Is Tesla worth a buy after its recent sell-off?
After its most recent quarterly results I'm wondering if it's worth taking advantage of the recent dip in stock price. Despite challenging trading condition in China their second largest sales region, they still managed some impressive quarterly numbers.
Auto sales growth at 87%
Gross profit margin at 32.9%
Deliveries hit 310,000
Both Texas and Germany Gigafactories are now online and are cranking up their Model Y output.
$2.2b in free cash flow
90% increase in energy storage deployments
Twitter distractions aside, these are some pretty impressive results. Growth doesn't appear to be slowing down, and the 'big brain' at Tesla is certainly not short of innovations for future growth opportunities. This Ted interview caught my eye when Elon was talking in detail about the future applications for their AI development which goes far beyond the car - https://www.youtube.com/watch?v=YRvf00NooN8&t=1186s
Yes there's the onslaught of competition that is making good strikes to try and catch Tesla's lead in Auto, but I think it's pretty clear now that Tesla is far more than a 'one horse pony'. In my opinion the major auto's will surpass Tesla in EV sales, I think that's guaranteed, but I don't think that's a major thing. Tesla's innovation prowess is unmatched and it's ability to capitalize on it's market lead by pursuing other opportunities makes them an intriguing prospect for a shareholder.
Even after the recent dip however they still trade at a EV / Rev of 12, but if you are buying for the long term (next 10 years) I think this still could be a 5x return at current levels.