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re: TSLA at $161, anybody biting?

Posted on 12/16/22 at 3:10 pm to
Posted by Diseasefreeforall
Member since Oct 2012
5632 posts
Posted on 12/16/22 at 3:10 pm to
quote:

TSLA is still more than 5x where it was before COVID. Did the company become 5x more valuable over the past few years?


Net income has increased by more than 5x. Free cash flow per share has gone up and down.

I'm not invested in Tesla and have no plans to be but the EV market is in its infancy and has massive room to grow over the next 15 years, and Tesla looks like it will continue to be the biggest player even with all the competition.

The P/E ratio is still high at 46 so it's a question of the multiple vs the future market size and possible share price depreciation in the short term. As a tech company the P/S is reasonable at 6 but how long will they be seen as a tech company.
Posted by Texas Tea 123
Member since Sep 2017
218 posts
Posted on 12/16/22 at 4:05 pm to
It's a car company, not a tech company.

About $5B in free cash flow vs. a market cap of $475B. That's a ~1% FCF yield. 10yr treasury yields ~3.5%.

30x EV/EBITDA, yikes.
50x P/E, yikes.

Valuing things on P/Sales is why many "tech" or "growth" stocks are down >50% this year
This post was edited on 12/16/22 at 4:11 pm
Posted by Highthoughts
Member since Sep 2022
313 posts
Posted on 12/16/22 at 4:27 pm to
Tesla grew during a period with little to no real competition.

There’s a lot more EV options out there now. Why would you buy a Tesla instead of a Mercedes when they’re about the same price?

I’m not sure Tesla capitalized enough on their first mover advantage.
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