Tesla reserves are falling. But it can be far from going out!

It was a terrible few months Tesla (NASDAQ: TSLA). The innovator of electric vehicles recorded a piercing decline in sales in the first quarter from year to year. Earnings have dropped dramatically, and Tesla shares are now 29% below where the year began.

Still, it is still amazing 426% higher than five years ago. This is a kind of return that most investors can only dream about.

I also consider it a good reminder to focus on long -term as an investor, regardless of headers headers on a given day.

Considering whether a recent autumn can be an opportunity that I have been waiting for a long time to add some Tesla action to my portfolio at an attractive price?

What makes brilliant investments

One long -term investor in a rival Hunter (but not Tesla) is a billionaire Warren Buffett.

Buffetta’s approach to invest includes the pursuit of the purchase of rates in outstanding companies with attractive valuations. This sounds reasonable to me and, as Buffett has shown, it can make them incredibly satisfying long -term investments.

I will get on Tesla’s quotation in a moment. But to start with, whether it Excellent business?

For me, the answer to this question is stunning “Yes“

The company is also aggressively expanding how to operate intellectual property. He has already developed a enormous warehouse business, and its growth year -on -year in the first quarter was robust.

Tesla also plans to escalate the scale of truck production to commercial levels, launch taxis and compete in a rapidly developing robotics industry.

Thanks to the unique technology, robust brand, profitable basic activity and a enormous customer base, I see it as an outstanding company.

So what about the second part of the Buffetta formula – valuations?

It seems to me that the investment case for Tesla even after the last decrease in the stock price looks less clear.

I am not in two minds – I just think that the current price of shares is far too high for my comfort and offered me an insufficient safety margin as an investor.

If everything goes brilliantly, the current price of the action can be a long -term opportunity. While Tesla’s sales have fallen sharply, it remains a significant competitor of the electric vehicle market and historically proved that she knows how to escalate sales.

Self -propelled taxis can be a huge fresh market and I think that the energy storage department can become a huge business over time.

But as an investor, I am more focused on what is happening and what I think is likely than what can be possible if everything goes according to plan (which rarely happens in business). Tesla is facing many rivals in its fresh companies, and success is uncertain.

However, it trades in 159 -earnings. At least for me it is too costly to consider moving.