Updated: Nov 24, 2021
Elon's tweet this morning:
This tweet might came as a surprise to many of Tesla fans. OK, maybe NOT that much of a surprise given that Elon Musk has the habit to tweet interesting ideas.
Personally I interpret this as him saying that the stock is over valued and it's time to sell.
Let's take a look at its current valuation.
Well, at the time of writing (based on 5th Nov data), Tesla PE Ratio is already pushed up to a whopping 395.5 times. This means that investors are paying $395 for every $1 of earnings. Worth it or not, it is up to individual's belief. One might argue that he is buying the future earnings growth of Tesla and not just look at the current PE ratio. At this time of writing (based on 5th Nov data), Tesla PEG ratio* ( is projected to be 8.15 (forecast 12 month forward PEG ratio). This translates to investors paying 8 times "premium" of the PE Ratio when taking into account the future expected growth.
*PEG ratio enhances the P/E ratio by adding in expected earnings growth into the calculation. *PEG Ratio formula:
PEG Ratio = [Price/Earnings per share] (PE ratio) divided by Earnings per Share (EPS) Growth
I reckoned that with this tweet, selling pressure might start gushing comes Monday morning.
By the way,if you do not already know, daylight saving time has stopped and US market will commence at 10.30p.m (Singapore Time) instead of 9.30p.m.
And there are two types of investors - "Buy the dip" or "Wait and see". Whichever group you belong to - are you ready for this?
Oh did I mention that Elon Musk's brother has sold off his Tesla stake on 5th November? Below is the filing that I have just downloaded from SEC filing.
Please note that this is not a financial advice and as with all financial/investment decision, please do your own due diligence.
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