Olivier Le Moal
Performance Assessment
In my last coverage of Tesla, Inc. (NASDAQ:TSLA), I issued a “Neutral/Hold” rating to reflect my view that the stock would perform in line with the S&P500 (SPY, SPX) going forward. This has led to a missed opportunity, as Tesla has beaten the market by more than 20% since then:
Performance since last update on Tesla (Seeking Alpha, Author’s Last Article on Tesla)
However, I am not too fussed about this, as the time horizon I had in mind for my view is a bit longer. And there are reasons to believe the sharp spike up in prices is temporary, as discussed later in this article:
Thesis Update
After Q2 FY24, a key change in my fundamental view is my outlook on Tesla’s margins; I believe they have bottomed out for these 2 key reasons:
- Input commodities outlook is favorable.
- Revenue mix shift is margin accretive.
Input commodities outlook is favorable
In the latest Q2 FY24 earnings call, CFO Vaibhav…
