Tom Lee has been spot-on the past few years.
I feel extremely bad for the protestors (mainly older white liberals) protesting on the street, rooting for TSLA stock to go down. They mostly are protesting and don't have much skin in the game (shorting Tesla stock). If so, things will end in a pool of tears for them.
Shorting Tesla stock may be the dumbest thing an "investor" can do.
Tom Lee compares Tesla to its entering its My Pillow moment and suggests that it's not likely to be canceled.
Actually, Tom is wrong.
First Tesla sales are down across the globe. While competitors cars are selling much better. So sales of the vehicles are dropping, and that isn’t going to be good. The primary market is Liberals who want to believe they are doing something for the planet. That can be accomplished by buying any Electric Car, and Tesla is now looking obsolete from a pure competition standpoint.
Second, Tesla has made most of its money away from the cars. First by investing heavily in Bitcoin when it first came out, those holdings value is already starting to drop. Bitcoin is too volatile to really continue growth that Tesla would need to offset lost income from car sales.
Third. Tesla counts on Government for the money to operate. Each new car gets a $20,000 rebate from the Feds, and some states toss in their own rebate. Those rebates are already endangered, and let’s be honest, no Republican is going to argue we need to make it easier to have Liberals buy Electric cars. The Government money also includes grants to build the charging network. That is going to stop soon as well.
Fourth. Carbon Credits. Tesla since they only build electric cars has a lot of Carbon Credits to sell, and reap profit from. Those carbon credits are not needed as much since all the major manufacturers are already making their own electric cars. So the demand for those Carbon Offset Credits is dropping already, which means the price will drop too. This will further reduce Tesla income.
So the future for Tesla remains dark. Musk doomed it when he started siphoning money from it to pay for X, or Twitter, or whatever. Twitter will never be profitable. It along with the rest of his dreamscape stuff remains pie in the sky fantasy.
Starlink is losing customers faster than they can sign up new ones. They’re losing money on that already. Canadian Provinces are dumping them for rural internet connectivity.
So Elon has managed to steer his corporate kingdom onto a path of destruction. Even if Elon dumped the DOGE stuff and departed Washington today, the Obituary for Tesla is already inevitable.
Conservatives are not going to jump on the Tesla Bandwagon and abandon their beloved gas powered Ford’s and GM’s in favor of a Cybertruck. The Liberals aren’t going back for at least four years, probably a lot longer. Insurance costs are skyrocketing, and as more time goes by, Tesla is already more deadly for occupants than the Ford Pinto ever was. People will buy other brands, and Tesla will continue its downward spiral for the drain.
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