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Tesla IncTSLADON'T BUYNov 22, 2017Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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.
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.
He equates this with what we saw in the 2000 timeframe in regards to Internet related stocks. Electric vehicles will be operated over time, but a number of things have to happen. We have to have a better production for electricity. Also, will Tesla be able to operate production for the demand. OK for 30,000-40,000 cars, but if looking at mass production volumes to hit the kind of demand expected, it would fundamentally change the automotive landscape. To him, that is not possible. He considers this as a vapour stock.