WATCH: Stock Pick — Tesla and cash
Bright Khumalo from Vestact chose Tesla as his stock pick of the day and Ian Cruickshanks from the SA Institute of Race Relations chose cash.
Khumalo said: "Tesla released their production update saying that they delivered 95 200 cars. That's more cars than they ever delivered, for example for their whole year of 2015. This is a record.
“This is going in the right direction — they are expecting to release between 300,000 and 600,000 cars that they are going to manufacture this year. I'm really excited about this company: no one expected this as there has been a lot of teething problems. Over 80% of the cars that they now produce are the model 3s, and the model s and x were around 17,000, which is not a lot but there is still demand for these luxury cars,"Khumalo said.
“These cars save the world and I like the management team, and I think there are a lot of upside surprises going forward.”
Cruickshanks said: "I like to be sure of getting my investment back. I like security of capital at the moment so I would go for cash or a money market fund without a long deposit period. I think it is safety first at the moment. I'm not convinced that this rush we are having at the moment based on very low short-term interest rates is sustainable.
Bright Khumalo from Vestact chose Tesla as his stock pick of the day and Ian Cruickshanks from the SAIRR chose cash
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