StarFoxisDown!
Well-Known Member
If we could actually get a stretch of say 6-8 months......no Elon distractions, no drama....just Tesla executing on Q3, Q4, and Q1 2023, I could see TSLA's TTM P/E set a floor in the 115-125 range with moves up into the 150 TTM P/E area as the macro environment rebounds.I think Tesla's PE will compress over time to ~30.... but it might take 10 years to get there, might take 5. Markets are fickle and PE compressions tend to be sticky. Right now, it looks to me that the market is happy around 100. This is already a huge compression from before, but mostly due to Tesla killing earnings time after time and a bear market coming in. So it makes sense to level here. There will be an event and time where it will compress to 75 and eventually to 50, but timing of that is tough to say.
In the end, it wouldn't shock me to see the market price Tesla at 75 pe in October... it also wouldn't shock me to see Tesla at 100 PE at the end of 2023. Either way with the earnings growth, the share price is likely to be very good for us bulls.
Just need that 6-8 of calm and smooth sailing