This guy looks smart (because he was on top of the bubble) but now he kind of thinks there is some risk around TESLA stock. Not 1, but 7 of them.
Fair enough, here we go:
- TESLA stock looks pricey
- No bubble, just pricey 😁. That's risk numero uno!
- If you go over the article, the guy compares it with GM and Ford; dont know why... as I said, this is a category killer (i.e. it kills categories) and not a car manufacturer (whatever this is, we dont care for now...)
- He mentions that last Monday alone - 3 days ago - 40.000 Robinhood traders (aka milenial speculators) did buy TESLA shares. No shit!
- TESLA may raise money
- Well that happened before and did not stop TESLA stock to go parabolic. For me this is not a problem.
- They can raise 100$ trillions, stock will go up!
- The electric vehicle industry seems bubbly
- Again, nothing to do with TESLA stock which is a killer of something...
- Dont care about its industry, this thing goes by its own
- TESLA faces execution risk
- Translation: they dont really master the car building process, quality, etc.
- Again, not a problem as this is a technoloy behemoth and not a car company
- S&P inclusion probably priced in
- I already talked about that in a previous post, some analysts expect the stock to be included in the S&P 500 index and to rise a further 60% or so (dont know how they calculate that; probably they are just guessing)
- So on this point I dont know, this guy is smarter than I am so I pass...
- Market looks toppy
- Maybe but that is not a problem because central banks administer it
- Read: a few more trillions will be thrown at markets if they go down
- So no risk here!
- Musk is showing hubris of his own
- We did cover a bit his attitude towards shorts
- I do understand the guy is arrogant (he adds a few billions to his fortune per day), so he feels high; on top of that, he smokes pot, so we have an explanation here 😎
- Hence no risk on this point...
There you go!
What do you think of that super analysis?
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