TSLA - Embedded Expectations Analysis - 2021 05 27
Tesla, Inc. (TSLA:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 122.4x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about supply chain headwinds, their cash flow position, and production in ChinaSpecifically, management may have concerns about the sustainability of demand for electric vehicles, renewable electricity needs, and the impact of lost revenue and profits from their transition to the Palladium program. In addition, they may lack confidence in their ability to mitigate supply chain challenges, scale production in China, and develop an entire road system for their self-driving car. Furthermore, management may lack confidence in their ability to increase Powerwall volumes and sustain cash flow improvements
Tesla designs, develops, manufactures, sells and leases electric vehicles and energy generation and storage systems, and provides services related to its products. The company operates as two reportable segments: automotive, which includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits; and energy generation and storage, which includes the design, manufacture, installation, sales, and leasing of solar energy generation and energy storage products, services related to such products, and sales of solar energy system incentives.
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