TSLA – The market has muted expectations for TSLA, and management has concerns about distribution, production, customer satisfaction, and pricing

• Tesla, Inc. (TSLA:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Assets, with a 2.9x Uniform P/B. At these levels, the market has somewhat muted expectations for the firm, while management has concerns about Chinese distribution, Gigafactory production, customer satisfaction, and their ability to price the Model 3
• Specifically, management may be concerned about distributing cars to China, the mid-size premium sedan market, and their ability to reduce cost and maintain financial discipline. Also, they may lack confidence in their ability to produce 10,000 vehicles a week in the Shanghai Gigafactory, produce the Model Y in Gigafactories, and sustain recent profitability. Moreover, they may be exaggerating customer satisfaction and demand for the Model 3, and increases in demand stemming from car leases. Furthermore, management may be concerned about their backlog and orders, the timing of management changes, and their ability to effectively price the Model 3. Finally, they may be concerned about autonomous vehicles operating in parking lots, and may be exaggerating the strength of Tesla employees.