EV/Lithium, page-19

...and there's a 10th reason why I am not bullish on lithium stocks over next 12 months

...it is Tesla. Tesla stock price has a strong correlation to lithium stocks in the US

...lithium stocks Holders may want to poo-poo what the Goldmans&Citi prognosis on the outlook of lithium and lithium stocks, but their views do matter because they move markets, and as long as their outlook remains negative, it simply emboldens shorters to profit from downside moves in the interim.

...Recognise it as they are, not how you are feeling.

TESLA: Why things are different this time?

When $TSLA bottomed in Jan 2023, its PE (NTM) was 20.3 which made it a reasonable valuation to bottom at. (see below)

However, today if $TSLA reaches $100 again, its PE ratio would be 35.

At PE of 35, it would not be as cheap as it was at PE of 20.

On top of that, Tesla's growth has slowed down if not gone negative. And EPS is expected to decline from 4.30 to 2.86

A growing company at a PE of 20 was a better buy than a shrinking company at a PE of 35.

https://x.com/StepByStep_42/status/1776645078083391682