Summary

• Tesla, Inc. delivered a double beat in Q1, with revenues and profits exceeding Wall Street expectations, driving a positive immediate market reaction.
• TSLA's gross margin improved significantly to 21.1%, aided by higher average selling prices and robust growth in its services business, especially FSD subscriptions.
• Despite operational improvements, TSLA trades at an extremely elevated valuation, with free cash flow yield at 0.4% and adjusted earnings multiples near 250x.
• I remain bearish on TSLA due to its lofty valuation, inventory build-up, and reliance on unproven future businesses, seeing more downside risk than upside.
• Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More »

Article Thesis

Tesla, Inc. (TSLA) reported its fiscal Q1 earnings results on Wednesday, beating estimates on both lines, which was a positive surprise. Still, Tesla continues to battle with relatively weak

53.87K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.