Tesla stock needs 'Elon Musk magic,' expert says

Yahoo

4 days ago

Elon Musk's announcement that he wants to launch a new third party has some Tesla (TSLA) investors and analysts upset. They don't want to see the CEO distracted by politics. In the video above, Tufts University Fletcher School of Law and Diplomacy adjunct associate professor Gautam Mukunda explains why "Elon Musk magic" is so important to the EV maker's stock.
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No company on Earth has as much key risk as Tesla does, right?
To believe in Tesla's current valuation, you have to attribute some enormous ranco amount to Elon Musk magic.
You just do, right?
I mean, the theory is that somehow self-driving cars are going to generate the returns they have, but they're not the leader in the technology or autonomous robots are gonna do it, but there not the leader in that technology either.
So there has to be some theory by way which Elon Musk can do that.
And look, after SpaceX, who's gonna say that's impossible.
But if Elon Musk isn't involved in Tesla, then your value, the value you're attributing to Elon Musk magic has to get much higher because now you're saying it's like 20% of Elon is going to deliver that.
You're stretching the credulity of that story further and further with every.
And then adding to that, of course, the fact that the other adventure, his other adventures aren't the sort of things that give you confidence in what we're doing at Tesla.
If Tesla's valuation is driven by, you know, its ability to do autonomous cars, which is driven by its mastery of AI technologies, and Grok is currently declaring itself to be Mecca Hitler, well then you've got to wonder about the mastery of AI technologies part.
Go with the final question, what if you're a Tesla investor and you think to yourself, you know what, maybe I just look through this drama.
I look through the deadlines.
I look through the posts on X.
When it comes to Tesla, I just stay focused on, really what matters now, which is the cars.
The EVs are still what drives the P&L and the Q2 deliveries, hey, they were better than what some feared on the streets why the stock popped and we got that number.
And I'll just say focus on that.
I'll say focus on the EVs and the fundamentals.
I'll ignore what I see on X.
What would you say to that investor?
I mean, if you're a Tesla investor, you have already made the decision to ignore all of this, right?
It's not like Elon doing things that no one else in the world would do is happened last week.
We have years of this.
So you have already made that choice.
And what I would say is if you're just focused on the cars.
What's your theory behind why Tesla is going to maintain or increase its dominance of the electric car market when rivals are coming in who are producing cars as good or better than anything Tesla can do?
If you've got a theory for that, that says exactly how they're gonna do that, first, you should share that with Tesla, because I'm sure they'd like to know what it is, and second, then you should buy it, because OK, because then it makes sense.
But I haven't heard anyone propose a plausible version of that story yet.