Christopher Tsai, the investor, emphasized that even if a visionary leader like Elon Musk were to depart from Tesla, it does not necessarily mean they would exit their investment in the company. Tsai, the president and chief investment officer of Tsai Capital, disclosed that a significant portion of their portfolio was invested in Tesla stock last month, and they plan to increase their holdings. Despite the common belief that Tesla’s success is closely linked to Musk, Tsai expressed confidence in the company’s ability to thrive without him at the helm, drawing a comparison to Apple’s transition from Steve Jobs to Tim Cook. Tsai highlighted the importance of assessing the company’s fundamentals and situation at the time before making any decisions. While Musk’s relationship with the Trump administration was seen as a positive factor for Tesla, recent challenges have led to a decrease in Tesla’s stock value. Nevertheless, Tsai remains optimistic about Tesla’s future and believes that Musk’s involvement in shaping policy through the US government will ultimately benefit the company. Additionally, Tsai dismissed concerns about competition from other players in the electric vehicle industry, asserting that Tesla’s position will not be overtaken by rivals like BYD.
BYD sold close to 1.79 million vehicles in the same year as Tesla. Similar to Tesla, BYD is also developing autonomous vehicles. Last month, BYD announced that it would offer its self-driving software to customers for free, while Tesla owners in China have to pay around $8,800 for access to self-driving features. Following BYD’s announcement of a new charging system promising nearly 250 miles of range in just five minutes, their Hong Kong-listed shares surged by up to 6%.
In an interview with BI, Tsai expressed confidence in BYD’s future but believed there was enough room for multiple players in the growing EV market, noting that Tesla would not be overshadowed by BYD. Tsai pointed out that consumers are willing to pay for superior products even when a free alternative exists.
Tsai commented on Tesla’s recent sales decline, attributing it to the launch of the new Model Y. Despite the temporary slowdown in sales due to the Model Y refresh, Tsai remained optimistic about Tesla’s long-term prospects, contrasting his viewpoint with that of other investors like Ross Gerber, who predicted no stock rebound for Tesla this year. Tsai emphasized a focus on long-term investment based on fundamentals, believing that Tesla’s revenue and earnings will continue to see substantial growth in the coming years.
