Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
Unless you’ve been stuck on a mountaintop since October, you know Twitter has had Elon Musk’s undivided attention since he closed the $44 billion deal to buy it.
That’s led to charges that no one’s minding the store at Tesla Inc. (NASDAQ: TSLA). Activist investor Leo Koguan, Tesla’s third-largest individual shareholder with a $3.6 billion stake, has been extremely vocal about this, saying “Tesla needs and deserves to have [a] working full-time CEO.”
It’s understandable why Koguan and countless other shareholders feel that way. Musk has sold $23 billion worth of TSLA this year, and the stock is sitting 65% below its highs.
But let’s be clear: It’s down, but Tesla stock is still up around 400% from its “COVID Crash” 2020 lows, making it one of the best performing large- or mega-cap stocks of the era.
Garrett was one of a few analysts to point out Tesla’s hiring of an energy trading team last year, which opens up the possibility that Tesla may begin wholesale energy trading at scale – a massive potential revenue booster.
While sales could drop as recession looms, there could be some price resistance at the $140 level as we saw in late 2020. TSLA is still expensive on its P/E ratio – it’s currently at a 4.2x EV/sales for the next 12 months, but estimates for revenue growth (based on sell-side analysts) are at 46% and 39.2%.
Watch Shah Gilani and Garrett Baldwin reveal whether or not they’re buying Tesla stock right now…
Get the latest trading and investing recommendations straight to your inbox.