2024-05-08 18:13:49 ET
Summary
- Tesla, Inc. Q1 sales and profits declined sharply.
- Nonetheless, there are positives for the company, and I believe it may start to distribute a dividend.
- I base this belief on the fact that CEO Elon Musk's other business ventures may require capital injections and on Tesla's apparent ability to operate profitably even in adverse market environments.
- Nonetheless, the current valuation remains far too high to make Tesla stock an attractive investment.
Tesla, Inc. ( TSLA ) certainly has had a rough start to the year businesswise as well as on the stock market. Sales cratered, as did Q1 profits . Moreover, the Delaware Court of Chancery voided CEO Elon Musk's 2018 compensation package, which would have seen him being granted stock options with a combined value of up to $56 billion (considerably less at the current share price). The board is putting the same compensation package to a vote at the June 13th general meeting (cf. item 4 of the agenda ). The company even launched a dedicated website to advocate shareholder approval of the measure....
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Tesla Stock Could Soon Pay A Dividend - But Is Overvalued Nonetheless