Core Viewpoint - Concerns have been raised regarding Tesla's growth potential and valuation sustainability, leading to a significant exit from the company's stock by The Future Fund [1][2]. Valuation Concerns - Tesla currently trades at a forward price-to-earnings (P/E) ratio of 180x based on projected 2025 earnings, which is deemed unprecedented for a $1 trillion company [4]. - Future P/E ratios for 2026 and 2029 are estimated at 120x and 45x, respectively, indicating a perceived valuation imbalance [4]. - The projected slowdown in earnings has led Wall Street to reduce Tesla's earnings estimates for 2026 and 2028 by 25% to 40% [5]. Growth Prospects - The integration of emerging technologies like Robotaxis and the Optimus humanoid robot may contribute to a slowdown in Tesla's growth rate [2][3]. - Analysts predict that as forecasts extend to 2029 and beyond, Tesla's forward growth rate will decline [3]. Investment Strategy - The Future Fund's exit from Tesla stock is based on long-term fundamentals rather than short-term market sentiment, emphasizing a disciplined investment strategy focused on intrinsic value [2][6]. - True valuation should consider the present value of all future cash flows, rather than just short-term results [6]. Market Performance - Tesla's stock has recently lost momentum, closing down over 3% at $346.46, with a year-to-date decline of nearly 9% [7]. - Broader challenges include declining sales and backlash related to CEO Elon Musk's political views, although Musk's recent exit from a government advisory role may be seen as a potential catalyst for renewed growth [9].

Core Viewpoint - Tesla's stock has experienced significant volatility in 2025, with shares fluctuating between $220 and $430, yet the company's growth narrative remains strong, supported by two key factors that suggest potential investment before the upcoming earnings call in late July [1] Group 1: Capital Advantage - Tesla possesses a substantial capital advantage, which is critical in the electric vehicle (EV) sector where many competitors have failed due to financial constraints [2] - The capital and time required to bring an EV to market are often underestimated; Tesla's journey from inception to market was relatively swift compared to competitors like Rivian and Lucid Motors [3] - Currently, Tesla is the largest pure-play EV company in North America, with a market capitalization of approximately $1 trillion, while Rivian and Lucid Group together are valued at only $30 billion [4] - Tesla's ability to raise $30 billion in new cash by diluting shareholders by just 2.5% enhances its financial stability and lowers its cost of debt, providing a significant competitive edge [4][5] Group 2: Robotaxi Growth Opportunity - The introduction of Tesla's robotaxi service, starting with the Cybercab and initially utilizing Model Ys, is seen as a major growth opportunity, with expectations of dominating the U.S. ride-hailing market [7] - Investor Cathie Wood predicts that the robotaxi service could significantly increase Tesla's stock price and contribute over 90% of the company's revenues in the long term, potentially reaching $1.7 trillion by 2040 [7][9] - Despite skepticism regarding the timelines for the robotaxi service's rollout, Tesla's capital advantages provide the necessary resources to develop and scale this initiative over the coming years [8][9]

Americans should be thankful that Elon Musk devoted his time to DOGE and shining a spotlight on government waste. Tesla shareholders have less reason to cheer.I say this not as a Musk hater, but an admirer of his brilliance and patriotism to his adopted country. Yet in announcing last week he’s totally done with the aforementioned Department of Government Efficiency, Musk did underscore a blind spot in his day job running Tesla, the world’s preeminent electric vehicle company.It is mostly Tesla that makes h ...

