In this episode of the "The Capitalist Investor," hosts Luke, Tony, and Derek dive deep into the reasons behind Tesla's surprising stock performance post-earnings miss. This episode touched on several crucial topics that resonate with investors and tech enthusiasts alike.
1. Tesla's Earnings Miss and Stock Reaction: Despite missing the mark on both revenue and earnings, Tesla’s stock saw a 10% increase after hours. The hosts explored the paradox of Tesla’s stock performance, considering the financial underperformance, highlighting the complexities of investor reactions and stock market dynamics.
2. Cost-Cutting Measures and Market Perception: The hosts discussed Tesla's announcement of layoffs and their impact on the stock market. They noted that such cost-cutting measures often lead to a positive reaction from investors, who may view layoffs as a company's strategy to streamline operations and improve financial health.
3. Demand for Tesla’s Charging Technology: A significant portion of the episode was dedicated to Tesla’s success in the electric vehicle (EV) accessories market, particularly their charging technology. The hosts pointed out that the sales of Tesla's charging units have "surprised to the upside," sparking excitement among investors and contributing to the stock's rise.
4. Elon Musk’s Influence and Future with Tesla: The debate whether Tesla is more of a technology company or a car manufacturer was intensively analyzed against the backdrop of Elon Musk’s recent statements and actions. This included his desire to own a greater percentage of the voting rights, and his potential to start a new company to protect his intellectual property and technological innovations.
5. Public Perception and Political Opinions: Toward the end of the episode, the hosts delved into the influence of Elon Musk’s public and political stances on Tesla’s brand and stock. They speculated how Musk's increasingly vocal political opinions might align or clash with the typical EV buyer's ideology, potentially impacting consumer and investor sentiment.
The episode closed with discussions around the future trajectory of Tesla's stock, encapsulating both skepticism and analytical perspectives on its valuation and Elon Musk's broader ambitions beyond automotive. With insightful banter and critical analyses, the hosts of "The Capitalist Investor" laid out a comprehensive discussion that not only informed but also entertained their listeners. As always, they remind their audience that their insights should form part of a broader strategy tailored by professional advice. Tune in next episode for more sharp debates and deep dives into the investment world.
Hello, and welcome to this week's episode of the Capitalist Investor. As always, you have me, diamond hands d. We got the whole crew back together again. Tony, the wedding planner, Zabigala and cool anti wedding planner. They're making fun of me because I went to, like, a wedding expo on Sunday. You shouldn't have done that. You shouldn't have done that. Tony says now you are setting yourself up for all kinds of failure. You're going to be expected to do way too much now you've messed up. See, this is why I need your dad wisdom all the time. I need you, like, sit on my top of my. Yeah, all right, man. Well, every Monday we'll meet, be like, hey, what's going on with your wedding plan? Don't do that. The answer is nothing. Don't do that. And do this. And. Yeah, anyway. All right, we got d back, though. Yep. Back in the saddle. And I think we'll talk a little Tesla earnings on this one. What do you guys say? What I say was, I think I was on the big money show yesterday, and of course, the day I say, yeah, probably should have known. Tesla, the rocket's 10% higher. Yeah. You're like, I wouldn't know. Net worth a ten foot pole. Well, because we're long term investors here. Right. And I think it's the same story. You know, one of the things we always talk about is just demand for Ev's down. So you saw Tesla miss the revenue. You saw Tesla miss the earnings with profitability. So two big misses, but the stock's up 10% after hours. Why? Because. A couple reasons. You want to hit. Yeah, because they said we're gonna lay off some people. Stocks immediately jump when they're gonna fire people. And then, oh, they said they're gonna make some cheaper cars, because that's what exactly we. We need as Americans. Nice, cheap plastic buttons that fall off. And, you know, I think there was. Some demand for their battery technology, too, from, like, you know, a lot of electric vehicle companies use their not battery technology. They're like, how you charge it, the charging stations. Yeah. There was, like. They, like, surprised the upside a lot. Like, how many people or how many they sold of the charging units that they had. So that was, that got a lot of investors excited. What I will say is the same thing I said on the big money show is, I think a lot of Tesla investors need to really caution and think about if they're getting technology, owning the technology that Tesla is making or Elon Musk is making, because earlier this year, Elon Musk said he only owns 13% of Tesla. He wants to own 25% of the voting rights. If he doesn't own 25% of the voting rights, he's like, why would I call create technology in my mind within Tesla, when I can go create a completely separate company, build the technology, and own, basically 100% of that company that I'm building technology? That's always been the argument with Tesla. Is it a technology company or is it a car company? It's like a tech company, you know, looking through the, you know, the shopping room window. You know, it's a car company. But what are they