In a recent live stream, Vivian Jenna Wilson, the estranged daughter of Tesla CEO Elon Musk, sparked controversy by labeling Tesla as a ‘Ponzi scheme’. This statement was made during a conversation with Hasan Piker, a prominent political commentator.
What Happened
Vivian Wilson criticized her father’s business model for Tesla, equating it to a Ponzi scheme due to its high P/E ratio compared to other car companies. She pointed out that people should “look up PE ratio and then look at Tesla stock compared to other car companies. It’s not a car company, it’s a Ponzi scheme.”
Reactions and Debate
Wilson’s comment has sparked widespread debate, with noted investor and media commentator Collin Rugg criticizing her statement, saying that she was “baited” into making the comment with “no evidence.” The debate has led to a discussion about Tesla’s stock valuation and its position in the competitive automobile industry.
Tesla’s Stock Valuation
Tesla’s stock has been under scrutiny, with a nearly 50% drop since mid-December. Despite this, seasoned investor Ross Gerber believes that Tesla’s shares are still too pricey. Gerber, the president and CEO of Gerber Kawasaki Wealth & Investment Management, has expressed doubts about a rebound for Tesla’s stock this year.
Industry Comparison
A recent analysis highlighted Tesla’s position in the competitive automobile industry, with a Price to Earnings (P/E) ratio of 143.62, which is 12.33x higher than the industry average. This indicates that the stock is priced at a premium level according to market sentiment.
Protests and Recovery
Amid massive protests against Tesla across the U.S., Wedbush analyst Dan Ives remains hopeful of the EV maker’s recovery. Ives predicts weaker deliveries for Q1 but believes that Tesla will navigate this “brand tornado crisis moment” and come out stronger on the other side.
Company Performance
Tesla delivered nearly 1.8 million vehicles globally in 2024, but the company’s high valuation, despite significant losses, continues to be a point of contention among investors. Tesla stock lost 3.5% to close at $263.55 on Friday.
Conclusion
The controversy surrounding Tesla’s stock valuation and Vivian Wilson’s comment has sparked a heated debate about the company’s business model and future prospects. As the discussion continues, investors and analysts will be watching closely to see how Tesla navigates this challenging period.