How To Profit on Tesla's Compromised Market Cap
Shares of Tesla traded flat last week, closing Friday at $212.23. Monday, the stock edged lower by more than 2% to $207.52. Although shares are up 39% year to date, Tesla has leaked 20% of its market cap since shares peaked at $265 in February. Even so, some still consider the stock overvalued. And by several valuation standards, including the company's negative profit and operating margins, I have to agree.
These are the same issues UBS
But Tesla's operational metrics, including net income and diluted earnings per share, are not that far off from, say, Amazon.com
The points Langan raised are no different from what said about Tesla prior to the stock's 470% jump in the trailing 12 months. The more pressing questions today surround the company's next killer product. Can it remain innovative? And if this question reminds you of Apple
And even though Musk has positioned Tesla as the leader in the electric vehicle production, Tesla's success will bring in competitive threats. And don't think for a moment Google