$TSLA has been *basically* flat for the past 4 years. You can buy it for the same price as you could buy it in 2020 December. But let's compare some numbers and the business itself.
2020 June EPS: $0.42
2024 June EPS: $0.03
BUT: for the past 6 quarters, the EPS has been declining
2020 June Revenue: $6B
2024 June Revenue: $25.5B
BUT: for the past 6 quarters, it has been basically flat, with even declining quarters.
So you could say that the price of the stock is pretty justified or even overvalued.
"It is mind boggling to me that Tesla is not a $1T company."
For me, it is not at all.
What Tesla has been cooking up for the past years is otherworldly. The pace of improvement on FSD and Optimus is astounding, the growth of Energy and Services is faster than Auto was. And these segments weren't a thing back in 2020 (except for FSD but with V12 you could say it didn't exist either).
But if all these things are happening, why is Tesla really under $1T?
BECAUSE NO REVENUE HAS BEEN SEEN FROM ALL OF THIS.
I believe it is not far down the road until we see some of the AI revenue to hit the balance sheets. And Wall Street is obsessed with margins. AIaaS business models will have/do have 80%+ margins. As soon as these high margin revenues hit the sheet EPS will go bonkers, which means: THE STOCK WILL ROAR.
But until that, let's be realistic. The price is not undervalued as of today. For what might the future bring, it might be undervalued.
Tesla is clearly not ONLY an automaker, and soon, the world will realise.
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