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No. of Recommendations: 3
I respect what Elon Musk has been able to accomplish with Tesla, but the astronomical price earnings ratio has been a turn off for me.

I decided to buy Tesla. My target price has been 685 when I calculated the forward PE fell to 60. Price fell to 664 (into the 640s Friday). I calculate as follows: Last quarter they reported 3.20/sh earnings. Times 4 gives 12.80. They are increasing production by 60% next year. I’m estimating a 30% increase in earnings. That gives 16.64 expected earnings. At 664, the estimated PE is 39.89. I see Tesla as a true growth company well worth a PE of 40. Supply chain and can he sell all the cars he can make are the risks. But so far looks promising.

Today the Tesla price seems to have bottomed. The Twitter deal could be a distraction. The sexual harassment charges are a concern. And Tesla got removed from an environmental list. But still Elon seems to be a winner.
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