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Yahoo
an hour ago
- Automotive
- Yahoo
Is Tesla a Millionaire-Maker Stock?
Elon Musk is turning into a liability for Tesla. But the company would struggle without his hype and energy. The stock's valuation looks high, even in the best-case scenario. These 10 stocks could mint the next wave of millionaires › Tesla's (NASDAQ: TSLA) stock has already created plenty of millionaires. After all, its CEO, Elon Musk, is the world's richest man, due in large part to his 13% stake in the company. But past performance doesn't guarantee future success. It's unclear if Tesla still has what it takes to continue its bull run, especially as political pressure and electric vehicle (EV) industry weakness bite. Let's dig deeper to decide if Tesla's pivot to new opportunities, like robotics and self-driving technology, could help it overcome its weaknesses in its legacy automotive operations and its uncomfortably high valuation. Cars have been around for over 100 years, which means the industry is incredibly mature, leading to low margins and stiff competition. For a time, Tesla had been able to buck these dynamics through high levels of vertical integration, economies of scale, and innovations like giga casting, which replaced complex assembled parts with large single-piece structures. But over time, the company's economic moat has eroded. The main challenge has been competition from low-cost Chinese EV rivals like BYD and legacy automakers like Ford and General Motors, which have leveraged their massive production infrastructure and dealership networks to scale rapidly. However, Musk certainly hasn't made things easier through his foray into U.S. politics, with his outspoken support for President Donald Trump. Taking a strong political position on one side or the other will inevitably rub a large portion of potenital buyers the wrong way. Tesla's first-quarter earnings demonstrate its deteriorating brand appeal. Revenue dropped 9% year over year to $21.3 billion, driven by a 20% collapse in the automotive segment, which represents 82% of sales. The collapse was worst in Europe. Sales on the continent slumped by a stunning 37.2%. The good news is that Tesla's U.S. operations have held up much better -- for now. So far, many American consumers appear to be keeping their politics separate from their car-buying decisions. U.S. first-quarter sales were down by a relatively modest 9%, according to data from Cox Automotive. However, it's unclear how much longer Tesla's honeymoon period will last. Musk has had public disagreements with Trump over his Big Beautiful Bill legislation, which is currently being debated in Congress. The bigger threat could come from Trump's legislation, which could strip away the $7,500 tax credit for EV purchases. The loss of government support could undermine Tesla's U.S. business, just as it is facing international weakness and higher costs from tariffs. CNN also reports that under the current language, support may remain for smaller EV companies like Rivian and Lucid, allowing them to maintain lower prices and eat away at Tesla's market share. With a price-to-earnings (P/E) ratio of 186, Tesla stock is abnormally expensive for a business with declining sales and profitability. The valuation seems to price in the expectation of dramatic operational growth from its self-driving and robotics ambitions. There is some reason to be excited. Analysts at McKinsey & Company believe autonomous driving could generate $300 billion to $400 billion in revenue by 2035. Tesla seems to be an early leader in the opportunity, with plans to launch automated taxis in Austin, Texas this month. The company's focus on low-cost cameras and "computer vision" could give it an edge over rivals like Waymo (a subsidiary of Alphabet), which relies on pricey LiDAR and must source its vehicles from expensive third-party suppliers, adding cost and complexity to its operations. But while Tesla definitely has the potential to make more millionaires, success is already priced into its valuation. So, the downside risk seems to outweigh the upside right now -- especially considering the immense political uncertainty Musk has brought upon the company. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $377,293!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,319!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $659,171!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Is Tesla a Millionaire-Maker Stock? was originally published by The Motley Fool
Globe and Mail
2 hours ago
- Automotive
- Globe and Mail
Is Tesla a Millionaire-Maker Stock?
