Kevin O'Leary Likes His Tesla Model X, But Hates The Stock

With General Motors Company GM’s headquarters visible behind him, “Shark Tank” judge Kevin O’Leary said Tuesday that automotive brands are losing importance.

In 15 or 20 years, passengers won’t care about the branding of the vehicle they’re hailing for a ride, O’Leary said during an appearance at Benzinga’s downtown Detroit newsroom.

“The whole sector’s rolling over. Why? Because it’s turning into a commodity,” the O’Shares ETFs chairman said. “It’ll be no different than a rail car.”

O’Leary On Investing In Tesla: ‘I Don’t Get It’

O’Leary recently bought a Tesla Inc TSLA Model X at the behest of his wife — and said he was unsuccessful in obtaining a discount on the asking price.

“I tip my hat to Elon [Musk] on that. Either you want it or you don’t.” A 2018 Model X starts at $79,500.

He told Benzinga CEO Jason Raznick and an audience of finance students and interns about his first drive in the car, including his interaction with the Autopilot system.

“The car makes you put your hand on the wheel every 90 seconds or it gets pissed off if you don’t.”

While O’Leary said he’s a fan of the product — and called Musk a “genius” — his feelings don’t translate to the stock.

A better automotive investment is a basket of dividend-paying Detroit automakers that are “also all over autonomous,” he said.

“Or pay [an] infinite multiple for stock that makes no money," O'Leary said of buying Tesla shares. "I don’t get it.”

Tesla closed Tuesday at $275.01 per share. The stock is down about 14 percent in 2018.

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"Shark Tank" judge Kevin O'Leary speaks at Benzinga in Detroit on Tuesday, May 22. Photo by Dustin Blitchok.