No, Tesla Stock Is Not Cheap
Based on the average analyst estimate for 2023 earnings, shares of electric-vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) are cheaper than they've ever been. Tesla trades for just 28 times forward earnings, a miserly multiple, compared to any time in the past.
But before anyone starts calling Tesla a value stock, it's important to remember that earnings estimates are just that: estimates. They can be and often are very wrong.
In Tesla's case, there are signs that the company is starting to have a demand problem. It has cut prices in China, which is not something a company does when demand is outstripping supply. There have also been reports that the company was cutting output at its Shanghai plant, although Tesla has denied that rumor.
Source Fool.com
