After $TSLA deliveries missed for Q3, the delta between the company's earnings and the stock price has never been this big. If we do a graph of stock price vs trailing twelve month earnings per share, we see a huge divergence (as noted by the lowest P/E ever after Q3), and not only that but it's getting bigger.

So how could this be possible? Well, mathematically speaking it's not possible, at least not in perpetuity. In a large enough time frame these two trends cannot both continue at the same time, it's literally impossible, because at some point the company in question will just do a buyout using net cashflow, go private, and give out a 50%+ dividend to the remaining accredited shareholders. Then keep growing in private.

The reality is that one of these two trends will revert, either profit growth rate reverses (currently at 300%), or stock price bounces disgustingly. Obviously Wall Street doesn't believe the profits will keep growing at this massive rate, spoiler alert, they are WRONG. $TSLA will do $9 EPS next year (check out my yearly projections for details), which would put it at P/E of 23. That'd be same P/E as $AAPL for 10 times the growth, or one fifth $AMZN's P/E for 5 times the growth, it just simply wouldn't be allowed (leveraged or cashflow buyout would be on the table).

I'm obviously not saying the stock has bottomed, the market can remain irrational longer than you can stay solvent. But what I am saying is, there has never been a bigger disconnect between profits and stock price for $TSLA, and long term investors can exploit this market inefficiency.

(PS I'm using analyst's post delivery number earnings estimates for Q3)