Investor's Corner
TSLA critic and ‘Shark Tank’ judge Kevin O’Leary reverses course, buys Tesla stock
Legendary Canadian businessman and longtime Shark Tank Judge Kevin O’Leary, who previously remarked that he dislikes Tesla stock (NASDAQ:TSLA), has changed his tune on the electric car maker’s shares. In an appearance on CNBC, O’Leary stated that he personally bought some Tesla shares recently, in light of the company’s capability to attract the best talent in the field.
During his segment, the veteran Shark Tank judge related his observations after attending electric vehicle races. During these events, O’Leary stated that the engineers behind these incredibly fast, high-performance EVs would flock to Tesla staff in attendance for potential jobs in the company. Regardless of where these teams originated from, the engineers reportedly showed a notable interest in Tesla, and an equally noteworthy lack of interest in other automakers.
“Colleges and universities around the world with an engineering department generally puts forward an electric Formula 1 car and engineering teams in their graduating years race these cars all over the world. I’ve been hanging out at the pits with these engineers, and I’ve learned something extraordinary. When you go to one of these races… when the race is over, the winning team — they come from anywhere on Earth — who do they want to talk to?
“They want to talk to the Tesla hiring team there; the HR people hanging around at the pits. Every one of these engineers, the smoking hot kids that sit with their cars, the men and women that sleep with them for 24 hours a day; it’s an unusual culture I’ve never seen before. They all want to work at Tesla. Why? Because the teams are six to eight people. If they go to a legacy car company, they get drowned out in the back somewhere. These smart, young, men and women make a big difference as interns. I can’t believe the access to talent they have. That’s why I bought the stock,” O’Leary said.
While a CNBC host promptly commented that the Shark Tank judge’s reason for finally supporting TSLA stock was “random,” it should be noted that O’Leary’s about-face with the electric car maker’s shares is most likely a calculated decision. O’Leary, after all, does not give his support to a stock lightly. Just last year, for example, the investor admitted that he loves his Tesla Model X (which he purchased at the behest of his wife) and he considers Elon Musk a genius, but he hates TSLA stock. With this in mind, his change of tone with regards to the company’s shares bodes well for Tesla.
Tesla shares are somewhat on familiar, volatile territory following the release of its second-quarter report and earnings call. While the company ended Q2 2019 with a record $5 billion in cash, Tesla also showed a net loss of $408 million, translating to a loss of $2.31 per share, notably lower than Wall Street’s estimates. Commenting on the steep drop, longtime TSLA bull Ban Kallo of Baird argued that the market appears to be overreacting to Tesla’s Q2 results.
“Just back to the cash flow they generated during the quarter, there’s a couple of hundred million dollars, so this idea that they don’t make money is completely wrong, and the headline needs to change. There’s $5 billion in the balance sheet. They’re not going out of business. You have other OEMs that have really hard problems and restructuring problems. And it’s not Tesla; it’s XYZ German manufacturers,” he said.
As of writing, Tesla stock is trading at +0.43% at $229.01 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Elon Musk
Tesla sits at a ‘crossroads,’ Wedbush says by listing six negatives
Wedbush is still bullish on Tesla, but says Elon Musk needs to make a choice between DOGE and the car company.
According to Wedbush, Tesla is sitting at a “crossroads” as it nears its Q1 2025 Earnings Call on Tuesday.
Although the company’s Earnings Calls have been primarily focused on the financials and accomplishments of the past quarter, Tesla is approaching this one differently.
Tesla has even said that this Earnings Call will feature a “company update,” and as most believe it will detail plans for future models and production timelines, others have different expectations and beliefs over what could be said.
Tesla still on track to release more affordable models in 1H25
Wedbush’s Dan Ives believes Tesla is at a crossroads and outlined his six biggest concerns for the company since CEO Elon Musk took on a role within the White House at the Department of Government Efficiency (DOGE):
- Tesla has now unfortunately become a political symbol globally of the Trump Administration/DOGE
- Tesla’s stock has been crushed since Trump stepped back into the White House
- Brand damage to Musk/Tesla resulted in a terrible 1Q delivery number, with much lower 2025 deliveries on the horizon
- Protests and violence against Tesla dealerships/owners have erupted around the globe
- 25% auto tariffs have been enacted, delaying future lower-cost models for Tesla, even though Musk is vocally against the tariffs for obvious reasons
- Potentially 15%-20% permanent demand destruction for future Tesla buyers due to the brand damage Musk has created with DOGE
Ives has held onto the idea that Musk’s involvement has made Tesla synonymous with the Trump administration, but that only seems to be true for those who share ideologies that oppose what the White House is doing.
