Just as the great Sherlock Holmes might say, the game is afoot for Tesla and its investors. The electric vehicle company’s stock price has risen more than 200% in the past year, giving the EV maker a larger market cap than that of our solar system (well, that might be a slight exaggeration). But as competition in the industry revs up, some investors are surfing the Tesla wave while others are sounding the alarm bells. To help settle this whodunit, CNBC’s “Street Signs Asia” hosted a battle of wits between two Tesla fans on Wednesday.
Enter the ring: Ross Gerber, the CEO of Gerber Kawasaki Wealth Management, and a Tesla bull so bullish he probably wears a cape while he zips around in his electric car. According to Gerber, Tesla is the undefeated champion of sustainable transportation and energy on this little blue planet of ours. With their technology and production capabilities, he believes Tesla’s moat is deeper than the Marianna trench, promising a bright future for the company. And how could we forget the cherry on top: the Cybertruck? Gerber is practically dancing in anticipation, waiting for this metal monster to hit the production lines by the end of 2023.
But wait, here comes the voice of reason and doom – or so he thinks. Francisco Bido, senior portfolio manager of Integrated Alpha Group at F/m Investments, warns that now is not the time to place your bets on Elon Musk’s electric brainchild. The quantitative process they use at Integrated Alpha apparently spells trouble for Tesla, as Bido is not impressed with the current story behind the company. He’s skeptical of Tesla’s over-promising and under-delivering tactics and cautions investors to look at the competition before making any hasty decisions.
Gerber, however, sees margins improving later in the year once Tesla’s Berlin Gigafactory starts churning out profits like Willy Wonka’s factory churns out chocolate. Besides, he adds, who doesn’t like a company that dominates the EV battery market? It’s like having the secret recipe for world-famous energy chocolate! Bido, on the other hand, is the one to rain on this parade: “Hold your horses,” he says, pointing out that Toyota actually has the most and highest number of EV battery patents.
As for Tesla’s recent quarterly results, Bido is unimpressed. Mere expectations? Bah! Tesla’s tug-of-war with its own ambitions won’t secure a winning strategy for the long-term. And let’s not forget the Cybertruck, which Bido thinks the company has overhyped more than a Netflix show everyone’s already seen. It’s time to really deliver, he says, not just promise.
Gerber, however, remains steadfast in his belief that Tesla is a sound investment. A unique, industry-leading, technological powerhouse, he urges investors to go for it like a baby reaching for ice cream. But, considering the company’s volatility, he suggests using the dollar-cost averaging method to avoid being stunned like a deer in headlights.
And so, the debate rages on – to invest or not to invest, that is the question. Only time will truly tell whether Tesla will dominate the EV market like the Roman Empire or fizzle out like Betamax tapes. Meanwhile, I would like to drive a Cybertruck – even just for a day./n/n Serious news: https://www.cnbc.com/2023/04/11/two-market-pros-on-whats-next-for-tesla-after-share-price-surge-.html