Tesla Can't Keep Running on Dreams, Strategist Says
*By Amanda Weston*
The chief strategist of Bubba Trading is casting doubt on the demand for Tesla's Model 3.
"I don't know that I necessarily agree with there's demand there," Bubba Trading's Todd Horwiz told Cheddar Wednesday. "I think it's a great car. I think it's a great concept. I think it's an extremely overvalued company, and I think the CEO has got some issues that he's got to deal with."
Wedbush Securities analyst Dan Ives made [his prediction](https://www.cnbc.com/2018/12/26/demand-for-tesla-model-3-looks-very-strong-into-2019-and-beyond.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard) Wednesday, saying demand for the Model 3 "looks very strong."
But for Horwitz, it all comes down to dollar signs.
"Let's get to the real core of the issue: they still don't make any real money," Horwitz said. "Again, I love the car. I would have no problem buying one myself. But at the end of the day, you've still got to make money in this business. It can't be continued on dreams and hoping that you can fulfill, but you have to actually fulfill. And I don't see that happening, especially with some of the underlying problems that \[CEO Elon Musk\] creates."
Ives noted China appears to be "major growth catalyst." His comments follow Tesla price cuts in the country; but Horwitz agrees China presents a big opportunity.
"Certainly, a place like China would be a dramatic spot for Tesla ($TSLA) to start even production, doing everything, because they've got the infrastructure," he said. "They've got certainly the demand because they're trying to get off of fossil fuels already. So there's a lot of good things that can happen from there. But the question is will it? Will it get done? And will Elon Musk allow it to get done? Those are a lot of key questions that remain to be answered."
As for what it would take to change Tesla bears' minds ー again, it's about the money.
"I think if they can make money and show to the bottom line that they can consistently produce, consistently make money, and start to grow from there, and not have to go out and have to always be on the rope to possibly have to raise capital to stay in business, I think that would turn the company around," Horwitz said.
For full interview [click here](https://cheddar.com/videos/tesla-is-an-extremely-overvalued-company-bubba-trading-chief-strategist-says).
Tech analyst Rene Ritchie discusses new EU legislation that will force iPhones to use a USB-C charger in fall 2024 and what that means for Apple's strategy in Europe.
Catching you up on the stories you need to know this morning, mass shooting victims testify on Capitol Hill, the White House outlines its plan to vaccinate kids younger than five years old, and we break down how to protect yourself from monkeypox.
There are now over 1,000 plant-based restaurants in the U.S. It's clear that people are hungry for vegan alternatives at restaurants nationwide. However, when it comes to pizza, vegan options don't have the best reputation. NUMU Food Group is looking to change that with its brand new vegan mozzarella. Mike Pytlinski, CEO of NUMU Food Group, joins Cheddar News to discuss.
Tattoo artist Katrina "Kat Tat" Jackson, famous for starring in the VH1 hit series "Black Ink Crew: Chicago," is also the first Black woman to own a tattoo shop in Beverly Hills. She joined Cheddar News to discuss her trailblazing work, the stigma BIPOC tattoo artists face in the industry, and the way the space has changed for artists of color since her start. "In the beginning, I remember walking into a tattoo shop just like, hey, I wanna learn, I wanna be a tattoo artist and kind of just being laughed at, not taken seriously," she said. "Even with the tattoo conventions, a lot of African American tattoo artists were almost scared to go to conventions because it's not a welcoming environment."
Jack Miller, Head of Trading at Baird, joined Closing Bell to break down how the Securities and Exchange Commission's proposals would change the landscape for individual investors, as they face stiff opposition from brokerages like Robinhood.
Robotics automation technology company Symbotic made its market debut on the Nasdaq via a SPAC merger with SVF Investment Corp. 3, a special purpose acquisition company sponsored by an affiliate of SoftBank Investment Advisers. Symbotic rang the Opening Bell at the Nasdaq to celebrate the occasion this morning. Its debut on Wall Street comes amid an urgent need for logistics solutions, as it aims to reimagine supply chains with its A.I.-powered robotic and software platform. Tom Earnst, CFO of Symbotic, and Vikas Parekh, managing partner at Softbank Investment Advisors, join Cheddar News' Closing Bell to discuss.
Michelle Castillo joined Closing Bell to break down Elon Musk's announcement to SpaceX employees that the Starlink internet business might not see itself as an IPO until 2025, Twitter planning to hand over the user data he requested as a condition of the acquisition, and Warren Buffet-backed Chinese EV company BYD stating it will be supplying batteries to Tesla "very soon."
