TESLA STOCK WITH GENE MUNSTER FROM DEEPWATER ASSET MANAGEMENT

EV Channels Review

This interview with Gene Munster of Loup Funds provides a deep dive into Tesla's stock valuation and future prospects, particularly in the context of a shifting macroeconomic environment. Munster emphasizes a cautious approach for investors, suggesting the market has not yet hit its bottom due to ongoing inflation concerns and potential Fed actions. He highlights that 2023 is poised to be a strong year for tech, provided investors are positioned correctly. Regarding Tesla, Munster views it primarily as a tech company rather than a traditional automaker, advocating for the use of PEG ratios over simple P/E ratios to account for growth. While he doesn't heavily factor in FSD and robotaxis into current valuations due to their long-term and uncertain nature, he acknowledges their potential as significant future growth drivers. Munster's biggest concern for Tesla's company is the potential departure of Elon Musk, while for the stock, it's the pressure on automotive gross margins from rising component costs and increased competition limiting price hikes. He also expresses geopolitical concerns regarding Tesla's reliance on China.