Tesla (TSLA) shares plummeted on Thursday after reporting a first quarter earnings miss. The EV maker reported gross margins of 19.3%, falling short of Wall Street’s expectations. Nancy Tengler, Laffer Tengler Investments CEO and Chief Investment Officer, joined Yahoo Finance’s Seana Smith and Dave Briggs to discuss whether now is the time to buy Tesla stock.
“I’m going to be buying after this report,” Tengler said. “We bought some on January 3rd or 4th. It was just dumb luck. We pretty much almost bottom ticked it.”
The disappointing earnings report caused a flurry of price target cuts from analysts. Investors have started to question Musk’s focus at Tesla as the CEO has become increasingly embroiled in drama at Twitter. But Tengler is bullish on Musk. “I think Elon Musk is so often underestimated.”
You can watch the full interview here.
Key video moments:
00:00:14 On buying Tesla
00:00:27 On Tesla’s management team
00:00:38 On underestimating Musk
00:00:48 On Tesla’s margins
Video Transcript
– We have added to many of the names in technology and consumer discretionary as I mentioned. And we’ve also added the metals and miners that drive planetary decarbonization because we think we’re in a commodity supercycle.
– How does Tesla fit into that strategy?
– I’m going to be buying after this report. Yeah, we bought some on January 3rd or 4th. It was just dumb luck. We pretty much almost bottomed picked it. And I think what I heard is different from what the Street heard. This is a management team that is going to increase share, which is driving consumers into their ecosystem, which is what Apple has done. And then I think they’ll reap the benefits for the long term. I think Elon Musk is so often underestimated. I’ve done it myself but I’m going to be in buying.
– Huh. Not concerned about those declining margins.
– That are still double GMs and probably quadruple 4.
– Fair point indeed.
