Founder of Michael Lee Strategy Michael Lee I have an interesting take on what drove Elon Musk’s Twitter takeover and subsequent decline Tesla Inc. TSLA stock.
“He can say it’s all about free speech,” Lee said Tuesday afternoon at Benzinga’s “Stock Market Movers.”
Things to know: Musk finalized the Twitter deal in late October. Since then, Tesla’s stock has been trending downward, giving up his 40% of its value.
Lee told Benzinga that Twitter was previously used as a propaganda tool for the state of security, but has not been used since Tesla’s CEO stepped in the door.
“They killed Tesla stock because they took it from the ruling class,” Lee said.
Check this out: Tesla soars higher in this charged trend: here’s what to watch
Important reasons: Tesla stock is finally trading at a reasonable valuation. Lee even called Tesla’s stock price “very attractive.”
Lee wasn’t as optimistic as most about the growth forecast for the electric car industry as a whole, but he still believes it’s a growing market and that Tesla stands on its own.
“People want to drive Tesla,” Lee said, suggesting that the Musk-led company’s brand power is unparalleled.
Tesla’s market cap should never have hit $1 trillion, but now that it’s gone down dramatically, “Now is the time to look at the stock,” he said.
“How many other companies are this big and growing revenue so quickly?”
According to Benzinga Pro, Tesla’s current market capitalization is around $386 billion. In the company’s latest quarterly report, Tesla said it has a multi-year goal of achieving an average annual delivery growth of 50%.
Tesla reported deliveries at the beginning of the month, showing a 40% year-over-year increase in vehicle deliveries in 2022.
The company plans to report full fourth quarter results on January 25.
See Also: Why Jim Cramer Calls Tesla Stock a ‘Sleeping Giant’
See the full interview with Lee below.
TSLA Price Action: Tesla’s stock has fallen about 40% in the past three months.
Shares were up 7.01% to $130.97 at the time of writing, according to Benzinga Pro.
Photo by Steve Jurvetson on Flickr.