00:00 Speaker A
Tesla’s valuation is once again in question. This time it is run by well-known investor Michael Burry. Burry said in a new substack post that Tesla’s market cap is ridiculously overvalued today and has been for a long time. Burry believes stock-based compensation will further dilute Tesla shareholders. I had a lot of fun today because I was once again in the mood to ask Chat GPT whether Tesla stock is ridiculously overvalued. It gave this reply.
00:31 Speaker A
The short answer is yes. The arguments behind production range from wild expectations for Tesla’s artificial intelligence ambitions to weak electric vehicle sales. So I’d like to bring this question to the bid opening roundtable. Kenny, how much is Tesla overvalued or undervalued?
00:48 kenny
To be fair, I don’t own it. I don’t own a Tesla. I don’t, uh, I don’t own Tesla, and I don’t own stocks, right? I never have. So what do I think about it being overrated? I don’t know, I’d have to look at the chart to see that because it’s not the name I’m on. So it would be unfair for me to give you an opinion.
01:05 Speaker A
Ellie, it’s hard. You know, the case is going to be filed. Nor is it, there is no mention of this in the output of my chat GPT search. It’s hard to bet against Elon Musk, especially when you see how motivated he is with a $1 trillion compensation package.
01:26 Ellie
Yeah, that’s why you see the stock reaction after the compensation package is approved, because if you have Elon Musk on board, that’s really what investors want. They’re not just buying the stock for Tesla, they’re buying it for Elon Musk. What’s interesting about this company is that the shorts are very bearish, while the longs are super bullish. Well, you know, Dan Ives, you talked to Brian, I mean, he said, it’s offensive at this point to call Tesla a car company, they’re really an artificial intelligence company, and you have to look to the future when it comes to robotaxis, autonomous driving.
02:08 Ellie
I think you’ve seen this across the board. I’m seeing more Waymos uh and more articles about self-driving technology on social media. It’s all going to come to a head at some point, and Tesla does have the first-mover advantage to do that. Of course, you can always look at valuations and whether to say it’s a little too hot, but you can look at valuations across the stock market at this point and make the same argument for every company, including Nvidia. So Tesla is certainly a guy who can keep the Bulls and Bears moving forward for good.
02:44 Speaker A
Correct. Uh James, uh you know, Tesla was certainly one of the first companies to put cryptocurrency on its balance sheet. Zooming out a little bit given the volatility we’ve seen in cryptocurrencies over the past month or so, there’s the move by companies to add cryptocurrencies to their balance sheets to diversify their cash. Is it just put on hold? I mean, or do you think it’s going to pick up again soon at the end of the year?
03:07 james
Yeah, I don’t think that adds to Tesla’s credibility at the moment. Well I wouldn’t call it DA, that’s a digital asset funding company, MTR is a pure form of DA. Initially, companies held Bitcoin on their balance sheets for financial management, foreign exchange management, such as concerns about the depreciation of the U.S. dollar. That might be a pretty credible reason to do this, but it’s being tarred like the subway right now, and maybe it looks like Tesla is a little irresponsible.
03:47 james
I think ultimately what they’re doing is actually quite believable, but I think there’s some bad press surrounding D at the moment. So I don’t think that helps Tesla, and Tesla has other challenges, you know, it’s not a pure EV leader anymore. It is losing market share to European peers and is being undermined on price, product range and technology. As a result, its margins are being squeezed. Therefore, it faces many challenges. So I agree with Michael Burry on this one, that it’s overrated.
