Why Older Investors Still Bet on Tesla and Intel Despite Weak Performance
Older investors continue to back well-known companies despite signs of weakness in their core businesses. Tesla and Intel remain popular choices, even as their market positions face growing challenges. Both firms rely heavily on future promises rather than current performance to sustain their valuations.
Tesla's electric vehicle sales have fallen by 11% over the past year. The company's global market share has also slipped below 20%, down from around 20% in 2023 when it delivered 1.85 million vehicles. Meanwhile, Chinese rivals like BYD have overtaken Tesla as the world's largest EV maker, while Geely Group—home to Volvo and Polestar—now ranks third. Tesla's struggles extend beyond sales, with its Cybercabs and Optimus robots yet to produce significant revenue.
The company's market value still depends largely on Elon Musk's reputation and bets on future projects rather than its current EV business. Adding to the pressure, Tesla faces the end of US EV tax credits, Musk's fading public appeal, and fierce competition in China.
Intel, another favourite among older investors, has seen its stock nearly double since mid-September after the US government took a 10% stake to boost its AI ambitions. Yet, revenue growth remains sluggish and inconsistent. The company's turnaround is speculative, and even government support does not ensure long-term success. Analysts warn that Intel's stock could stagnate or decline, despite its status as a legacy tech giant.
Both Tesla and Intel attract investors who bet on past reputation and future potential rather than present results. Tesla's shrinking EV dominance and unproven new ventures raise doubts about its long-term growth. Intel's stock surge, driven by government intervention, may not last without stronger financial performance. The gap between investor confidence and business realities continues to widen.
