Do Wall Street Tesla analysts understand the company?

May 4, 2019 by Matt Pressman

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Originally published on EVANNEX.

After the bumpy first quarter of the company, Tesla's share price rose sharply. In all financial media, the story surrounding the society continues to feed on FUD (fear, uncertainty and doubt). And Wall Street analysts, who cover stocks, seem to echo much of it. Some influential investors, however, see things differently.

A Tesla Model 3 in Florida. © Zach Shahan | CleanTechnica

Catherine Wood, founder and CEO of ARK Invest, recently appeared on CNBC to talk about Tesla. Wood explained that Tesla's self-driving chip "skips the competition." And they have at least three, even four years ahead of the competition. But she believes that "analysts who follow this title do not know how to analyze this title." Wood notes that Tesla requires a more industry-wide analysis – this requires deep knowledge of the technology, battery and utility sectors – and "nobody can pull everything at the same time … I do not think research departments are set up to analyze this stock ".

Editor's Note: You can also listen to our podcast discussion with Tasha Keeney, Autonomous Vehicle Analyst at ARK Invest:

Ron Baron, icon of investing in billionaires, talked about Tesla in his company's first quarter shareholder letter. While some analysts are convinced of the decline in demand for Tesla's Model 3, Baron points to an obvious blind spot in their analysis. He explains, "Around 90 million cars a year are sold worldwide. The rental program recently inaugurated by Tesla creates additional demand. About 60% of cars sold by third parties are rented. Until April, Model 3 did not have such a program.

For more information on renting, check out: Tesla Reduces Rental Costs on Model 3 – $ 399 per Month!

Inside the model 3. © Tesla

Another billionaire, Chamath Palihapitiya, recently appeared on CNBC to discuss Tesla. While analysts are hanging on Elon Musk's tweets, Palihapitiya says they are "caught in the window window." … it does not change [the fact] that as soon as you sit in this car, your definition of what is expected is changed forever and you wonder why all the cars around you that you can buy and that you can buy do not have the same features than this car. So, in the end, whether you like his style or not, his substance is irrefutable. "

There is even a long-time Tesla bear who has recently become a bull (and owner of Model 3). Cody Willard, former anchor of CNBC and Fox News, hedge fund manager, writes, "One of the most remarkable things I've discovered in my Tesla homework is the amount of time, money, energy and hate that one seeks to defeat. "The company is deploying revolutionary new self-driving technologies driven by an exclusive supercomputer, connected to a remarkably innovative and constantly improving neural network … this new, fully autonomous revolution is about to become mainstream. a way that even automotive experts do not do. seems to understand. "

Keywords: Ark Invest, Baron Funds, Catherine Wood, Cathie Wood, Chamath Palihapitiya, Cody Willard, Elon Musk, EV batteries, Ron Baron, Self-driving cars, Self-driving vehicles, Social capital, Tesla, Tesla analysts, Tesla autopilot, Tesla model 3, Wall Street