TSLA
🤔 Analyst questions the long-term brand damage if Elon Musk remains involved with the Trump administration, viewing it as a critical juncture.
👨💼 Despite potential short-term negativity, the speaker believes Musk’s political activities won’t significantly impact Tesla’s long-term value (5-8 years out).
📉 Upcoming earnings are crucial, but the speaker acknowledges the stock could swing +/- 50% based on news and sentiment, separate from long-term fundamentals.
@bernardodegarcia:
“Regarding Tesla, an analyst from Wedbush, Dan Ives, suggests that if Elon Musk continues his involvement with the Trump administration, the electric vehicle maker’s image could face further damage. Ives sees this as a crossroads: if Musk leaves the White House connection, there might be permanent brand damage, but Tesla retains its key asset full-time. If he stays, the brand damage could increase, potentially impacting the stock. The analyst believes the narrative shift needs to start with the upcoming earnings call. Personally, I disagree with this assessment. I don’t believe Elon Musk’s activities over the next six months or two years will have a generalized long-term impact on Tesla. When considering a long-term investment, we’re looking 5, 6, 7, 8 years ahead. Is Musk the most important asset? Probably, but perhaps not anymore. The hardest part was starting; now, the challenges are Robotaxi and Optimus, not minor delays. Even if Musk dedicates hours daily to the Trump administration, while it might not help short-term and creates negativity—people saying they won’t buy from a ‘Nazi who eats children’—it’s a separate issue. I’ve often wondered why we don’t have proven business leaders, like the CEO of Inditex in Spain, running countries instead of inept politicians. Perhaps it’s lack of interest or the nature of political money. Ultimately, Tesla’s current stock price doesn’t reflect its future potential, in my opinion. However, bad news, like we discussed over the weekend, could hit the stock hard, potentially causing a 50% drop or a 50% rise. We’ll see what happens with the earnings report this Tuesday.”
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