{"id":38251,"date":"2023-07-20T13:34:31","date_gmt":"2023-07-20T17:34:31","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/tesla-stock-takes-6-post-earnings-dive-heres-why-some-say-its-860-billion-valuation-is-disconnected-from-reality\/"},"modified":"2023-07-20T13:34:33","modified_gmt":"2023-07-20T17:34:33","slug":"tesla-stock-takes-6-post-earnings-dive-heres-why-some-say-its-860-billion-valuation-is-disconnected-from-reality","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=38251","title":{"rendered":"Tesla Stock Takes 6% Post-Earnings Dive\u2014Here\u2019s Why Some Say Its $860 Billion Valuation Is \u2018Disconnected From Reality\u2019"},"content":{"rendered":"<div>\n<h2 class=\"topline-heading\">Topline<\/h2>\n<p>Tesla stock slid Thursday after the electric vehicle company delivered an earnings report that largely exceeded headline expectations, as pessimistic warnings grow louder about whether the company\u2019s recent 150% stock surge was warranted.<\/p>\n<h2>Key Facts<\/h2>\n<div class=\"key-facts\">\n<div class=\"key-facts-element\">\n<p>Tesla\u2019s $24.9 billion in sales and $0.91 earnings per share for the second quarter beat consensus forecasts, but its Wednesday afternoon report demonstrated why its stock is \u201cegregiously overvalued\u201d at its $273 ticker, Roth analyst Craig Irwin told Yahoo Finance, sharing his $85 price target for the company.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Shares of Tesla slipped more than 6% in early Thursday trading, set for its worst day in three months.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Tesla reported its lowest operating income since 2021 as vehicle profit margins slumped to a multiyear low of 18.1%, amplifying concerns about its ability to continue on its path of astronomical financial growth.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Tesla\u2019s price-to-earnings ratio (P\/E ratio), which tracks a company\u2019s stock price compared to prior earnings and indicates how confident investors are about a company\u2019s growth prospects, has exploded by more than 130% this year as the market largely cheers on boosted sentiments for tech stocks amid the artificial intelligence wave and a flurry of positive headlines for Tesla, including the adoption of its charging technology by many of its EV competitors.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad>\n <\/div>\n<div class=\"key-facts-element\">\n<p>But neither AI nor charging expansion are \u201cfinancially material for Tesla,\u201d according to Bernstein analyst Toni Sacconaghi, whose $150 price target for Tesla is among the lowest among analysts at major firms.<\/p>\n<\/p><\/div>\n<\/div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Crucial Quote<\/h2>\n<p>In a note to clients, David Trainer, CEO of boutique equity research firm New Constructs, declared that Tesla\u2019s \u201cfundamentals are completely disconnected from reality\u201d and suggest a company whose stock should be worth as little as $26 (a price that would be Tesla\u2019s lowest since March 2020) and value it at just $82 billion.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Chief Critic<\/h2>\n<p>Wedbush\u2019s Dan Ives, a longtime Tesla bull, raised his price target for Tesla from $300 to $350 on Thursday, citing fresh optimism about CEO Elon Musk\u2019s \u201cgolden vision\u201d for the company including AI and charging revenue.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Forbes Valuation<\/h2>\n<p>Musk\u2019s net worth fell by $11 billion as Tesla shares slumped Thursday. Musk remains by far the richest man in the world, according to our estimates, as his $246 billion fortune is $11 billion larger than anybody else\u2019s.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Tangent<\/h2>\n<p>Netflix, the other major company reporting earnings after Wednesday\u2019s market close, also suffered a post-earnings stock hangover as its share price tanked more than 8% as investors similarly balked at its growth story after its stock price more than doubled in recent months.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\"><\/h2>\n<p>\u2018Crazy Times\u2019: Elon Musk Reacts To Tech Stocks\u2019 Latest AI Surge (<em>Forbes<\/em>)<\/p>\n<p>Tesla shares dip after hours as earnings call disappoints (CNBC)<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/07\/20\/tesla-stock-takes-6-post-earnings-dive-heres-why-some-say-its-860-billion-valuation-is-disconnected-from-reality\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topline Tesla stock slid Thursday after the electric vehicle company delivered an earnings report that largely exceeded headline expectations, as pessimistic warnings grow louder about whether the company\u2019s recent 150% stock surge was warranted. Key Facts Tesla\u2019s $24.9 billion in sales and $0.91 earnings per share for the second quarter beat consensus forecasts, but its [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":38252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-38251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tesla Stock Takes 6% Post-Earnings Dive\u2014Here\u2019s Why Some Say Its $860 Billion Valuation Is \u2018Disconnected From Reality\u2019 | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Topline Tesla stock slid Thursday after the electric vehicle company delivered an earnings report that largely exceeded headline expectations, as\" \/>\n<meta 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