Opinions
Reza Samahin, P. Eng, CFA
Tesla Inc
TSLA-Q
WAIT
Mar 20, 2025
Stock price when the opinion was issued
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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.
Trading at extremely high valuation. Cult stock. Can't really value it on today's earnings. Have to hope the battery technology takes off and that robotaxis becomes a huge thing. Lots of irons in the fire. If you believe the Musk-hype, this is a must-own.
For the rest of us, who can't cope with the valuation, very hard to buy. Sometimes the growth comes and it works out, and then you wonder why you didn't pay 800x PE ;)
He's liked the company for ages for its EV's, self-driving cars and robots, which show promise, but he could never pull the trigger. However, last night, as the feud exploded, he changed is mind. Tesla and all its businesses changed the moment Musk broke with Trump. Musk got personal and incendiary towards Trump. Trump is vindictive. Musk should not have picked a fight with Trump, despite Musk spending $250 million getting Trump elected. Musk's various businesses dovetail with Washington. If anything goes wrong with Tesla's self-driving cars, he can see Trump banning them. Trump could ban robots, too. So, that leaves the EV's, and that alone makes Tesla over-valued. Tesla cars aren't selling well, and Washington will stop subsidizing them. Musk is a brilliant businessman, but a self-destructive political operator--he's become toxic, and Tesla stock has become too hard to own.
Premium contentTesla, Inc. (NASDAQ: TSLA) is an American electric vehicle and clean energy company led by CEO Elon Musk. Tesla's business segments include electric vehicles, energy generation and storage, and other automotive services. Known for its innovation in the electric vehicle market, Tesla's product line includes the Model S, Model X, Model 3, and Model Y, along with solar products and energy storage solutions. Despite its groundbreaking products and a loyal customer base, Tesla has had a history of fluctuating financial performance, regulatory challenges, and intense competition in the EV market. Social media mentions are up 11.8% in the past 24h.
Highly controversial and polarizing name. Big hit recently, but that's after a big run last year. Overvalued as an automotive company. Massive brand destruction by Musk.
But if you're looking at it for robotaxis, deserves a different valuation; essentially a call option on that future. How confident are you? You have every right to be skeptical, as they haven't delivered. Underlying architecture has changed, and they have a shot at getting there. Wait to see what happens at the demo in a few months. If they fail to deliver (again), stock will go lower; if they make progress, stock will rerate and you should consider buying for the long term.