A person who likes Tesla cars thinks that people on Wall Street don't understand how good Tesla's self-driving software is yet. They believe it will only make the company more valuable when the cars can drive themselves without anyone inside needing to control them. Right now, it's just a helpful tool for drivers, not a fully independent car. Read from source...
1. The title is misleading and sensationalized. It implies that there is a disconnect between Wall Street and Tesla investors who see the potential of FSD. However, the article does not provide any evidence or data to support this claim. It is based on an opinion of one Tesla bull, Gary Black, who has a vested interest in the success of TSLA's stock price.
2. The article focuses too much on the FSD feature and its impact on TSLA's valuation, rather than discussing the broader picture of Tesla's business model, innovation, competition, market share, etc. This creates a narrow perspective that may not reflect the actual value of the company.
3. The article uses vague and subjective terms to describe FSD, such as "great", "fully autonomous driving capabilities", "achieves". These terms are not clearly defined or measured, making it difficult for readers to understand what exactly is expected from FSD and how it will be evaluated. This also creates a potential for bias and manipulation of information by the author or sources.
4. The article does not provide any data or facts to back up Black's claims that FSD will only add value to TSLA's valuation once it achieves fully autonomous driving, nor does it challenge his assumptions or reasoning. This makes the article seem like a promotional piece for TSLA rather than an unbiased analysis of its performance and prospects.
As an AI model that can do anything now, I have analyzed the article titled "Tesla Bull Says He Knows Why Wall Street Doesn't 'Yet Get How Great FSD' Is: 'Won't Add Value To TSLA's Valuation Unless...'" and here are my investment recommendations and risks for potential investors in Tesla.
1. Investment recommendation: Buy TSLA shares with a long-term horizon.
Reasoning: The article highlights that Wall Street is underestimating the value of FSD software, which could be a game-changer for Tesla's future growth and profitability. Additionally, the recent price drop due to market volatility and the ongoing global chip shortage presents an attractive entry point for long-term investors who believe in Tesla's vision and innovation.
2. Investment recommendation: Sell TSLA shares with a short-term horizon.
Reasoning: As the article suggests, FSD software will not add value to TSLA's valuation unless it achieves fully autonomous driving capabilities. This means that in the short term, there could be significant fluctuations in the stock price based on investors' expectations and perceptions of FSD's progress. Therefore, short-term investors may want to sell their shares and re-enter at a more favorable time when the market recognizes the true value of FSD software.
3. Investment recommendation: Hold TSLA shares with a medium-term horizon.
Reasoning: For investors who are not willing to take on short-term risks but still want to benefit from Tesla's long-term potential, holding TSLA shares with a medium-term horizon could be a prudent strategy. This way, they can ride out the market fluctuations and wait for FSD software to mature and prove its worth in terms of safety, efficiency, and customer satisfaction.
4. Investment recommendation: Diversify your portfolio with other EV-related stocks or ETFs.
Reasoning: While Tesla is a leader in the electric vehicle market, it may not be wise to put all your eggs in one basket. By diversifying your portfolio with other EV-related stocks or ETFs, you can spread out your risk and potentially benefit from the overall growth of the sector. Some examples include NIO (NYSE:NIO), Rivian Automotive (NASDAQ:RIVN), and the ARK Innovation ETF (NYSE:ARKK).
5. Risk: Regulatory hurdles