Add news
March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
26
27
28
29
30
News Every Day |

These early Tesla bulls are giving up on the stock

These early Tesla bulls are giving up on the stock

Some of Tesla’s institutional shareholders are getting out, convinced that the electric carmaker’s days of dizzying growth are in the rear-view mirror.

The company’s shares are down nearly 30 per cent this year and have fallen by more than 50 per cent since their 2021 high, wiping out some $600 billion in market value as CEO Elon Musk has struggled with fierce competition and falling sales. Tesla’s first-quarter results missed analyst expectations, though Musk said the company would release new models in 2025 that would be more affordable.

“It started to feel like the fundamentals were becoming detached from reality,” said John Belton, a portfolio manager at Gabelli Funds whose firm sold its entire stake of 65,900 shares – acquired in early 2022 – in the first quarter of the year. “We think the stock works best when there are auto company fundamentals that justify the stock price.”

Tesla’s nearly 14-fold increase in its stock the last five years has conditioned investors to hold on during periods of adversity and accept valuations that are more in line with technology companies than carmakers. This time however, even some of the company’s diehard believers have become skeptical that the same kind of expansion lies ahead and think Tesla’s shares have become too risky. Tesla did not respond to a request for comment on this story.

Of the 18 mutual funds tracked by Morningstar that have held Tesla shares since 2019, 10 reduced their positions in the last quarter, with four slashing their stakes by 15 per cent or more, Morningstar data showed. Only five added shares.

That doesn’t mean Wall Street has written off the stock. Nineteen analysts tracked by LSEG now have either a “buy” or “strong buy” rating on Tesla, up from 17 in February. The average price target among 49 analysts tracked stands at $178.95, about 1.5 per cent more than the stock’s closing price on Monday.

Others see it differently. Ross Gerber, whose Los Angeles-based firm, Gerber Kawasaki Wealth & Investment Management, bought 500,000 shares more than a decade ago, has been selling steadily this year.

“I think the story is over, is the best way to say it,” said Gerber, who has whittled his position down to around 300,000 shares.

Gerber’s complaints range from Tesla’s public relations department, which he believes receives insufficient funding, to what Gerber calls Musk’s distractions by political and cultural issues.

“Over the last year and a half, Elon’s personal quests based on the way that he sees the world have superseded the interests of Tesla and its shareholders,” Gerber said.

Gerber believes the shares, which closed on Monday at $176.29, are fairly valued at $100, some 40 per cent less than their current value, as long as Musk stays at the helm. He expects to give part of the remainder of his stock to charity to allay the tax consequences of selling, or use them to sell put options, which allows him to raise income without incurring tax penalties.

HIGH VALUATION

Nonetheless, Tesla remains the world’s most valuable automaker, with a market capitalization of more than $560 billion. By contrast, Toyota (7203.T), the world’s biggest automaker by volume, has a $333.7 billion market cap.

Tesla, however, trades at approximately 64 times future earnings, as of Tuesday morning, a multiple that exceeds the valuations of some tech high-fliers. Artificial intelligence darlings Nvidia (NVDA.O) and Super Micro Computer (SMCI.O), for instance, trade at 37.8 and 23.2 times earnings, respectively. Other automakers are valued far more conservatively. General Motors (GM.N) trades at 4.7 and Ford (F.N) trades at 6.4 forward earnings, while Toyota trades at 10.1.

Bullish investors justify Tesla’s valuation with a long list of reasons, pointing to its technology and fervent fan base. More recent causes for optimism have been the company’s continued push into fully-autonomous driving and in-roads into China.

“The Street is looking through this painful transition period for the long-term growth story to emerge for Musk & Co, with (self-driving) a key ingredient in that recipe for success,” said Dan Ives, an analyst at Wedbush Securities who has a $275 price target for the stock.

Among the most fervent bulls is Ark Invest founder Cathie Wood, who has held Tesla in her ARK Innovation Fund since 2014 and increased her stake in the company by 10 per cent over the first quarter, according to Morningstar data.

Ark estimated in April 2022 that Tesla will be worth $2,000 per share by 2027, with a bear case of $1,400 per share, largely due to the roll-out of its proposed robotaxi business. Wood has stood by that price target, buying roughly $100 million worth of new shares in April 2024, while telling CNBC that now “is not the time to run for the hills.”

Musk recently announced on social media platform X a “robotaxi unveil” on “8/8,” presumably meaning August 2024, and he later posted that going “balls to the wall” on autonomy was a “blindingly obvious” move. Last month, Musk said Tesla “should be thought of as an AI robotics company,” not a carmaker.

Tesla remains ARK Innovation’s top holding, at nearly 12 per cent of the fund’s assets. The fund is down nearly 18 per cent year-to-date, compared to a more than 10 per cent gain for the S&P 500.

