Core Viewpoint - Tesla's stock has experienced significant volatility, dropping over 50% from its all-time high in December, returning to 2020 price levels [1][2] Group 1: Stock Performance and Market Sentiment - The recent decline in Tesla's stock is attributed to weak earnings, slowing demand, and concerns regarding Elon Musk's leadership [2][3] - Analysts have been reducing their price targets, with J.P. Morgan lowering its estimate to $120, indicating a potential further decline of 50% from current levels [4][5] - Market sentiment remains negative, with bearish analysts suggesting that the worst may not be over for Tesla [2][5] Group 2: Analyst Ratings and Price Targets - Despite the negative outlook, some analysts maintain bullish ratings, with price targets ranging from $320 to $550, suggesting an upside potential of over 150% [6][7] - Wedbush highlights Tesla's leadership in the affordable EV market and anticipates the release of a sub-$35,000 vehicle before summer, along with growth in autonomous driving and energy storage [8] Group 3: Technical Analysis - Tesla's stock is currently showing signs of being oversold, with a relative strength index (RSI) at 29, indicating a potential entry point for investors [9][10] - A bullish crossover in the MACD suggests a possible shift in momentum, although the extent of recovery remains uncertain [10] - Increased trading volume and bullish options activity indicate some investors are betting on a rebound [11] Group 4: Bear vs. Bull Case - The bearish case for Tesla includes weak earnings, delivery pressures, and a forecast of another 50% downside according to analysts like J.P. Morgan [12] - Conversely, bullish analysts argue that Tesla's long-term growth potential remains intact, with some price targets implying a significant recovery from current levels [12]

Core Viewpoint - Tesla stock has experienced significant volatility, with a 44% decline in 2025, contrasting with the S&P 500 and Nasdaq's smaller declines of 4% and 9% respectively [1] - Despite recent downturns, Tesla shares are up 37% over the past 12 months, indicating prior peaks that were substantially higher than current trading levels [2] Group 1: Factors Driving the Sell-off - Softening demand in the electric vehicle (EV) market is identified as a primary headwind for Tesla [4] - Increased competition from Chinese EV manufacturer BYD poses a significant threat, as BYD is expected to capture the mass market while Tesla focuses on premium buyers [5] - Concerns over CEO Elon Musk's political engagements may lead to investor worries about his focus on Tesla's strategic roadmap [5] Group 2: Price Forecast and Financial Projections - Aswath Damodaran forecasts a share price of $148 for Tesla, suggesting a potential 38% decline from current levels [6] - Tesla's EV revenue declined by 6% year-over-year in 2024, with production and delivery numbers also dropping, indicating competitive pressures and reduced consumer willingness to pay premium prices [7] - Damodaran projects a total of $188 billion in free cash flow for Tesla over the next decade, which contrasts with more aggressive projections from other analysts regarding robotaxi profits [10][11] Group 3: Long-term Outlook and Investment Strategy - The long-term potential of Tesla remains uncertain, particularly regarding the scaling of robotaxis and self-driving software, which could impact customer acquisition [12] - Despite near-term downward pressure, there is cautious optimism about Tesla's long-term profitability driven by advancements in AI and robotics [13] - A dollar-cost averaging strategy is suggested for investors looking to capitalize on potential long-term gains while managing volatility [14]

Core Insights - Tesla's core automotive business is experiencing declining revenue, which has negatively impacted its stock performance in 2024 [2][5] - In contrast, Tesla's energy storage segment is witnessing significant growth, with sales increasing at triple-digit rates [2][4] Energy Storage Products - Tesla's energy storage products include Powerwall for homes and Megapack for commercial utilities, which help stabilize energy grids and provide backup power [3] - In 2024, Tesla deployed 31.4 gigawatt hours (GWh) of energy storage capacity, representing a 114% year-over-year increase [4] Revenue Growth - The energy generation and storage business segment's revenue grew by 67% year-over-year in 2024, reaching nearly $10.1 billion, accounting for over 10% of Tesla's total revenue [5][7] - Despite challenges in solar product sales, the segment achieved a remarkable 113% revenue growth in Q4 2024 [5] Profitability and Operating Leverage - The energy storage segment is contributing to Tesla's gross profit at a faster rate than its revenue growth, with costs of goods sold rising by 52% compared to a 67% increase in sales [7] - This growth is leading to significant margin expansion for the energy storage business [7] Future Outlook - Tesla is investing heavily in its energy storage business, including the construction of a new factory in Shanghai to boost battery production [8] - CEO Elon Musk emphasizes the critical importance of energy storage for future energy output and believes demand will continue to exceed supply [9] Investment Considerations - Investors are encouraged to monitor the energy storage segment closely, as its growth could significantly impact Tesla's overall profitability [10]

Core Viewpoint - Tesla's future is perceived to be resilient even without CEO Elon Musk, as the company has strong fundamentals that can sustain its growth [1][2]. Investment Perspective - Tsai Capital holds a significant position in Tesla, with $137 million in total assets and approximately 20% of the portfolio invested in Tesla shares [2][7]. - The firm previously owned 131,300 shares but reduced its holdings to 69,700 shares due to concerns about the stock becoming an "outsized portion" of the portfolio [3]. Market Performance - Tesla's stock has seen a decline of over 50% from its peak of $448 in mid-December, closing around $225 recently [5]. - The company has faced sales declines in key markets such as Europe and China, attributed to various factors including product refreshes [5][11]. Competitive Landscape - Despite increased competition from companies like BYD, Tsai believes there is ample room in the EV market for multiple players, emphasizing that Tesla's superior product quality will maintain its market position [8][10]. - BYD reported selling 1.76 million battery electric vehicles in 2024, closely trailing Tesla's 1.79 million [8]. Strategic Insights - Tsai views Musk's connections with the Trump administration as beneficial for Tesla, allowing for potential policy influence [4][7]. - The recent turmoil surrounding Musk's involvement with the Department of Government Efficiency (DOGE) is seen as a temporary challenge, with expectations that negative market sentiment will eventually dissipate [6][7]. Long-term Outlook - Tsai Capital maintains a long-term investment strategy, focusing on Tesla's fundamentals and anticipating substantial revenue and earnings growth in the coming years [12].

