I’ll be blunt about Tesla…

I’m just not a fan anymore.

The stock looks terrible. Elon’s distracted by SpaceX. And Tesla’s models are getting “old and tired.”

But here’s the thing most investors are missing…

There’s another EV company that’s absolutely crushing Tesla. It overtook Tesla in global sales last year… and is going after Volkswagen next.

Its cheapest model? Just $10,000. Compare that to Tesla’s pricing!

The company makes everything in-house – motors, batteries, software. It even has stakes in the mines that produce its battery materials.

And get this… Tesla actually uses some of its batteries because they’re so good.

The stock trades at a reasonable 21.3 P/E (versus Tesla’s insane 170 P/E) and is currently 22% off its recent highs.

I own it personally. We own it in one of my services. And I think you should consider it too.

Click on the thumbnail below to get the ticker.

 

TRANSCRIPT

Hey, everybody. Shah Gilani here with your weekly BTNT, as in “Buy This, Not That.” I’m going to pit Tesla up against Chinese EV maker BYD, which is a fabulous company.

So I’ll start right there with BYD. BYD, stock symbol BYDDY. BYD stands for “Build Your Dreams.” Now the problem with this stock for American investors is it’s a Chinese company.

A lot of American investors don’t like Chinese companies. They don’t like EV makers. Why? Because of tariffs.

Because if the president of the United States is going to slap tariffs on anybody, it’s going to be Chinese EV makers. And guess what? That’s why BYD doesn’t sell cars in America.

Period. They do sell buses, but they make those buses in Fremont, California.

So they don’t sell cars here. But BYD, people, is the largest EV seller in the world.

They are rapidly overtaking everybody. They’ve overtaken Tesla last year in terms of gross sales and are pretty much going after Volkswagen next. So that’s how big they are and are going to be. So BYDDY, I think, is a great stock to own.

Tesla, on the other hand, well, I have to say this about that. It’s got a problem. I don’t think it’s innovative anymore. Yes.

Robotaxis eventually, everyone says that’s the whole gig in the final analysis. That’s what Elon Musk wanted to do. That was always his goal. Well, we’re not there yet.

And BYDDY stock, which you want to take a look at, guess what? They’re doing the same thing. And they’re as advanced, if not more advanced, than Tesla in the autonomous driving scheme of things. So let’s have a quick look at Tesla stock while I’m on the subject of Tesla because let me say this about that.

As far as Tesla goes, people, I’m just not a fan.

Haven’t been a fan for a while, but the stock certainly looks terrible. As far as Tesla goes, it’s trading around $298. That’s down almost 40% from its highs over here, which were, by the way, December of 2024. All right?

So pretty ugly comeback. Now there’s a lot of politics going on. There’s a lot of people who don’t want to buy Tesla.

There’s a lot of knocking of Tesla because they’re knocking Elon Musk. Guess what? That’s a problem for me as an investor, as a trader. The CEO, the guy that makes everything happen, the ringleader is sidetracked – who can’t say he’s not?

He’s also now raising more money for SpaceX, giving it approximately a $400 billion valuation if he can raise money given that round that he’s trying to push now. So who’s he going to be more interested in in the new SpaceX and or at least newly, I would say, newly minted multi-multi-multibillion dollar company that will eventually go public probably sooner than later. Why? Because, a, he’d like to have the money.

Tesla’s got a $959 billion market cap. $959 billion market cap. If SpaceX has a $400 billion market cap, pre-IPO, pre-ever going public, we imagine what it might do.

Well, Elon Musk needs to do that. He needs to concentrate more on SpaceX, and he’s not really running Tesla. He is sidetracked, and that’s a problem for me as an investor.

This stock reflects that. Yes. It’s down from its 2024 highs, but I don’t see any action in this stock that makes me feel comfortable. The quarterly revenue growth on a year-over-year basis is down 9%. The quarterly earnings growth on a year-over-year basis is down 70%. People, the trailing P/E of Tesla is 170.

BYDDY trailing P/E, just to give you an idea of how the stock looks, trailing P/E for BYDDY people, a very normal 21.3.

21.3 versus trailing P/E for Tesla of 170. Now here’s the stock. You have recent highs back here in May of this year, very recently, with the stock down by 22%. So you can get this on sale.

I like BYDDY here. Yes. We own it in one of my services. I own it personally.

I like it over Tesla considerably so. And as far as BYDDY, I think they’re far more innovative than Tesla. Tesla’s models are already old and tired. I don’t see anything new coming out of Tesla. The truck was a bomb. So Cybertruck was an absolute bomb.

While BYDDY, at least expensive. Their least expensive model, $10,000, people. Unbelievable. Third of the price of a Tesla. They make their own motors, tablet screens, operating software. They have stakes in mines and in miners that mine the stuff that builds their batteries, which are superb batteries. So good that Tesla uses some of their batteries.

So as far as the two stocks go, buy BYDDY, not Tesla, and you’ll be thanking me later.

Cheers.

— Shah Gilani

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Source: Total Wealth Research