Tesla: Nobody Ever Lost Money Taking A Profit (Rating Downgrade)
Contributor since 2021 / 9101 Followers
Summary:
- Emboldened by Donald Trump’s election victory, Mr. Market has bid up Tesla, Inc.’s trading multiple well above the 2020-21 ZIRP/liquidity bubble peak.
- Despite bullish technical momentum, TSLA’s stock is overbought and detached from business fundamentals, posing significant near-term downside risk.
- Our valuation model shows Tesla’s fair value at $180 per share, with a 5-year expected CAGR return of -1%.
- Due to significant deterioration in its long-term risk/reward, I now rate Tesla a “Sell” in the mid-to-high $400s.
Daniel Grizelj
Introduction
Since its “We, Robot” robotaxi event in October 2024, Tesla, Inc. (NASDAQ:TSLA) stock has literally skyrocketed to new all-time highs. While Tesla’s business performance has been on the mend in recent quarters, the latest
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. 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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