Tesla’s Automotive Revenue Fell 3%, and Energy Generation and Storage Tumbled 16%. Should Investors Still View Tesla as a Car Company?
Defining Tesla (NASDAQ: TSLA) has always been a challenging question for investors.
As an electric-vehicle maker, Tesla has never traded like a typical car company. Legacy automakers like General Motors and Ford tend to trade for single-digit price-to-earnings ratios, even though these companies bring in boatloads of profits most years.
Five years ago, investors seemed assured that electric vehicles would disrupt the whole auto market and that combustion vehicles would be left in the past. However, that hasn’t happened, and Tesla’s vehicle sales have been basically flat over the last three years. Meanwhile, GM and Ford have pulled back from their own efforts in EVs.
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