Tesla Stock (TSLA) is Headed to $167

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[00:00:04] Doug McIntyre: Big Tech Tesla considered by many people to be a big tech company. And so what’s happened, Elon Musk and President Trump got into a massive fight. You had a reset on Tesla that was down 14. It’s come back some, so I’m gonna give you a couple numbers here, okay? Okay.

[00:00:22] Doug McIntyre: I’m gonna tell you why I am giving them to you.

[00:00:25] Doug McIntyre: 52 week high. $488, 52 week low, 167 trading at 300 now. Now I’m gonna say something to you and you’ll say, Doug, you’re outta your mind. Okay. I’m looking for a reset back down to the 52 week low. And the reason is, and the reason is, that the things that the Trump administration can do to Musk and can do to Tesla is an almost endless list.

[00:00:56] Doug McIntyre: Horrible things. So number one is taking away the $7,500 credit. I think that’s going to happen. I think that was priced into the stock.

[00:01:05] Lee Jackson: Yeah. And to be honest with you, for him to must have a big issue with the bill now. Well, he knew that was in there, so.

[00:01:13] Doug McIntyre: Yeah. But let’s look at a few other things.

[00:01:16] Doug McIntyre: If I want to give Tesla a really hard time, the first thing I do is I, if I’m the Trump administration is, say. All regulation of self-driving cars is gonna be done on federal standards, not state, which is the way right now, or city. Now, if it’s on federal levels, president Trump who’s might do this, may put his finger on the scale in a way that hurts Tesla self-driving product and helps Waymo.

[00:01:49] Doug McIntyre: Or one of the others. Waymo, part of Alphabet. So the first thing that the president could do to, Tesla is insist on nationwide standards for self-driving cars and make sure that it’s set up in a way that does not favor Tesla. That’s problem number one. Problem number two is, and I’m just gonna say ’cause it was in the Wall Street Journal.

[00:02:14] Doug McIntyre: Mr. Musk, likes recreational drugs. If you’re the CEO of a public company and it’s broadly known that you’re a recreational or more than recreational user of illegal drugs, the SEC can come investigate you and say to your board, what’s the deal here? This guy is an admitted. user of illegal drugs and we’ve done an investigation and the board’s done nothing about the fact that he occasionally is taking drugs, while he is working, that could impair his judgment.

[00:02:52] Doug McIntyre: So the thing, the number two thing that they could do to Tesla is they could go after Musk’s position at Tesla as the CEO. Now, the Trump administration, there’s a lot of tools that they’ve got in their toolkit. But just those two represent tremendous threats to Tesla, which is why I’m looking at the 52 week low right now as a real possibility within the next 90 days.

[00:03:23] Lee Jackson: Well, needless to say. the, whole flare up of this was ridiculous. And I get the sense that it was mostly Musk, and apparently you, he got all carried away about the bill and all that. and yeah, there there is some, increased spending. But again, it is a reconciliation bill.

[00:03:44] Lee Jackson: it’s not a, it’s not a tax package and there’s only certain things you can do in a reconciliation bill. One thing I did think was interesting is Bill Ackman, who is not as rich as Musk, but probably richer than the president came out, today, I think it was, and said, look, I have great respect for the president and I have great respect for Elon, but these two and everything for America’s sake.

[00:04:10] Lee Jackson: have to work together and rekindle and all that. and Musk came back and said something on x to the effect of That’s true. And, we do. But yeah, I mean, and I saw the whole drug thing and, some of it’s Ketamine and Adderall and crap like that. And surely he, weed is probably legal where he lives, but Yeah.

[00:04:33] Lee Jackson: Yeah. I. If I’m a shareholder, I’m like, look, dude, and do you, does this really have to be public knowledge? Couldn’t we just keep all your private stuff private and, but it’s like everything else in his life, it’s all part of part and parcel of the front page story.

[00:04:49] Doug McIntyre: Look, if it’s in the Wall Street Journal and the SEC starts to look into it, it’s not like they’re on, some sort of, they’re, out hunting for Bigfoot, Right. They’re, not gonna find it. So. look, the stock’s at 300 right now. The 52 week low is 167. I’m gonna go out on a limb and say that if, President Trump decides that he still has revenge on his mind. I am worried that the stock will reset down that low. Now, almost no one would.

[00:05:22] Doug McIntyre: People would look at me and say, that’s not gonna happen. Listen, this is also in the face of the fact that Tesla sales in certain European countries were down well into the double digits.

[00:05:34] Doug McIntyre: In China, they were down 15% year over year in May in, in a market. In China where EV sales are going up quickly. So yeah.

