Trainer pointed that the increasing Tesla Share Priceimplicates a 40% to 110% increase in market share based upon the average selling price. This means that if we go by the current average selling price of $57,000 and assuming 10.9 million car sales by 2030, it means that Tesla would soon acquire 42% market share. He also mentioned that currently Tesla trades at 159 times forward earnings.“We think this is a big, big – one of the biggest of all time – house of cards that’s getting ready to fold,” Trainer further added. It seems Elon Musk is quite miffed with the current trends. Read: What is Troubling Elon Musk?
Tesla Stock Split
Trainer did not shy away from bringing into notice the recent Tesla stock split that could further add to the problem and could even prove dangerous to new investors getting into the stock. In the interview, he mentioned, “Tesla Stock splits are inconsequential to value. They’re not changing the size, they’re just dividing it up into more pieces. Honestly, I look at the stock split as a way to lure more unsuspecting, less sophisticated traders into just trying to chase this stock up and that is not a real strategy.” A chip in the brain? Elon Musk has done it again. Read: Elon Musk’s New Brain Chip Shows Neuro Activity of Gertrude the Pig Tesla CEO Elon Muskannounced the split of Tesla stock five to one on August 31. However, the stock went down by more than 5% after Ballie Gifford, Tesla’s largest outside shareholder, reduced its stake holding in the company. The stock also faced broader sell-off that rebuked some of the market’s high momentum names. Elon Musk at his best or is he the wickedest? Check out: As Elon Musk Turned 49, We Have 7 of His Most Outrageous Tweets According to Trainer, a more accurate evaluation would be far lower than current levels. He added, “I think around 1/10th of what it is is probably appropriate if you look at, you know, kind of a reasonable level of profits. Tesla doesn’t rank in the top 10 in market share or car sales in Europe for EVs and that’s because the laws changed in Europe that have strongly incentivized the incumbent manufacturers to crank up hybrids and electric vehicles. The same is coming in the United States. I think realistically we’re talking about something closer to $50, not $500, as a real value.” Additional Reading: Elon Musk Claims Tesla Is Close To Fully Autonomous Cars Stay tuned for latest news on Tesla share price and stock split. We will provide you with the updated details on the current trends and changes in the Tesla share price.
