Hyperdrive
Tesla’s Market Story Is About Growth. That’s Now in Question
- ‘Shares could fall much further still,’ JPMorgan says
- About 76% of valuation pinned to future growth, DataTrek finds
Tesla's production in Gruenheide, Germany.
Photographer: Patrick Pleul/AFP/Getty ImagesThis article is for subscribers only.
Shockingly low quarterly sales figures from Tesla Inc. this week are raising a fundamental question for investors: If the days of breakneck growth are over, what are the shares of Elon Musk’s company really worth?
The concerns are valid. The number of cars Tesla sold in the first quarter missed Wall Street’s expectations by such a wide margin that it’s worth wondering how much of the electric vehicle giant’s demand problem is baked into the lofty expectations for its revenue and earnings growth over the next few years.