Mean Reversion

I am seeing many companies are guiding lower earnings, lower margin, and analysts are slowly following the companies lead. Great. Earlier we had multiples compression and now earnings compression.

Now, the question I have is, what kind of margin compression, thus profit on the operating subsidies you guys are forecasting?



This is James Stephenson’s summary of his detailed analysis of margins going forward for tesla.

All of his models and charts are on Twitter.