Less than 45%, could Tesla's actions completely crumble?

Be a shareholder in Tesla (Nasdaq: TSLA) It has always been a dramatic trip. However, it has been very rewarding for many investors. In the last five years, Tesla's actions have shot 462%.

Lately, however, things have not done so well. In fact, Tesla's shares have crashed 45% from where they were in mid -December. It is a long way to fall in a fairly short time, especially for a company of this size. Even after the accident, Tesla has a market capitalization of $ 826 billion.

So, does this put Tesla on a firmer base when it comes to assessment, or things could get worse further from here?

Bright business with a proven history

For me, this is not purely an academic question. I am not a shareholder at this time. But I think Tesla has a lot to do as a business. If I could invest in what I thought it was a reasonable price, happily I would do it (in this regard, I follow Warren Buffett's maximum to have as its objective to buy large companies at attractive prices).

The electric vehicle market (EV) is huge and will grow over time. Tesla is one of the limited players who have shown that they can climb at mass market sales and make money in doing so. Its installed base, known brand and patented technology make it attractive to me. Its vertically integrated production and sales approach also helps differentiate it from rivals, in my opinion.

Not only that, but your energy generation business is already significant and grows fast. Meanwhile, there is still a significant potential without exploiting in the fields that Tesla expects to break, including taxis and autonomous robots.

The price could continue to fall

Clearly, however, something has happened. Tesla's shares did not fall 45% in a matter of months without any reason. Obvians include seeing the first fall in sales (although a small one) and investors are concerned that the high -profile public role of Tesla Boss Elon Musk can tarnish the brand for some potential customers.

In addition to that, the EV market is becoming more competitive as Chinese rivals like Byd (A long -term buffet possession) makes incursions into the markets where Tesla has worked well. Fiscal credits in the markets, including the US, which could damage the profitability of the automobile manufacturer.

Do such risks have a price after Tesla's shares crashed? I don't believe it. In fact, Tesla's shares are quoted in a price to profits (p/e) ratio of 130.

If some of the risks I mentioned go out and the profits fall, the possible relationship p/e could be even greater. But just taking the current figure of 130, it is much more than I would be willing to pay for the action.

I see a real value in Tesla, so I do not believe that participation is leading to zero. However, I still see it as significantly overrated and I think it could sink much more even from its current level. For now, I will not buy.