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Electric vehicles have been all the rage lately, and investors are looking to cash in on the trend away from internal combustion-powered cars and trucks. Elon Musk has been a huge proponent of EV adoption, and the boom in shares of Tesla (TSLA -1.53%) over the past decade stands as a testament to his appeal as an advocate for the transition in the auto industry.

Musk recently made a simple statement that carried a lot of weight. Indeed, what Musk said was so powerful that it lifted shares of several stocks on Monday morning. Tesla stock actually opened lower, but the gains elsewhere showed that there's more than one way for investors to profit from the ongoing shift toward EVs.

Image source: Getty Images.

The rather innocuous comment that Musk made was a simple plea to potential suppliers for Tesla. He explained in the quarterly conference call following the electric vehicle pioneer's latest financial report that Tesla was working to build out its lithium refinery operations in Corpus Christi and a cathode refinery outside Austin. Yet Musk doesn't really want Tesla concentrating on those areas. As he noted: "We're begging you. We don't want to do it. Can someone please? Like, instead of making a picture-sharing app, please -- try in lithium, mining and refining."

Shares of lithium stocks were the big beneficiaries of Musk's latest comments. Sociedad Quimica y Minera de Chile (SQM 6.13%) had the largest gains Monday morning, climbing 6% in the first half-hour of trading on the day. Albemarle (ALB 5.88%) also showed significant gains, rising nearly 5%.

Stocks elsewhere in the sector posted slightly smaller increases but still did well. Livent (LTHM 6.05%) was up more than 3%, and Piedmont Lithium (PLL 6.62%) also managed to climb nearly 3%. Lithium Americas (LAC 7.25%) also gained ground.

Clearly, for the entire auto industry to move toward electrification, there will need to be a lot more vehicle batteries available. Based on current technology, that will require abundant lithium resources.

Where the potential crimps in the supply chain will occur, however, depends on who you ask. In Musk's view, raw lithium is relatively common worldwide. As a result, the Tesla CEO called on entrepreneurs to focus their efforts on building out refining capacity to put that lithium into a form that his company and fellow EV automakers can use for producing batteries.

Others believe that mining capacity is really the key ingredient for long-term EV success. At this point, major automakers like Ford Motor (F 2.96%) and General Motors (GM 2.21%) are working hard to ramp up battery production in order to ensure they can make enough EVs to compete against Tesla and other earlier-movers in the industry. Even if there were enough refining facilities available to meet that demand, some lithium miners just don't think that the current level of development is adequate to provide battery-grade material to everyone who wants it right now.

The way that lithium mining companies respond to current demand will tell a lot about the future for the industry. For instance, Albemarle has done a great job of pulling lithium out of the ground, but it also wants to convert its own production material into battery-grade lithium. It's also spending money on research and development initiatives with an eye toward looking for advances in lithium battery technology and other areas.

In the end, lithium will be a commodity, and it will be subject to the ups and downs of supply and demand. For those companies that take full advantage of the current opportunity, however, there's more potential beyond simply providing a raw material. It will be interesting to see how Albemarle and others choose to seek to move forward with future investment in the space.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.

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Elon Musk Is Sending These Stocks Higher (and Tesla Isn't One of ... - The Motley Fool

Apr 24, 2023 at 9:09am ET

This article comes to us courtesy ofEVANNEX, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own atInsideEVs, nor have we been paid byEVANNEXto publish these articles. We find the company's perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!

Posted onEVANNEX on April 22, 2023,byPeter McGuthrie

Tesla CEO Elon Musk is known for the many companies he manages, also running SpaceX, Neuralink, Twitter and The Boring Company in addition to the energy-auto brand. In a recent post, Musk suggested that Japan should use The Boring Companys services, which could potentially cut down on the chaos in one notable urban center.

Above: A Tesla Model 3 (Image:Casey Murphy/ EVANNEX).

Musk has suggested that Tokyos incredibly busy Shibuya Crossing use the services of his business The Boring Company to help with traffic, asThe Streetrecently reported. After one user on Twitter shared some details about the infamous intersection, Musk shot back with a suggestion for Japanese officials.

