Part 2/8:
When asked about purchasing Tesla shares on the recent market dip, Gerber expressed a clear non-commitment to buying more. He emphasized that although he may wish Tesla was undervalued, the reality is stark: at 110 times earnings, Tesla stands as the most expensive stock among the “Magnificent Seven” in the S&P index. According to Gerber, this inflated valuation poses a risk, suggesting that the stock could decline further if compared to competitors like NVIDIA or Microsoft, which are more reasonably priced in relation to their earnings.