Dear Reader,
Tesla Inc. the electric vehicle manufacturer, is currently valued at 577.08 billion USD by investors on the Nasdaq bourse.
In my opinion, the intrinsic value of Tesla is around 120 billion USD or around 20% of its current valuation.
Tesla simply does not have a viable business model or with other words it cannot produce electric cars profitably. And now a large part of government subsidies for green energy that Tesla is receiving will be phased off and the company will face even more difficulties producing electric cars profitably.
What is more, some of the future down payments for cars Tesla's customer make, according to various media sources, are booked for the value of the whole cars in advance. Some news sources allege Tesla is booking or frontrunning revenue with 100% certainty, which may or may not materialize. This, of course, inflates Tesla's revenue and some of the profits Tesla recorded recently seem paper or accounting profits.
As is clear now self driving cars are decades away if ever to exist, so this future promise for Tesla fades away.
Tesla's current market capitalization, even after falling circa 30 % from its recent peak, simply reflects unrealistic assumptions about the future.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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