Connect with us

Hi, what are you looking for?


Tesla shares remain ‘very cheap,’ investment advisor says

Tesla Inc (NASDAQ: TSLA) has become one of the most debated stocks among investeors and each side can point to recent performance to justify their case.

Bulls will point to the 75%+ gain so far in 2023 as evidence of buying momentum and high expectations ahead. Bears, on the other hand, hold a clear advantage over a one-year timeframe in which Tesla shares are still sharply lower.

Most recently, Invezz reporter Wajeeh Khan covered Morgan Stanley analyst Adam Jonas who said the “window of opportunity on valuation has closed.” Taking the other side of the debate is Future Fund Managing Partner Gary Black who argues it is not too late to buy Tesla shares.

Tesla shares trade at an attractive valuation

Black was a guest on CNBC’s “Squawk on the Street” segment on Monday and explained why Tesla stock remains “very cheap” and should still be bought by investors. He argues there is a scarcity of mega-cap growth stocks offering 30% to 35% volume growth that trades at 40 times earnings.

Tesla stock is the “best way” to capitalize on growing electric vehicle demand, according to Black. He notes multiple catalysts in the coming weeks and months that will help Tesla hold on to its dominant market position. These include the FSD Beta V11 launch, expectations for a “blockbuster” first quarter, Megapack projects, and the Cybertruck launch. He said: 

There’s so many catalysts, this reminds me very much of the end of 2019 as we were looking into 2020 with all the catalysts coming.

Musk leadership concerns are ‘short-term’

Tesla investors still have reason to be concerned with Elon Musk’s focus as Twitter CEO. But, Black argues this remains a “short-term” headwind as he will “give up” his CEO title at the social media company.

It is merely a matter of time before Musk finds a replacement CEO and investors should “ignore” that storyline as it is merely “noise” and distracts investors from the big picture.

The Cybertruck and Megapack project alone can contribute $1.50 in incremental earnings as soon as next year, according to Black. He concludes:

That’s about 25% of where the Street is today. That’s why you want to own Tesla – not because he will give up Twitter. He will give up Twitter. There is no question in my mind that that’s coming.

The post Tesla shares remain ‘very cheap,’ investment advisor says appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.