Fox Business - 'ABSOLUTELY RIDICULOUS': TrueCar founder goes off on those betting against Musk

Short Summary

Main recommendation: Do not bet against Elon Musk's companies, Tesla and SpaceX, because according to Scott Painter, bets against Musk have historically lost, and he calls such bets "ridiculous." Painter, a longtime friend and advisor to Musk and a public company CEO, also argues that the current car market is a good time for consumers to buy a new car because of heavy discounting.

Key Points

• Painter says Musk "totally transformed modern business and business building" and "does bend what is possible," which he uses as the basis for his view.
• He describes Musk's broader system, not just Tesla and SpaceX, as "infrastructure for the future."
• Painter expects short-term turbulence, saying "We will be in chaos for the next two months," while maintaining a long-term positive view.
• He says markets are "manic-depressive," which he uses to explain much of the noise around SpaceX.
• On cars, he reports discounting "more than has been seen in the automotive century," with dealers contributing about 7% and OEMs 10% to 15%, on top of overall discounts of 15% to 20% on many cars.

Details Worth Noting

• Concrete instructions: The transcript gives no specific steps for betting, investing, or buying. Its only actionable advice is that a new car buyer should consider the current heavy discounting, and that Painter would not bet against Tesla or SpaceX.
• Painter cites the average new car cost at $52,000 and used at $30,000, with new car interest rates above 6% on average and used above 11%.
• He says 94% of consumers do not pay cash for a car, which he presents as part of an affordability complexity.
• He says much of a tariff's impact is absorbed by automakers, and that this pushes some buyers toward used cars.
• The transcript's opening discusses President Trump's threatened 50% tariffs on Canadian cars and trucks, with Painter's comments on affordability tied to that context. Painter's investment views are his own opinions, not professional financial advice.

Bottom Line

Painter's view is that Musk's companies are a poor target for short bets, while the car market currently offers buyers unusual discounts despite affordability pressures.