The ongoing chip shortage, production challenges, and growing competition in the electric vehicle (EV) industry have marred EV giant Tesla, Inc.’s (TSLA) growth prospects. Despite the company’s fundamental weakness, the stock is trading at a premium valuation.
In terms of forward EV/Sales, TSLA’s 10.97x is 857.5% higher than the industry average of 1.15x. Though increased vehicle production improved TSLA’s second quarter financials from the prior-year period, the results were weaker than in the first quarter.
