Elon Musk likes to make daring claims. Some of these statements come true, but many are not. Recently, he said he believed Tesla(NASDAQ: TSLA) It may be the most valuable company in the world someday, claiming that it could be worth more than the next five combined companies Market capitalization. Today these stocks such as Nvidia More than $ 10 trillion are worth combined market capitalization.
The Tesla market lid is less than $ 900 million, which means that Elon Musk claims that Tesla has the opportunity to climb about 10 times price from here. Are you right and should you buy Tesla shares today? We will delve into Musk’s statements and find out.
After growing for years, the Tesla car business has been lined in the last quarter. In the first quarter of this year, customer delivery fell 13% year -on -year to 337,000, while competitors participate in world countries. Automobile revenue was reduced by 20% year -on -year, a faster fall than shipments due to huge Tesla prices implemented in their models. The new CyBertruck vehicle has been a major flopp and will not generate significant sales for the company at any time.
The margins of benefit fall, at 7.4% in the last 12 months, which involves enormous immersion in Tesla’s power power. If the deliveries continue to descend with the lowest sale prices, Tesla will fight to prevent the operational margin from falling throughout the rest of this year. The company has no long -term guidance for 2025, but all indicators for the future say that the decrease in sales will continue throughout the year. Sales continue to fall to China, Europe and the United States, which are the largest markets in Tesla.
Without new models on the horizon, at least from the management that has revealed publicly, it is difficult to paint a beautiful image for the Tesla automobile business in the future. You may make money with the new cybercab technology and autonomous vehicles, but it is a theoretical future that Tesla has been promising for years. He has never deployed a robotax, while his competitor Waymo is 250,000 walks a week ago.
And will it be beneficial enough for Tesla to reach a $ 10 trillion market lid? This seems even more unlikely.
A person who charges a Tesla.
Elon Musk’s optimism for Tesla currently comes from the potential of the Tesla Optimus robot, a humanoid robot that the company is developing. He believes that if these robots have artificial intelligence software (AI) and can perform physical tasks for humans, there is a market for $ 10 trillion in revenue selling 100 million boats for $ 100,000 a piece. This is not a typography.
Although $ 10 trillion seems exciting, these are great demands of the Tesla leader. Tesla has never built a humanoid robot in operation. The robots in their demonstration were remotely controlled by humans. If you can get a work robot, it is difficult to foresee the demand of one million units a year, much less 100 million. There are only so many corporations and rich people who would buy these boats each year, if they are done first.
Of course, Musk can say as optimistic about a figure as he wants. This does not mean that these figures are based on economic reality.
Tesla’s investors slowly realize a hard truth: the action has been overrated for years. Traded for less than $ 300 in early 2021. Today it is traded below this level at a price of $ 275, and is likely to be overrated.
Tesla’s actions are contributed to a pre-head relationship at 150. Toyota Motors In the graph above an Indsutry stand since most of the exchanges of this rank). Remember that Tesla’s car revenue is decreasing 20% per year at the moment, with bad aspect indicators.
The management promises a lot with Cybercab and Optimus Bot, but they are not yet real business. It would be fantastic if the company could innovate and remove it, but that does not mean that the action is cheap today.
Even with the actions down and Elon Musk saying that Tesla could be worth 10 times its current market value someday does not mean that you have to buy the shares. When you go back the layers of this onion, all I see is a car business negotiation that fights a P/E face ratio. Keep -away from Tesla actions to a new notice.
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Brett Schafer It has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Nvidia and Tesla. The mold’s fool has a Outreach policy.
