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Munster Says Tesla Is Worth $500B-Plus In The Long Run

Tesla, Inc.'s (NASDAQ: TSLA) recent sell-off may be a buying opportunity for longer-term investors, Loup Ventures managing partner Gene Munster told Benzinga in an interview. 

· 09/11/2020 17:59

Tesla, Inc.'s (NASDAQ:TSLA) recent sell-off may be a buying opportunity for longer-term investors, Loup Ventures managing partner Gene Munster told Benzinga in an interview. 

Munster On Upside For Tesla: Munster attributes the potential buying opportunity to three catalysts:

  • Tesla is going after a massive market in which they claim the leadership role. 
  • Over the next decade, Munster said Tesla's opportunity with autonomy, batteries and energy is underappreciated. 
  • Tesla’s Sept. 22 battery day will be important, because the company will be able to show many traders and investors what the company plans on doing as more of an energy company.

Potential Threats To Tesla: In Munster's view, the entry of General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) into the electric vehicle industry is no threat to Tesla. 

"It will be unlikely the other electric vehicle companies are likely to be significantly more successful over Tesla," he said. 

Tesla's Volatility: When asked if he believes Tesla is trading around its fundamentals given the recent sell-off, Munster told Benzinga: "No, I think there is a lot of emotion around the story."

The underlying fundamentals support a movie higher, the research analyst turned tech venture capitalist said. 

"I do believe the stock split and all the momentum around it and the amount of short interest that was involved before has created a bunch of noise around the near term."

As to whether Tesla is worth $500 billion or more in the long run?

"I think the answer is yes," Munster said. 

Related Links: 

Tesla Analyst: After S&P Snub, All Eyes Are On EV Maker's Battery Day

Tesla To Start Exporting Made-In-China Vehicles: Report

Photo courtesy of Tesla.