Tesla’s Q3 Earnings: Slowing Sales and Free Cash Flow Drop
Last week, headline news was all about Tesla’s Q3 earnings. In fact, Wall Street was expecting the company to show a loss, but instead it posted a profit. The stock shot up close to 20%.
But the thing about headlines is that they don’t tell the full story. Headlines are full of hype to get readers to click. The more outrageous the headline, the more clicks.
I’ve learned over the past 35 years on Wall Street to always read beyond the headlines.
You see, after it posted earnings last week, Tesla’s market cap increased from $45 billion to $53 billion overnight. That’s when I scratched my head and wanted to see if the valuation increase was justified.
I took the time to go over Tesla’s financial information, and I have to say, I wasn’t impressed.
In fact, I bet you dollars to donuts that if investors took the time to review the company’s earnings report, Tesla wouldn’t be valued at such a high price.
Keep in mind that I don’t have a horse in the race.
Watch my video below, and I’ll share with you that everything is not as rosy as the headlines on Tesla want you to think.
In this video, I discuss:
- What the numbers really say about Tesla.
- Why sensible investors look beyond the headlines.
- Knowing what to look for in a growth company.
A quick scan of a company’s financial information will reveal a lot about how it’s really doing.
I did a double take when I saw the revenue numbers actually declined. That’s a big red flag to me.
You see, in my 35-plus years of experience in the stock market, I developed a system that’s allowed me to make successful investment decisions.
I implement this time-tested approach in my Alpha Investor Report newsletter.
I make sure I guide my readers in choosing businesses that are leaders in their industry and are trading at bargain prices.
I focus on three crucial factors — I call them Alphas — when I choose stocks for my portfolio. I do the hard work and crunch the numbers — you can enjoy the rewards.
And I want to hear from you. Let me know if you agree with me, or if you think I’m wrong about Tesla. Leave a comment below.
Editor, Alpha Investor Report
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