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The host offers a brief bullish view on Tesla, stating that $450 represents fair value and that momentum should bridge the current gap to that level. He acknowledges Elon Musk as a key risk — noting the stock is correlated to Musk's personal behavior and public perception — but still sees the current price as an opportunity. The discussion is short and hedged relative to his other picks.

The host is sharply bearish on Tesla, placing it in the disgustingly overvalued tier. With earnings down ~70%, revenue growth stalled, gross margins declining from vehicle price cuts, and the stock still trading at ~300x earnings, he attributes the valuation entirely to an Elon Musk premium and call-option speculation on Optimus robots. He questions the Optimus narrative, pointing out that the shutdown of Model S/X production — officially framed as making room for robots — coincided with other vehicle production falling from 26,000 to 11,000 units, suggesting demand weakness rather than strategic pivoting.

Tesla has been in a clear downtrend since the week of December 22nd and is bouncing off support at $350. The host requires two more weeks of upside and a break above $420 to turn constructive, with $450 needed for 'blue skies.' However, this level failed in December '24 through January '25 and again in January '26, establishing it as a zone of heavy historical resistance. RSI sits at 47—below the 50 threshold the host requires to signal strength—and the host pointedly questions what fundamental catalyst would drive Tesla meaningfully higher, implying skepticism.

The host is still net bearish on Tesla but has meaningfully reduced conviction since warning about extreme overvaluation coming into 2026. Key positives cited: (1) Q1 vehicle deliveries came in at 358K, up YoY due to a favorable base effect; (2) the Iran war-driven oil price surge is reigniting EV demand, which could stabilize delivery volumes and margins; (3) strong EV cash flow accelerates investment in the higher-valued driverless and robotics segments. On the negative side, energy storage deployment fell YoY to 8.8 GWh from 10.4 GWh, and management flagged tariff headwinds specifically for that segment given China-sourced imports. Valuation remains a concern: forward P/E has improved from ~250 to ~175, forward P/OCF sits at 96, and the host's DCF model pegs intrinsic value at $140 vs. the ~$365 current price. The host still holds a sell rating and active put options but is 'getting close' to upgrading to a hold and considering closing short positions.

Tesla is used as a primary cautionary tale for AMD investors about stocks pricing in future growth too aggressively. The host notes Tesla's P/E and price-to-sales ratios reached excessive levels during its hyper-growth phase, the business has since encountered real model problems in vehicle sales, and the stock is down versus where it stood 4.5 years ago despite strong underlying revenue growth during that period. The implication is that once euphoric pricing sets in, even solid fundamentals cannot sustain the stock.

Tesla fell another 5% this week, continuing a recent stretch of underperformance. The host's commentary on Tesla is primarily framed through the lens of the Intel/Terraab partnership, noting that bringing Intel's manufacturing experience into the $25 billion chip facility in Austin 'significantly derisks' the project and 'bodes well for them long term.' No explicit buy or sell recommendation is made, and the host does not elaborate on Tesla's core business or valuation.

The host references Tesla negatively as a direct contrast to Microsoft, noting that while both are down significantly year-to-date, Tesla's revenues, gross profits, and earnings per share have all been in decline — the opposite of Microsoft's fundamental trajectory. The host uses this deteriorating fundamental picture to justify preferring Microsoft over Tesla, implying Tesla is the weaker long-term hold among the Magnificent 7.