Why I Don’t Like Tesla Stock #financialstrategy #investormindset

Added: 2026-05-23

[00:00:00]Despite Tesla currently trading at all time highs, here's exactly why I would not buy Tesla stock and why I personally sold my entire position at the beginning of this year. So, Elon owns a lot of businesses in a lot of different sectors, but Tesla in particular is a business that has a lot of different sub businesses. They have five main businesses, an AI business, a self-driving business, a solar business, a robot business, and an EV car business. And how you evaluate that as a stock is all these businesses are additive. You don't multiply their earnings just cuz there's more businesses. And out of those five businesses, frankly, only two of them are currently making revenue. That's the EV car business and that's the solar business. And despite the revenue being flat over the last five years, their market cap sits at 1.6 trillion with the PE ratio of 300. If you evaluate their solar and EV business alone as low-debt, well-vertically integrated businesses that have a large share of the market, you can price them at, you know, 30, 40, 50 price-to-earnings ratio.

[00:00:59]>> [music] >> So, just based on those two businesses alone, Tesla should be trading around $60 a share. So, if you evaluate solar and EV sales as about a $190 billion business, which is very generous, then AI, robo-taxi, and robots would be valued at $1.4 trillion despite not earning any money. Now, ChatGPT is a much bigger AI model than Grok, and ChatGPT is valued at $500 billion. If you value Grok at $300 billion, which I think is ridiculous and way too high, you still have over a trillion dollars of unexplained [music] value in this company. Essentially, Tesla's robot and robo-taxi business would be having to do [music] tens of billions, if not hundreds of billions of dollars a year, for this evaluation to even make sense. So, in general, I try to avoid investing in companies that have this many different revenue streams at this many different points of the growth curve. And Tesla, with how expensive it's trading, [music] really doesn't make a lot of sense to me as an investment.