Tesla May Have an Ace Up Its Sleeve to Propel Shares Higher

There's no denying Tesla (NASDAQ: TSLA) is accomplishing extraordinary things and will likely continue doing so for years to come. The Elon Musk-led company is building fully electric cars for the masses, growing a massive energy storage business, and developing bleeding-edge technology, all while amassing a war chest of cash that will likely help further fortify its competitive position. But it's not a perfect business -- far from it. Yet the stock's extremely rich valuation demands that it at least come close to perfect.Despite the company's long history of incredible execution and high odds for a bright future, Tesla's latest quarterly results suggest the electric car maker's stock may be overvalued. But here's the caveat: The company may have an ace up its sleeve. Betting on this potential ace, however, is risky.A high-interest-rate environment, making vehicle affordability difficult for consumers, has been a major headwind for Tesla. The company's total automotive revenue for the year fell 6%, the company revealed in its fourth-quarter update on Wednesday afternoon. For its fourth quarter specifically, automotive revenue fell an even sharper 8% year over year. Fortunately, a 113% year-over-year increase in energy generation and storage revenue helped the company post growth for the period (a 31% year-over-year increase in services and other revenue helped, too). But the energy generation and storage segment's impact was minimal since it accounted for only 12% of total revenue. Total fourth-quarter revenue rose 2% year over year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool