Tesla (TSLA) finds itself within the exclusive circle of mega-cap stocks, known as "The Magnificently Manipulated 7" by Keith McCullough, where they often defy conventional financial metrics and maintain high valuations. However, even these stalwart stocks can't escape the repercussions of adverse news.
While Industrials analyst Jay Van Sciver has been bearish on Tesla (TSLA), Wednesday’s Q3 earnings report was worse than even he expected.
“This is very much driven by the price cuts, and I think what’s very obviously an intensely competitive market for EVs,” Hedgeye’s analyst explains in this clip from The Call @ Hedgeye.
The mounting challenges from competitors are beginning to weigh on Tesla, and their financials may not support its inflated stock price for much longer. TSLA’s stock price is down big today, and Van Sciver doesn’t see much positive news for the company anytime soon.
“I am still shocked by the resilience of the stock,” Van Sciver adds. “This is going to get worse again this quarter. We already have visibility on that unless they suddenly try to raise prices, which would be very difficult at this point.”
Click above to watch the full clip.
