Electric vehicles (EVs) are trendy.
They are hip, good for the environment and help cut back on gas costs.
What’s not to like?
When it comes to EV investing, Tesla Inc. (Nasdaq: TSLA) is a huge name.
To many, Tesla did for EVs what Apple did for cellphones. It innovated modern technology and made electric cars look a whole lot cooler.
The EV market is projected to more than quadruple to $823.8 billion by 2030!
There is little room for mistakes in this modern vehicle movement.
That hasn’t stopped Tesla from making one … or two … or more.
TSLA stock earns a “Neutral” 53 out of 100 on our proprietary Stock Power Ratings system.
Before getting into its notorious reputation, let’s dig deeper to see how Tesla stands in the EV industry.
We are bullish on the EV market here at Money & Markets. But Tesla is in a challenging position.
Tesla’s Bad Business Moves
Tesla had a lousy week.
According to reports, Tesla was expected to deliver 364,660 cars before the quarter ended on September 30.
But Tesla reported delivering only 343,000 vehicles despite production in two new factories in Germany and Texas.
Analysts wonder if the competition between Tesla and its EV peers is getting stiffer. Its competitor BYD, the Warren Buffett-funded lithium-ion battery and EV maker, may be eroding demand in China for Teslas.
But this was just the start of the week for the company.
After Tesla unveiled a humanoid robot prototype to impress industry insiders, it backfired.
Though fans are captivated, industry insiders consider the demo a failure.
With these events, plus Musk’s latest Twitter comments with the Ukraine crisis, Tesla stock dropped almost 16% in just a week.
Let’s take a closer look at its Stock Power Ratings breakdown.
Tesla’s Stock Power Breakdown and Value
TSLA still rates an overall “Neutral” 53 out of 100 on our ratings system.
For size and value, Tesla is in the pits.
Let’s look at value.
Tesla’s value rates a bearish 5.
I’ll explain this through some numbers.
TSLA’s price-to-earnings ratio is at 80.56, while its consumer vehicles and parts peers are sitting at 14.60.
Its other value ratios are equally appalling:
- TSLA’s price-to-book ratio is 21.46, while the industry sits at 1.64!
- Its price-to-sales ratio is 11.50 — almost five times higher than its peers’!
These numbers show that TSLA is extremely overvalued compared to its peers in the industry.
The Bottom Line
Tesla scores a “Neutral” 53 out of 100 on our Stock Power Ratings system.
However, “Strong Bullish” stocks are no anomaly.
We expect those stocks to beat the broader market by 3X in the next 12 months!
To get one highly rated stock you should consider investing in, check out Matt Clark’s Stock Power Daily.
Monday through Friday, he gives you one stock that scores 80 or above on our system and tells you why you should add it to your portfolio — for free!