"The Shibuya Crossing in Tokio is frequently called 'the busiest pedestrian intersection in the world,' said the user in the post. "A flow measurement survey estimated up to 390,000 pedestrians per day.

Musk quickly pointed to The Boring Company as having a potential solution, suggesting the companys tunnels could reduce pedestrian traffic at the crossing.

"Can I interest you in a tunnel, perhaps? @boringcompany,Muskresponded, as later retweeted by The Boring Company account.

The Shibuya Crossing is regularly compared to the likeness of New York Citys Times Square or Londons Piccadilly Circus, due to its use of massive screens for advertising and its constant stream of pedestrian crowds. To be sure, The Boring Companys ideas for underground tunnel systems led by Teslas vehicles (and perhaps someday autonomously) are designed to minimize traffic, and the company has already begun its first operations.

Above:My first ride in the Boring Tunnel Loop in Las Vegas (Video:CNET/ YouTube).

The Boring Company currently has its first underground tunnel loop in Las Vegas, Nevada though prospective projects in Texas and Florida have also been reported in recent years. The company operates on a design focus surrounding the need to mitigate traffic in downtown centers, noting the versatility of using underground space to do so.

"Tunnels minimize usage of valuable surface land and do not conflict with existing transportation systems," The Boring Company writes on its website. "A large network of tunnels can alleviate congestion in any city; no matter how large a city grows, more levels of tunnels can be added."

Last year, a filing showed that The Boring Company proposed an underground tunnel loop in Austin, Texas, whereMusks Teslaand TBC are based. The company has also been in discussion with authorities in San Antonio, Texas, as well as Fort Lauderdale, Florida. As for whether officials in Tokyo want to consider Musks tunnels for the Shibuya Crossing, well, it seems the ball is now in their court.

Sources:The Street/Twitter/YouTube

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Tesla's Elon Musk Offers Tunnel To Help Japan With Busiest Intersection - InsideEVs

Earnings are always a big deal for Wall Street's biggest companies, and electric vehicle company Tesla (TSLA -1.53%) is always a headliner. The company reported its first-quarter 2023 earnings recently, and investors are grappling with an aggressive price-cut strategy creating waves.

CEO Elon Musk commented on the earnings call about Tesla's price strategy, noting that the company's vehicles are a hardware product that will generate recurring revenue across its fleet via autonomous driving.

But the company's financials also point out some issues that potentially undermine what Musk said. Here is what you need to know and how to make sense of it.

Tesla has aggressively cut pricing on its vehicles over the past year, especially the Model 3 and Model Y vehicles. Given Tesla's history as a battleground stock, investors have fallen into two categories. Some believe that Tesla's price cuts are to squeeze competitors and take market share, and others think that Tesla's cutting its prices out of desperation to boost delivery figures and spur demand.

Elon Musk elaborated on Tesla's strategy during the Q1 earnings call, noting that the company emphasizes selling more vehicles at lower margins because it believes autonomy will eventually create more profitable revenue streams from its fleet. In other words, the vehicles aren't where the profits are made; the autonomous driving software is.

Wherever you stand on Tesla's price cuts, investors must watch the company's continually rising inventory. Inventory has steadily increased, from $6.7 billion in Q1 of 2022 to $14.3 billion in just one year, growing every quarter along the way. Excess inventory can be a problem because it might cause continued price cuts, or force a manufacturing slowdown, which would also pressure profit margins. Musk insisted that affordability due to higher interest rates could be hurting consumer demand. Still, inventory will become harder to ignore if it continues growing in upcoming quarters.

The market has responded to Tesla's earnings by selling the stock down by about 10 percent. What could be the reason for that? Remember that investors often value companies on profits. Tesla's price cut strategy may prove a winner in the long run, but it's notably impacting its bottom line today.