Group 1 - Tesla, Inc. (NASDAQ: TSLA) shareholders have experienced a significant decline, with the stock price dropping by 43% this year [1] - The current stock price is trading 54% below its 52-week high of $488.54 [1] Group 2 - The article highlights the role of Dhierin, who runs The Aerospace Forum, focusing on investment opportunities in the aerospace, defense, and airline industries [1] - Dhierin's background in aerospace engineering allows for a comprehensive analysis of a complex industry with substantial growth prospects [1] - The investing group provides data-informed analysis and direct access to data analytics monitors [1]

Core Insights - Tesla has received a transportation charter permit (TCP) from the California Public Utilities Commission (CPUC), marking a step towards potentially operating a robotaxi service in California [1][2] - The TCP allows Tesla to own the vehicles and use employees as drivers, differentiating it from the transportation network company (TNC) permits held by Uber and Lyft [2][3] - Tesla plans to initially use the TCP for transporting employees on a pre-arranged basis, with a commitment to notify the CPUC when it begins transporting the public [3] Regulatory Context - The TCP permit does not cover autonomous vehicle testing or deployment, and Tesla has not applied for participation in the CPUC's Autonomous Vehicle Passenger Programs [4] - To operate a driverless service, Tesla would need to obtain additional permits from the California Department of Motor Vehicles (DMV) [4][5] - Currently, Tesla lacks authority from the DMV to offer driverless rides for testing or deployment purposes [5] Future Plans - Tesla is planning to launch a robotaxi service in Austin, Texas, with expectations to begin in June using its fleet vehicles equipped with the upcoming "unsupervised" version of its Full Self-Driving software [5]

Core Insights - The article emphasizes the importance of identifying undervalued stocks across various sectors and geographies, suggesting that there are hidden investment opportunities available [1]. Group 1 - The author, a professional portfolio manager, focuses on lesser-known and underrated stocks, indicating a strategy aimed at discovering value in overlooked areas [1]. - The portfolio showcased on the eToro platform reflects the author's investment opinions and decisions, providing transparency to potential investors [1]. - The author has a diverse educational background, having studied in multiple countries, which may contribute to a broad perspective on global investment opportunities [1].

Core Viewpoint - Tesla's stock is experiencing significant declines due to concerns over slowing sales, increased competition, and CEO Elon Musk's distractions, yet employees remain optimistic about the company's future [1][8]. Employee Sentiment - Employees express a general indifference towards the stock's performance, noting a 30% increase from the previous year and an 800% rise over the last five years [2]. - Many employees avoid checking the stock price daily to maintain their mental well-being, acknowledging that external factors, particularly Musk's actions, are beyond their control [2]. Internal Communication - An informal company forum shows a similar sentiment, with employees not expressing alarm over stock performance and continuing to share news and updates about Tesla [3]. - The internal atmosphere is described as positive, with no significant concerns raised among employees [3]. Compensation Structure - Stock grants are a significant part of Tesla's compensation strategy, with Musk stating that factory workers have become millionaires due to stock options [4]. - The company offers lower base salaries compared to peers but compensates with substantial stock grants, as indicated by a 2021 internal pay sheet [5]. Stock Options and Concerns - In 2024, Tesla granted approximately $2.69 billion in restricted stock units and $3.5 billion in stock options, reflecting the company's commitment to employee equity [6]. - Employees indicate that stock price fluctuations are not their primary concern, with more pressing issues related to Musk's political associations and public controversies [6]. General Optimism - Despite the stock's 44% decline year-to-date, employees maintain a sense of confidence in Tesla's long-term prospects, emphasizing the quality of the product over external controversies [8][9]. - Employees believe that as long as the product remains strong, consumer demand will persist regardless of Musk's behavior [9].

Core Viewpoint - The market is reacting negatively to Elon Musk's political ambitions, which is seen as a primary reason for Tesla, Inc.'s stock decline of 44% [1] Company Analysis - Tesla, Inc. has experienced a significant stock pullback, indicating investor concerns regarding external factors affecting the company's performance [1] - The stock's sharp decline suggests a potential shift in investor sentiment, possibly linked to Musk's involvement in politics [1] Industry Context - The broader implications of Musk's political engagement may affect not only Tesla but also the technology sector, as investor confidence can be influenced by leadership decisions [1] - The technology industry is characterized by volatility, and external factors such as political involvement can exacerbate market fluctuations [1]

Group 1 - Ross Gerber, an early investor in Tesla, suggests that Elon Musk should step down as CEO unless he relinquishes his new government position [1][2] - Gerber believes Tesla has been neglected and requires a new CEO to address its current crisis [3] - Tesla's market value has decreased by $800 billion since December, indicating significant financial challenges for the company [4] Group 2 - Gerber's comments come amid public discontent regarding Musk's involvement in the Trump administration's Department of Government Efficiency [1][3] - The ongoing trade war initiated by the Trump administration has negatively impacted Tesla's performance [4]