Is it the opportunity to buy Tesla shares I was waiting for?

Down by 22% in little during the week, Tesla (NASDAQ: TSLA) Sometimes it seems that it behaves more like a penny action than a company worth almost USD 900 billion, that last year it had the income of almost USD 100 billion. Despite this, I have been looking at Tesla’s shares for some time as an possible addition to my portfolio – so maybe it can offer me the opportunity to buy I was counting on?

What I like about Tesla

My answer depends on the price, something that I fall into below. First of all, I should explain why I like the idea of having Tesla stocks at all.

The company has only over two decades. But he has already built a huge global trace of production and sales for his electric vehicles. Sales volume fell slightly last year (and this decline accelerated this year), but remain significant.

I think that Tesla’s latest story indicates two significant factors.

First of all, it is a grave claimant in the space of electric vehicles. This is a competitive area, and Tesla risks the rival Hunter Leaving him behind, but he has strengths, like a reserved technology, a vertically integrated business model and unique projects.

The second point also jumps at me from the development of Tesla. He showed professional knowledge not only in imagining recent products, but also in a quick launch of them to the market. Now he does the same with the energy storage department, which, unlike a car company, had a very robust first quarter.

Such specialist knowledge can support Tesla operate some other ideas that are somewhere between its drawing board and extensive operate in the real world, from automatic taxis fleets to robotics.

It matters because, perceived only as a car company, Tesla’s actions would look crazy to me.

As for me, the only possible justification for the current valuation, not to mention the higher, is the potential of the company’s plans outside the car.

Here, however, I begin to have grave concerns about the valuation, even after a recent disaster in Tesla’s magazine.

While the activity in the field of energy storage is growing rapidly, even along with car activities, I do not think that the joint valuation should be almost USD 900 billion.

Meanwhile, other ideas are highly speculative for now – it turns out when they are commercialized on a enormous scale, if they ever are. So I think that it is complex to justify more than a rather modest valuation at this point, no matter how long the long -term potential can be.

By accepting as the sum of parts, I do not think that Tesla is worth something like market capitalization. So, although the share is cheaper than a few weeks ago, it is still too exorbitant to consider buying.