Excellent question. Many people, including broker employees who set margin requirements, still have no clue about Tesla.
The Schwab Equity Rating® for TSLA is
F: Strongly Underperfom: Sell (immediately you fool). Last month, it got all the way up to
D, but alas has retreated again. This august (and August) opinion is based on the following Rationale Behind Our Rating (not ®):
Growth Grade: C
Quality Grade: F
Sentiment Grade: C
Stability Grade: D
Valuation Grade: F
The Quality and Sentiment Grades are labeled as most important to the overall grade. Here is Schwab's description of the former (
emphasis added):
The Quality component underlying the rating is based on a number of operating performance measures derived from recent financial statement data. Stocks with attributes such as high profitability, high earnings quality, conservative investment spending and better operating efficiency tend to have better Quality scores. Highly-rated stocks within this category may have the potential for price appreciation, as investors perceive that these companies have the financial strength to potentially grow earnings faster than their peers.
Oh Schwab. Speaking of peers, here are some Schwab Equity Rating®s for them:
GM and Ford: D
Okay, that's the ballpark, but better than Tesla?
Toyota and Honda: B
Daimler: A
Oh Schwab.
In short, yes I have to believe reality will someday filter down to the brokerages... or else their customers who trust them will stampede to ARK.
