January 8, 2018

TSLA – Market expectations are for a positive inflection in Uniform ROA, but management has concerns about demand and orders, as well as their efforts to manage expenses


  • Tesla, Inc. (TSLA:USA)¬†currently trades near historical lows relative to UAFRS-based (Uniform) Assets, with a 4.2x Uniform P/B. However, even at these levels, markets are pricing in expectations for Uniform ROA to inflect positively, while management has concerns about demand and expenses
  • Specifically, management appears to have concerns about demand, and order rate for the 75s, and they may be exaggerating the potential for improved efficiencies in their business as well as their efforts to manage expenses in-line with orders
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