Opinions
The Weekly Buzzing Stocks by Billy Kawasaki
Tesla Inc
TSLA-Q
TOP PICK
Oct 03, 2024
Stock price when the opinion was issued
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Shares are cut in half from highs. Bulls say that Trump's close relationship with Musk should give Tesla a big advantage in self-driving cars and robots. But Tesla's core car business has collapsed and tariffs will be awful. Is the most expensive Mag 7 stock, trading at 87x PE. He can't trust their estimates--their car business is in such bad shape.
Musk is a remarkable entrepreneur, but there's a lot of promotion involved. Right, particularly in the US, the people driving Teslas aren't happy, given DOGE and the White House. We see the backlash with protests. If Tesla survives 10 years, there will probably be a lot of revenue from self-driving cards, but Tesla has to get there. The brand has fallen out of favour. If things go badly in the White House, it would reflect more badly on the company, because Musk is so tied to the White House.
As a car company, never made sense to pay the demanding multiple. So an investor has to put faith in the technology side, and he's not comfortable with that. Musk is in the news big time, and he's not gaining any friends. International blowback against TSLA and Musk, reputational risk. Sales numbers weak.
He reduced his position given macro risk, though the company has done a fine job navigating tariffs. He believes in their self-driving technology, which will be one of the biggest transition in coming years. As for the Musk boycott and falling Tesla sales around the world: Musk has always been controversial, and he says he's returning to Tesla full time.
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. It operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas. Social media mentions are up 247% in the past 24h.