Kass: my best choice for 2021 – Short Tesla



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Tesla (TSLA) shares have gone from around $ 80 / share at the end of 2019 to almost $ 700 / share.

With its inclusion in the S&P Index, the company’s market cap now exceeds $ 650 billion, possibly the largest large-cap bubble in history.

“Rated competitors will include the Audi Q4 e-tron and Q4 e-tron Sportback, BMW iX3 (in Europe and China), Mercedes EQB, Volvo XC40, Volkswagen ID.4 and Nissan Ariya, while the cheapest and available now are the excellent all-electric Hyundai Kona and Kia Niro, extremely well-rated small crossovers with an EPA range of 258 miles for the Hyundai and 238 miles for the Kia, at prices under $ 30,000 including the $ 30,000 tax credit. US $ 7,500 has a formidable “sedan competition” direct from Volvo’s beautiful new Polestar 2 and the premium version of Volkswagen’s ID.3, and next year from the BMW i4. “

– Mark Spiegel

As noted above, in the face of an onslaught of competition – by Audi, Volkswagen (VLKAF) and others – and a relatively shallow divide, Tesla’s market cap is now more than 5 times that of Ford (F), General Motors (GM) and Fiat Chrysler. (FCAU), which, as a group, sells 17 million units / year against Tesla’s estimated production of 500,000 cars in 2020.

Tesla has little ownership in terms of electric car technology – while its global competitors have over a century of experience in consistently manufacturing and distributing high-quality automobiles, and subsidizing ongoing operating losses. of their electric car efforts.

Tesla has been around for 17 years and, adjusted for selling emission credits, has never been profitable despite the lack of competition and no need for publicity.

Despite limited global competition, Tesla has supported growth by reducing unit prices. What happens when the well-rated competition prepares for delivery in 2021? Market share will be under pressure and operating margins will decline.

Meanwhile, managerial turmoil has intensified over the past two years.

Conclusion

In the Age of Cult, Tesla is the stock (and Bitcoin is the currency)!

(Ford is a member of Jim Cramer’s Action Alerts PLUS membership club. Want to be alerted before Jim Cramer buys or sells F? Learn more now.)

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