Tesla Motors Inc (NASDAQ:TSLA) has certainly become the darling of the auto industry, the alternative-fuel industry and even the tech industry with its innovations. And with being such a darling in so many areas, CEO Elon Musk has guided the company’s stock into the stratosphere in 2013, as the stock at one point was above $150 a share Thursday after the company reported better-than-expected earnings Wednesday night in its quarterly report.
But is the stock finally overvalued? Or is this like what Reed Hastings did with Netflix, Inc. (NASDAQ:NFLX) or Jeff Bezos of Amazon.com, Inc. (NASDAQ:AMZN); the current run is just the start of a climb to the “correct” valuation?
Well, it seems interesting that we would dare mention Amazon. There is a fund manager who went on record recently to make a comparison of Tesla Motors Inc (NASDAQ:TSLA) and the e-commerce giant.
Tesla Motors Inc (NASDAQ:TSLA): Words from a Bear
Steven Kiel, fund manager of Arquitos Capital Management in Annandale, Va., sent out a note to investors recently, and Kiel gave his assessment of Tesla. He basically stated that now is not the time to be buying what Musk is selling.
Arquitos Capital Management is a hedge fund, by the way, with a minimum initial investment of $100,000 to participate.
In the investor’s note, Kiel wrote, “As much as I respect the dynamic nature of companies like Tesla and Amazon, you won’t find me making up a reason to “invest” in them at their current prices. When the crowds are exuberant, the market price of companies like that can go to the moon. Those investors will then be crushed when the public mood overshoots to gloom and despair, which it will. Amazon is certainly a better company than, say, Winland Electronics. It is not a safer investment.”
Kiel wasn’t done with his skepticism of Tesla, especially at the current level of valuation. “In good times, investors are often drawn to companies with rich valuations who have dynamic leaders and extreme growth prospects.
“The stocks of those companies,” Kiel said, “like Tesla for example, can quickly fly. Tesla’s stock has gone up more than 350% this year. The problem is when sentiment turns. Amazon traded above $90 in 1999, and less than two years later it was below $7.”
The Tesla vs. Amazon.com Comparison
Kiel sees some similarities with Tesla Motors Inc (NASDAQ:TSLA) and its current rise with the early days of Amazon.com, Inc. (NASDAQ:AMZN), when that stock had violent mood swings, until investors and analysts could generate a more accurate valuation.
“I love Elon Musk and I think Tesla is an exciting company,” the hedge fund manager stated, “but if you were to buy it today the only way you could make money over the long term is if the company has incredible operational performance for a long time.
“That’s possible. However, you could lose a lot of money if their operational performance is just good, and not spectacular. You could lose a lot of money if nothing changes in their operations, but investor sentiment changes. And, you could really lose a lot of money if their operational performance worsens because both sentiment and performance will decline.
“So you have one way to make money, and three ways to potentially lose a lot of money. I don’t see the attraction other than simply hope, or wanting to tell your friends that you own Tesla stock.”
How do you see fund manager D.E. Shaw feeling about Tesla Motors Inc (NASDAQ:TSLA) after this run? Shaw doubled his investment in Tesla stock in the March quarter of 2013 over what he owned in December of 2012.
Would you sell now, or ride it our longer because of the most recent earnings report? While you contemplate your answer for the comments section below, take a look at this video that shows how the Tesla Model S is made.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.
And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.
What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.
In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.
Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.
And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…
This prediction might not be bold at all:
A few years from now, you’ll wish you’d owned this stock.
The best part? You can discover everything about this company and its groundbreaking technology right now.
I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.
Trust me — you’ll want to read this report before putting another dollar into any tech stock.
For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
