TSLA

Tesla Motors Inc

Industrial/Transportation


Presented:10/03/2016
Price:$14.25
Cap:$29.91B
Current Price:$219.57
Cap:$701.45B

Presented

Date10/03/2016
Price$14.25
Market Cap$29.91B
Ent Value$30.11B
P/E RatioN/A
Book Value$1.00
Div Yield0%
Shares O/S2,099.75M
Ave Daily Vol48,653,250
Short Int24.66%

Current

Price$219.57
Market Cap$701.45B
Tesla Motors, Inc. engages in the designing, development, manufacturing and selling of electric vehicles and electric power train components. Its products include electric vehicles such as the Model S, Model X and the Tesla Roadster. The company was founded by Jeffrey B. Straubel, Elon Reeve Musk and Marc Tarpenning on July 1, 2003 and is headquartered in Palo Alto, CA.

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 $213.70.

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 $42.74.


Publicly traded companies mentioned herein: Ford Motor Company (F), General Motors Company (GM), SolarCity Corp (SCTY), Tesla Motors Inc (TSLA)

Highlights

The presenter is short shares of Tesla Motors (TSLA) at present levels ($205 - $210) and explained how the reported Q3 2016 deliveries and production numbers (10/3/2016) support his view that the company is overvalued ($32 billion market cap). Heavy discounting drove the “beat”, in his opinion, and it appears as though the storied company has finally reached the point where the unprofitability and capital needs of the business will outweigh the hopes bulls have for future performance. The overall risk to the story is increasing due to: safety issues; recent events at Elon Musk’s other companies (i.e., SpaceX and SolarCity); an inability to boost production meaningfully (to achieve 2020 guidance); as well as Tesla’s growing need for capital at a time when competition is increasing. If his thesis proves to be accurate, the presenter believes TSLA shares could decline to $150 near-term, and could be worth meaningfully less than that in the longer-run.

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Idea Discussion

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