In a recent podcast, Analyst Anders Bæk provided a deep dive into the current state and the future of the electric vehicle (EV) industry, with a particular focus on Tesla. Bæk notes that the factors currently dragging Tesla's stock are, in his view, short-term and soon to be forgotten. He argues that we are in the midst of a significant transition in the automotive industry from gasoline to electric vehicles, with Tesla leading the pack by a considerable margin.
According to Bæk, nearly all of Tesla's competitors, including both startups like Rivian, Nio, Lucid, and Fisker (with rumors of Fisker's impending bankruptcy), and established automakers like VW, Ford, and GM, are losing money on their electric vehicles.
This contrasts sharply with Tesla, which, alongside BYD, remains profitable in the EV sector. Tesla's vehicles continue to dominate sales in various markets globally, including Denmark, Norway, Germany, the USA, and others, with the Tesla Model Y emerging as the top-selling vehicle across all categories in Denmark.
Bæk challenges the notion that the rise of Chinese EV manufacturers, particularly BYD with its affordable and attractive models, poses a significant threat to Tesla's growth. He suggests that if the industry is moving towards 100% electrification, BYD represents a greater challenge to traditional gasoline vehicle manufacturers rather than to Tesla. The EV market is expansive enough to accommodate multiple players in the future.
Drawing parallels between Tesla's vehicles and the iPhone, Bæk observes a similar dynamic in the EV industry to what happened following the iPhone's launch, with new major players entering the market. He anticipates BYD assuming a role similar to Huawei's in the smartphone industry, offering lower-cost options.
Furthermore, Bæk highlights Tesla's significant lead in autonomous driving AI technology, expecting Tesla to soon begin licensing this technology to other manufacturers. The recent drop in Tesla's stock price is seen by Bæk as a temporary setback and a buying opportunity. Despite the stock falling below $200, which surprised him, he remains optimistic about Tesla's future growth potential.
He believes the market often undervalues tech stocks and that many of Tesla's advantages are not yet reflected in its stock price. However, he sees a "untouched goldmine" ahead for Tesla, suggesting that the company's technological advancements will soon begin to have a more pronounced impact on its financial performance.