TL;DR

Tesla’s stock is a house of cards. Declining sales, government investigations, and mounting competition point to a bleak future.

Story

Imagine a house of cards built on hype. That’s Tesla’s stock story right now. The BC government just yanked Tesla from its EV charger rebate program—like pulling a crucial card from the bottom. Why? Taxpayers were essentially funding a billionaire’s empire, and even the Premier admitted it was nauseating.

This isn’t an isolated incident. Tesla’s under federal investigation for possibly inflating rebate claims on cars. It stinks of desperation—like sinking sales are forcing shady tactics.

What happened? Musk’s brand is crashing faster than a poorly-driven Cybertruck. His political antics have alienated buyers, and declining sales in key markets tell the tale.

The real kicker? Mounting headwinds: ‣ Declining Sales: Fewer people buying Teslas. Like Blockbuster in the Netflix age. ‣ Disqualification from Rebate Programs: Governments halting incentives. It’s like losing coupons while shopping for a luxury item—suddenly less appealing. ‣ Increased COGS / Lower net profit: Rising costs squeeze profits. Think of it as ingredient prices skyrocketing for a restaurant—higher menu prices or lower profits. ‣ Competitors: Rivals offer compelling alternatives. Ford, GM, and Chinese startups are eating Tesla’s lunch. ‣ Other business disruptions: Rebates under investigation, dealership protests, and owners disguising their Teslas out of embarrassment. It’s like trying to sell a house with a leaky roof and termites.

History repeats itself. Remember the 2008 housing bubble? Built on easy money and hype, it burst spectacularly. Enron? Cooked books and inflated profits, leading to collapse. Tesla shows similar red flags—overvaluation and unsustainable practices. The P/E ratio of 120 means for every dollar of actual profit the stock price is at $120, and any losses are multiplied by this same factor.

The few “tailwinds” are just mirages. Musk can hike prices all he wants, but who’s buying? Consumers have choices now, and Tesla’s shine is gone.

Is there hope? Maybe. But right now, it looks like a slow-motion train wreck.

Advice

Don’t fall for hype. Research before investing. Tesla’s story is a cautionary tale—blind faith leads to burnt wallets.

Source

https://www.reddit.com/r/stocks/comments/1jat3pb/bc_canada_removes_tslas_from_ev_charger_rebate/