Tesla is grossly overvalued as an EV company, Cathie Wood and Wall Street are complicit in giving Elon the space to claim a premium.
Just in: Tesla car sales in France, Sweden drop to lowest Q1 in four years
Even at it's current price, with plummeting sales everywhere including US, the new tariffs will only make car manufacturing in US less competitive. Benchmarked against global EV rivals the likes of BYD, is likened to believing Elon when he has been wrong all along.
Bis forward looking statements which continue to be pushed out is totally irresponsible if it came from another CEO.
Even, Nvidia has not been spared despite record blistering quarters with margins of 72% on almost perfect execution. On the same promises, Tesla still has a lofty PE of 130 times 2025 earnings, Nvidia 52 times 2025 and BYD 27 times. Wall Street continues to give Elon Musk a wide berth, even though robotaxis positive EBITDA is likely years away, Waymo is operating in multiple US cities for last 3 years. 10,000 $10,000 Optimus robots will only give a 100 million in revenue and not be profitable for years.
There is no denying Tesla has a lot coming but they are still coming, Tesla stock price collapse from $488 to $253, may be a cheap entry, but I will go with those that are calling for $180 now, with the bearish sentiment and tariff uncertainties.
Even worse, if recession hits, the stock could be rerated lower.
Is Tesla cheap today? Bear in mind it could get cheaper first.
Below a summary, courtesy of beago.ai
Elon Musk has made several notable statements about BYD over the years, reflecting his evolving views on the Chinese electric vehicle (EV) manufacturer.
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1. **Initial Dismissal (2011)**: In 2011, Musk openly laughed at BYD when asked about the company as a competitor in the EV space. He rhetorically asked, "Have you seen their car?" and expressed skepticism about BYD's product, suggesting it was not particularly attractive or technologically advanced26.
2. **Recent Acknowledgment of Competition**: Over the years, Musk's tone has shifted as BYD has made significant advancements. In 2024, Musk admitted that BYD's cars are highly competitive and that the company has made substantial progress in the EV market.
3. **Concerns About Autonomy**: In August 2024, Musk warned that BYD needed to change its approach to vehicle autonomy quickly to avoid becoming obsolete. This indicates that while Musk acknowledges BYD's current strength, he still sees areas where Tesla might have an edge.
4. **Reaction to BYD's Innovations**: Musk has been visibly shocked by some of BYD's recent innovations. For instance, he was reportedly shocked by BYD's new battery system capable of charging a car in just five minutes, which is a significant technological advancement5. Additionally, Musk has commented on BYD's new 2025 hybrid engine, suggesting it could disrupt the entire EV industry3.
5. **Market Performance**: As of early 2025, BYD has overtaken Tesla in global EV sales and annual revenue, becoming the world's largest electric vehicle manufacturer. This shift has led to increased scrutiny and concern from Musk about Tesla's competitive position9.
Overall, Musk's initial dismissal of BYD has given way to a more nuanced and concerned view as BYD continues to innovate and capture market share.
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