Will Tesla tank, or is its tech compelling for the future?
Melbourne-based Elm Responsible Investments – which works on the philosophy of investing in the most impactful companies when it comes to solving global problems – is backing Tesla.
Elm promotes itself as a sustainable investment fund manager, which has two funds Australia and NZ conviction fund that began in 2019 and the global fund which began in 2021.
Elm founder and portfolio manager, Jai Mirchandani, discusses Tesla in these Talk Ya Book segments hosted by Chris Judd, AFL great turned Cerutty Macro Fund portfolio manager.
Chris Judd says while the stock appeared expensive compared to other motor vehicle companies, it could look different when viewed as the ‘AI company with four-wheeled robots currently scouring the globe’. From that perspective, Chris Judd said it could be an interesting place to park capital.
“We take a really long term investment outlook at Elm Responsible Investments,” Mr Mirchandani said.
“We think that the technology that sits within the car is really compelling and interesting, so it’s not just about the monthly deliveries, but rather the embedded value the company has that they keep investing in, which we don’t think the broader market appreciates.”
Chris Judd and Mr Mirchandani discuss the possibility of full self-driving cars, Elon Musk and his ‘key-man risk’ and Tesla competitors.
Talk Ya Book was created by Chris Judd in 2019 as a show where fund managers could share their highest conviction investment idea but more importantly showcase their investment framework to the public.
In 2023, Chris joined the people he interviews in the world of funds management by creating the Cerutty Macro Fund. Chris is the founder and portfolio manager of the fund which looks to invest in long term, secular, macro trends.
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