•   
  •   

Tech & Science 'Almost a mass psychosis': Tesla's 250% stock rally makes no sense, Bob Lutz says

11:25  14 february  2020
11:25  14 february  2020 Source:   businessinsider.com.au

Why One Analyst Believes This Is Just the Beginning for Tesla

  Why One Analyst Believes This Is Just the Beginning for Tesla After a spectacular Tesla fourth-quarter earnings report, it looks like analysts may be coming around on the stock. In fact, one firm is forecasting incredible numbers for the electric vehicle giant for this year and beyond. Argus reiterated a Buy rating for Tesla shares and raised its price target to $808 from $556, implying upside of 24% from the most recent closing price of $650.57. The firm was quick to note that despite the recent spike in the stock price, it continues to see significant upside for Tesla, based on accelerating revenue trends and strong demand for the new Model 3.

Bob Lutz , the former vice chairman of General Motors and prominent Tesla critic, would like you to know that he still believes Tesla ' s days are numbered. Tesla is also working overtime to crank out as many of its mass -market Model 3 sedans as it can. "They will never make money on the Model 3

Has Elon Musk bitten off more than he can chew with his Tesla for the masses ?

Elon Musk with his mouth open
  • Bob Lutz can't explain why Tesla stock has rocketed more than 250% in six months.
  • The former GM, Ford, and Chrysler executive said on the BBC Business Daily podcast this week that Goldman Sachs analysts are asking him if he has "any idea what the heck is going on."
  • "Nobody can explain it," Lutz said. "It's driven purely by psychology or almost a mass psychosis."
  • Lutz also downplayed the growth prospects of electric vehicles, arguing they will only make up 15% of global car sales in 2030.
  • Visit Business Insider's homepage for more stories.

Bob Lutz has no idea why Tesla stock has rocketed more than 250% in six months.

Tesla's rally has pushed its market value above $150 billion. That means Elon Musk is one step closer to a record $50 billion payout.

  Tesla's rally has pushed its market value above $150 billion. That means Elon Musk is one step closer to a record $50 billion payout. Tesla surged as much as 21% Tuesday, bringing its market value to more than $US165 billion (AUD$245 billion). If the gains hold, it means Tesla has cleared another hurdle of CEO Elon Musk's massive payout package.

Bob Lutz doesn’t have a whole lot of faith in Tesla . The former General Motors vice chair Tesla reported a worse than anticipated loss in the second quarter and revenue that fell short of estimates. A decision on its World Rallycross programme has yet to be made , with Audi suggesting it could

Bob Lutz , former GM chairman and longtime automotive executive, is not one to shy away from It’s not the first time he’s made similar comments about Tesla ’ s financial situation and I already If you want to install a solar array at your home or business, you can see if it makes sense for your property

Neither do Wall Street's brightest minds, the auto-industry veteran - who sat on the boards of Ford, Chrysler, and General Motors during his career - said on the BBC Business Daily podcast this week.

"I talked to people at Goldman Sachs, who are usually the world's greatest experts on explaining stock prices, and they're now asking me whether I have any idea what the heck is going on with Tesla stock," he said. "Nobody can explain it, it's so far beyond any fundamental return that any shareholder could ever expect."

The coronavirus is forcing Tesla to delay Model 3 deliveries in China

  The coronavirus is forcing Tesla to delay Model 3 deliveries in China Deliveries of Tesla Model 3 sedans made in China will be delayed due to the Wuhan coronavirus. Tesla CFO Zach Kirkhorn said in late January that the electric-car maker expected a production delay of up to a week-and-a-half at its Shanghai factory due to a government-ordered closure. The shutdown won't have a big effect on Tesla's first-quarter financial results, Kirkhorn said at the time, as the Shanghai factory isn't yet a major factor in the company's earnings. Over 24,000 people have contracted the coronavirus, at least 494 of whom have died from it. Visit Business Insider's homepage for more stories.

Tesla is a "losing enterprise" that won't last, Bob Lutz , former vice chairman of General Motors, told CNBC on Friday. "There is no secret sauce in Tesla . They use the same lithium-ion batteries as everybody else," he said . He said "at this rate they'll never get to 2019."

Tesla CEO Elon Musk is a nice guy who doesn't know how to run a car company, says Bob Lutz , former vice chairman of General Motors.

Elon Musk's electric-car startup currently boasts a market capitalisation of $US145 billion - dwarfing Ford, Chrysler, and GM's combined market cap of $US103 billion. Tesla stock is no longer tethered to anything tangible, Lutz argued.

"It's driven purely by psychology or almost a mass psychosis," he said, warning the rally won't last. "Ultimately, the share price responds to financial fundamental reality, and that day will come."

An overstated growth opportunity

Lutz downplayed the market opportunity for electric vehicles in the interview. The shift from conventional to electric cars is "somewhat of a fiction," he said, as global demand for them is largely fuelled by government subsidies.

Electric vehicles are expensive and unprofitable to produce, Lutz added, and inconvenient to use due to their long charging times. As a result, he expects them to only account for 15% of the global auto market by 2030.

'Oh damn, I got my butt kicked': Tesla shorts are reeling from the 350% stock rally

  'Oh damn, I got my butt kicked': Tesla shorts are reeling from the 350% stock rally Investors betting against Tesla were hit hard by the electric-car maker's stock surge last week. "Oh damn, I got my butt kicked," private investor Robert Matjeles told The Wall Street Journal. Tesla shares have skyrocketed 350% in six months, and hit an all-time high last week.Notorious short-seller Jim Chanos told The Journal he wouldn't stop betting against Tesla.Visit Business Insider's homepage for more stories.Tesla bears are licking their wounds after the electric-car maker's stock skyrocketed last week.

Lutz writes that Tesla should be concerned about Audi’ s plans for a luxury EV, but oddly doesn’t mention Musk and others at Tesla have said over and over that they welcome other automakers’ This is reminiscent of the first days of automobile mass -production. For several years Henry Ford was

Bob Lutz , former General Motors vice chairman and current CEO at VLF Automotive, and Colin Rusch, senior research analyst at Oppenheimer, discussed reports the Department of Justice is launching a criminal probe into Tesla due to Elon Musk' s comments on taking the company private.

Despite his bearish view on Tesla's industry, Lutz praised the automaker's products. "There's nothing wrong with the car," he said. "It is one of the best-driving, best-performing, best-looking premium sedans in the world."

Fund managers, short-sellers, and even politicians sounded the alarm on Tesla last week after its shares soared by a third in two days. "Watch out Tesla believers," former presidential candidate Ralph Nader tweeted.

Tesla's next Gigafactory is back on track after a German court threw out an environmental challenge .
Tesla's plans to build its first Gigafactory in Europe is back on track. Elon Musk's electric-car startup halted preparations after environmental activists won an injunction against it. However, a German court threw out the challenge on Thursday. Tesla wants to finish the factory's first phase and begin production next year. Visit Business Insider's homepage for more stories. Tesla's plan to build its first Gigafactory in Europe is back on track after a German court threw out a challenge by local environmental activists on Thursday.

—   Share news in the SOC. Networks
usr: 0
This is interesting!