Stocks to Buy About Elon Musk
Here are three stocks with great upside potential thanks (in part) to Elon Musk.
CapitalWatch Staff
CapitalWatch Staff
Nov. 08, 2022 01:49
Stocks to Buy About Elon Musk

(CapitalWatch, Nov. 7, New York) Twitter is no longer a public company after Elon Musk's $44 billion buyout of the media giant, though many expect it to come back to Wall Street at some point. Sure, the company is bound to go through a lot of turbulence as Musk is shaking it up from top to bottom, so we will see analysts left and right voicing criticism of his moves. But keep in mind that Tesla's stock has seen one of the most successful public trading runs in spite of many an analyst's negative outlook. And Tesla's success story wouldn't be there if it wasn't for Musk's defy-all bulldozer approach. He may not have known all the challenges of running a media company before all this started, but he sure knows how to turn a sagging business around and make money. Plus, his nonpartisan, independent, and humanitarian idealism makes him a likeable figure for all – Musk may be authoritarian, but he is no Donald Trump. While bank analysts consider the balance sheets, retail investors consider personality.

So, here are Musk-related stocks to consider that will likely see growth in the mid- to long-term.

Tesla Inc. (Nasdaq: TSLA) at the Dip

Musk's automated EV maker has been sliding since last week, down 4% as of midday Monday and 15% lower over the past five days, which makes it a great "buy" opportunity. Its drop below $200 per share is a significant shift that some call "key point" signifying further decline. It was spurred by several factors, not only the Twitter deal, which raised fears that Musk may pull funds from Tesla like sell some stock to fund the purchase.

Another major factor was Tesla's showing a decline of EV deliveries at its Chinese gigafactory in October amid Covid-19 lockdowns, at 71,704 units compared with 83,135 shipped in September, according to China's Passenger Car Association. Yet comparing the figure with the preceding year shows that  

In recent developments, China has signaled the extension of its zero-Covid strategy, but the public's dissatisfaction may shift the course of the policy somewhat. Meanwhile, Tesla is prepared to boost its Shanghai plant capacity to 1.2 million vehicles per year from 750,000. The company has deemed its gigafactory the most productive EV factory in the world, and there's no doubt it plans to expand on that title. The new energy vehicle market remains strong as ever, and China is the largest EV market thanks to favorable policies and extended subsidies.

Further, Tesla cut its prices on Model 3 and Model Y in China to up its competition against local brands. That will boost the demand for Tesla, and already competitors are seeing some backlog order cancellations in Tesla's favor, according to Citi analyst Jeff Chung, as quoted by Barron's. So, we'll likely see a turnaround for Tesla this month already – and Musk has repeatedly said that the demand for his EVs remains strong.

Livent Corp. (NYSE: LTHM) for Long-term

This stock ended at $30.37 per share on Monday, slightly higher along with the general market trend. As you may have guessed from its ticker symbol, Livent is a lithium miner and refinery, it's among the world's 10 largest, and it supplies Tesla along with another major producer, Albemarle Corp. (NYSE: ALB). For the purpose of this article, we spotlight Livent as the lithium pure play company and a low-coster.

Material shortage is the main issue for the EV industry, and lithium is at its epicenter. Lithium is crucial for batteries, just a handful of countries source it, and there are environmental challenges with sourcing it. Livent operates a mine in Argentina and is headquartered in Philadelphia – and it's been around for more than six decades, according to its website.

At the current level, shares in the company are down 7% over the past five days after the company released its Q3 data showing sales lower than analysts expected. Livent positioned its financials as record performance, considering 124% year-over-year revenue growth and adjusted earnings per share of 41 cents, up 925%. The company noted "near-term supply chain disruptions" that will possibly ease in the near future, while higher prices on lithium drove up sales.

Importantly, Livent is expanding and will see more expansion in 2023, it said in its Q3 report. It completed its lithium hydroxide project in Bessemer City, working on the lithium carbonate project in Argentina, and has secured a location in China, with the project expected to complete by the end of 2023. Further, Livent's 50% partner in Canada, Nemaska, is set to begin construction in Québec early next year. These are long-term projects, however.

Panasonic Holdings (OTC: PCRFY) for Innovation

Earlier this year, Japanese electronics giant Panasonic said it plans to increase its Tesla EV battery production by 10% by 2024. The boost is expected to occur at the factory in Nevada, jointly operated by Panasonic and Tesla. Panasonic is also building its second U.S. plant, in Kansas, in response to the high EV battery shortage.

InvestorPlace also named PCRFY one of the top battery stocks to buy last month thanks to its price-to-earnings ratio of 9.5 and the 3.5% dividend yield. More importantly, Panasonic is developing its innovative technology that would improve battery energy density by a fifth, as Reuters reported in July, citing the company. That would mean an additional 62 miles of driving range per battery pack, or a lighter EV. However, the company said it would complete the technology only by 2030.

OTC shares in Panasonic slipped 3% on Monday but are overall 7% higher from a week back. Year-to-date, PCRFY is down nearly 24% along with the general declines of the markets. While Tesla has several battery suppliers including Chinese battery giant CATL, listed in Shenzhen, and is building its own battery plant, Panasonic was one of the earliest investors in Tesla and is a sure winner if you're betting on Elon Musk.



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