Tesla: Inventory Does Not Lie


  • I am concerned about Tesla, Inc.’s growth trajectory and valuation multiples given the recent inventory buildup.
  • I view the buildup as a clear indication of softening demand for its cars and broader overcapacity in the EV space.
  • I also have skepticism regarding its CFO’s confidence in reversing inventory buildup in the near future.

A car made of leaves with an exhaust trail of leaves

Richard Drury

TSLA stock has an inventory buildup

For the analysis of growth stocks like Tesla, Inc. (NASDAQ:TSLA), I kept going back to timeless insights from Peter Lynch. One key insight I learned from Lynch involves the following

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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