Tesla: Caution on High Valuation and Execution Risk

5 days ago

"Stock number three is no stranger to wild swings when they report earnings. Tesla’s actual results have been awful with revenue down and earnings missed in six of the last eight quarters. While there is long-term potential in areas like autonomy and energy, I feel like people are paying a huge price for a future that may never materialize. Over 90% of Tesla’s revenue still comes from its car business, and the execution risks are mounting with missed delivery targets and repeated delays. This makes me very cautious about investing in Tesla at its current valuation."

The speaker expresses concern over Tesla as a trade call, stressing that despite its innovative potential, repeated earnings misses and high valuation suggest significant execution risks. This analysis serves as a bearish warning for investors eyeing Tesla.

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