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).
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