'Bubble-Fraud Tesla Worth Around $8.40 Per Share:' Stock Valuation Under Scrutiny As EV Maker Gets Sizeable Profit From One-Time ZEV Credit
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) reported mixed second-quarter results, with a top-line beat but earnings per share trailing expectations. The stock plunged sharply in after-hours trading. Key concerns include disappointing auto gross margins, lower-than-expected free cash flow, and significant reliance on one-time zero-emission vehicle credit sales. Analysts and investors are questioning Tesla's valuation, with some suggesting the stock is overvalued.
July 24, 2024 | 7:58 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Tesla's mixed Q2 results led to a sharp decline in after-hours trading. Key issues include disappointing auto gross margins, lower-than-expected free cash flow, and significant reliance on one-time ZEV credit sales. Analysts are questioning the company's valuation, with some suggesting it is overvalued.
The mixed Q2 results, particularly the disappointing auto gross margins and lower-than-expected free cash flow, have led to a sharp decline in Tesla's stock price in after-hours trading. The significant reliance on one-time ZEV credit sales further raises concerns about the quality of earnings. Analysts questioning the company's valuation adds to the negative sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100