really? You know, like, the dudes building rockets. The dudes, you know, making technology inside of those. BUILD. The. Tesla doesn't build rockets. Right. It's a DiffereNt topic company. Right. I I mean, honestly, I think the way, the way things are going, he should, if he wants to make his own technology and make it better and his brain, you know, his ip. Yeah. Right. Go build your. Go. Go start your own firm and also not be, like, susceptible to Blackrock and Vanguard, who owns Tesla. That actually is going to help influence, like, the outcome of the stocks. Right, exactly. He doesn't want to be at the helm of Blackrock and vanguard. But if he left, if he did that, like, wouldn't the stock, like, the stock would not react positively to something like that if he. It would have to reset from evaluation. Yeah. Point to. From a tech to car. Exactly. So get cut. Probably 75%. Yeah, it would. That's why we don't own it. It's going into whole kind of valuation metrics, and TeslA's never made SENSe for us. We missed on the way up, and thankfully, we missed on the way down from $400, a shared act, down to 150. So, like, it's hard to own a stock when it's based off of bromance. Right. Like a bromance over Elon Musk and just that love affair that everyone has with him. I never had it with him. I love you. Is that still going on, though? Do you think as many people love, or do you think more people love or hate Elon Musk? I like. Can I answer this? Sure. You're kind of my boss. You don't have to ask me. This is what I think. So the EV's are, in my opinion, like. Like, just as a high topic. I mean, obviously, conservatives own ev's, but the idea behind a non fossil fueled car is more left, you know, left of center person. Right. A democratic type of mindset. And when you got Elon on Twitter, x, whatever you want to call it, spouting off. And he's more. He's leaning more conservative. Now, how does that affect the person who's buying the car and buying the stock? Like, man, I love the car, but I hate his views. I'm selling the stock when that person probably made millions of dollars early on. Yeah. Or not. Yeah. I don't know. Like, if they. If they start hating his views, I could see people selling the stock because he is starting to get more. More, you know, more LOUD on. On social media, on his political standings. That's my taKe. I think it's a very fair take. I think that's something that you need. You're not saying that because you just call me your boss. Whatever you say goes, man, that's a great takE. You're so smart. Don't fire me. Yeah. You know, I think. I think the Elon musk hate has been coming through pretty, pretty strongly for about a year or more, really, ever since he took over Twitter. And. You can't. Obviously, Twitter isn't real life. You can't go on there and see people saying they hate Elon Musk and they're selling their tesla. That's one person, one vocal minority. But I really do think. I think it's kind of balanced out. I think. I don't think there's as many fanboys for Tesla, but I also. I also think that there have been people that have been turned off by Elon Musk's politics and just passed on the Tesla. Yeah. Yeah. So, overall, you guys buying Tesla, man? I actually thought about shorting it. It's crossed my mind. Buying puts a foot machine. Yeah, I do awesome with that. No, it just crossed my mind. I'm like, is it some type of dead cat bounce kind of thing? Like. Because at the end of the day, once the. The shininess of, you know, I mean, they missed on earnings and, like, first. Down year since 2020, what is gonna. I mean, what. What. Why is it up? That's why I'm. That's why I'm. Because anything ever makes sense anymore. That's not until it does, right? No, I mean, I would. That is not investment advice, but it's crossed my mind. Yeah. What do you guys think? Do you guys go up from here or down from here? Quick take and we'll wrap it up. I'm going to have to say down. Honestly, I don't think the valuation makes sense anymore. Yep. They're going to have to come through with some. Some big earnings and I don't see that happening halfway because of the company and halfway just because of the economy. You know, I don't think people are sprinting out to buy, you know, the high end EV's, the lower end EV's, I think makes sense. But I think it remains to be seen if that's going to be a viable price point and they go out there and work and do what they're supposed to do. I think Elon Musk has bigger dreams than just cars. So I think you're going to see him start really pivoting, focusing on SpaceX, focusing on Neuralink, focusing on boring company like you're all these different things that he's got going on, maybe take them public. Basically, I think that a lot of Tesla shareholders may be left holding the bag in the long term, or at least the foreseeable future. Next couple years. Yep. So as we all know, we do have the new layout in the show. So this is coming out on Thursday, and we will have a brand new show for you guys on Monday, next week as well as Wednesday. So tune on in. We got a couple different topics. We like to keep these nice and short and sweet for you guys to drive your ten minutes to work and just pop this on. Well, thanks everyone, for listening. As always, if you have any comments, show ideas, hit us up@infoconnect.com and we'll talk to you next week. The opinions expressed in the podcast are for general informational purposes only and are not intended to provide specific advice or recommendations for any investment, legal, financial or tax strategy. It is only intended to provide education about the financial industry. Please consult a qualified professional about your individual needs.