Tesla Has A Big Costly Image Problem (Rating Downgrade)

Jeffrey Fischer, CFA
1.42K Followers

Summary

  • Tesla's international sales are at substantial risk due to political tensions, particularly in Canada and Europe, amid Elon Musk's involvement with the Trump Administration.
  • Canadian consumer backlash against U.S. products, including Tesla, could lead to a significant decline in sales or even Tesla's exit from the market.
  • Elon Musk's political activities and diluted business focus raise concerns about his ability to help Tesla reach its potential. Musk's reputation also no longer hinges on Tesla's success.
  • I downgrade Tesla to a Strong Sell, expecting a notable decrease in sales, contrary to optimistic brokerage growth forecasts for 2025.

Nerd Student Giving Flower

RyanJLane/E+ via Getty Images

Investors not keeping up with the huge consumer shifts in Canada have some homework to do on their portfolio holdings. The shifts have been both staggering in size and speed, as Canadians have rallied together in protest over the United States' attack on

This article was written by

1.42K Followers
25 years+ in the financial/investment industry (see LinkedIn for more details). Currently self employed with my own investor service that supports top notch Seeking Alpha analysts. Former Senior Managing Editor here at Seeking Alpha; the tail end of an ~11 year stint working for SA. Prior to this, I worked as a Treasury Manager for a large commodities firm, where I managed financial liquidity, currency risk hedge portfolios, and investment arbitrage trades. I've also worked in financial performance analytics, trading, and banking. I have a healthy interest in behavioral finance and love a good investment "story" at least as much as a financial analysis. My investment ideas on SA will likely be a mix of contrarian, event-driven, and structured trades. I completed the requirements of the CFA Charter in 2003, and am an active member of the CFA Institute. MY PERSONAL FAVS:https://seekingalpha.com/article/4688259-qyld-and-contango-capture-for-possible-15-percent-yieldhttps://seekingalpha.com/article/4690866-tripadvisor-plummet-on-m-and-a-rejection-brings-stock-back-into-playhttps://seekingalpha.com/article/4707286-eventbrites-net-cash-is-an-illusion-sell

Analyst’s Disclosure:I/we have a beneficial short position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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