Opinions
Paul Harris, CFA
Tesla Inc
TSLA-Q
COMMENT
Oct 11, 2018
Stock price when the opinion was issued
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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.
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.
They make beautiful cars, but Musk has been inconsistent and are burning a lot of cash. Musk needs somebody who can actually run a car business. Musk is a visionary, but he needs to run a business, like Steve Jobs at Apple needed somebody. He will likely do an equity issue and dilute the stock. If Tesla keeps missing numbers, competitors will slowly catch up.