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Opinions John O'Connell, CFA
Tesla IncTSLADON'T BUYFeb 10, 2016
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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He's removing this from the Magnificent 7. It's fallen 16% year to date while all its peers have gained, especially Nvidia. Sales are flagging in China where a Chinese company is overtaking them. Meanwhile, US demand may be peaking. Also consider the declining value of their cards. The EV space is challenged unless Musk develops a battery that lasts twice as long as a gas car tank.
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Premium contentTesla, Inc. is an American multinational automotive and energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles, stationary battery energy storage devices from home to grid-scale, solar panels and solar roof tiles, and related products and services. Social media mentions are up 100% in the past 24h.
Included in "Magnificent Seven". Believes currently trading at fair price. Better option that other names in sector. Expecting 31% EPS growth. Very high rate of innovation and strong business moat. Would buy on weakness if possible.
Greg Newman
It has been a tough year with cost over-runs along with having to reduce prices and therefore margins. The growth rate is slowing down. It expects to produce 1.8 million vehicles this year and could be falling behind other EV producers, There is intellectual value in their chargers as well as solar and battery technology, but most of their revenue today comes from their production of EV vehicles.
Hated the stock for a long time and is finally seeing some joy. Elon Musk is a visionary and has a confidence to not only blow his billions, but all kinds of other shareholders billions, in order to build an electric car. The electric car is here. The battery is not the issue; the issue is that there is nothing unique about what they do. They started by building a great new car and were out first. But often the 1st mover is not the winner. Cars are fashion statements and people like to buy them because of the way they look. All the manufacturers are going to come out with electric cars, so it really comes down to style. This company has struggled to make 55,000 cars a year and they make no money on their cars. They are living on tax credits to cover part of their costs. When competition comes out that has a lot of skill in mass scale manufacturing, how can this company possibly get the critical mass they need?