TSLA skeptic Mike Khouw admitted on CNBC’s that he ordered the EV automaker’s Cybertruck. Khouw is not a Tesla bear (TSLA: NASDAQ), but has remained impartial towards the next-gen company.
“[The Cybertruck is] completely different than anything else on the market. And that actually is where Elon Musk really has turned Tesla into this success. It’s that he’s willing to do things that nobody else is willing to do. If you’re going to be unconventional, you know, that’s the way to do it. He is unconventional and that is why he’s breaking into this industry,” said Khouw on CNBC recently, acknowledging why Musk and Tesla work even though both cannot be classified as the norm.
Mike Khouw—who is a veteran in the financial services industry as an analyst, strategist, and portfolio manager among other roles—appeared on CNBC in a segment called “Options Action.” With TSLA’s Q4 2019 earnings call merely days away, analysts like Khouw have started to share their thoughts about the company’s end-of-year report. After all, the results of the earnings call will definitely influence TSLA stock.
Credit: Yahoo Finance
On CNBC, Khouw talked about ways to “bet against TSLA without losing so much money over time” or bearing the same loss TSLAQ would have to endure by actively shorting the stock. He notes that Tesla’s stock usually drops 10 to 15 percent from the week leading up and of the company’s earnings call.
Despite his advice on the segment, however, Khouw maintains that he isn’t a Tesla hater nor does he hate the EV maker’s cars. Khouw actually presents a very bullish argument on CNBC when he stated that Tesla has maintained its place in the EV market even after legacy automakers entered it. He predicted that Tesla could be one of the big automakers in ten years if it maintains its profit shares in the EV market.
He admits that TSLA bulls do have a strong case, and even somewhat acknowledged some of Tesla’s other ventures. But he thinks the $100 billion market capitalization on the company already has Tesla’s potential growth in the car industry priced in.
He compares Tesla to Toyota, which has a higher market cap than the electric car maker. Although it must be pointed out that automakers like Toyota don’t currently offer services or products like Autopilot, OTA updates like Acceleration Boosts, or solar panels and battery storage units. These other products and services Tesla offers are the main reason hardcore TSLA bulls believe the company could reach a trillion market cap in the future.
Despite this, however, Khouw does recognize Elon Musk’s genius. “Elon Musk, bravo. You built a good car, and you’ve got a great stock. And now the balance sheet is self-correcting because the converts take out all the debt now—because are well on the money,” he said.
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