From Seekingalpha · Cash Flow Venue · · 50s
Tesla Stock Faces More Bad Earnings News
Tesla's stock may share even more bad earnings news next week as results likely disappoint.
In brief
Tesla's stock may share even more bad earnings news next week as results likely disappoint. Tesla's stock price could drop further next week due to expected disappointing earnings and persistent overvaluation. Originally reported by Seekingalpha.
Tesla Stock Drops
Tesla's stock price dropped by almost 20% since the strong sell article I published a year ago.
Expected Earnings Disappointment
I expect even more downside risk given upcoming results, which will likely disappoint.
Q3 Deliveries Outperformed
TSLA's Q3 vehicle deliveries outperformed consensus, but the energy segment underperformed.
Profitability Concerns
Profitability concerns persist, with previous gross margin below 17%, operating margin at 1.4%, and expectations for another quarter of negative free cash flow.
Unattractive Risk-Reward Profile
At a forward P/E of ~208x and limited upside versus downside risk, TSLA's risk-reward profile is unattractive.
In short
Tesla's stock price could drop further next week due to expected disappointing earnings and persistent overvaluation.
