Posted 3/16/2024, 1:00:00 PM
Tesla Stock Drops 34% in 2023 But Valuation Remains Stretched on Bets of Future Innovation
- Tesla stock is down 34% in 2023 but forward P/E ratio is still high at 55-62, well above other automakers
- Analysts have sharply cut 2024 and 2025 EPS estimates but valuations remain elevated
- Tesla is no longer a high growth company but valuation implies bets on future moonshots
- Bull case depends on uncertain bets paying off in self-driving, robotics, AI beyond EVs
- Despite stock drop, Tesla valuation not cheap compared to profitable automakers and EV peers
