Tsla is trading at about 250x fcf based on this quarters FCF. More expensive than nvda now with declining revenue and margins as you shared. Vs nvda witb accelerating revenue and margins.
They seem to be cutting /delaying Mexico build. Stock was valued based on management's 50% cagr projections. That seems to be off the table with Mexico delay.
They also have a product issue. US market share has stalled. China in decline.
After driving both audi and ioniq 5 I understand why this is happening. They have an early adopter market and are currently challenged crossing the chasam. Most boomers unfortunately don't love the tsla brand and they are the ones that have the bulk of the discretionary car spend outside of the tech community.
Tsla is trading at about 250x fcf based on this quarters FCF. More expensive than nvda now with declining revenue and margins as you shared. Vs nvda witb accelerating revenue and margins.
They seem to be cutting /delaying Mexico build. Stock was valued based on management's 50% cagr projections. That seems to be off the table with Mexico delay.
Big reset seems likely.
They also have a product issue. US market share has stalled. China in decline.
After driving both audi and ioniq 5 I understand why this is happening. They have an early adopter market and are currently challenged crossing the chasam. Most boomers unfortunately don't love the tsla brand and they are the ones that have the bulk of the discretionary car spend outside of the tech community.