

Investor's Corner
Tesla shares rebound over 9% from post-earnings pullback
Tesla (NASDAQ: TSLA) shares rebounded on Monday morning after collapsing late last week following a relatively bullish Earnings Call. The electric automaker’s shares were up over 9% by 1 PM EST.
Last Wednesday, Tesla reported its Earnings for 2021’s Full Year guidance and the year’s final quarter. Tesla reported delivery figures just after the New Year, beating consensus figures by 13 percent and delivering over 936,000 vehicles in 2021 while producing just over 930,000 units.
The Wednesday Earnings Call proved to be more bullish news for investors of Tesla. Musk and Co. reported another Earnings beat with $17.719B in revenues, an improving automotive gross margin, increased free cash flow, and an impressive $2.54 EPS. Wall Street expected $16.65B in revenues, with an EPS of $2.35. Despite the record-setting quarter, Tesla shares dropped sharply last week on Thursday and Friday, contributing to a significant slide in the tech sector as the market continued to experience a blunt selloff.
Shares were down 9.89 percent from Wednesday’s close to Friday’s close.
Tesla has not experienced positive days following Earnings Calls, even when profitability has become a regular expectation for the electric automaker’s quarterly calls. Past post-EC trading days have treated Tesla investors with the perfect inner struggle: Buy more or keep what I have?
Despite Tesla’s strong financials for Q4, it seemed the market responded to Musk’s quotations regarding Tesla’s future lineup. During the call, the CEO detailed that Tesla would not introduce any new vehicle models this year, putting an end to the speculation of a possible $25,000 Tesla or the arrival of the Cybertruck, which people have waited over two years to own.
“This lack of product is really weird,” John Murphy, a Bank of America analyst with a $1,300 price target on Tesla, said. We estimate it’s going to be 29 other EV models launched in the market. So the market is coming for him, and when we look at market share going forward, he’s going to lose a lot of market share. We can get into specific numbers, but we expect he is going to lose about 50 points of market share in the EV market over the next three to four years,” he said on CNBC.
Tesla CEO Elon Musk said the $25,000 Tesla wouldn’t be coming this year. (Credit: Alwinart/Twitter)
While other companies do, in fact, have new products coming to the market, the expectation is that consumers will go to whatever car is most desirable. From Tesla’s perspective, their multiple-year lead in software, EV infrastructure, batteries, and manufacturing, may give them peace of mind in knowing that there will be no more new car models this year. Why continue to expand the lineup when the current one is selling, and selling a lot. The Model 3 was Europe’s best-selling EV, and Tesla sold more EVs globally in 2021 than any other company. They may be one of the few companies to have a fully-committed business model that only builds EVs and can do it in massive numbers, but people need cars now, and Teslas may be the most desirable EVs on the market. The question is, when are the other companies going to catch up and compete?
The lack of a “Product Roadmap” update may have culminated in some losses, but not the 10 percent drop-off in stock that is being canceled out this morning. Nevertheless, Tesla shares are on their way back up, along with many others in the auto industry, including Ford (NYSE: F), which gained nearly 4% at the time of writing, and Rivian (NASDAQ: RIVN) up almost 12%.
Disclosure: Joey Klender is a TSLA Shareholder. He does not own shares of Ford or Rivian, which were also mentioned in this article.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
Tesla called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.
Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.
Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.
However, it is worth mentioning that Tesla is not traded like a typical company, either.
Here’s what Sonnenfeld said regarding Tesla:
“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”
Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:
“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”
Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:
“I think from a trading perspective, it looks very interesting.”
Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.
Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.
Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.
Elon Musk
Elon Musk affirms Tesla commitment and grueling work schedule: “Daddy is very much home”
The remarks came as Tesla shares crossed the $400 mark on the stock market.

Tesla CEO Elon Musk reiterated his commitment to the electric vehicle maker and its future projects this week, responding to speculation following his $1 billion purchase of TSLA stock.
The remarks came as Tesla shares crossed the $400 mark on the stock market, extending a rally fueled in part by Musk’s TSLA purchase.
Elon Musk’s nonstop work schedule
Amidst the reaction of TSLA stock to Musk’s $1 billion investment, Tesla owners such as @greggertruck noted that “Daddy’s home.” Musk replied, stating that “Daddy is very much home.” He then shared details of a packed weekend of work, which was definitely grueling but completely within character for a “wartime CEO.”
Musk did note, however, that he had lunch with his kids during the weekend despite his extremely busy schedule.
“Daddy is very much home. Am burning the midnight oil with Optimus engineering on Friday night, then redeye overnight to Austin arriving 5am, wake up to have lunch with my kids and then spend all Saturday afternoon in deep technical reviews for the Tesla AI5 chip design.
“Fly to Colossus II on Monday to walk the whole datacenter floor, review transformers and power production (excellent progress), depart midnight. Then up to 12 hours of back-to-back meetings across all Tesla departments, but with a particular focus on AI/Autopilot, Optimus production plans, and vehicle production/delivery,” Musk wrote in his post.
Wartime CEO
Wedbush analyst Dan Ives described Musk as operating in “wartime CEO mode,” highlighting autonomous driving and AI as a trillion-dollar market opportunity for Tesla. Musk reiterated this point late last month as well, when he outlined the several projects he is juggling among his numerous companies. At the time, Musk stated that he was busy with Starship 10, Grok 5, and Tesla V14. This was despite his notable presence on X.
With Tesla Master Plan Part IV being partly released, the company is entering what could very well be its most ambitious stage to date. To usher in an era of sustainable abundance, Tesla would definitely require a “wartime CEO,” someone who could remain locked in and determined to push through any obstacles to ensure that the company achieves its goals.
Elon Musk
Tesla analyst says Musk stock buy should send this signal to investors
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.
One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Dorsheimer said in the note:
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”
Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.
He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.
Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.
In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:
“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”
Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.
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