Tesla Inc (TSLA)

Would buy the car before the stock. It is a company that values each car as a million dollars yet cars sell for $90k. It has to grow into the stock price. Be on the sidelines for now.

A fantastic story. A trailblazer. But you know what happens with the pioneers. Those are the guys with the arrows in their backs. Trades at a forward multiple of about 117 times. The margins that it is targeting is 25% and to get this, they would have to ramp up production by more than 15 fold and keep margins at just in the 12% range just to touch the current valuation. Grossly overvalued.

Tremendous cars. Interesting design for a car if you don’t need to travel 600 miles. Scores high in consumer reviews. It is a concept story. You have to believe they will be a number 4 car maker and it is possible. The problem is that it is a great story that is growing quickly but you could give back a quarter of your investment very quickly (volatility). They will have challenges moving into the numbers that everyone has in mind for them.

Probably a great car. It is an exciting concept but at its current stock price and its current market cap, each car is valued at $800,000 per car produced, as compared to $11,000 for Ford (F-N). This is a momentum stock and he would steer clear of it.

This is not the type of stock, he buys. Priced for perfection. Trading at 238X forward earnings.

He has never shorted a company in his life, but if he had one to do, it would be this one. For every car they produce, they have $800,000 of market cap, compared to Ford (F-N) which is $20,000. You have to distinguish between good companies and good stocks.

(Market Call Minute) 22 Billion market valuation and 20,000 cars produced this year so million dollars in valuation per car produced.

One of those exciting stocks. Large multiple. It is hard to justify the premium on the stock. You have to have so much growth to grow into that multiple.

(Market Call Minute.) Stock is behaving remarkably well. High momentum, so be prepared to use a Stop.

The sedan they manufacture got the highest rating of the US Transportation Safety Administration in the history of cars. You are seeing a 100 year event. The creation of a new North American car company that looks like a success.

Most expensive stock in his database. He has no lines for it. Market is giving equity value to and is a believer in the product. There are no fundamentals here and people want to get in on the ground floor. Not a game he plays. If there is any disappointment then look out below.

This one is so news driven that it is going to have its ups and downs outside of the seasonality period. Auto industry has done really well but in the summer months, it tends not to do so well. This stock has gone up parabolically and it is difficult to know when it is going to start to peel back down. When it corrects, it is going to correct hard. We are coming up to the period when automotive stocks tend not to do well across the board. If you own, it would not be a bad idea to start to take some profits.

(Market Call Minute.) A “Buy” only if you are a speculative investor.

Sold his holdings after looking at the initial results of their sports car. Their sedan is coming out with really good reviews. His sense is that the electric car is going to morph and change quite a bit. There are other areas that he feels he can invest in that doesn’t make him as excited about electric cars as he should be. Electric cars are not where he wants to put his money.