Saturday, July 31, 2021

The Tesla Killer

The sector producing a whopping 29% of global carbon emissions may surprise you… It's Transportation… cars, trucks, trains, planes, and other vehicles. That's why governments have offered financial incentives for consumers and companies to turn to electric vehicles (EVs) to reduce carbon emissions. Tesla is currently the largest producer – delivering 499,550 EVs in 2020 alone. Over the last two years, its stock exploded in value due to investor enthusiasm about the prospects of EVs. Shares surged from roughly $41 in June 2019 to more than $623 in June. (Note: These are post-stock split figures.) But there are two reasons why investors should be very concerned about Tesla...
 
 
The Tesla Killer

Dear Reader,

The sector producing a whopping 29% of global carbon emissions may surprise you…

It's Transportation… cars, trucks, trains, planes, and other vehicles.

That's why governments have offered financial incentives for consumers and companies to turn to electric vehicles (EVs) to reduce carbon emissions.

Tesla is currently the largest producer – delivering 499,550 EVs in 2020 alone.

Over the last two years, its stock exploded in value due to investor enthusiasm about the prospects of EVs. Shares surged from roughly $41 in June 2019 to more than $623 in June. (Note: These are post-stock split figures.)

But there are two reasons why investors should be very concerned about Tesla...

First, Tesla stock is extremely overvalued based on traditional financial analysis. The company trades at an absurd price-to-equity (PE) ratio of more than 623. Its price to book value sits at a nosebleed level of more than 26, and its enterprise value-to-EBIT (earnings before interest and taxes) was a staggering 260 in June 2021.

Here's the second factor to consider: As soon as 2023, experts predict Tesla will be surpassed as the world's largest seller of electric vehicles.

Who do I think will be the new champion in electric cars?

It's all laid out for you in my new $7 report, "The Second Cold War".

And you'll find 3 other stocks that I believe are set to massively benefit in the wake of broken U.S.-Chinese trade relations.


Enjoy your weekend,
Garrett Baldwin
Chief Analyst, American Markets

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