TSLA - Tesla: ARK's Valuation Is Stretched But The Vision Is Right
2024-07-01 09:53:57 ET
Summary
- Q1 was challenging for Tesla, Inc. with declining revenue and missed EPS expectations.
- The market is now valuing Tesla based on its robotaxi potential rather than EV sales.
- ARK Invest's valuation is overly optimistic, but still provides valuable insights into Tesla's future direction and growth potential.
- Tesla has the potential to operate a fleet of 3 million robotaxis by 2029 and achieve a $3 trillion market cap.
EV Business in Trouble, Elon Changes Direction
Q1 was a challenging quarter for Tesla, Inc. (NASDAQ: TSLA ). Revenue declined 9% YoY and EPS came in at $0.45, both missing consensus. The company attributed the revenue miss mainly to the global EV sales slowdown and weakening customer spending. The outlook for the remaining of the year doesn't look very promising either as the stock gets downward revisions in terms of sales and EPS. To make things even worse, Tesla continues to cut prices on a monthly basis as the company is struggling with competition in Europe and China. There is also continuous negative news about the company and EV adoption in general. See some of the news headlines below:
- Hertz Is Selling Off More EVs After Major Losses
- Elon Musk fired nearly all of Tesla’s Supercharger team after argument with top executive
- Tesla job cuts: More senior execs said to quit, Supercharger team laid off
- Tesla pulls back on gigacasting ambitions as cost-cutting measures continue
- httTesla faces another plant shutdown in Germany
- Tesla falls on a report the DOJ is probing if consumers and investors were misled by Autopilot claims
- McKinsey: 46% of U.S. EV owners want to switch to ICE vehicles
- EV euphoria is dead. Automakers are scaling back or delaying their electric vehicle plans
- Tesla 'one of the worst positioned' auto stocks for Q2 earnings season: analysts
- Tesla Robotaxi Revenue Is Likely Years Away, JPMorgan Warns