TSLA – Market expectations are for Uniform ROA to reach new peaks, but management may have concerns about margins, products, and their manufacturing advantage

• Tesla, Inc. (TSLA:USA) currently trades near historical highs relative to
  UAFRS-based (Uniform) earnings, with a 122.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about margins, Tesla Solar products, and their manufacturing advantage
  
• Specifically, management may lack confidence in their ability to improve operating margins, sustain Model Y gross margins, and maintain their long-term advantage in manufacturing. Furthermore, they may have concerns about reducing costs related to noncritical patent projects, the total vehicle efficiency of Model 3, and the intermittent nature of solar and wind energy. Moreover, management may be exaggerating the potential of Tesla Solar products, Full Self-Driving software, and the range of Tesla Model S. They may also be exaggerating the long-term sustainable advantages of Tesla in manufacturing. Finally, they may be concerned about current nickel supply and they may lack confidence in their ability to assess the crash probabilities and premiums of customers