Published On: January 25, 2024

Original Headline:

Tesla’s numbers even worse than feared

Morning Porridge Comment:

Tesla numbers show serious long-term problems that leave its multiple over other, equally profitable car makers, unsustainable. The stock crashed 8% post market.

Compare and contrast to Netflix: (Thank Julian Wheeler for this)

Free cash generation this Q:

Netflix………$1.6bn……on a market cap of $250bn

Tesla………..$2.1bn…….on a market cap of $650bn

Which would you rather own? A company that is now consolidating its lead over weakening competitors…….or vice versa?

Musk says he will turn it around when he delivers the Model 2 affordable car next year (in Musk speak that means 2027.) And, the stock will recover if the board gives him 25% of the company…

Sell.

 

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