Shareholders Have No Say in Tesla, Gerber Says

Core Viewpoint - Investor sentiment towards Tesla is primarily influenced by long-term narratives rather than short-term fundamentals, which is reflected in the stock price and valuations [1] Financial Performance - Tesla's adjusted earnings per share for the latest quarter was $0.50, exceeding analyst estimates [2] - The company experienced a 3% drop in revenue and a 30% decline in free cash flow, while capital expenditures are increasing [9] Business Segments - Energy storage has performed well, contributing positively to Tesla's financials despite challenges in its core heavy business [2][3] - Profitability in charging and energy storage is helping to offset losses from the electric vehicle segment [4] Future Initiatives - Tesla's investment of $2 billion into X A.I. is seen as a strategic move to support future initiatives like humanoid robots and full self-driving technology [4][5] - There are concerns regarding the credibility of Tesla's future production goals, such as the cyber cab and Tesla Semi, which are projected for volume production in 2026 [10][11] Valuation and Market Performance - Tesla's valuation multiples remain significantly higher than those of its peers, despite deteriorating business fundamentals over the past few years [14][15] - The stock has underperformed compared to the S&P 500, with a five-year return that is less than half of the market's return [15][16] - The company's earnings multiple has shifted from 100 times earnings to 5300 times, raising concerns about sustainability [17][18]