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Investors cannot ignore the rather concerning signs in Tesla's financials:
Declining Automotive Revenues: For the first time, the company has shown a year-over-year decline in automotive revenues. This decline raises alarms about the company's capability to maintain its growth trajectory.
High Price-to-Earnings Ratio: Tesla's P/E ratio stands at a massive 170, indicating a potentially overvalued company with respect to its earnings.
Decreasing Margins: The margins are also under pressure, reflecting increased competition from Chinese manufacturers that could threaten Tesla’s market position.
These points draw a bleak picture, especially when viewed through the conventional lens of a car manufacturer. Some might argue that these indicators spell trouble for Tesla.