Ackman, the founder of Pershing Square Capital Management, said Tesla makes excellent vehicles and praised CEO Elon Musk. However, he believes Tesla’s current stock price depends too heavily on future technologies like self-driving cars, robotaxis and humanoid robots.
Instead of investing in Tesla, Ackman says he prefers companies whose future earnings are easier to predict. His largest technology investments include Amazon, Microsoft and Meta, which he believes have more reliable long-term business models.
Ackman explained that his investment strategy focuses on businesses with steady cash flow and predictable growth. He said that while Tesla could become much more valuable in the future, there is also a chance that some of its biggest projects may not succeed as investors expect.
Tesla is currently valued at more than $1.5 trillion, with many investors betting the company’s future will be driven by artificial intelligence, autonomous vehicles and robotics rather than car sales alone.
For Ackman, that level of uncertainty is enough to stay away. He says he would rather invest in companies where he has a much higher level of confidence about what the business will look like years from now.