Profit margins fell across the board, including gross margin falling 977 basis points and operating margin falling 779 basis points, to 19.3% and 11.4%, respectively. That trickled down to free cash flow, which declined 80% year over year to $441 million, despite revenue growing 24%.

Tesla's higher-volume, lower-margin market strategy means (at least for now) that the company isn't as profitable, which commands a lower valuation premium.

The market could be repricing the stock to determine where it should trade relative to Tesla's competitors. For example, companies like Ford and General Motors have operating margins between 6% and 8%, and Tesla's operating margin once blew them out of the water at 19% in the year-ago quarter. This quarter's 11% puts it much closer to its competitive counterparts.

GM PE Ratio (Forward) data by YCharts.

It's only one quarter, so investors should be careful about drawing too much from three months in the business. However, its rising inventory levels are now a trend and a potential problem. Meanwhile, the stock could continue repricing to a lower valuation if margins continue heading lower, especially after announcing another price cut just before the earnings release.

A cautious approach could be warranted. Tesla's long-term opportunities still exist, and its plan to leverage autonomy for higher margins later could work out well for shareholders. Still, investors should resist the temptation to call Tesla's stock cheap because of where it once traded --there are reasons why the stock is dropping.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.

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Tesla Stock: What Did Elon Musk Say About This Key Problem? - The Motley Fool

Theres no question that Elon Musk had a tough week. On April 20, the Space Exploration Technologies Corp.s, known as SpaceX, Starship rocket blew upjust minutes after launch.

Musks chaotic tenure at X Corp. (formerly Twitter Inc.) also entered an uncertain new phase as it removed legacy blue checkmarks from formerly verified accounts, raising further questions about the legitimacy of the social network.

The past few weeks events led a group of institutional shareholders in Tesla Inc. to send a letter to the Tesla board, complaining that Musk was too distracted to run the company. Although Twitter is going through a period of change, as long as news and media junkies are on Twitter, it will never die, according to theCUBE industry analyst John Furrier on last Fridays episode of theCUBE Podcast.

They need Twitter, he said. Its a way to communicate. You separate news organizations. Almost all journalists unless they have some personal problem with Elon Musk are on Twitter. And thats not going to change.

But where Twitter made a mistake was when it came to its developers, according to theCUBE industry analyst Dave Vellante.

They screwed their developers. You know that. We were developers, and they just put it right up our you know what, and they did that to everybody, he said. Hopefully, that will change. Theyre making changes, and theyre charging more. I understand why. But they just screwed their developer ecosystem.

On the last episode of theCUBE podcast, Vellante and Furrier discussed Musks Twitter labeling National Public Radio as state-affiliated media, which has since been reversed.

That was stupid. NPR is legit, Vellante said.

Regarding the SpaceX incident, its perplexing to understand why people would not be rooting for the companys success, according to Vellante.

Having watched the moon landing in the late 1960s, I dont see how you cant be rooting for these organizations, whether its Musk or [Jeff] Bezos, Vellante said. Space exploration is critical. And the United States has to lead. Theyre not going to lead with NASA, because NASA cant get the funding that it needs. So private entities have to lead.

On April 13, Montana became the first state to approve a bill that would ban the TikTok app from operating in the state. Its a move that represents more dumb politics, according to Vellante.

This whole conversation should start with reciprocity, he stated. The mistake that lawmakers are making is theyre trying to make the case against TikTok on grounds of security and privacy. And its stupid. They should be making the case on economic grounds.

What that would look like in practice is saying, If you want TikTok to operate a Chinese-based company in the U.S., then U.S. companies need to have the same rights in China, Vellante said. Now, of course, China is going to immediately dismiss that, but then thats a move that puts China into a position of having to defend the ridiculous posture that we can do it to you but you cant do it to us.

The next logical step if China rejects this is to say that ByteDance Ltd. has to sell majority ownership, just like they do in China, to a U.S.-based company.

That U.S.-based company will run it and adhere to all the local laws. And if China doesnt like it, and ByteDance doesnt agree to it, then and only then can you say, OK, were going to ban it, Vellante said. But jumping right to the ban is idiotic.

