Musk Gets The Last Laugh

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Let me simply start by saying that Tesla's stock has long been overvalued. And by a heap ton. Before the stock crashed roughly 60% in value, the market cap of Tesla was bigger than Ford, GM, Honda and Toyota—combined. In most worlds, that's just crazy. But the "adjustment," if you will, that sent the stock plummeting, was based more on politics of course than true investor sentiment overall, and the true value of the company. Despite it being wildly overvalued. I want to make that clear. That being said, I did say that if one wanted to be invested in the company, the dip may have been a good time to add shares or enter into a position. Because while I do not necessarily believe Tesla may be the future of cars, it is still a highly transformative company, and the company you are buying today may be just the tip of the iceberg. In other words, maybe the highly overvalued market cap actually makes sense. Remember. When you are buying a company you are not buying what it is worth today. You are buying what it will be worth in the future. Disclosure: I do not currently own shares in Tesla, for reasons I will not discuss here. But I do own shares of Rivian and Ford. Today, Elon Musk had the last laugh on the folks angry about his Twitter takeover who saw fit to try to hurt him by unloading shares of Tesla stock. His company reported record revenue and record beats on earnings. The company's stock did not jump all that wildly. Not that it matters. And that's part of my point. The company matters more than the politics of the owner, nor the sentiment of the investors. Granted, customers could lash out and not buy the cars. But according to the numbers put out today? That is to be seen. What Elon Musk effectively gets to do today is to at least smirk at all those people that walked away from something potentially far more valuable than their ideology and say, "Your move next. What were you trying to tell me?" The thing is, and I point this out all the time, is that conservative values outnumber liberal ones. Even among democrats, more are more conservative than most think when you really get down to the brass tacks. They always win the hearts, minds and attention of people going down a more conservative line. And Tesla might actually win bigger than expected as a result. Just like companies like Hobby Lobby did and Chick-Fil-A did. When they espoused and stood fast and firm on their conservative values, customers rewarded them and made them much larger than they were before their conservative values were public. For that reason alone, Tesla might be the best company to buy in 2023. But I suppose we will have to wait and see. I am personally not still a buyer here because my interests lie in other companies. But the point remains—and I will definitely be watching it very closely.