Sunday , January 29 2023

Investors do not get discouraged with Musko's nonsense



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Despite all of his problems as the most ridiculous and toughest top executives in the world (The Washington Post called it "double fiance" on Thanksgiving for the "totally absurd Twitter in August" made by the stock exchange and Values ​​will seize the post of chair of the committee and make the payment of a personal penalty of 20 million dollars), Elon Musk made a profit of 7 percent for shareholders in 2018.

Shares of car manufacturers in China, France, Germany, India, Japan, South Korea and the United States fell to 36 percent in the worst year for stocks since 2011, due to a slowdown in global growth. Only one of the 10 most valuable automotive companies in the world sets a record in sales and outperforms the stock market. That would be Tesla Inc., which shows that the future with zero emissions works.

Despite all of his problems as the world's smurfing and toughest top executives (The Washington Post called it "double fiance" on Thanksgiving for the "Totally absurd Twitter in August" made by the stock exchange and Values ​​will seize the chairmanship of the committee and pay a personal penalty of 20 million dollars), Elon Musk made a profit of 7 percent for stockholders in 2018. In the meantime, the model 3 battery electric vehicle became the best-selling car in the US. As for revenue and Model S BEV, it's still six years old ek No. 1 in customer loyalty. The company even announced a profitable third quarter in October, the third with positive numbers in its history.

How is the rest of the industry, which remains predominantly dedicated to fossil fuels? Daimler AG, the parent company of Mercedes, lost one third of its value. Porsche Automobil Holding SE decreased by 23%. BMV AG, which promotes its product as the "maximum machine for operation", has depleted its shareholders by 17 percent. Even Toyota Motor Corp., the world's first, from the popular hybrid Prius to the luxury line Lekus, fell by 3%. All giants, including General Motors, Ford Motor and Fiat Chrisler Automobiles SA, reported a slight increase in sales over the past five years, which is one of the main reasons why they are losers for investors.

Barely a day passes without a slight appreciation of Tesla's stock. Except no one has done it yet. That's why Tesla became the third market capitalization among the 20 largest carmakers, with a total return (revenue plus appreciation) that leaves few of those growing in the year, when the Industrial Average was a loss of 13 percent. According to data collected by Bloomberg, Tesla achieved the highest risk-adjusted yield, which is the way in which the market says Tesla's investors have received the highest compensation for price fluctuations.

Over the past five years, Tesla's market capitalization has almost tripled, comfortably surpassing Fiat Chrisler (2.2 times), GM (13% reduction) and Ford (44% reduction), while Tesla's sales have exploded (6 times). According to Bloomberg, the revenues of Fiat Chrisler and Ford increased by 9% and 7% respectively, while GM's revenues decreased by 6%. Tesla's sales growth of 82 percent made him the top among 40 companies in the Bloomberg Intelligence car group in 2018, and 26 analysts surveyed by Bloomberg predict that Tesla will be at the forefront of the industry in 2019. in 2020 (20%).

Tesla's relationship with shareholders is equally remarkable in the light of continuous press reports that say the company "burns up money". $ 11,000 million invested by mutual funds in Tesla represents 1.2% of its assets. This commitment is much higher than 0.7 percent of 298 funds investing $ 7.7 billion in GM, according to data collected by Bloomberg. The same 159 Tesla investing funds generated a yield adjusted at a risk of 1.9 percent over the past three years, easily surpassing 1.5 percent of the 472 investment funds that have a stake in other US automakers. ., according to data.

For some of these investment funds, Tesla was a gift that still brings the fruits. Global Technology Fund of $ 5 billion T Rove Price achieved a total return of 120 percent over the past five years, best from a group of 367 funds. Since the money manager Joshua Spencer took over in 2012, Tesla weighted the fund from 0 to 8.5%, according to public data since September.

Tesla remains the favorite target of short sellers led by Jim Chanos, who use the sale of stocks that do not have to capitalize on the expected price drops. Tesla's share in the shares discovered in relation to total trading shares was 22 percent higher than any of the S & P 500 companies, but short sellers are still frustrated with the resilience and current relationship of the company. The ratio of short-term interest is a 70 percent shadow that the company received when it was released to the public eight years ago.

"Elon Musk has made a great character that people, including me, have started to forget about the basic job," said Andrev Left, the leading retailer of short positions in Citron Research on Bloomberg TV in October. "It's a revolution I really underestimated, the way people buy these cars."

Levi, who predicted that Tesla would fall to $ 100 a share from the current $ 332 by the end of the year, became an enthusiast two months ago. Then he wrote: "While the media focused on the eccentric, extravagant and sometimes insulting behavior of Elon Musk, they did not notice legitimate disruptions in the auto industry." As everyone focuses on Ellon's grass smoke, he quietly smokes the entire automotive industry. "

  • This column does not necessarily reflect the opinion of the editorial board or the Bloomberg LP and its owners.
  • The content expressed in this column of opinions is the sole responsibility of its author and does not necessarily reflect the editorial line or position The Counter.
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