2024-07-06 10:00:00 ET
Summary
- Tesla, Inc. has charted an underwhelming YTD performance, despite the recent rally from the April 2024 bottom, with us concurring that the stock "does not look like a Magnificent 7 stock."
- The management believes that it is "more than just a vehicles" company and nearer to an "AI robotics company," attributed to their FSD/ Robotaxi/ Humanoid Robot ambitions.
- While we concur with the massive opportunities in these end-markets, it is uncertain when we may see Tesla effectively monetize these capabilities - attributed to their penchant for 'elongated timelines.'
- The stock is likely to remain volatile moving forward, attributed to the mixed signals on EV demand, multiple key events occurring in H2 '24, and the uncertain macroeconomic outlook through 2026, if not 2027.
- We will also be highlighting a few metrics to look out for in the upcoming earnings call on July 23, 2024, with it underscoring the health of Tesla's businesses along with near-term prospects.
We previously covered Tesla, Inc. ( TSLA )(TSLA:CA) in April 2024, discussing the three key factors why we believed that the company might face further downgrades, as the automaker failed to leverage its first mover advantage and electric vehicle ("EV") know-how to address the volatile market trends and sales cycle through the $25K mass-market model.
With its installed capacity under-utilized and consumer demand waning, it remained to be seen how and when a reversal in market sentiments might occur, resulting in our reiterated Hold rating then....
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Is Tesla An AI Robotics Company? Possibly