Opinions John O'Connell, CFA
Tesla IncTSLADON'T BUYFeb 10, 2016
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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Premium contentIn the last quarter, the company reported 0.41 USD per share, beating the 0.35 USD estimate by 15.87%. Revenue for the same period reached 22.39 B USD, despite the estimate of 22.10 B USD. For the next quarter, analysts expect 0.43 USD in earnings per share and 24.25 B USD in revenue. Social media mentions are up 324% in the past 24h.
They reported Q1 last week and disappointed: 385K deliveries, well below expectations, but they totaled 408K vehicles in production, increasing 13% YOY, possibly creating excess inventory and leading to cutting prices. Also, energy storage was 8.8 gigawatt hours deployed vs. the expected 14.4, very disappointing. That said, Tesla has seen auto deliveries decline for 2 years, after peaking in 2023-4 while earnings peaked in 2022 at $4.07 EPS before falling 23%, 22% and another 31% in the next three years, nearly 60%. over 5 years, shares are up 53%. Tesla needs show growth in another area, robotaxis, to inspire shareholders, but there's no indication of sales or progress in this area. With their car business deteriorating, investors are starting to wonder if this is a dangerous stock, especially with Musk taking SpaceX public in the future. But that could trigger a sell-off of Tesla shares to buy SpaceX--right now, Tesla is the only way to invest in Musk, which is scarcity value, but that will end when SpaceX goes public. Until there's progress in robotaxis, Tesla shares will continue to fall.
Premium contentIn the last quarter, the company reported 0.50 USD per share, beating the 0.45 USD estimate by 9.94%. Revenue for the same period reached 24.90 B USD, despite the estimate of 24.78 B USD. For the next quarter, analysts expect 0.41 USD in earnings per share and 22.96 B USD in revenue. Social media mentions are up 91% in the past 24h.
Premium contentIn the last quarter, the company reported 0.50 USD per share, beating the 0.45 USD estimate by 9.94%. Revenue for the same period reached 24.90 B USD, despite the estimate of 24.78 B USD. For the next quarter, analysts expect 0.41 USD in earnings per share and 22.96 B USD in revenue. Social media mentions are up 91% in the past 24h.
Hard to know what the future holds for this company. Taking gigantic bets on robotics and power generation, and spending a lot of $$. Valuation is ~200x PE!! A lot of this fantastic news that may or may not happen in the future seems to be already priced into the stock. Elon Musk is an amazing storyteller.
He won't buy for clients right now. He doesn't like to buy on unknown what-ifs 20 years in the future. We'll have to see how the Chinese EVs work out. But if it came down to a reasonable valuation, he'd be interested.
Premium contentTesla reported a revenue of 28.1B, which is a 24.9% change from the previous quarter. An increase in revenue typically indicates growing demand for the company's products or services. This positive change in revenue is a good sign, suggesting that the company's sales are moving in the right direction. Gross Profit stood at 5.05B, marking a 30.3% change since the last quarter. Gross profit showcases the efficiency in production and sales processes. Social media mentions are up 227% in the past 24h.
Used to be invested, but not now. Sees a lot of potential for upside, but also for downside. Robotics (very early stages) and autonomous vehicles (will take longer to gain adoption). She wants companies with good risk/reward plus some kind of valuation support to get them through a downturn. TSLA doesn't have that.
Long term, over 10 years, likely to do well.
Hated the stock for a long time and is finally seeing some joy. Elon Musk is a visionary and has a confidence to not only blow his billions, but all kinds of other shareholders billions, in order to build an electric car. The electric car is here. The battery is not the issue; the issue is that there is nothing unique about what they do. They started by building a great new car and were out first. But often the 1st mover is not the winner. Cars are fashion statements and people like to buy them because of the way they look. All the manufacturers are going to come out with electric cars, so it really comes down to style. This company has struggled to make 55,000 cars a year and they make no money on their cars. They are living on tax credits to cover part of their costs. When competition comes out that has a lot of skill in mass scale manufacturing, how can this company possibly get the critical mass they need?