General Motors Company that should benefit both firms, but in different ways.
  • This move is a great one for Tesla in the long run, as was a similar deal with Ford Motor Company.
  • But this doesn’t change the fact that Tesla shares are very expensive at this time and investors should tread cautiously.

Tesla Supercharger Station. The Supercharger offers fast recharging of the Model S and Model X electric vehicles XI

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Due to a number of factors, some political and social, some economic, and some technological, one of the most controversial and debated investments on the market today is electric vehicle manufacturer Tesla, Inc. (NASDAQ:TSLA). Much of the

Financials

Author – SEC EDGAR Data

Vehicles Sold

Author – SEC EDGAR Data

Company Price/Earnings Price/Operating Cash Flow EV/EBITDA
Tesla Today 63.1 42.5 44.3
Tesla in 5 Years (Hypothetical at 30% Growth/Annum) 17.0 11.4 11.9
Ford 19.6 5.3 11.7
General Motors 5.8 3.1 8.4


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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