Tesla Inc (TSLA)

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.

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 believes in their self-driving cars. He expects Trump to allow these cars on the interstate.

Down, and Musk has been slamming his own brand. In fact, he should probably leave the company; Board has been debating this.

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. 

He drives a Tesla. Musk stepping away from Washington is likely a good thing, but the stock trades at a ridiculous 150x PE. Bulls will argue that robo-taxis are coming, but we're not there yet for self-driving cars (he tried it himself).

On the chart it's a buy. But price to growth is unhinged. Don't buy this one.

The stock is down 40%, but at 50% that's when it hits bottom and that's when you enter. So wait.

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.

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.

Over time, every major car company will have a slew of electric vehicles and TSLA won't be the only game in town. Brand's been damaged a bit from Musk's activities. Still not cheap. Better places to go with less risk.

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.

Funny that people who bought a year ago have to attach explanatory bumper stickers. If it's going to be a good buy at $200-225, it's a good buy at $265; you're buying it for the longer term. He can't come to terms with the valuation.

If you decide you want to buy, put in 10% today, and you'll feel better. If you've wanted it for a long time, and you don't pull the trigger today, you'll forever hesitate. It's just psychology. 

His father has a wonderful expression, "It's the second mouse that gets the cheese." Not sure tariffs are enough to provide continuing support for an EV car maker when the Chinese are doing it so much cheaper.

Its reputation has taken a hit this year due to Musk's highly polarizing involvement with Trump. This has taken the robotaxi story off the table, allowing Uber to roar. But robotaxis were never a threat to Uber in the first place. He still thinks Tesla has an edge given Musk's relationship with Trump, but he didn't expect this much public backlash against Musk/Tesla.

The problem is this trades on sentiment, not fundamentals. Of course, the issue now is Musk. Probably, enough people not buying their cars will impact their sales. Also, a Chinese competitor is outselling Tesla. The valuation remains a premium, but would you own such a company at this level with slower sales and this sentiment? He's rather see Tesla at $200 then take a look at it, and even then would buy a tranche.