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Strategies & Market Trends : Fundamental Value Investing

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From: bruwin	5/18/2021 3:25:09 PM
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TSLA ..... I can't say I'm surprised Mike Burry is shorting this stock ... After a mediocre 21% Gross Margin there's only 6% of its revenue left over at EBITDA. That gets further reduced by 29% due to TESLA's heavy Debt load. Any increase in Interests rates, especially with Inflation worsening, could be really bad news for TESLA. A "positive" is that it does pay its taxes, which leaves it a relatively thin Bottom Line Margin of only 3.5%. Its ROE is also poor. For quite a few years TESLA traded in the $50 to $60 price range before it took off and hit close to $900 a share, before now falling about 35% to around $590 a share. So you have to wonder what an investor is getting for about $590 a share, bearing in mind Buffett's "Equity Bond" valuation puts it at about $50 a share ......... and there appears to be no dividend either.

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