Tesla Inc (TSLA)

Depends on your risk tolerance. He's been looking at GM recently, but hasn't taken any action. Really good recent quarter, will be pressure on financing side of the business. Targets are pretty optimistic. Toyota is a safer bet for the next year or so; it's a giant company with improving profits, uncertainty on EV strategy is not a short-term game-changer. TSLA is his favourite EV play in the auto-making space. TSLA has already won the EV race, especially as to vertical integration.

Every major car company in the next five ears will produce a slew of EV's so Tesla is no longer the only game in town. It is not at a good valuation and is not all that profitable. As a company though it has done an incredible job at creating the EV category and perhaps changing the world.

He's not saying you should own this but, compared to the traditional car companies, EV is all it does. It's not split between combustion and electric. You can buy what you want, no bargaining with someone, and the cars are beautiful. Like buying an iPhone.

They have an investor meeting on Wednesday. Musk can take aim at his competitors and win. He expects fireworks when Musk speaks.

They make the best EVs and command strong market share. Stay long.

Avoid. Operating, earnings, and cashflow not tremendously strong. Competitive threat from all the other manufacturers over the next 10-15 years. Unique ability to rewrite code on chips during pandemic. Valuation risk. Price cuts alienated customers.

There's no reason why this stock can't go higher, but worries about it in another risk-off environment, which he thinks will happen in coming months. It's traded in $200-300 for a while with $225 as the next level. But there are a ton of cross-currents it faces--lowering prices, decent demand in US, but potential issues in China (suppose Chin's economy contracts). Shares are still in a downtrend, but will revisit it when that trend changes. He's been wrong about Elon Musk before. $

Never owned it. Down 31% in the past year. Concerned because there are lots of competitors and trades at 48x forward earnings, not cheap. The growth rate is good, but there are too many competitors coming. 

Falling below $100 was too much, too fast and too low after Musk had to buy Twitter, which destroyed investor sentiment. The price cut in China EVs was very smart. The US comprises 9% of world EV sales, Europe 24%, and China 50-60%, so Musk is gaining traction in China. She bought at $120 and sold calls at $150, so she is capped out at $160. $190-200 is a good price now. The fundamentals have to follow through. She also drives a Tesla. 

Their fundamentals were never bad, but its shares flew way too high. Musk was forced to sell a ton of shares to pay for his ill-advised purchase of Twitter. After that sale, Tesla bounced back. After a brutal 2022, it is the biggest winner of 2023 so far.