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?



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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