Part 7/11:
Tesla's margin profile appears promising, with expectations of profit margins exceeding 30%. Given these margins, a reasonable Price-to-Earnings (PE) ratio around 50 could underpin a forecasted stock price significantly higher than current levels.
Risks on the Horizon
Despite Tesla’s promising outlook, multiple risks loom:
Chinese COVID-19 lockdowns: Ongoing shutdowns could disrupt supply chains and production.
Geopolitical tensions: The US-China semiconductor war and potential energy restrictions in Germany pose threats.
Elon Musk’s controversies: His social media activity and public statements can influence investor sentiment.