Tesla: Why I Remain Bearish On The Stock

  • Tesla, Inc. is facing a persistent slowdown in demand and increased competition in the EV market, impacting its pricing strategy.
  • The company has experienced significant declines in all key metrics, including negative revenue growth and FCF deterioration.
  • Despite price cuts, Tesla has seen a decline in total deliveries, particularly in China, where competition and geopolitical tensions pose risks.
  • Many rounds of job cuts have also been implemented, implying a cautious growth outlook in the mid and long term.
  • The stock is still trading at a premium valuation of 74x P/E FTM after almost 30% selloff YTD.

Investment Thesis

Tesla, Inc. (NASDAQ:TSLA) is facing a significant slowdown in demand despite a series of price cuts, partially due to cyclical headwinds in the U.S. electric vehicle (EV) market. The EV market has become increasingly competitive, with more players introducing their