This is a classic example of lawmakers not knowing what the heck theyre talking about, according to Furrier.

This is lawmakers looking for press, lawmakers looking cool to their constituents, the big, bad, timewasting app we got your back, malware, all that fear that was in Washington, D.C., he said.

Its not just lawmakers, but also the Biden administration and the Trump administration making the same mistakes, according to Vellante.

Now that Chinas a world power, who knows, they might ease up on that. That would be a great outcome for free marketers like myself. But irrespective of that, the smart move is to put it back on them, Vellante said. But what weve done is say, Were banning TikTok. Well, thats just dumb.

Thats because the broader population, and particularly young people, dont want it banned, according to Vellante.

The whole privacy thing is just not the right way to do it. So just be smarter about it politicians, Vellante said.

That was just some of the conversation on last Fridays episode of theCUBE podcast. If youre a listener, let Furrier and Vellante know on Twitter what subjects youd like to hear discussed in the next episode.

Dont miss out on the latest episodes of TheCUBE Podcast! Join us by subscribing to our RSS feed. You can also listen to us on Apple Podcasts or on Spotify. And for those who prefer to watch, check out our YouTube playlist. Dont wait any longer tune in now and be part of the conversation!

TheCUBEis an important partner to the industry, you know,you guys really are a part of our events and we really appreciate you coming and I know people appreciate thecontent you create as well Andy Jassy

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On theCUBE Pod: Elon Musks very bad week and the ban on ... - SiliconANGLE News

Tesla CEO Elon Musk attends the start of the production at Tesla's "Gigafactory" on March 22, 2022 in Gruenheide, southeast of Berlin.

Patrick Pleul | AFP | Getty Images

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribehere.

Elon Musk dominated the spotlight yesterday: Tesla shares sank, SpaceX exploded and Musk threatened a lawsuit over Microsoft's use of Twitter.

For all of Elon Musk's idiosyncrasies that frequently put him in the spotlight (and lawsuits with the U.S. Securities and Exchange Commission, for that matter), it's hard to deny his business acumen.

Yes, Tesla shares plummeted Thursday. The figure was so bad that it's the stock's steepest fall since July 24, 2019, according to data from Bespoke Investment Group.

But recall how Tesla, not so long ago in December last year, had its "worst month, quarter and year on record," to quote the article's headline. It sank to a 52-week low of $101.81 on Jan. 6 this year. Yet the share managed to double its price to close above $200 in less than a month after that.

Of course, Tesla isn't doing so hot now, but my point is it's important to take a long-term view of the company. Indeed, Cathie Wood has given it a staggering 1,127% upside from its price on Thursday, agreeing with Musk's emphasis on sales volume over profit margins. Telsa will play a huge role and benefit from a future self-driving revolution, Wood believes, calling it "one of the most important investment opportunities of our lifetimes."

Musk is, again, at the frontier of the future with SpaceX, his private spacecraft company. Admittedly, Starship exploded after taking off. But such occurrences are part and parcel of spaceflight testing. NASA Chief Bill Nelson even congratulated SpaceX for its flight attempt despite the explosion or what SpaceX is calling a "rapid unscheduled disassembly."

Which might be a good summary of Twitter, Musk's most contentious company but investors needn't worry about it since Musk has taken it private, anyway.

Elsewhere in markets, the Dow Jones Industrial Average fell 0.33%, the S&P 500 lost 0.6% and the Nasdaq Composite sank 0.8%, dragged down by losses in technology stocks, such as Nvidia's 2.96% fall and Meta's 1.22% slide. Investors grew increasingly concerned about shrinking margins despite companies beating revenue expectations. But the real test will come next week when big tech firms report, said Art Hogan, chief market strategist at B. Riley Financial.

"If we see a lot of degradation over the course of next week because of guidance," he said, "that might cause a multiple contraction and we might see some of the S&P 500 sell off."

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CNBC Daily Open: Its all about Elon Musk - CNBC