That's certainly true, but it does represent a significant portion of their revenue. If cars sales falter (or costs rise) and they miss on earnings, their P/E ratio will explode even higher than their current, extremely high 1,100+ P/E.
Don't get me wrong, I think that Tesla is a good company. I do, however, believe that Tesla's stock price has gotten too far out ahead of itself (which is also my view of the broader market). To me, there seems to be a lot more downside risk than upside potential in the near term, at these levels.
That's certainly true, but it does represent a significant portion of their revenue. If cars sales falter (or costs rise) and they miss on earnings, their P/E ratio will explode even higher than their current, extremely high 1,100+ P/E.
Don't get me wrong, I think that Tesla is a good company. I do, however, believe that Tesla's stock price has gotten too far out ahead of itself (which is also my view of the broader market). To me, there seems to be a lot more downside risk than upside potential in the near term, at these levels.
Good luck with your trades!
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