Hamilton Capital chief investment officer Alonso Munoz joins the latest edition of to discuss his best and worst picks in the electric vehicle industry. Munoz points to Tesla ( ) as a good buy, explaining that the company's autonomous driving initiatives will be key to its next phase of growth. While other companies, like Waymo, are rolling out their own robotaxis, Munoz believes Tesla has a leg up on the competition as it has much more data to train its vehicles.
However, he points to potential regulatory and policy risks down the line. He also highlights its improving financials, believing the company has "a lot of cash to deliver on their product roadmap." He expects third quarter deliveries to come in between 460,000 and 470,000.
Munoz notes that Tesla is "not just a car company." He is bullish on its energy businesses, highlighting the "explosive" second quarter revenue growth. "That's something that gets us excited away from just the selling of vehicles.
And the auto industry has had some struggles over the last couple of years in this macro environment, but also with higher rates. So their diversified business lines and revenue there gets us very excited," he explains. Meanwhile, Munoz is bearish on Rivian ( ), telling Yahoo Finance, "They need a lot of cash.
This is a scale industry, and very recently, this summer, they partnered with Volkswagen ( ). They got $5 billion to roll out the next phase of their growth, which is lower-cost vehicles. And so this is something .
