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.
Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.
This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.
Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.