Please understand this post is my personal opinion and is not financial advice. I don’t have any investing experience so this could be wrong.
Today I was thinking about Tesla. Tesla’s stock has for a long time had some kind of weird cult status among retail investors and the stock has been a lot higher than other car companies for reasons I don’t understand.
It seems Musk has alienated everyone with Tesla’s cars. People on the left are not going to want a Tesla because it funds Musk’s far right extreme agenda. People on the right are not going to be all of a sudden in favor of electric cars and I know this from talking to Trump supporters in real life.
As long as Musk is running TSLA I don’t see how Tesla will be sustainable if no one buys their cars anymore. I predict that as people get more frustrated with Musk the stock will start to go down.
In addition another risk to TSLA is starting to become known for poor quality and high prices. Basically you’ll be stuck with an expensive car that most people won’t be willing to repair for you.
Theoretically speaking if there was to be a large scale selling of TSLA and boycott of TSLA it would make Elon worth a lot less meaning he won’t be able to influence as many elections.
Perhaps now would be a good time to sell the stock and urge your friends and maybe even hedge fund managers to do the same thing.
Henry ford started a for profit cult/slave country of his own after siding with Nazi’s and Ford is just fine today.
The story will be corpo washed over time and he will be labeled an eccentric visionary.
Retail investors don’t matter. It’s institutional investors that count. They are likely 1600% down with him.
Regarding him being labeled an eccentric visionary I really hope that doesn’t happen.
As far as Ford being fine today, Henry Ford hasn’t run the company for a very long time. I think if Elon Musk were to leave Tesla it could be a good company. A lot of the issues with Tesla seem to be a direct result of Musk interfering with the engineers who want to do real work. So if one day Musk were to leave Tesla and they improve their quality issues I would think much better about Tesla.
It’s a strong parallel to Henry ford. Does did all sorts of stuff that made cars bad as well. The company eventually went onwards and did things without ford. I really think with the house of cards that Elon set up institutional investors and banks are going to keep things ever increasing. Tesla will be in time treated like the ford of today.
I don’t like it but it’s going that way.
