Shares & Derivatives
Tesla – A Definite Sell at $190 Price With Huge Downside
By Investmoolah  •  February 6, 2023
Given the recent uptrend and rebound optimism over Tesla, the value proposition of Tesla based on its fundamental of earnings has changed. At current prices of $190, the company is a definite sell with a large downside. Recent Developments Tesla Investors would be aware of the news that Tesla has slashed prices of its car models to gain market share. The question to many is what is the impact of margins to Tesla. Fortunately, I came across an article which shows the profit margins of EV makers. Source: https://www.visualcapitalist.com/charted-teslas-unrivaled-profit-margins/ With the implmented $5,000 price cut by Tesla, the profit margins made by each car will be halved. Even adding the cost savings derived from producing more cars, I doubt, it will be able to cover the current profit margin earned from making a car (US $9,574). Ford too is engaging in the price war Tesla Recent Earnings Tesla's earning per shares for 2022 is US$3.70 per share....
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By Investmoolah
A total otaku who loves anime, investing and the occasional K-drama. My financial journey begun at the age of 22 and has revolved around the concepts of "Working Hard", "Saving Well" and "Investing Wisely". Through my journey, I have realized that financial literacy is something we have learnt little during our school days but is one of the most useful and relevant skill that we have to be equipped to take on the real world. Concepts such as compounding and "common sense investing" are skills that will place us ahead of the race to retirement ...
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