[nradov]

That's not how valuations work. P/E ratio is just one factor, and a minor one at that for growth stocks. It's possible that Tesla will underperform the market but you could say the same about any volatile stock.

Your claim about writing off the unsold inventory is just silly, and displays a stunning ignorance of the basics of corporate income tax law and accounting. The vehicles will eventually be sold, perhaps at a deeply discounted price. They won't be just tossed in a landfill or something.

Marking down assets has zero impact on cash or cash flow so your comment about that makes no sense at all. The main shareholders are sophisticated institutional investors who aren't fooled by simplistic financial engineering tricks.

[kylebenzle]

Thank you very much for a good reply.

But you're saying that they will sell the vehicles which is logical but shouldn't they start working the price down by now?

There is no scenario in which it makes sense to destroy the unsold vehicles, right?