Wild — Tesla Valuation 111× Company's Forward Free Cash Flow - CleanTechnica

The article discusses a critical perspective on Tesla's current valuation, highlighting that the company's stock price is extremely high relative to its financial fundamentals. Specifically, Tesla is trading at 16 times forward sales, 111 times forward free cash flow, and 270 times adjusted forward earnings, despite lacking clear revenue visibility to justify such multiples. The author references Elizabeth Pramila's analysis, which points out that Tesla's demand has declined over the past two and a half years, contradicting earlier expectations of sustained sales growth through 2030. Attempts by Tesla to stimulate demand through incentives have not reversed this trend, indicating a more prolonged slowdown. Furthermore, Tesla's profitability is under pressure, with negative growth across all margins for most of the past three years and only occasional, unsustainable spikes in growth. Pramila argues that Tesla lacks both revenue visibility and earnings stability to mitigate the risks associated with its lofty valuation. The article emphasizes that Tesla's current financial metrics represent a significant risk to investors, given the enormous