Is Tesla Stock Undervalued Or Overvalued? Consider Valuation Multiples And Catalysts


  • Tesla, Inc.’s stock price has fallen by -60% in the past one year, and its current share price is only slightly more than a third of its 52-week peak.
  • Tesla’s valuations are attractive in view of the stock’s growth profile, and there are catalysts like Elon Musk’s resignation as Twitter’s CEO, share buybacks, and higher-than-expected margins.
  • My Buy rating for Tesla remains unchanged, as I deem TSLA shares to be undervalued.

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


Elevator Pitch

My rating for Tesla, Inc.’s (NASDAQ:TSLA) stock stays as a Buy.

With my earlier write-up for Tesla published on November 28, 2022, I touched on TSLA’s financial outlook in five years’ time. In the current article, I answer the question of whether

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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