Tesla 's (NASDAQ: TSLA) stock has already created plenty of millionaires. After all, its CEO, Elon Musk, is the world's richest man, due in large part to his 13% stake in the company. But past performance doesn't guarantee future success. It's unclear if Tesla still has what it takes to continue its bull run, especially as political pressure and electric vehicle (EV) industry weakness bite. Let's dig deeper to decide if Tesla's pivot to new opportunities, like robotics and self-driving technology, could help it overcome its weaknesses in its legacy automotive operations and its uncomfortably high valuation. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Tesla can't just be another automaker Cars have been around for over 100 years, which means the industry is incredibly mature, leading to low margins and stiff competition. For a time, Tesla had been able to buck these dynamics through high levels of vertical integration, economies of scale, and innovations like giga casting, which replaced complex assembled parts with large single-piece structures. But over time, the company's economic moat has eroded. The main challenge has been competition from low-cost Chinese EV rivals like BYD and legacy automakers like Ford and General Motors, which have leveraged their massive production infrastructure and dealership networks to scale rapidly. However, Musk certainly hasn't made things easier through his foray into U.S. politics, with his outspoken support for President Donald Trump. Taking a strong political position on one side or the other will inevitably rub a large portion of potenital buyers the wrong way. Tesla's first-quarter earnings demonstrate its deteriorating brand appeal. Revenue dropped 9% year over year to $21.3 billion, driven by a 20% collapse in the automotive segment, which represents 82% of sales. The collapse was worst in Europe. Sales on the continent slumped by a stunning 37.2%. The good news is that Tesla's U.S. operations have held up much better -- for now. Trump remains a wild card for Tesla So far, many American consumers appear to be keeping their politics separate from their car-buying decisions. U.S. first-quarter sales were down by a relatively modest 9%, according to data from Cox Automotive. However, it's unclear how much longer Tesla's honeymoon period will last. Musk has had public disagreements with Trump over his Big Beautiful Bill legislation, which is currently being debated in Congress. The bigger threat could come from Trump's legislation, which could strip away the $7,500 tax credit for EV purchases. The loss of government support could undermine Tesla's U.S. business, just as it is facing international weakness and higher costs from tariffs. CNN also reports that under the current language, support may remain for smaller EV companies like Rivian and Lucid, allowing them to maintain lower prices and eat away at Tesla's market share. Robotics and AI will make or break Tesla With a price-to-earnings (P/E) ratio of 186, Tesla stock is abnormally expensive for a business with declining sales and profitability. The valuation seems to price in the expectation of dramatic operational growth from its self-driving and robotics ambitions. There is some reason to be excited. Analysts at McKinsey & Company believe autonomous driving could generate $300 billion to $400 billion in revenue by 2035. Tesla seems to be an early leader in the opportunity, with plans to launch automated taxis in Austin, Texas this month. The company's focus on low-cost cameras and "computer vision" could give it an edge over rivals like Waymo (a subsidiary of Alphabet), which relies on pricey LiDAR and must source its vehicles from expensive third-party suppliers, adding cost and complexity to its operations. But while Tesla definitely has the potential to make more millionaires, success is already priced into its valuation. So, the downside risk seems to outweigh the upside right now -- especially considering the immense political uncertainty Musk has brought upon the company. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $377,293!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,319!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $659,171!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.
Hamilton Spectator
7 hours ago
- Politics
- Hamilton Spectator
Doug Ford apologizes over ‘hat in hand' comment about First Nations
TORONTO - Ontario Premier Doug Ford has apologized for saying First Nations should not keep coming 'hat in hand' to the government if they say no to mining projects, a comment many First Nation leaders called racist. Ford delivered that apology in a meeting at Queen's Park Thursday to several dozen chiefs who are part of the Anishinabek Nation. 'I get pretty passionate and I just want to sincerely apologize for my words, not only is it for all the chiefs in that room, but for all First Nations,' Ford said as he spoke to Anishinabek Nation Grand Council Chief Linda Debassige after the meeting. On Wednesday, Ford said he was willing to give First Nations whatever they wanted for support to develop mines, but that came with a warning. 'There's going to be a point that you can't just keep coming hat in hand all the time to the government, you've got to be able to take care of yourselves,' Ford said. 'And when you literally have gold mines, nickel mines, every type of critical mineral that the world wants, and you're saying, 'No, no, I don't want to touch that, by the way, give me money' — not going to happen.' Ford's government recently passed into law Bill 5, which gives cabinet the power to suspend municipal and provincial laws for chosen projects through the creation of so-called special economic zones. The premier has said the first such zone would be the Ring of Fire region in northern Ontario, which is said to be rich in critical minerals. The special economic zone law is part of an omnibus bill that the government says is needed to speed up construction of large infrastructure projects, particularly mines. Shortly after the passage of the bill into law, Anishinabek Nation asked for a meeting with the premier and Ford agreed. He was joined Thursday by Indigenous Affairs Minister Greg Rickford. All said it was a positive meeting, which came after passionate protests from First Nations at Queen's Park when Bill 5 was first introduced in mid-April. 'While there are many other rights holders in this province, our chiefs felt today that the apology was sincere,' said Debassige, whose Anishinabek Nation represents 39 First Nations across the province. 'We are looking at today as a new day going forward.' The vast majority of Ontario's 133 First Nations have spoken out against Bill 5 and see the new law as yet another example of a government trampling their rights and ignoring their concerns. Many First Nations have threatened to blockade roads, railways and mines if the bill is not repealed. 'Our First Nations within the Anishinabek Nation remain opposed to Bill 5,' Debassige said. 'The opposition remains in that of which the speed of Bill 5 was entertained and this has been communicated to the premier and to various ministers. The First Nations have spoken with the premier, have proposed ideas and solutions and the premier has made certain commitments that we're not going to speak to today.' Ford did not commit to repealing the law, but he and Rickford are planning a summer of consultations with First Nations, along with Energy and Mines Minister Stephen Lecce. Other First Nation leaders were incredulous about Ford's apology. 'Being 'passionate' doesn't give you an excuse to express your racism,' said Alvin Fiddler, the Grand Chief of Nishnawbe Aski Nation, which represents 49 First Nations in northern Ontario, including those in the Ring of Fire region. 'If and when Doug Ford is ready to personally apologize to the people of Nishnawbe Aski Nation, we will consider it. If the premier is sincere with his apology, he needs to show it, not just say it.' Ford has said the new law is a tool in the fight against U.S President Donald Trump's ongoing trade war. Prime Minister Mark Carney's Liberal government has proposed legislation that is similar in many ways to Ontario's law. That, too, has prompted anger from First Nations, who gathered en masse earlier this week in Ottawa to voice their concerns. This report by The Canadian Press was first published June 19, 2025.
