Is Tesla in its own Bubble?

Elon Musk’s Tesla has yet to earn a profit, yet has its own valet service for its employees.

Capital Expenditures have ramp-up 26% from 2014 to TTM (from $970 Million to $1.2 Billion)

Tesla has been building a $5 Billion Solar Gigafactory in the Silver State (Nevada). Structure to be completed in 2017.

Tesla has total debt of $2.6 Billion as of this time with D/E ratio of 2.04 (Gurufocus).

Tesla owns SpaceX and SolarCity among others not mentioned.

Elon Musk is currently at #73 of the Bloomberg’s World Richest with $12.3 Billion. Musk had previously founded PayPal among others during the Tech Boom in 2000’s.

Recent events:
(CORRECTED*) SpaceX had just been successful of landing an Orbital Rocket for the first time in history. December 21, 2015 (see video here…)

Warren Buffett’s NV Energy already has been a step ahead of Musk’s SolarCity in Nevada (see…/Warren-Buffett-Beats-Elon-Musk-In-Nev…)

Valuations and Financials (Marketwatch, Reuters)
P/E Current -100.50 (yes, negative $676 Million so far this year)
Price to Book Ratio 30.66

ROI -15.73 (Industry average 12.20)
ROE -59.48 (Industry average 15.89)

Business Insider (…)
Fortune (…/…/solar-city-gigafactory-tesla-factory/)
New York Times (…/with-new-factory-tesla-ventures-in…) (…)
Oil Price (…/Warren-Buffett-Beats-Elon-Musk-In-Nev…)

Disclosure: I do not have shares in any of the companies mentioned in this article and don’t plan to initiate purchase within the next 24 hours. I would not receive any compensation for doing this article. I am not a professional financial analyst. This is just a hobby. Lastly, my work is not error-free, but I strive for it to be. Do not consider as a buy or sell advice. Invest at your own risk.

If you are interested in this similar approach to investing and would seek updates or share ideas, I wish to invite you to this Facebook group SEEKING VALUE (

Happy investing.

Mark Y.

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