Tesla stock is down 50% from it's all time high, is it a good time to pick some up now?

Is Tesla undervalued now?

• With Tesla's recent Q3 results,

  • experienced y-o-y revenue growth of 55%

    • bringing their LTM revenue up to USD75 billion.
      

• At this point of writing (22Oct22)

  • Tesla's stock price has fallen up to 50% from their all time high price.

    • placing their current Price to Sale ratio at 11X.
      

  • However, with their current LTM revenue amount,

    • even when the stock bounce back to its' all time high price of $414 per share (priced during 4Nov2021)

      • that will give the stock a PS ratio of 17X.
        

• Since Tesla's median Price to Sale ratio (since its inception) is 16X.

  • Its current valuation is an attractive range.
    

  • Needless to say, if Tesla just maintain a 25% rev growth into next year

    • which in reality, its revenue growth will likely far exceed the 25% figure

    • that will give Tesla's stock price a PS ratio of 14X

      • (assuming shares outstanding amount remains the same of 3.13bill)
        

    • which is considered to be undervalued.

How are Tesla products received in the market?

• Valuation aside,

• One of the most important metrics for a company's future success

  • is how their products & services offered

    • are received by the market they are serving.

  • and one way to find out is to look at the ratings & reviews of their products,

    • both by the customers & also from

    • prominent reviewers in the industry.
      

• Attached in the google sheet is the reviews and ratings for Tesla's

  • Automotive segment (make up 96% of their Revenue)

    • Model 3

    • Model Y

    • Model S

    • Model X

      • note: 94% of the segment's sales come from Model 3 & Y
        

  • & Energy Generation and storage segment (make up 4% of total Revenue)

    • Tesla Solar Roof

    • Tesla Solar Panel products
      

• Tesla product reviews (Maximizations.com)

How I decide which review websites to use?

• As a general rule of thumb, the reviews site which I use should have high site traffic from the targeted visitors.

  • which can be confirmed through platforms like:

    • Google search trends

    • Semrush.com
      

• Most popular reviews sites to use for Tesla's products

Summary

• Although owners' reviews on sites like

  • Edmunds.com for their cars are not satisfactory

  • along with poor customer service feedbacks accumulated on sites like Trustpilot.com
    

• The scores for Tesla's car products are high from:

  • reviewers' site

    • Carandriver.com

    • motortrend.com

  • & also influential youtubers who do car reviews

    • Topgear

    • Carwow

    • Dougdemuro
      

• Coupled with Tesla Model Y being awarded as the Best Electric Vehicle in 2022 on cars.com

• give me confidence that Tesla cars are in a good position to continue to succeed in the EV space.

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