Tesla: Unpacking The Current Valuation And Determining If More Downside Is Probable


  • Shares of TSLA have declined -69.21% in 2022 and -57.32% from May 6 when I wrote an article saying shares were overvalued by 85.26%.
  • I looked through the expected case from ARK Invest and Ron Baron’s bull case numbers, and I don’t see a path to a multi-trillion market cap any time soon.
  • I wouldn’t be surprised if the market rebounds and TSLA acts like a coiled spring in the back half of 2023.
  • In the short term, I think there’s a good chance shares of TSLA continue to decline and approach the $100 level going into earnings.
Tesla Shanghai Gigafactory

Xiaolu Chu

Tesla (NASDAQ:TSLA) has been the ultimate battleground stock as the bears could never wrap their brains around the valuation while the bulls incorporated all of the future possibilities into their investment thesis. Shares of TSLA have declined -69.21% in 2022, and shares have

Disclosure: I/we have a beneficial long position in the shares of AAPL, TSLA, GOOGL 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.

Additional disclosure: Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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