Part 8/10:
The conversation extends into Tesla’s capital allocation strategies, particularly regarding stock buybacks. The current sentiment suggests that Tesla is undervalued, and some investors favor initiating buybacks to increase shareholder value. The author personally prefers waiting until the stock drops to around $140 before endorsing a buyback, implying that current valuation levels do not favor such a move.
There is skepticism whether Tesla is spending at maximum efficiency on new factories. The Chinese gigafactory, for example, is praised for its efficiency and replicability. The author sees significant room for growth and continued investment before considering capital return measures like buybacks, which they keep on their radar for future implementation.