How Much Downside Does Tesla Have?

Electric vehicle and clean energy company Tesla (NASDAQ: TSLA) has been one of Wall Street's biggest winners over the past couple of years. The stock traded at less than $90 per share in early 2020, and ran as high as $1,243 before sliding more than 40% in this bear market.

Such a big decline seems like an obvious "buy-the-dip" opportunity, but investors should consider the following before doing so.

Look at any earnings report and revenue and earnings-per-share (EPS) typically dominate the headlines. But don't underestimate the importance of free cash flow; it's the lifeblood of a business. It pays for the growth, dividends, and share repurchases that investors love. Meanwhile, bottom-line earnings can be deceiving because there could be non-cash items that skew the numbers.

Source Fool.com