Business Insider
7 hours ago
- Automotive
- Business Insider
When No Boring Cars Goes too Far: Ford's (NYSE:F) Race to Make Everything Exciting
One of the major dogmas that seems to be driving legacy automaker Ford (F) these days is 'no boring cars.' And indeed, Ford seems to be sticking to that pretty hard. It has removed several cars from its lineup, including, among others, the Fusion, the Focus, the Fiesta and the Taurus. There are reports that the Ford Escape, Ford's smallest SUV, is also on track for removal. And the question that is starting to rise in some quarters is whether or not Ford's pursuit of only exciting cars is, perhaps, going too far. Confident Investing Starts Here: Certainly, Ford has many exciting cars going for it right now. It has been ramping up efforts on its Ford Mustang line, including the Mustang electric vehicle series. Indeed, not so long ago, Ford rolled out a new kind of battery technology that is likely to improve its electric vehicle concepts, the lithium manganese rich (LMR) system. This kind of technological development is likely to prove helpful in getting Ford vehicles to be more regularly considered by drivers. Ford has other improvements as well; the BlueCruise system is doing quite well, with service now up and running on over 130,000 miles of highway in the United States. This brings us closer to the dream of complete hands-free operation. And while BlueCruise itself is only a level 2 system, meaning that a human driver must be in place and ready to intervene as needed, that is still a significant step up from where we were. Even Ford Pro is seeing some potential gains from Ford's increased infatuation with high tech. A report from back in March suggested that Ford could end up with an automated loading system for its delivery vehicles. That could be a huge win for any parcel delivery service or catering operation; being able to automatically load a vehicle means potential cost and time savings, depending on how the system is executed. Jetsons or Terminator? But not all of Ford's advances are wins. After all, like we said, the BlueCruise system is still a level 2 system. That means, as noted previously, it needs constant human oversight. That does not make it bad, but it does make it less than optimal. The automated loading system in Ford Pro vehicles could also be an issue; anything that increases complexity also increases potential failure risk; there are simply more moving parts and more potential points of failure. This may be a universal condition, but it is still an issue nonetheless. Even some of Ford's current advances are having issues. The SYNC 4 infotainment system, for example, has an unexpectedly substantial failure rate. A major update came out back in late February to address this matter, which at least demonstrates Ford's eagerness to fix whatever problems it may have. It is an issue that speaks to reliability, and in some cases, safety. So far, Ford has issued over 40 different recalls, from small ones impacting only a handful of vehicles—one recall was geared toward just three cars—all the way up to major ones impacting fractions of millions. But with over 40 recalls so far this year, and 2024—already regarded as a bad year for recalls—having just 64 in the entire year—it is looking like Ford's fascination with exciting cars is leading to some cars that are exciting for all the wrong reasons. Is Ford Stock a Good Buy Right Now? Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 12.65% loss in its share price over the past year, the average F price target of $9.71 per share implies 6.9% downside risk.
Miami Herald
11 hours ago
- Automotive
- Miami Herald
Ford Recalls Its Electric Mustang Because The Doors Don't Do Their One Job
When it comes to recalls of cars sold in America, Ford, Stellantis, and Tesla led the way in 2024 with the most. This year, Ford may retake the title. It recently issued a single recall for almost 1.1 million vehicles, and now there's a new one that affects 197,432 Mustang Mach-E electric crossovers in America and another 120,000-odd from other markets. According to The Detroit News, these EVs may lock themselves with no workaround, which could trap people inside the car or prevent them from entering it. According to the recall documents filed with the NHTSA, the problem occurs when the vehicle has a low 12-volt battery, and then "the electronic door latches may remain locked once the driver or front passenger exits and shuts the door." If a child is left in the car when this happens, they may be unable to take advantage of the inner door release handles. Worse still, the car may still not unlock when the 12-V battery is jumped. One Mustang Mach-E Forum user reported that his infant was locked in the car for 40 minutes because of this same sort of problem. While Ford works on a remedy, it has issued a stop-sale recall, so there are likely still affected units at dealers. Thankfully, the fault lies in the vehicle's software, so this won't require a physical fix at the dealer. Ford will update the affected 2021-2025 EVs' powertrain control module and secondary on-board diagnostic control module C software at no cost, and owners should expect notification letters to be mailed on June 23. Once Ford has figured out exactly what to do, it will send a second letter, but unfortunately, the automaker only expects the fix to be ready on September 29. On the surface, software seems like something that shouldn't only go wrong when the car reaches users, but test engineers don't usually test new cars with old or weak 12V batteries. Ford's general quality problems will take years to fix, but the automaker is making efforts, and hopefully, it will fall a little further on the recall leaderboard when 2025 comes to a close. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
