Is Tesla in its own Bubble?

Elon Musk’s Tesla has yet to earn a profit, yet has its own valet service for its employees.

Capital Expenditures have ramp-up 26% from 2014 to TTM (from $970 Million to $1.2 Billion)

Tesla has been building a $5 Billion Solar Gigafactory in the Silver State (Nevada). Structure to be completed in 2017.

Tesla has total debt of $2.6 Billion as of this time with D/E ratio of 2.04 (Gurufocus).

Tesla owns SpaceX and SolarCity among others not mentioned.

Elon Musk is currently at #73 of the Bloomberg’s World Richest with $12.3 Billion. Musk had previously founded PayPal among others during the Tech Boom in 2000’s.

Recent events:
(CORRECTED*) SpaceX had just been successful of landing an Orbital Rocket for the first time in history. December 21, 2015 (see video herehttp://www.space.com/31420-spacex-rocket-landing-success.ht…)

Warren Buffett’s NV Energy already has been a step ahead of Musk’s SolarCity in Nevada (see http://oilprice.com/…/Warren-Buffett-Beats-Elon-Musk-In-Nev…)

Valuations and Financials (Marketwatch, Reuters)
P/E Current -100.50 (yes, negative $676 Million so far this year)
Price to Book Ratio 30.66

Ratios
ROI -15.73 (Industry average 12.20)
ROE -59.48 (Industry average 15.89)

References
Business Insider (http://www.businessinsider.com/tesla-has-valet-service-at-i…)
Fortune (http://fortune.com/…/…/solar-city-gigafactory-tesla-factory/)
New York Times (http://www.nytimes.com/…/with-new-factory-tesla-ventures-in…)
Space.com (http://www.space.com/25597-spacex-reusable-rocket-falcon9r-…)
Oil Price (http://oilprice.com/…/Warren-Buffett-Beats-Elon-Musk-In-Nev…)

Disclosure: I do not have shares in any of the companies mentioned in this article and don’t plan to initiate purchase within the next 24 hours. I would not receive any compensation for doing this article. I am not a professional financial analyst. This is just a hobby. Lastly, my work is not error-free, but I strive for it to be. Do not consider as a buy or sell advice. Invest at your own risk.

If you are interested in this similar approach to investing and would seek updates or share ideas, I wish to invite you to this Facebook group SEEKING VALUE (https://www.facebook.com/groups/SeekingValue/?ref=bookmarks)

Happy investing.

Mark Y.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s