Others are able to differentiate between the two, noting that Tesla is not a Trump organization, and vice versa.
Of course, there are negative sides to Musk splitting his time between the two and having ties to the President. Politically, it is hard to appease everyone.
Despite this, Wedbush’s Ives said the firm still remains bullish on Tesla:
“So why stay bullish? It’s a great question. We believe Tesla along with Nvidia are two of the most disruptive technology companies on the globe over the coming years. The unparalleled innovation, engineering scale, autonomous roadmap, and robotics future will unleash massive valuation upside over the coming years in our view. BUT….Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time. Tesla is Musk and Musk is Tesla….and anyone that thinks the brand damage Musk has inflicted is not a real thing….spend some time speaking to car buyers in the US, Europe, and Asia…you will think differently after those discussions.”
Ives said that Musk needs to lay out the timing and rollout plans for the unsupervised Full Self-Driving and for the affordable vehicle platform, which was set for release in the first half of the year.
Investor's Corner
Tesla “best positioned” for Trump tariffs among automakers: analyst
Ives has a price target of $315 per share for the electric vehicle maker.
Wedbush analyst Dan Ives recently shared his thoughts about Tesla (NASDAQ:TSLA) amidst the Trump administration’s tariffs. As per Ives, Tesla is best-positioned relative to its rivals when it comes to the ongoing tariff issue.
Ives has a price target of $315 per share for the electric vehicle maker.
Best Positioned
During an interview with Yahoo Finance, the segment’s hosts asked about his thoughts on Tesla, especially considering Musk’s work with the Trump administration. Musk has previously stated that the effects of tariffs on Tesla are significant due to parts that are imported from abroad.
“When it comes to the tariff issue, they are actually best positioned relative to the Detroit Big Three and others and obviously foreign automakers. Still impacted, Musk has talked about that, in terms of just auto parts,” Ives stated.
China and Musk
Ives also stated that ultimately, a big factor for Tesla in the coming months may be the Chinese market’s reactions to its tariff war. He also noted that the next few quarters will be pivotal for Tesla considering the brand damage that Elon Musk has incited due to his politics and work with the Trump administration.
“When it comes to Tesla, I think the worry is where does retaliatory look like in China, in terms of buying domestic. I think that’s something that’s a play. And they have a pivotal six months head, in terms of what everything we see in Austin, autonomous, and the buildout.
“But the brand issues that Musk self-inflicted is dealing with in terms of demand destruction in Europe and the US. And that’s why this is a key few quarters ahead for Tesla and also for Musk to make, in my opinion, the right decision to take a step back from the administration,” Ives noted.
Investor's Corner
Tesla negativity “priced into the stock at its current levels:” CFRA analyst
The CFRA analyst has given Tesla a price target of $360 per share.
In recent comments to the Schwab Network, CFRA analyst Garrett Nelson stated that a lot of the “negative sentiment towards Tesla (NASDAQ:TSLA) is priced into the stock at its current levels.”
The CFRA analyst has given Tesla a price target of $360 per share.
Q1 A Low Point in Sales
The CFRA analyst stated that Tesla’s auto sales likely bottomed last quarter, as noted in an Insider Monkey report. This was, Nelson noted, due to Q1 typically being the “weakest quarter for automakers.” He also highlighted that all four of Tesla’s vehicle factories across the globe were idled in the first quarter.
While Nelson highlighted the company’s changeover to the new Model Y as a factor in Q1, he also acknowledged the effects of CEO Elon Musk’s politics. The analyst noted that while Tesla lost customers due to Musk’s political opinions, the electric vehicle maker has also gained some new customers in the process.
CFRA’s Optimistic Stance
Nelson also highlighted that Tesla’s battery storage business has been growing steadily over the years, ending its second-best quarter in Q1 2025. The analyst noted that Tesla Energy has higher margins than the company’s electric vehicle business, and Tesla itself has a very strong balance sheet.
The CFRA analyst also predicted that Tesla could gain market share in the United States because it has less exposure to the Trump administration’s tariffs. Teslas are the most American-made vehicles in the country, so the Trump tariffs’ effects on the company will likely be less notable compared to other automakers that produce their cars abroad.
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