AAPL & TSLA dilemma
Apple has an image problem.
It wants to project an image as a growth stock - a forward PE ratio of 30X.
But it is no longer a growth stock. Its TTM revenue growth over 3 years is 3.9%, while its TTM FCF is flat.
It's a cash machine for sure. But does a cash machine deserve to trade at 30X forward PE?
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Over the last 4 years, China’s pure batter EV sales have been rising while enduring the same seasonal dips. (Chart 1)
Over the same period, Tesla has hardly grown sales beyond its 80k monthly peak. (Chart 2)
This isn’t the performance of a company gaining market share. The opposite in fact is happening.
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