Tesla: No Safety Margin
Portfolio Pulse from
Tesla's Q4 earnings report shows mixed results with slowing revenue growth and weaker margins. Despite strong deliveries, Tesla's high valuation and competition from BYD, which has better margins, lead to a sell rating.
February 02, 2025 | 9:30 am
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NEGATIVE IMPACT
Tesla's Q4 earnings report reveals slowing revenue growth and a weaker margin profile. Despite strong deliveries, the high valuation and competition from BYD, which has a better margin profile, lead to a sell rating.
Tesla's Q4 results indicate challenges with slowing revenue growth and weaker margins. The high valuation of 11.7X FY 2026 revenue multiplier is concerning, especially with BYD surpassing Tesla in BEV deliveries and having a better margin profile. These factors contribute to a negative short-term outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100