Part 8/11:
Tesla’s valuation and profitability stand out in contrast to other automakers. While Toyota is heavily indebted, Tesla’s absence from that list underscores its relative financial strength. According to industry analyst Gary, even a 50% decline in Tesla’s stock might be a buying opportunity, especially considering the company’s ongoing innovations, including self-driving technologies and humanoid robots.
Musk himself has downplayed the impact of macroeconomic headwinds, stating that Tesla’s earnings are resilient to interest rate hikes. He also hints at potential temporary reductions in profit margins amid strategic pricing strategies during economic downturns—a move aimed to boost market share, with subsequent recovery anticipated.