Tesla Valuation Raises Red Flags
"I mean, if you research this, then you can say, okay, it s impossible to research. And now look at the price is just going up. It s crazy. Tesla has a market cap of 1.4 trillion. The total cumulative profits in the last 15 years was 25 billion. This is all the money Tesla made. So yes, it doesn t make sense to make any research."
The speaker criticizes Tesla s valuation by juxtaposing its enormous market cap with comparatively meager cumulative profits, implying that the price action is detached from fundamental realities. This company-specific commentary suggests skepticism toward Tesla s current trading levels.
Caution on Tesla Post-Earnings
"We went over Tesla. They had their earnings. I said, "Hey, the stock's not going to do much." Well, it pulled back and then it was the top MAG7 name yesterday in the market. It pulled up 4hour algorithm has you in here at 443 to 447 right now. Is this going to be one of the 37% winners that actually beats buy and hold? Maybe your average win is 16%. I don't trust it."
The speaker expresses skepticism regarding Tesla's ability to outperform following its earnings, citing technical levels and past average wins as reasons for caution.
Hold and Buy the Dip in Tesla
"I wasn\"t going to sell my Tesla because I believe that Tesla\"s holding up well in this environment and that it was worth holding and buying on Tesla into 2026 because I still see this thing getting north of $500. I expect the stock to rally even after some technical triggers were hit, so this is a hold and dip-buy opportunity."
The speaker outlines a bullish position on Tesla (TSLA), emphasizing a long-term hold strategy and buying on dips. He mentions specific technical triggers and price levels, projecting that the stock could rally above $500, making it a favorable investment in his portfolio until 2026.
Tesla: Waiting for a Lower Entry Post-Earnings
"Tesla earnings. I will give you a reason to own Tesla stock. Tesla's stock is down what 3 or 4% today. Let's see. Tesla's down 3.68%. 4hour algorithm got you in at 443. I said before this I don't trust this particular buy and I'm not buying. I have identified my range that I like in here. As it gets down closer to this range, I'll start buying. But I will give you a reason to own the stock later in the show. You don't own this for car deliveries. You don't own this for gross margins right now. You own it for one thing and that one thing will come up later in the show."
The speaker discusses Tesla (TSLA) earnings, noting a 3.68% drop and his reluctance to buy immediately. He emphasizes that he has a target range in mind and plans to start buying when the price approaches that range, highlighting that his rationale for owning Tesla is not based on operational metrics but future catalysts tied to CEO compensation and growth.
Tesla Earnings Impact
"Tesla shares in the red, as you mentioned, disappointing investors on their operating income, their operating profit. The shares are down 3.3% in pre-market trade. Now, it was due to a huge factor of rising costs, which undermined their record vehicle sales for the quarter. Their operating profit sank 40% versus a year ago. They\"re also their revenue when it comes to regulatory tax credits was down dramatically and will be an ongoing issue moving forward on the back of the shift away from green funding from the Trump administration."
Tesla is experiencing a significant decline in operating profit and regulatory credit revenue due to rising costs despite record vehicle sales, suggesting near-term challenges for the stock.
Tesla Earnings Show Core Business Struggles
"So we'll start with Tesla. TSLA down nearly 4%. So here's the thing. It was a record quarter of vehicle sales, but profit fell. That extended the string of weaker than expected profit to four quarters in a row. Now, on the earnings call, Elon Musk, he spoke about a few things. One, he talked about humanoid robots, he talked about A.I. programs. He also talked about self-driving technology. He asked investors to back his trillion dollar compensation package, too. But what he really failed to touch upon in what we're saying is that how Tesla is going to revive its core business of selling EVs. And they didn't get that there was a 40% drop in operating profit. So that was the issue there. Their operating expenses soared 50% to 3.4 billion in the quarter and tariff costs exceeding $400 million for Tesla."
The commentary highlights Tesla's disappointing earnings performance despite record vehicle sales, focusing on a 40% drop in operating profit and a 50% surge in expenses, with the speaker criticizing Elon Musk for not addressing how to revitalize the core EV business.
Tesla Company Commentary
"Well, kicking it off with Tesla down 3% today as profits missed despite a record quarter of sales. So, a beat on sales better than expected cash flows. But operating expenses soared 50% to $3 billion in the quarter that almost matches the amount of free cash flow that they generated, which goes to show that the company isn\"t immune to the rising cost that we see in the auto industry due to President Donald Trump uh tariff policies. But most importantly, it also shows that the company is heavily spending on its robotic and AI initiatives."
The commentary notes that Tesla is down 3% due to missed profits despite strong sales, highlighting concerns over rapidly escalating operating expenses and significant investments in robotics and AI. The speaker underscores uncertainty about near-term growth drivers, given the high spending and reliance on emerging technologies.
Tesla Faces Earnings Headwinds Despite Record Sales
"TSLA down nearly 4%. So, here's the thing. It was a record quarter of vehicle sales, but profit fell. That extended the string of weaker than expected profit to four quarters in a row. There was a 40% drop in operating profit while expenses soared 50% to 3.4 billion in the quarter with tariff costs exceeding $400 million for Tesla. I don\'t think it\'s about being a car company anymore; he\'s trying to get them to focus on all the other things."
The speaker highlights Tesla's declining profitability despite record sales, noting significant drops in operating profit and soaring expenses, which leads to a bearish view on the company as its core automotive business appears neglected.
Tesla Under Pressure Amid Production and Recall Concerns
"the first MAG 7 name to report was Tesla and the stock is down. Yeah, lots going on today. I mean, profit plunge. This was all despite a record quarter of vehicle sales here. This is really just underscoring the ongoing strains that we've really seen on the automotive business uh that of course we know is owned by Elon Musk here. And we do know that he also came on the call toward the end saying that he wanted investors to essentially back his trillion dollar compensation package. So we he was really pleading there with investors those on his earnings call here. Uh but we are seeing shares of Tesla ticker TSLA down about 2 and a.5% but earlier down as much as 5.7% for its worst day since July. And we know that this comes after yesterday when the news came out that it was recalling almost 13,000 of its EVs over risk of battery power loss."
The segment highlights Tesla's recent challenges including a profit plunge and a significant recall of EVs due to battery issues. Despite strong vehicle sales in the prior quarter, these operational strains and investor pressures, including calls for backing a large compensation package, point to near-term headwinds.
Avoid Exposure; Fundamentals Deteriorating
"I sold my Tesla positions back in January when the fundamentals started breaking down, margin shrinking, competition rising, and the story getting louder than the numbers. Since then, I've made better returns in companies with stronger margins and clearer growth. I'm staying out for now. I want to see real margin recovery, real cost discipline, and proof that the energy and AI bets can scale profitably. Until then, I'm watching, not buying. If you're holding Tesla long-term, fine, but it should be a small slice of a diversified portfolio, not the centerpiece, because this kind of stock doesn't crash gently. It snaps when sentiment flips."
The speaker explicitly notes that they sold their Tesla positions due to deteriorating fundamentals such as shrinking margins, rising costs, and intensifying competition. They advise investors to avoid allocating significant capital to Tesla until there is clear evidence of margin recovery and cost discipline. The recommendation is to remain cautious with Tesla, limiting exposure despite its profitability and cash reserves.