Critics, however, say self-driving vehicles are a risky bet because the technology faces engineering and regulatory hurdles. In an April report, Deutsche Bank said cracking the code on full driver-less autonomy represents a significant technological, regulatory and operational challenge.

That’s one reason why Graham Tanaka has liquidated the entire Tesla position in his $21.5 million Tanaka Growth Fund over the last six months. The fund owned the stock since around 2011, when it was trading at $2.

Instead, he has been buying shares of Nvidia, confident the chipmaking giant – whose stock has rallied more than 130 per cent this year – will continue benefiting from excitement over the business potential of artificial intelligence.

“There’s too much risk in Tesla when you’ve got a great play like Nvidia trading at half the valuation,” he said.

Петербург

Вебкам-студия MONTANA в Санкт-Петербурге

Commentator’s curse strikes immediately as LIV golf hothead Tyrrell Hatton swears live on TV after losing it at the WIND

‘I’ll have to talk to my agent’ says Harry Kane as England star offered transfer from Bayern during press conference

Meet Slovenia’s gorgeous Wags, from a mummy blogger and influencer to a professional tennis star

Who could England get next in Euro 2024 knockout stage after going through to last-16?

Ria.city






Read also

Get ready for the upcoming film with this 'Borderlands 2' bundle for $24

I worked in China for 8 years. These 3 differences set the work culture apart from the Western world.

Video: France’s Kylian Mbappe puts on mask for the first time at Euro 2024

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Rashan Gary Showed No Concern When Asked About Caleb Williams

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Who could England get next in Euro 2024 knockout stage after going through to last-16?



Sports today


Новости тенниса
Анна Калинская

"Стараюсь играть не хуже него": Калинская о своих отношениях с Синнером



Спорт в России и мире
Москва

Легенда вне времени Жанна Агузарова и легенда поп-музыки Жанна Фриске:самое интересное с Премии МУЗ-ТВ 2024



All sports news today





Sports in Russia today

Москва

Компания «КЕНГУРУ.ПРО» стала лучшим производителем спортивного оборудования


Новости России

Game News

Гайд и тактика по подземелью «Лагерь Карлиан» в Tarisland


Russian.city


Москва

Воспитанники школ искусств из Химок победили на фестивале имени Чайковского


Губернаторы России
Спорт

«Спорт вдохновляет»: судебные приставы Кузбасса приняли участие в молодежном спортивно-туристическом мероприятии «Гонка профсоюзов - 2024»


Филиал № 4 ОСФР по Москве и Московской области информирует: Более 12 тысяч жителей Москвы и Московской области получают повышенную пенсию за работу в сельском хозяйстве

В Москве вырастет стоимость некоторых парковок до 600 рублей в час

Филиал № 4 ОСФР по Москве и Московской области информирует: В Московском регионе более 62 тысяч семей распорядились материнским капиталом через банки

В Клину пройдет концерт «Ночь Чайковского»


Мелодия для электроскрипки в заброшенном храме

«У меня есть трое внуков, у меня есть сын, а остальных я не знаю»: Бабкину уличили в обмане и зависти к молодой и красивой племяннице

Благовещенск с благодарностью будет помнить Виктора Цоя

В мытищинской библиотеке отметили 90-летие со дня рождения Юрия Визбора


Хуркач о реванше со Зверевым: «В голове сидел тот матч в финале United Cup»

Грузия сыграла вничью с Чехией на Евро, Калинская вышла в финал Берлина. Главное к вечеру

«Недальновидное решение». На «Беларусь 1» раскритиковали отказ Арины Соболенко от Олимпиады

В Беларуси отреагировали на неожиданное решение Арины Соболенко



Четверых пострадавших при атаке на Севастополь детей госпитализировали в РДКБ

Совладельцы инвестгруппы "Русские фонды" отправлены под домашний арест

Организованных тургруп из Новосибирска в Крыму нет

Главный врач клиники "Мегастом", стоматолог Владимир Лосев: в каком возрасте оптимально устанавливать брекеты


Навка: во время болезни Заворотнюк возили по Москве только в парандже

Посол США Эмануэль: Вашингтон разозлил визит Путина в КНДР и Вьетнам

Уссурийский ЛРЗ инвестирует в обновление оборудования

Адская жара до +38 градусов уже идет в Россию: Вильфанд рассказал о самом жарком месяце 2024 года


В Москве откроется посвященная Леонардо да Винчи выставка

В Подмосковье более 90 человек погибли в ДТП с грузовым транспортом с января

Сотрудники Росгвардии задержали мужчину с наркотиками в Москве

Псковские байкеры приняли участие во Всенародной акции в Псковском музее



Путин в России и мире






Персональные новости Russian.city
Песня

Продвижение Стихов. Раскрутка Стихов. Продвижение Песни. Раскрутка Песни.



News Every Day

Who could England get next in Euro 2024 knockout stage after going through to last-16?




Friends of Today24

Музыкальные новости

Персональные новости