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Tesla Stock Analysis And Recommendation Essay

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Fortune 500 Company: TSLA Ticker: TSLA

Current Stock Price: $290.71

Market Cap: 49.119B

P/E: 147.58

Dividend/Yield: N/A;N/A

Enterprise Value: 4.93

Beta: 0.96

Stock Split: No

Closing price last five days: $291.21, $287.71, $293.50, $300.10, $290.24

52 week high: $389.61

Book Value per Share: $11.58

Analysts’ Ratings: 4 strong buy, 4 buy, 8 hold, 6 underperform

Target Price: Low of $180 to High of $470, with the average at $317.04

Avg. revenue estimate for next year: 26.85B

Significant news: Tesla is ramping up Model 3 production; Tesla is working on a semi

Buy or Sell TSLA? Recommendation: SELL

I would not recommend investing in this stock. TSLA is currently the most shorted stock on the market: investors are bearish on Tesla, as the CEO Elon Musk has turned it into a cult stock with an unjustifiable P/E and a lot more empty promises at his back than actual delivery. While TSLA has made enough in revenues to make it to the Fortune 500, the company has still yet to make an actual profit. The real story of Tesla is what the company does not say: Tesla...

TSLA’s CEO has a history of making extravagant predictions via social media but has so far shown little ability to back these up. The company’s vision and mission statement have appealed to investors and consumers who believe the company will be a leader in the EV market—but the reality is that TSLA’s production is woefully slow and its competitors will be able to take the lead in the EV market before TSLA ever overcomes its difficulties. TSLA is a cult stock that resembles a pink sheet penny stock in a lot of ways—from the cult of personality surrounding its CEO, to its aura as a speculative play, to its unbelievable promises that have fueled its exponential run-up over the past few years. Reality is about to come back to bite TSLA hard—and that is why hedge funds are shorting it.
The relationship between the value of the stock and the P/E represents the absurdity at which the company is presently priced. With a forward P/E of nearly 150, TSLA is trading at around 6x the average P/E…

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