Let's talk about $TSLA (Tesla Motors, Inc.) stock

Let’s talk about $TSLA (Tesla Motors, Inc.) stock – 2020 June investment opportunity

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Let’s talk about $TSLA  

I like to be forward with you:

I currently do not own any of Tesla stocks

I’m a strong bull for Tesla. 

Let’s dive into the key points why you should love/hate Tesla:

Tesla stock is overvalued at the current state:

$VOW3.DE  that covers 12 giant brands and makes about 10 mln. cars a year(2019) has a valuation of 74.68B and Tesla that made ‎367,500 vehicles (2019) valuation is 164.27B. If we compare those two by production volume, revenue, or profit, Tesla is crazy overvalued stock and that the main argument that all the Tesla sceptics and short-sellers have. 

Tesla is not just a car company. 

Yes, Tesla is not just a car company, but the majority of its income comes from car sales. If we would dive into the numbers and Tesla sales here what we will find;

car sales 81.2%

services 9.1%

sale of solar panels and energy storage 6.2%

leasing 3.5%

As you can see Tesla is spread out throughout the renewable energy sector and has many leading products in renewable energy production and consumption, but the majority of the brand is still dependent on car sales. 

Tesla Data and technology

Tesla has a technological advantage in every field they are in and competitors are far far away from them. A good example would be autopilot, Tesla isn’t the first company that has or works on autonomous driving but they have more than 1 billion miles of real-life driving data with autopilot and they have the most advanced and optimized code and autopilot system currently available. They do not use expensive tech on their cars and instead work on cameras and algorithm optimization. And this go all around the brand in solar, energy storage and etc. 

Tesla Production performance and next-gen production. 

Tesla with it’s gigafactory has the most modern and most optimized production in the industry. Their gigafactories are most advanced and so throughout that, they can scale production fast if they open the factories at full capacity. When opened fully Tesla should scale up production like crazy.   

What I don’t like about Tesla:

  • The stock price is overvalued
  • They are too dependent on one product
  • COVID-19 will hit Tesla on the production side and on sales too
  • Production is hard to scale fast
  • Burns cash like crazy and cloud, not substance good cash flow  

In general, Tesla is great company with great future if they will keep on delivering. Tesla has been one of the most volatile big-cap stocks on the stock exchanges because on hype in the company and in Elon Musk. I believe in the company and into Elon Musk too, but in my opinion, the stock is overvalued and now trades on hype and fear of missing out. Tesla isn’t just a car company we have to look at the tech, advanced production, and other products too. It could be a trillion-dollar car/tech company in the future but now they are not. 

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I do not own any of the Tesla stock but if the price would go significantly down I would buy it with the hope of the bright sustainable electric future. 

Few other stats about Tesla:

Major Tesla Share Holders:

20.51% % of Shares Held by All Insider

57.93% % of Shares Held by Institutions

72.87% % of Float Held by Institutions

1,319 Number of Institutions Holding Shares

Top 5 Institutional Holders

Baillie Gifford and Company 12,076,416 shares

Capital World Investors 10,714,131 shares

Vanguard Group, Inc. 8,662,781   shares

Blackrock Inc. 7,213,587  shares

FMR, LLC 4,615,556  shares

Top 5 Mutual Fund Holders

Growth Fund Of America Inc 5,087,926 shares

Vanguard Total Stock Market Index Fund 4,061,017 shares

New Perspective Fund Inc 3,377,612 shares

Vanguard International Growth Fund 2,241,608 shares

Vanguard Extended Market Index Fund 2,019,753 shares

52 Week Range 207.51 – 968.99

52-Week Change 316.04%

Avg. Volume 16,568,244

Beta (5Y Monthly) 1.17

PE Ratio (TTM) N/A

EPS (TTM) -0.81

Earnings Date Jul 21, 2020 – Jul 26, 2020

Forward Dividend & Yield N/A (N/A)

Ex-Dividend Date N/A

Profit Margin -0.55%

Operating Margin (ttm) 3.23%

I hope this post helps you do not forget to do your own research before investing in any stocks. I am not a professional trader and that’s only my personal opinion which you should not use in your investments.

You can follow my insetment portfolio on Etoro