Warning that Tesla (TSLA) did not provide “a single positive fundamental data point” in conjunction with its first-quarter earnings report, Lou Basenese told Fox Business recently that investors should not “believe the hype of Tesla.”
A former Senior Investment Consultant and Analyst for Morgan Stanley, Basenese is currently Executive VP, Market Strategy for Prairie Operating Company.
Reasons To Be Skeptical of TSLA
“This is a car company that is struggling on all metrics we can evaluate on a fundamental basis,” said Basenese. He noted that Tesla’s Q1 revenue had dropped 9% year-over-year even though global EV deliveries had jumped 29% YOY last quarter.
The investment professional added that he was somewhat pessimistic about the company’s ability to generate a great deal of revenue from products other than EVs, since it had not been able to do so until now.
“I need to see (that Tesla) is getting traction from new products” before recommending the stock, the market strategist explained.
Tesla’s Other Problems
There are publicly traded companies with lower valuations and faster growth than Tesla, Basenese said. He added that EVs are no longer supported by the government, while Tesla still needs to show that it can execute at the level which Elon Musk has promised.
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This article is originally published at Insider Monkey.
