[GordonBlue]

Originally Posted by Enoch Root

TSLA earns $3.62 per share. Auto stocks typically have P/Es of 6 - 8 X earnings. TSLA's is 48 X earnings. The question is why?

Tesla has been priced as a tech company (high P/E) and not an auto company, from the beginning. But should it be? Should it be, going forward, now that it is an auto company, nothing more, nothing less, and their technological advantages are evaporating?

Do you believe that their sales and earnings will continue to grow at a rapid enough rate to justify a P/E of 48X? Or, do you think the auto industry is catching up?

If we give TSLA a P/E of 8X, that puts the price at $29. At 10X, it is $36. Hell, even if you're willing to give it a P/E of 20X, that is $72.

I fail to see any reason why you would pay more than 20X earnings for it. IMO, the right number is more like 10X. I think it is a $30-40 stock.

Can it have a pop from here? Sure. Maybe it jumps from $150 to $180 when it finds some support. But I think the overall downtrend continues, and I think it's trading at more like 10X, a year or two from now. Maybe 20X

well, I took a peek and it's down to $150 now. If it falls any farther, I bet the largest stockholders make a move to get Musk booted as CEO.

from the net:

Tesla stock is in the midst of largest drawdown since the company went public back in 2010.

Shares of the EV maker are down 64% from a peak last November, marking the stock's largest drawdown since its market debut, according to data from Compound Capital.

More recently, Tesla stock is down 22% in December alone.