TSLA – Market expectations are for Uniform ROA to expand, but management may have concerns about manufacturing and their product features and offerings
November 30, 2021
- Tesla, Inc. (TSLA) currently trades above corporate and historical averages relative to Uniform earnings, with a 148.6x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to expand to 149%, accompanied by 12% Uniform asset growth.
- Meanwhile, analysts expect Uniform ROA to improve to 30% in 2022, accompanied by 12% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $110, representing significant equity downside for the firm.
- Moreover, the firm’s most recent earnings call suggests management may have concerns about manufacturing and their product features and offerings.