Core Viewpoint - Tesla shares have rallied over 20% in May despite poor car sales in China and Europe, as CEO Elon Musk shifts focus from politics to business [1][2] Group 1: Stock Performance - Tesla shares are on track for an increase of more than 20% for the month of May [1] - Year-to-date, Tesla stock is down approximately 12% [1] - In comparison, Apple is down about 21% year-to-date, marking the worst performance among major companies [1] Group 2: Leadership and Government Involvement - Elon Musk's tenure as a "special government employee" at the Department of Government Efficiency is concluding, with President Trump acknowledging his contributions [2] - Musk indicated that his involvement in government work will decrease significantly, but he plans to dedicate a "day or two per week" to it until the end of Trump's term [2] - Musk intends to maintain his office at the White House [3]

Despite weak quarterly earnings, Tesla (TSLA) has been riding higher on optimism over the launch of robotaxis and Musk’s promise to refocus on his business (read: Should You Buy Tesla ETFs Post Q1 Earnings Miss?). Investors can capitalize on the potential growth with ETFs having a substantial allocation to this luxury carmaker. These include Simplify Volt TSLA Revolution ETF (TESL) , The Nightview Fund (NITE) , Consumer Discretionary Select Sector SPDR Fund (XLY) , Vanguard Consumer Discretionary ETF (VCR) ...

Sales Performance - Tesla's registrations in Québec dropped dramatically, with only 524 new vehicles registered in Q1 2025, down over 85% from 5,097 in Q4 2024 [1] - The Model Y saw a significant decline from 3,274 units in Q4 2024 to 360 in Q1 2025, while the Model 3 fell from 1,786 to just 96 units, a 94% decrease [2] Market Context - The decline in Tesla's sales in Québec mirrors a similar trend in Europe, where sales fell nearly 50% in April despite growing overall EV demand, indicating that the slump may be more about Tesla's brand than market conditions [3] Regulatory and Political Factors - Tesla has been excluded from Canada's federal EV rebate program, with $43 million in rebates frozen due to a surge in applications, leading to a review of claims [4] - The company will remain ineligible for future incentives as long as tariffs imposed by the U.S. on Canadian goods are in place, and several provinces have removed Tesla from their rebate programs [5] Brand Image and Leadership Issues - The drop in registrations coincides with a global backlash against CEO Elon Musk, particularly in Europe, due to his support for right-wing political parties [6] - Protests and vandalism of Tesla dealerships have occurred in North America, linked to Musk's political involvement [9] Financial Implications - Tesla's shares faced pressure during Musk's political involvement but began to rebound after he announced a shift in focus back to his companies, indicating potential recovery in investor sentiment [10]

Tesla (TSLA 0.46%) stock hit a new record high in Dec. 2024 on the back of President Trump's election win. Investors speculated that Trump's focus on deregulation could speed up the company's ability to commercialize its autonomous robotaxi and humanoid robot opportunities.In fact, CEO Elon Musk believes those two businesses will eventually make Tesla the world's most valuable company one day -- potentially even more valuable than the next five companies combined. Today, those five companies are Microsoft, ...

Tesla CEO Elon Musk announced Wednesday that his time with the Trump administration as a special government employee has come to an end, and his departure will allow him to refocus his attention on the electric vehicle maker. Musk wrote in a post on X that he appreciated the opportunity to create the Department of Government Efficiency (DOGE) in his role as a special government employee, which was limited to 130 days by law.His departure from the Trump White House comes as a welcome development for investor ...

Billionaire Elon Musk is a self-proclaimed man of many hats, leading several companies with titles like chairman, CEO and founder.A recent Benzinga reader survey revealed which of the companies Musk leads would be the favorite for investors if they had access to all his companies, both public and private.What Happened: Musk is best known as the CEO of Tesla Inc TSLA, an electric vehicle giant that is one of the most valuable companies in the world, worth $1.17 trillion.The world's richest man also has roles ...

Tesla is a business built, in part, on government regulations and incentives, from a Department of Energy loan guarantee in 2009 to the regulatory credits it sells to other automakers, which have driven a third of its $32 billion in profits since 2012. Now, the company’s energy business — a rare bright spot amid faltering demand for its EVs — is under assault. House Republicans passed a reconciliation bill last week that would undo much of the Inflation Reduction Act, including tax credits for residential ...