F - Tesla: Q1 Wasn't Great But The Growth Story Is Better Than Ever
2024-04-23 22:53:01 ET
Summary
- Tesla's Q1 earnings showed a decline in revenue and profitability, but the market is giving the company credit for its vision and product roadmap.
- The author has changed their position on Tesla and is now bullish, citing the potential of Optimus, humanoid robots, FSD, Robotaxi, and the charging network.
- While there are risks and the company is still expensive, the author believes in Tesla's potential to become the most valuable company in the market.
The bar was low going into Q1 earnings, as everyone expected, a top and bottom-line decline. The main concerns were how Elon would conduct himself and what the product roadmap would look like. There is no secret that I was bearish on Tesla ( TSLA ) for years, and the turning point was the introduction of Optimus. While the Q1 numbers showed a QoQ and YoY decline in revenue and profitability from EBITDA to net income, the market looks as if it's giving the team at TSLA tremendous credit as shares are up over 10% after hours. I am going to eat my previous words and come out and say that TSLA is not just a car company. At this point, you either believe in TSLA's vision and product roadmap, or you don't. From a financial perspective, this wasn't a quarter to get excited about, and looking at the numbers on a trailing twelve-month ((TTM)) basis, TSLA looks overvalued. The market is forward-looking, though, and TSLA is positioning itself as the company that will crack the code from robotics to autonomy. I have been adding to my position in TSLA throughout Q1, and I plan on adding to my position throughout the rest of 2024 as the next phase of growth could be more explosive than the first phase for TSLA....
Tesla: Q1 Wasn't Great, But The Growth Story Is Better Than Ever