Why Tesla CEO Musk Warns: Don’t Buy a Tesla if You Want Safety?
TradingKey - Although Tesla (TSLA) is widely popular, the company also faces persistent criticism, and its sales in international markets have stagnated. Part of the reason lies in CEO Elon Musk's remarks; for years, he has been a controversial figure among car enthusiasts.
For years, Tesla has faced safety controversies over accidents involving its FSD. However, the Tesla Model Y and Model 3 have consistently received the highest 5-star safety ratings from the U.S. NHTSA and Euro NCAP, performing strongly across multiple protection metrics.
This demonstrates that its structural strength and passive safety design are at the top level of the industry. FSD has always been intended as a tool to assist the primary driver rather than a complete replacement for human driving; misuse or misunderstanding by some drivers can increase risks.
Why Did Musk Warn Against Buying a Tesla?
Tesla announced it will launch the next-generation "Roadster" on April 1. However, Musk's recent comments on Peter Diamandis's "Moonshots" podcast have sparked widespread controversy.
Musk stated:
"If safety is your primary consideration, don't buy the Roadster."
"If you're buying a Ferrari, safety isn't your primary consideration."
"We strive for this car to cause no fatalities; it will be among the best of the last few human-driven vehicles in Tesla's lineup."
Clearly, the Roadster's design is not predicated on safety but on extreme performance. For other models, however, Tesla remains a top choice for safety.
From the perspective of a Tesla investor, we indeed need to consider the safety of buying Tesla stock, and we should rationally discuss whether Tesla is a safe asset worth buying.
Is Tesla a Safe Asset Worth Buying?
First, starting with Tesla's valuation, influenced by its initial earnings report for 2026, Tesla's current valuation has reached a staggering 390 times earnings. Given the current growth rate and the macro narrative for the next few years, it is difficult to see Tesla matching such a high valuation. The valuation premium brought by uncertain "future dreams" seems likely to dissipate as the narrative unfolds.
Investors should note that Tesla's stock price is influenced by many factors beyond its perfect narrative; CEO Elon Musk's stability and the spread of community sentiment can also cause volatility in Tesla's share price.
Musk has repeatedly issued warnings on Twitter to those shorting Tesla, and his inherent popularity often drives the stock price up. At the same time, Musk's previous political involvement has also led to significant declines in Tesla's stock price, causing investors to suffer substantial drawdowns.
Although we believe Tesla's future potential is infinite, based on fundamentals, we still consider Tesla a high-beta asset that may involve significant volatility after purchase. Therefore, investors seeking safety and stability should avoid investing in Tesla, as its volatility may correspond to Musk's sentiment of "don't buy a Tesla if you want safety."
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
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