Lower price doesn't always mean cheaper... & vice versa.
..do you see why Tesla price was high then- 60% yoy EPS growth expectations!
..when you have exceptional growth, you can enjoy a large PE multiple.
..so it is too simplistic to think a high PE is expensive while a low PE is cheap, because a stock may enjoy a high PE because of high growth delivery (e.g NVIDIA) while many oil stocks have low PE, you can say they're cheap but yet the market is not buying them like a bargain. Its because they do not foresee sustainable growth.
..now you look at Tesla and think it has fallen 40-50% so it must be cheap, but based on current business model, its growth trajectory looks impaired and this is why its stock is down. It is actually more expensive now than in mid-23 because its EPS is going backwards.
..Tonight, Tesla is the only big tech stock from Mag7 that is down.
..Cheap usually gets cheaper, until something changes. Don't celebrate or get greedy over 'cheap'. It may look cheap when it is not.
