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Tesla: Rapid Growth Is Priced In (Rating Downgrade)

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Tesla's automotive business, despite growth, doesn't support the current market price; even optimistic scenarios value it below $250/share. Click for this TSLA stock update.
The article from Seeking Alpha discusses a downgrade of Tesla's stock rating from "Buy" to "Hold" due to concerns that the company's rapid growth is already reflected in its current stock price. The author argues that while Tesla has shown impressive growth in production, delivery numbers, and market expansion, particularly in China and Europe, the stock's valuation seems to have already priced in these optimistic scenarios. Key points include Tesla's ability to increase production significantly, the potential of new factories, and the expansion of its product lineup, including the Cybertruck and Semi. However, the high expectations for future growth, potential margin compression due to price cuts, and increasing competition in the EV market are cited as reasons for caution. The article suggests that while Tesla's long-term prospects remain strong, the immediate future might not offer the same explosive growth, leading to the downgrade in rating.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4744599-tesla-rapid-growth-is-priced-in-rating-downgrade ]