It was a tumultuous ride for Tesla(Nasdaq: Tsla) shareholders lately. His unique Chief Elon Musk was constantly in the news, but for reasons that are mostly unrelated to Tesh himself. As the head of the new department of government efficiency (Doge), Musk aimed at federal bureaucracy, claiming that he eliminates what he and Trump’s administration say that waste, fraud and abuse is.
His mandate at the forefront of Doge and his central presence in politics – domestic and foreign – made him a more polarized figure. In the meantime, Tesla shares in December fell around 40% in December, while the company is fighting for increasing sales. However, Tesla remains a profitable manufacturer of an electric vehicle (EV), a leader in autonomous driving and robotics, and his energy storage business is growing rapidly. There are many reasons to stay optimistic.
So, let’s consider: Is Tesla a millionaire manufacturer?
To be clear, despite our relative youth and recent struggle, Tesla is among the 10 most profitable car manufacturers in the world. Its net income is comparable to those of the main car manufacturers like Honda,, General Motorsand Fordas you can see in the lower chart.
Although most of the Tesla talks are focused on its future potential – a reasonable answer given the impressive technology he has in development – the fact is that his job he is today is mostly from car sales. Of the $ 97,690 billion, the total sales he reported last year, more than $ 77,000 billion came from the sale of its EV line.
Because of this, his car sales deals. Although it is considered to be a growth supplies, which usually comes with revenue growth, Tesla delivered the growth of sales at 4%in four of the five three -three quarters.
The trend can be worse. Probably guided by Musk’s inflammatory participation in Germany and British politics, sales in Europe has suddenly fell from late. While the total sale of EV in the whole of Europe increased 37% in the year in January, Tesla sales fell 45%. That’s a pretty difference.
Not only are the public available towards the male and Tesla turned more worse – 73% of Germans say that his involvement in their policy is “unacceptable” – the company faces an increase in competition and established car manufacturers and new participants like China Byd Co. The latter, a key competitor of Tesline, surpassed Tesla for the first time in the UK.
As I mentioned before, there are all kinds of plays in the future that could transform the company and greatly expand their business. The leading vision is global “Robotaxi” service Enabled by his autonomous driving technology. Musk also sees the future in which most households have a maid of the Jetsons-Esque robot.
I freely admit that they are not apples for apples to compare Tesla’s estimates with rival car manufacturers. Still, given that these visions of the future are just promises, and the vast majority of revenues come from the sale of cars, it is not unreasonable for it. This chart illustrates a significant market bet on Tesla’s transformation into something that is not yet.
It may already be clear, but I am currently having serious worries about Tesla. It seems to me that the stock has a significant amount built into it, and investors have forgiven its anemic sales growth and margin reduction too much. AND Price and Earning ratio (p/e) Of the 142, it would be extremely high even for a technological company, let alone a car manufacturer. For comparison, Nvidiawhich enjoys almost the back on the market of AI chips, has 52 p/e.
I can’t recommend Tesla. Maybe the male vision of the future will realize the fruit and I will eat my words, but I would certainly not consider Tesla’s lady.
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Johnny Rice There is no position in any of the shares mentioned. Motley Fool has positions and recommends Nvidia and Tesla. Motley Fool recommends byd Company and General Motors. Motley Fool has disclosure rules.
