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A wealth manager dings Tesla, says there’s ‘absolutely no reason’ to own the company’s shares right now (TSLA)

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A wealth manager dings Tesla, says there’s ‘absolutely no reason’ to own the company’s shares right now (TSLA)

Category : entrepreneur

  • According to Mark Tepper, CEO of the wealth-management firm Strategic Wealth Partners, there’s “absolutely no reason” to own Tesla stock.
  • In an interview with CNBC, Tepper cited low margins, the expiration of a federal tax credit for Tesla’s US customers, and increasing competition from the likes of Volkswagen and Porsche as reasons to be wary of Tesla stock.
  • The electric-car company’s share price has slid over 15% during the past 12 months and over 25% since the beginning of 2019 as the company has failed to build on the profits it earned during the second half of 2018 and by posting losses during the first half of this year.
  • Tesla’s share price fell as much as 7% on Thursday morning after the company released its third-quarter delivery report after markets closed on Wednesday.
  • While Tesla’s 97,000 third-quarter deliveries set a company record, it fell on the low end of Wall Street’s consensus estimates, which ranged between 95,000 and 100,000 vehicles.
  • Visit Business Insider’s homepage for more stories.

Tesla’s stock price has fallen by more than 25% since the beginning of this year, as of Friday morning. According to Mark Tepper, CEO of the wealth-management firm Strategic Wealth Partners, there’s “absolutely no reason” to own the electric-car maker’s shares.

In an interview with CNBC, Tepper cited low margins, the expiration of a federal tax credit for US Tesla customers, and increasing competition from the likes of Volkswagen and Porsche as reasons to be wary of Tesla.

“What you have here is you have a company that’s just, quite frankly, notorious for overpromising and underdelivering, so there’s absolutely no reason to own the stock right now,” he said.

Read more:‘I thought Uber drivers were bad at picking me up’: Tesla’s Smart Summon is the butt of Trevor Noah’s jokes

Tesla’s share price fell as much as 7% on Thursday morning after the company released its third-quarter delivery report after markets closed on Wednesday. While Tesla’s 97,000 third-quarter deliveries set a company record, it fell on the low end of Wall Street’s consensus estimates, which ranged between 95,000 and 100,000 vehicles.

“What’s happened is the narrative has switched, from one of innovation to now it’s one of survival,” Tepper said. “So the stock’s going to get whacked every time they miss.”

A Tesla representative directed Business Insider to the company’s third-quarter delivery report in which it said, “As was also the case in Q2, nearly all of our Model 3 orders were received from customers who did not previously hold a reservation, solidifying the transition to generating strong organic demand. We are continuing to focus on increasing production to meet that demand.”

See also: Apply here to attend IGNITION: Transportation, an event focused on the future of transportation, in San Francisco on October 22

Tesla’s stock price has slid over 15% during the past 12 months and over 25% since the beginning of 2019 as the company has failed to build on the profits it earned during the second half of last year by posting losses during the first half of this year.

The company’s market capitalization of $42 billion is greater than those of Ford ($34 billion) and Fiat Chrysler ($19.1 billion), but lower than that of General Motors ($49.6 billion). At around $230, as of Friday morning, Tesla’s stock price is much higher than those of all three of its American competitors.

Watch CNBC’s interview here.

Are you a current or former Tesla employee? Do you have an opinion about what it’s like to work there? Contact this reporter at mmatousek@businessinsider.com. You can ask for more secure methods of communication, like Signal or ProtonMail, by email or Twitter direct-message.

  • Read more:
  • Videos showing Tesla’s Smart Summon feature doing bizarre things have gotten the NHTSA’s attention
  • Tesla is killing its potential profit margins with the Model 3
  • I drove the Tesla Model 3 and one of its biggest rivals, the Chevy Bolt — and the winner was clear
  • Former Tesla employees reveal what it’s like to work with Elon Musk
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About Author

Sammy Singh

Global VC, Founder, and entrepreneur extraordinaire as featured in Inc. Magazine, Bloomberg, and Forbes. Sammy Singh is a graduate of UCLA and Wharton School of Business as well as a former student of Loyola University of Chicago. Sammy is best known as a renowned financial technology global entrepreneur and has founded over 26 different firms across industry and all over the world. He is a venture capitalist,a TV/ Film actor, tax specialist, and marketing solutions strategist. Connect with Sammy Singh on social media below! www.linkedin.com/in/cfo www.instagram.com/champagnegqpapi www.facebook.com/officialsammysingh www.twitter.com/cxosynergy www.medium.com/@sammysingh www.crunchbase.com/sammysingh

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