Tesla: Margins Story Is Not As Bad As It Seems (Archive)
Pricing resets have masked genuine structural margin tailwinds now starting to emerge.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- I missed an opportunity for alpha in Tesla, Inc. stock, as I had a neutral/hold rating on the stock earlier.
- But now, whilst some investors have concerns about Tesla's margins and profitability, I am becoming more confident of buys.
- Pricing reductions have masked genuine margin tailwinds in COGs that will become more visible.
- Investments such as humanoid robot Optimus and full-self-driving have great multiplier potential for the stock.
- Valuations are attractive, as Tesla trades at a 35% discount to the average PE since 2020.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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