Tesla's electric-vehicle, solar energy and battery-storage businesses tick off big sustainability themes in the era of climate change. That has attracted a passionate base of consumers, as well as social media supporters. Elon Musk has 25 million followers on Twitter. Beyoncé: 15 million. Tesla also fits the ESG approach to stock market buying now in favor with a new generation of investors.
There are signs that Musk's outbursts during a critical period for the company could be scaring off some of the biggest fund managers. Last Thursday, Reuters reported that one of the top institutional fund holders, T. Rowe Price, had made large cuts in Tesla shares it held across several of its funds.
"There has been no [new] successful American car company in 100 years, and then to make it an electric-car company in California that is vertically integrated in its manufacturing and wants to challenge the dealership network and do its own sales and service — that's an incredibly hard thing to take on," said Ahuja in a speech after his first retirement."All your dirty laundry is out in the public.
David Einhorn's Greenlight Capital made a bet against First Solar that paid off when the solar sector bottomed out in 2012. He recently slammed Tesla, saying in a letter to investors,"The wheels are falling off — literally." Investors who are enamored of the Tesla mission and are willing to overlook Musk's recent feuds need to remember that cash flow, profitability, manufacturing execution and market demand are the make-or-break issues for the company and its shareholders.
"This is the early stages of a massive market opportunity, and many investors are viewing the competition looming and think Tesla's best days are in the rear view," Ives said."We disagree, but that makes it a prove-me story." But one thing these two managers share is strong performance. Baron is one of the few of the old breed of active mutual fund managers who over the long-term has still managed to perform well versus index funds. Wood's Ark Innovation ETF , meanwhile, has the top ranking in its category over the past three-year period, according to Morningstar.
"Tesla has no ... tech advantage, no software advantage, no battery advantage. No advantages whatsoever," Bob Lutz, former vice chairman of General Motors, who also worked at BMW, Chrysler and Ford, told CNBC.
The only Battleground is 'between the smart (who won't touch it with a barge pole) and the stupid (who believe Musk's silly lies)'
ryanTHEtiger
The Fed buys TSLA stock