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....