Following Recent Pullback, is Tesla (TSLA) Still Overvalued?
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Tesla Motors, Inc. (Nasdaq: TSLA) shares are making up for a rough October today after the company posted a letter from one of its Model S customers who was in a recent accident/fire, saying he'd buy another Tesla in a heartbeat.
But, one bear on the stock hasn't changed his tune. Barron's Bill Alpert commented today:
The growth reported last week by Tesla Motors was impressive for a car company, let alone an American car maker still in its first year of volume production.
Tesla delivered 5,500 units of its sleek, all-electric Model S in the September quarter, producing revenues of $431 million—more than eight laps ahead of the $50 million achieved a year ago. The Palo Alto, Calif.-based company reported profits of $16 million, or 12 cents a share (if you set aside 40 cents worth of non-cash charges and lease accounting required by generally-accepted accounting principles).
While Alpert might sound like he's getting positive on the stock, that's not the case. He noted Tesla's still-rich 162-times annualized free cash flow realized last quarter, which is still more than he's will to pay for the stock.
Alpert first commented on Tesla in a June piece (here), though shares are up 35 percent or so since then. Though the stock is no longer up over 400 percent on the year, short-term investors might want to take a look at recent activity in the name and evaluate how much higher expected future results will push the stock.
Shares of Tesla are up 4.7 percent Monday.
But, one bear on the stock hasn't changed his tune. Barron's Bill Alpert commented today:
The growth reported last week by Tesla Motors was impressive for a car company, let alone an American car maker still in its first year of volume production.
Tesla delivered 5,500 units of its sleek, all-electric Model S in the September quarter, producing revenues of $431 million—more than eight laps ahead of the $50 million achieved a year ago. The Palo Alto, Calif.-based company reported profits of $16 million, or 12 cents a share (if you set aside 40 cents worth of non-cash charges and lease accounting required by generally-accepted accounting principles).
While Alpert might sound like he's getting positive on the stock, that's not the case. He noted Tesla's still-rich 162-times annualized free cash flow realized last quarter, which is still more than he's will to pay for the stock.
Alpert first commented on Tesla in a June piece (here), though shares are up 35 percent or so since then. Though the stock is no longer up over 400 percent on the year, short-term investors might want to take a look at recent activity in the name and evaluate how much higher expected future results will push the stock.
Shares of Tesla are up 4.7 percent Monday.
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