Opinions
Bryden Teich
Tesla Inc
TSLA-Q
DON'T BUY
Jul 27, 2018
Stock price when the opinion was issued
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He looks at performance in 1-, 6- and 12-month time frames. The 1- and 6 months were negative, but over 12 months the stock is up 55%. Actually, he insists it was positive over the past month. (The host insists it is down the past month, but it depends on precisely which days and times of the day are noted for the calculations.)
For 2026, the big thing is going to be the Optimus robot. Company estimates it will sell 20-30k of these $20k robots. They're already being used in factories. Also things going on with Grok, the large language model; needs a partner, and he feels it will be AAPL.
EVs are important, but you have to look to the future with this one. May be dead money for the next quarter, but will absolutely bounce back with Optimus.
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 4.1% in the past 24h.
Trades at 176x PE, not exactly bargain basement. Musk's antics in politics have turned non-Americans away. EV sales in general have stalled. He saw a BYD vehicle in France, and it's way more beautiful than a Tesla and 2/3 the price. Lots of competition. Musk's compensation demands are egregious.
Sales are falling and it is not making much money. No new car models in 5 years although it has some energy storage and services components. There is excitement over its Robo taxis and humanoids but there is a lot of competition all over the world in this. How do you justify a market cap of $1 trillion. If buying, he would consider it a precarious one.
Premium contentTesla reported a revenue of 22.5B, which is a 16.3% change from the previous quarter. An increase in revenue typically indicates growing demand for the company's products or services. This positive change in revenue is a good sign, suggesting that the company's sales are moving in the right direction. Social media mentions are up 29.9% in the past 24h.
This one's quite the anomaly. Today he heard someone justify the valuation when they looked 10 years into the future (if robotaxis and everything else plays out almost to perfection). He might be too old-school for this, but he can't pay 200x PE or more for this company.
Thinks there's bound to be some disappointment in this week's earnings announcement.
The short traders like this one – and he thinks they are right. They are burning a ton of cash, but have met their production numbers. It is not the most transparent company and there are now more companies coming into the electric care space and they are not developing autonomous driving technology. He is staying away.