Fund manager likes this automaker — and it’s not Tesla
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Although Tesla might be a favorite among investors for its exposure to the electric car industry, Jordan Cvetanovski is another fund manager who can help you play this booming market. The Texas-based EV behemoth has reaped the benefits of its early leadership, with the stock price rallying around 45% last year — sending the company into the exclusive $1 trillion market cap club prior to this year’s market rout. Tesla’s value has suffered a substantial hit due to a 30% decline in stock prices amid the larger market turmoil. FactSet shows that half of analysts still hold buy ratings for Tesla. Cvetanovski, who is chief investment officer and portfolio manager of Pella Funds Management, is not piling into the stock just yet — despite Tesla’s share price plunging nearly 40% from its 52-week high as at May. 17. It’s one those stocks that can divide people a bit, and I don’t want to be labeled as someone who falls into certain camps. Cvetanovski stated that the valuation was what I really focus on. Whether you love him or not, Elon Musk is a major disruptor of the fossil-fuel driven automotive industry. Traditional automakers are now heavily investing in EV production to match Tesla’s lead position. Continue reading Bank of America declares it’s the right time to invest in this electric vehicle stock. General Motors has been gaining momentum and Berenberg claims that Analysts consider Tesla to be a “must-own” stock. [Tesla]Everyone was skeptical that a company worth $50 billion would be possible. This was something that all the major car makers didn’t expect to happen. Now they are investing in EVs. Cvetanovski explained that Tesla is a stock and has not achieved great things. However, they’ve innovated and accomplished excellent things. After all that, it is important to think about investing. You can’t just invest from your heart. It is important to have some form of discipline. Valuation for us is also very important.” he said. Cvetanovski also noted that BMW, a German automobile manufacturer, currently makes about 2.5 million cars per year. It is worth approximately $50 billion. He said that Tesla, which produces approximately 1 million vehicles per year, has a market capital of almost $1 trillion. “BMW— You can buy the whole company, all its history, all its manufacturing progress and capability for around $50 billion…. Cvetanovski explained that 20 BMW companies can be bought for as little as $1 trillion. Just last month, BMW introduced its newest electric vehicle — the i7 — a battery-powered take on the brand’s most expensive and luxurious 7-series sedan. BMW also has the i3 & i4, but supply chain issues have slowed down the rollout. It plans to put two million EVs on roads by 2025. The company also expects half its vehicle sales to come from EVs in 2030. Cvetanovski said that Tesla is not dominant. While he acknowledged the fact that Tesla has an aggressive production goal relative to BMW’s, he expressed doubts regarding Tesla’s ability maintain its market share. Cvetanovski believes that the electric car is complex, but it has “much less” moving parts than the internal combustion engine. He also said that Tesla’s software is not at the point where it has a 10-year lead. I don’t think Tesla is as dominant. But that’s our opinion. To buy Tesla, you must really believe it. [it as being dominant]Cvetanovski added, “Yes.” We don’t believe in anything unusual within the industry so we have easier and more affordable ways to play. [the EV trend].”
Superchargers are Tesla’s fast charging stations.
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TeslaJordan Cvetanovski, a fund manager for the electric vehicle sector, is a popular choice of investor. However this investment may not be the best way to get exposure to the industry.
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