TSLA - Tesla's iPhone Moment

2024-05-28 12:46:30 ET

Summary

• Both the Electric Vehicle industry and Tesla, Inc. have lost sales momentum.
• Tesla is situated well within the auto industry, but the company must successfully restructure.
• Tesla will pivot to high-volume, affordable cars and push its “Full Self Driving” subscription service.
• A great method of comparing peer valuations is using Enterprise Value.
• I created a DCF model as a “check” on Tesla stock valuation.

Thesis

Magnificent 7 shares have run up sharply despite high interest rates. Concurrently, Tesla, Inc. (TSLA) stock is suffering from a cacophony of bad publicity, an overvalued share price, and weakening industry fundamentals. I will explain how Tesla remains well positioned within the automobile industry despite its shortcomings....

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