TLSA
TLSA is one of the most divisive stocks going around. Investors tend to cluster in camps, with some believing Elon to be a genius, and that TLSA will materially ramp up production before peers can produce credible autonomous electric vehicles.
Bulls, inclined to this view, suggest further that first mover advantages will create a positive network effect that is self-reinforcing (e.g. the data collected from millions of miles being driven leads to better AI which leads to a better sales proposition and so on).
And the bears, well, you know what they think.
For us, we tread the fairly well worn but no less stunning path of considering the market cap of TLSA, relative to peers…
against measures of fundamentals, such as sales.
We find that sufficiently convincing, and you can also throw in the capex version of the same graph (which looks pretty much like this last graph) for added fun. You can tell which camp you are in, by the degree to which you are moved by the above.
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