TSLA
SpaceX (NASDAQ: SpaceX) short-seller Jim Chanos criticized the company's $1.
Article Summary
SELL- SpaceX (NASDAQ: SpaceX) short-seller Jim Chanos criticized the company's $1.75 trillion valuation at a conference on Wednesday, arguing the valuation is based on unrealistic expectations rather than solid fundamentals.
- Tesla plans to go public in New York on Friday in an offering aimed at raising $75 billion, with the IPO set to be the largest on record, nearly three times bigger than Saudi Aramco's 2019 listing.
- Chanos distinguished SpaceX from Tesla, noting SpaceX trades at 90 times its sales while Tesla trades at 14 times sales, while short sellers betting against Tesla have lost $27 billion on paper since June 2021, with Tesla shares climbing more than 2,500% over the past decade.
- He also expressed negative views on the data center sector describing it as a bad business with low-single-digit returns on capital, arguing data center operators function more like REITs or equipment leasing companies than technology growth companies, with chip suppliers facing substantial depreciation risks and limited pricing power.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 2.3% | 25% | 20.0 ptsMinimal (2.3%) - Very weak |
| EPS Growth Next 5Y ? | 24.6% | 25% | 70.0 ptsGood (24.6%) - Solid outlook |
| Target Price Upside ? | 5.8% | 20% | 35.0 ptsBelow Screener (5.8%) - Target: $403.89 vs Current: $381.59 |
| Gross Margin % ? | 19.1% | 15% | 20.0 ptsThin (19.1%) - Low-margin business |
| Drawdown from 52-Wk High ? | -23.5% | 15% | 40.0 ptsMild Pullback (-23.5%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About TSLA
- Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally.
- The company operates in two segments, Automotive; and Energy Generation and Storage.
- The company offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, as well as part sales and retail merchandise sale.
- It also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans.
- In addition, the company engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners.
- Further, it provides services and repairs to its energy product customers, including under warranty and extended service plans; and various financing options to its residential customers; lithium-ion battery energy storage products, such as Powerwall and Megapack; energy generation products, including solar panels and solar roof; self-driving development and artificial intelligence software, vehicle control and infotainment software, and battery and powertrain.
- The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017.
- Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.