Calls of the Day: On Holding and Tesla

Let's run through some calls on holding price target goes to 60. It was at 47 from Key Bank. Reiterate overweight. Jimmy tell me. Yeah I mean what a fun stock. I've owned this for about a month and a half. It's up 20 percent in that time frame. People who have held it longer up a lot more. I think it continues. Now somebody might say to me Jimmy how can you hold this when it's 40 times next year's earnings. Aren't you a value investor. At heart I am. But I also note that this stock is companies growing like a weed. Estimates are that it's going to grow 35 percent earnings per share over the next couple of years. And I believe it because there's a lot of geographies into which you can expand and it's barely scratched the surface in terms of apparel. We all know about the running shoes which everybody's gaga for and they're just expanding the brand. There's a lot of room for there for them to do so. So I'm going to stick with it. Who do you think he was channeling. You or me. When he when he said somebody was going to say to me what are you doing. It's the world at large. Don't be too hard on it. Yeah exactly. Exactly. Insecure. I mean let's go. OK. What is it. Crowd on one tag team. How am I tagging. I'm tagging. All right. Exactly. Tesla. You're in stocks positive on the year. At least it was. You still hold the stock. Correct. We do. What's this event coming up October 10th. I think they're going to talk about robo taxi. We are not as positive on robo taxi opportunity. We think it's going to take a long time. If we look at Waymo for example it has taken years for Waymo just to have one city San Francisco where there is happening successfully. But nevertheless on October 10th what we would love to hear about more is the lower priced vehicle. And I think there is some chance that we will hear a little something about lower priced vehicle which we think could be a positive for the story here. But otherwise we know this is a controversial stock but we think the company is still well positioned. Lots of other competitors have stepped away from doing 100 percent EV. And we think that just creates an opportunity for Tesla to continue to gain earnings or a week after the robo taxi announcement. You think they'll use the robo taxi announcement as a catalyst to say anything else or that'll be very focused. I'm hopeful that they'll talk a little bit more about the lower cost vehicle that we know is coming at some point. And so I think that would be a great opportunity. Some are saying you know they should have a separate event for that. And I think they probably should. But I think we'll hear probably a little something about it which could be a positive. All right.