News

Who could have imagined less than 20 years ago that Tesla shares, now based in Austin, Texas, would reach an all-time of $1243?

Then came news of Elon Musk’s proposed share sale to address tax obligations.

Tesla now trades at $1085 and is valued at over $1 trillion.

Some analysts say it could become a defensive stock with its evangelical belief in EV and a suggested 8-to-10-year advantage in battery technology.

We must be in a Twilight Zone world that Tesla is viewed now by some as a safety blanket stock given the uncertain and rocky times ahead. Some analysts with the latest Omicron Covid descending are rating Tesla stock as a Buy with a target price of $1,400 a share.

It’s predicted that in 2022 China will account for 40% of deliveries. As homegrown Chinese EV manufacturers enter the marketplace, we believe that will be peak Tesla Market Share.

We differ from many commentators about Tesla shares as we feel the present valuation massively overvalues the Company.

The EV market is getting increasingly competitive, with new players arriving from China.

Elon Musk is a mercurial leader and rides on his antics and other interests.

We feel Tesla cars are too expensive relative to the forthcoming competition by any criteria.

The only caveat to this opinion is IF there is something we don’t know: for instance, some remarkable revolutionary new battery technology they have not disclosed and have a patent for.

We continue to believe that the major European legacy carmakers are fast catching up with Tesla. Moreover, with their established economies of scale both in production and distribution, they are more than likely to overtake the cheerleader for EVs sooner rather than later.

Jay Leno, the famous American entertainer, comedian, and talk show host, is a ‘disciple’ of Tesla as he has just taken delivery of an S Plaid; allegedly the fastest production car on the road at 0 to 60mph in less than 3 seconds and the most expensive in the Tesla range. It joins Jay’s everyday use of vehicles, including the P90 sedan above that he has had for several years and which he states has been trouble-free motoring for the duration. Leno is an automobile enthusiast, having built a collection of over 180 cars [& 160 motorcycles] at his Burbank Museum showroom. He passionately believes Elon Musk and Tesla have proven their engineering and software prowess. He recalls some doubts in 2007 as to Musk’s ambition to build the necessary infrastructure and charging stations across the USA. But it happened and is now happening around the world too.

Over November, Elon Musk has sold around 10 million Tesla shares for over $10 billion. The sales account for more than half his October pledge to sell 10% of his stake in Tesla to satisfy impending tax obligations and make some unnamed charitable distributions. We are still awaiting details

Electric-car makers are increasingly in demand on Wall Street. Tesla’s stock has surged more than 150% in the past 12 months.