Falling sales, canceled key tax breaks, more competition has pressure on sales prices. This would usually seem bad news for the company. These are just some of the challenges Tesla (Nasdaq: TSLA) Currently, there is a face. Despite this, Tesla’s shares have increased by 67% over the past year.

This is not because it was affordable a year ago. A 12-month SKOK means that the company is now ordering market capitalization $ 1.3 %. Is Tesla something other than an ordinary company?

The valuation makes no sense for me

I am asking because I think it would have to be a justification for the current Tesla share price, not to mention the higher one.

The Carmaker trades 246 -a rival Ferry sells for 15 times earnings). This is before this year’s potentially falling earnings, due to the connection of the vehicle sales volume, withdrawal of tax relief and price pressure, which I mentioned above.

Usually there is such a price rate for profit, which the industrial company would look much too high for my comfort. Indeed, I think Tesla is badly overstated and I have no plans to buy stocks for my portfolio.

Can Tesla be one of a kind?

Of course, not all investors accept the same type of line as I do. The boost in prices over the past year, even as the company’s business environment has deteriorated, may indicate that some investors perceive Tesla as an extraordinary company, not just an industrial company about a decrease in sales that fights to maintain a profit margin.

As I can see, there are two key possible explanations. One is Tesla’s potential to expand to recent business lines, while the other is an opportunity to get more from the customer base.

New business ideas are exhilarating – but not yet proven

To illustrate the first stage of potential growth factors, consider Tesla’s enthusiasm to develop business robotics and probably do more with artificial intelligence (AI). Both are the one with whom he has some experience of current car activities.

Thus, using his knowledge and reserved technologies, Tesla may be able to establish a position in robotics and other business areas. It can be a breakthrough of games, bringing huge revenues and potentially justifying the current price of Tesla’s action.

For now, it is basically not much more than a developed idea. Tesla has not yet proved that she has a commercially convincing proposal of immense -scale robotics – and many other companies are also trying to do the same.

More money than existing customers

Historically, Tesla has proved that she can earn money from customers after the initial purchase, for example, selling software packages of buying cars. There is greater growth potential here. Tesla tests self -propelled taxis (again, just like rivals).

If they work, ultimately the company can allow Tesla drivers to earn money from the car when they sit idly, offering it as a self -propelled taxi. Tesla can accept a commission.

Like robotics, although not entirely fantasy, it is also very far from being a proven, scalable business model.

Looking today at Tesla and what I see as real long -term commercial perspectives, I still consider its price too high and I will not buy.