Tesla Motors Inc (NASDAQ:TSLA) has been recently practically cross-examined in its deeds and intentions, most of which were related to their plan of building the Gigafactory. Patrick Armstrong, CIO of Plurimi Investment Managers, still thinks that the company hasn’t produced enough and that it sells at a premium, as he said on an interview at CNBC.
Now, Tesla Motors Inc (NASDAQ:TSLA) is blamed for the fact that it hasn’t got any real earnings, that is, no constant inventions are brought to the market.
“We own BMW and we own technology companies and Tesla’s got a market capitalization of about $40 billion, BMW is €60 billion. I think you’re getting none of the technology that BMW has built up, I think Tesla, you’re paying a huge premium for their technology, because it doesn’t have any real earnings yet […],” said Patrick Armstrong.
Tesla Motors Inc (NASDAQ:TSLA) is currently selling at a price slightly greater than $277, almost at the global top of its valuation history. On the other side, BMW stock sells around $90 and seems to be in the range of a rebound after a drop in prices at the beginning of August. For the short term investors, it makes more sense to follow the procedure presented by Plurimi Investment Managers and short Tesla Motors Inc (NASDAQ:TSLA)’s stock. However, if long term interests are at stake, the proceedings are not quite as clear and it might be the case that the electric car company has more potential. Nevertheless, the sole event of time passing cannot help Tesla Motors Inc (NASDAQ:TSLA) as much as the team’s struggle towards innovation and progress, which should be seen quite soon.
Some other transactions pursued by Plurimi Investment Managers that might give you some ideas regarding investments are: a buy of Yahoo! Inc. (NASDAQ:YHOO) of 31% portfolio equity weighing and another one of 38% in BRF SA (ADR) (NYSE:BRFS). Tata Motors Limited (ADR) (NYSE:TTM), which represented 40% of the portfolio, was on the sell side of the deal.