Tesla Bull Says Elon Musk-Led EV Giant Is No Longer Seen As An Auto Company By Investors, Explains Why Its Stock Trades At A Hefty Premium To Legacy Rivals

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A company’s price-earnings ratio, he noted, is based on future expected growth rate and not the company’s current business and Tesla has its feet into EVs and autonomous driving – two of the highest growth aspects of the auto business.

Once Tesla’s profits from its auto business fall below 50% of its overall profit, Wall Street will no longer compare it to other car companies, Black said, while also noting that in the last quarter, the company’s auto business profit accounted for ...

What Happened: “With future expected EPS growth of 25-30%, TSLA trades at 84x FY'25 Adj EPS vs 5-6x for legacy auto companies,” Black said in a post on social media platform X.

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Article Details

Author / Journalist: Anan Ashraf

Category: Technology

Markets: United States

Topics: KeyProj Stories That Matter US88160R1014 Mobility Tech News Electric vehicles Expert Ideas Gary Black EVs Benzinga Elon Musk TSLA Analyst Color

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-29 @ 11:51:58 (2 days ago)

News Timezone: GMT +8:00

News Source URL: benzinga.com

Language: English

Article Length: 437 words

Reading Time: 3 minutes read

Sentences: 17 lines

Sentence Length: 26 words per sentence (average)

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Copyright Owner: © Benzinga

News ID: 23326186

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