Tesla Inc (NASDAQ: TSLA) has been a rocky ride lately, shedding nearly 13% over the past two months amid disappointing delivery numbers and growing concerns over its automotive business at large.
In a recent CNBC interview, Victoria Greene – the chief investment officer of G Squared Private Wealth – didn’t mince words, calling TSLA’s car business a “dumpster fire.”
Yet, she stopped short of recommending a sell, citing the company’s tech ambitions as a reason to hold.
Greene’s nuanced take on Tesla stock reflects the growing divide between its struggling auto business and its promising future in AI and robotics.
Why is Tesla stock a dumpster fire?
Victoria Greene’s frustration with TSLA’s auto division stems from a string of weak deliveries and strategic missteps.
Tesla’s decision to delay the release of its cheaper Model 3 until after the $7,500 EV tax credit expires raised eyebrows, suggesting a reactive rather than proactive sales strategy.
Meanwhile, heightened competition in Europe and Asia is squeezing the EV maker’s market share, and the tone of the recent earnings call did little to reassure investors.
According to the expert, the numbers didn’t disappoint investors as much as Elon Musk’s comment that “we could have a few rough quarters.”
The messaging and outlook were troubling – especially for those banking on near-term growth in TSLA shares, she added.
Why do TSLA shares remain attractive as a tech holding?
Despite the company’s automotive woes, Greene remains bullish on Tesla’s tech potential.
On “The Exchange”, she highlighted the automaker’s advancements in full self-driving, robotics, and artificial intelligence as key reasons to hold TSLA stock.
Victoria Greene remains constructive on Tesla shares as its tech narrative remains intact – the long-term vision of robotaxis and autonomous systems continues to attract investors.
Additionally, Musk’s track record of eventually delivering on ambitious promises adds credibility to the firm’s outlook.
If political distractions continue to fade, the G Squared’s chief investment officer said investors may shift focus from lagging car sales to Tesla’s disruptive tech pipeline, which could drive future valuation.
Should you invest in Tesla Inc today?
Greene’s verdict? Hold, don’t fold – but also don’t double down on Tesla stock at current levels.
While she acknowledges the risks tied to the company’s automotive unit, especially in international markets, she sees enough promise in the tech side to justify staying invested.
However, Victoria Greene cautions against aggressive buying, given Musk’s warning of potentially rough quarters ahead.
All in all, for investors, the key is to recognise TSLA as a hybrid play – part carmaker, part tech innovator.
Those with a long-term horizon and tolerance for volatility may find value in holding, but new entrants should tread carefully until the auto narrative stabilises.
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