TSLA

Tesla Motors Inc

TMT, Industrial/Transportation


Presented:05/24/2013
Price:$6.18
Cap:$11.00B
Current Price:$219.57
Cap:$701.45B

Presented

Date05/24/2013
Price$6.18
Market Cap$11.00B
Ent Value$11.23B
P/E RatioN/A
Book ValueN/A
Div YieldN/A
Shares O/S1,778.33M
Ave Daily Vol83,550,000
Short Int23.20%

Current

Price$219.57
Market Cap$701.45B
Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores, as well as over the Internet. As of March 31, 2013, the company operated a network of 32 stores in North America, Europe, and Asia. Tesla Motors, Inc. was founded in 2003 and is headquartered in Palo Alto, California.

Please note, this stock split on 08/31/2020 at a ratio of 5/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $92.73.

Please note, this stock split again on 08/25/2022 at a ratio of 3/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the already adjusted original presented price of $18.55.


What is the rationale for betting against Tesla at this time?

Our Client has visited Tesla’s (TSLA) Fremont California plant twice, and said he “has a full appreciation for what the company has built.” He believes Elon Musk is a brilliant CEO who set out to change the paradigm in automobile manufacturing and sourcing, and has made great strides in doing so. Getting an electric vehicle (EV) into production scale in just over three years is “nothing short of amazing.” Even the purchase of its manufacturing facility was well-executed (TSLA paid $42 million for the plant, yet it originally cost nearly $1 billion). Despite all of the positives, it is his opinion that TSLA’s shares appear to be overvalued, and Musk has set extremely aggressive goals for the company to hit by the end of 2013.

Two critical issues underpin the short thesis on TSLA at this time:

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