Opinions
Hilary Kramer
Tesla Inc
TSLA-Q
BUY
Oct 14, 2016
Stock price when the opinion was issued
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Is not an investment, but a trade. Look at its volatility. At $350, write some calls. He targets $410. He constantly trims his holding. Is great to buy under $300, and sell above $350. It deserves it premium among car companies. Their future lies in robotics, not EVs. Musk plans to sell robots in 2026.
At today's valuation, you'd have to believe it will hit it out of the park in all areas and be super-profitable. He believes that the best EVs in the world today are Chinese, and at spectacular prices. Car manufacturing is not an easy gig. Buying this needs a major health warning attached.
Very volatile. The story is shifting a bit from rapid EV growth to managing its scale. Q2 saw delivery fall 5% YOY, but still beat reduced expectations. Price cuts help, but continue to pressure profitability. Limited near-term upside. Value is 2/10. Compressed margins, rising Chinese competition. Political drama as well.
The fundamental business, EVs, is in decline, so expectations are -13% and -22% revenues and earnings. But the market will give Tesla the benefit of the doubt in robotics. She bought it recently at $293 and is now at $333. This will be rangebound from $260-350. Now, sell calls. This won't change until there are new revenue streams to monetize. You can make money selling calls.
Premium contentTesla, Inc. (NASDAQ: TSLA) is a leading player in the electric vehicle (EV) industry, known for its innovative approach to automobility and clean energy solutions. It was founded in 2003 by Martin Eberhard and Marc Tarpenning, with Elon Musk joining subsequent funding rounds and later becoming the chief architect and face of the company. Tesla’s product lineup includes fully electric vehicles such as the Model S, Model 3, Model X, and Model Y, along with energy storage solutions like the Powerwall and Powerpack. The company aims to accelerate the world's transition to sustainable energy through both electric vehicles and renewable energy products. Social media mentions are up 104.9% in the past 24h.
Elon Musk is absolutely brilliant, and has just announced he is not going to have to tap into the debt market this quarter. Teslas are becoming more and more standard. She is sure this will become a competitive vehicle with Ford and General Motors. Most importantly, buy this and hold it for that very long run, which is batteries. The batteries are the future. The battery business is growing. As we continue to use wind and solar, those forms of energy have to be put back and sent back to the utility.