The company justifies higher valuations by shifting revenues from one-time hardware sales to recurring software revenues. From a technological point of view, the development of e-mobility is unstoppable because it offers a variety of economic and technical benefits compared to current technology.
Therefore, it is to be expected that at the latest after the end of the Trump area, a new focus will be placed on the rollout of the infrastructure, also under the expectation that Chinese cars in particular will quickly penetrate the market. These are all purely electric. Tariffs will not be able to prevent this in the long term.
Due to the increasing growth of the vehicles, the existing revenue in the recurring area will also grow continuously. For this reason, the former hardware play is increasingly becoming a software play. As soon as the company generates a positive cash flow (planned for 2026), the valuation principles will change. Due to the high short share of stocks, a quick countermovement - in my opinion in the direction of $10 - is to be expected.
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