Explanation Or Excuse – Musk on TSLA
As soon as I heard this I knew it was nonsense. Musk floats the narrative that he wants 25% ownwership of TSLA. One can say that was to give bulls hope that the cratering stock will see support as Musk is likely to be buying. He needs an excuse to offset the drop from all the negatives for EV’s in general and Tesla specifically. Tesla is a great innovative company but like Apple, Nvdia and every other innovative high tech company they always end up overvalued to the point where their market cap exceeds the reality of fundamentals and economic value. Look at MSFT from 2000 as an example. It spent 15 years correcting and going sideways before starting on another leg higher. TSLA could do the same given all the projects it has in the pipeline but it should spend years(maybe not 10-15) working off the overvaluation. Don’t fall for Elon’s excuse about wanting 25% ownership for better control. What difference does it really make if he has 13% or 25%? (This is not investment advice, just my opinion.) https://www.cnbc.com/2024/01/16/elon-musk-wants-more-control-of-tesla-seeks-25percent-voting-power.html