Telsa Inc (TSLA US)
Can I ask a question can we get your thoughts on Tesla do you see it bouncing back ?
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Answer
Hi David,
Tesla Inc. (TSLA) is a fascinating company in a market that’s evolving rapidly. The stock has struggled of late for a couple of integral reasons:
- Tesla is losing market share with Chinese manufacturer BYD having overtaken it as the largest global EV manufacturer.
- In April TSLA shipped 6% less EVs than it did in 2024, the 7th consecutive year on year monthly decline.
- Outside of China EV adoption is running slower than was forecast a few years ago, during the lithium boom times.
- The perception that Founder Elon Musk was not focusing on the business after his foray into politics alongside President Trump.
The trend is clearly heading in the wrong direction at the moment for EV sales, however, there is so much more to this company with huge amounts of optionality in its other areas such as robotics/automation and A1. For example, they are set to commercialise Robotaxi’s in the coming months, and it is in these sorts of areas where the real growth will lie for TLSA over and above traditional car manufacturing.
The volatility has been quite extreme, and we need to see a renewed/refreshed focus by their CEO, however, the short answer to your question is yes, we think TSLA has a huge future and in time, we can certainly see the stock price trading well above previous highs ~$US488.