[00:05:42] Lee Jackson: And they’re starting to lose some of the momentum they’ve had in Europe for years, as the go-to product. And yeah, I mean, there’s a point, Elon Musk knew it, he was like, look, I gotta get back to my job. And, and he’s got a million other things going on. But the sad thing or kind of.

[00:06:02] Lee Jackson: Ironic thing here is, what he came in and what he wanted to do for the country was incredible and awesome. And we need it because the DC journaling swamp. It just, it never changes. It never changes. All that ever changes is the national debt. And he, I think that’s what you know, kind of. Put the B in his proverbial bonnet over the bill because there’s so much spending.

[00:06:30] Lee Jackson: But again, it’s a reconciliation bill and a lot of things ultimately can get forced out down the road and they gotta codify the DOGE cuts. But yeah, all things being equal, I think you’re right. If not the 52 week low, certainly it can go to the 200 day or lower.

[00:06:46] Doug McIntyre: Well, the other part of this that’s a problem is, that just because he left.

[00:06:51] Doug McIntyre: Washington to go back to Tesla. The consumer doesn’t suddenly forget the fact that they were unhappy with what he did in Washington, or things he said in Washington or whatever. consumers have a long memory. I don’t, I think it was Warren Buffet. Warren Buffet used to have a meeting every two years.

[00:07:09] Doug McIntyre: He’d bring the heads of all of his companies in and he, this is what he’d say. It’s okay if you lose money. Particularly if we sit down and we say, this is why we lost money. It was spent. He said, if anything happens, that hurts Berkshire’s (NYSE: BRK.A , BRK.B) reputation. He said, the most valuable thing we have is not earnings.

[00:07:30] Doug McIntyre: It’s not the number of companies, it’s not re, he said, if you destroy our reputation, getting it back may never happen. It certainly takes years. Oh, absolutely. One of the things, well, Tesla’s problem right now is that its reputation has been torn to shreds. Look, everybody who’s watching Tesla right now is looking at one small self-driving test with a very small number of vehicles in Texas, right?

[00:07:58] Doug McIntyre: If that doesn’t go well, or there’s any bad press about it, the thing that’s propping up the stock price, which is the belief that Tesla is not a car company, it’s an AI company, right? The minute that there’s significant erosion of that. You’re looking at. Okay. I’ll, buy what you said. It’ll go to the, it’ll go down to the 200 day average.

[00:08:22] Doug McIntyre: Don’t drop. But, the point is, that Tesla has further to fall if even one small piece of bad news comes out on top of Yeah. I’m looking at Tesla and I’m saying it is one of the, it may be the most dangerous mega cap. Company in the world.

[00:08:43] Lee Jackson: Yeah. and, it’s funny because when you think of the last 10 years and especially the, 20 17, 20 18 to maybe 21, holy cow, it just was on a nonstop, parabolic move higher and, you’ve got a lot of people who did own it a lot higher than, current levels.

[00:09:05] Lee Jackson: So, yeah, it’s gonna be interesting to see because the next year is gonna be critical for Tesla. And I’m kinda like you. I mean, I don’t know if I have the courage to go in and short it, but one thing I do know I can do is I can buy out of the money puts and take a swing at it.

[00:09:22] Doug McIntyre: Yeah. So again, I worry a lot about Tesla.

[00:09:28] Doug McIntyre: Do they make good cars? Yes. Oh yeah. do They have a very good self-driving system. Yeah. Is it a self-driving system where pay attention boys and girls, you have to keep your eyes on the road? Yes, there’s in some of these accidents that did not happen, but it needs to show that it’s something more than what it is today.

[00:09:51] Lee Jackson: yeah. There, there has to be some other positives that, and, like we’ve said for some time now, there’s gotta be an affordable. Sedan model, even if it’s two door, it’s gotta, they have to have an affordable $25,000 car. 30,000 max.

[00:10:11] Doug McIntyre: I don’t hear him talking about that. I hear. No, I don’t. Well, he thought about it and everything else, so just, leaving Tesla right now.

[00:10:20] Doug McIntyre: As our, one of our subjects of the day. I’m very worried about Tesla dropping well below where it is today. And that was after a 14% sell off.

[00:10:30] Lee Jackson: Yeah. I’d have to take a pass on it myself. I mean, if you own it, I guess you can hold it if you own it cheaper, but if you own it really a lot higher, you may wanna consider, just go ahead and print your loss and, maybe sell something, you’re up against it and try to, match ’em up.

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