Tesla Stock: Get Ready For A Sell-Off

Summary:

  • Today I see a fairly high risk of profit-taking in Tesla, Inc. stock and a further downward movement shortly.
  • This is supported by both the general market indicators and the idiosyncratic technical signs in Tesla’s price action.
  • The company’s market cap now is much higher than its fair value, despite the doubling of my discounted cash flow analysis price output.
  • I believe that in 2023, investors will have even better chances to buy Tesla stock for a lot cheaper.

Tesla Service Center. Tesla designs and manufactures the Model S electric sedan IV

jetcityimage

My Coverage History

You are now reading my 6th article on Tesla, Inc. (NASDAQ:TSLA). I initiated coverage of TSLA on October 18, 2021, with a buy recommendation. At that time, the company’s outlook seemed rosy and some

discount periods

1 2 3 4

FCFF

$2,521 $6,566 $11,289 $15,634

EBITDA

$8,722 $13,343 $17,432 $28,012

WACC

12.55%

PV of FCFF

$2,240 $5,184 $7,918 $9,743

Sum of PV (FCFF)

$25,084

EV/EBITDA exit multiple

15x
Terminal Value, based on EV/EBITDA multiple = $420,177
Total Enterprise value = $445,261

share of FCFF [% of total EV] =

5.63%

share of Terminal value [% of total EV] =

94.37%

Net debt =

$-16,437

Equity Value =

$461,698

per share =

$133.85

current price =

$196.89

upside/downside, %

-32.02%


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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