WSJ blasts TSLA in style: https://www.wsj.com/
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Posted On: 10/08/2017 2:18:51 PM
WSJ blasts TSLA in style:
https://www.wsj.com/articles/the-truth-is-cat...1507399374
Quote:
Investors have bid Tesla to a nearly $60 billion equity valuation on expectations the company will dominate the automobile market. That will be a fantasy if Tesla can’t produce enough cars profitably.
Tesla doesn’t have the financial wherewithal for investors to be patient. It burned more than $1 billion of cash in the second quarter and has nearly $20 billion in liabilities on its balance sheet.
Tesla’s soaring stock reignited the interest of better-capitalized car rivals in electric cars. Fresh competition is coming.
At 67 times 2019’s expected earnings, Tesla stock is valued as though the company can execute on its vision flawlessly. The facts suggest the opposite.
https://www.wsj.com/articles/the-truth-is-cat...1507399374
Quote:
Investors have bid Tesla to a nearly $60 billion equity valuation on expectations the company will dominate the automobile market. That will be a fantasy if Tesla can’t produce enough cars profitably.
Tesla doesn’t have the financial wherewithal for investors to be patient. It burned more than $1 billion of cash in the second quarter and has nearly $20 billion in liabilities on its balance sheet.
Tesla’s soaring stock reignited the interest of better-capitalized car rivals in electric cars. Fresh competition is coming.
At 67 times 2019’s expected earnings, Tesla stock is valued as though the company can execute on its vision flawlessly. The facts suggest the opposite.
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