George Noble: Why the Tesla and AI Bubble Will 'End Badly'

Stansberry Investor Hour

Stansberry Research

Business, Investing

4.3 • 680 Ratings

🗓️ 12 May 2026

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this week's Stansberry Investor Hour, Dan welcomes George Noble to the show. George is the managing partner of Noble Capital Advisors. He's also the author of The Noble Update on Substack, which has more than 13,000 subscribers.

George kicks things off by expressing his skepticism about Tesla. He says that despite the company branching out into different areas, the majority of its revenue comes from car sales and should therefore be treated as a car company. He also believes that investors are improperly valuating the stock, ignoring the fundamentals in favor of "charts" and "the narrative." And his sentiment extends further out into SpaceX. Due to the Nasdaq Composite Index altering the rules for listing stocks, George thinks that the company's upcoming IPO is not going as well as people might think if it couldn't meet the previous requirements for entry. (0:00)

Next, George discusses semiconductor capital expenditures. He says that folks are too caught up in the current boom and aren't looking at whether a company has a price to earnings that warrants buying a company's stock. Then he shifts the conversation briefly to bonds, saying that the market is so focused on energy due to tension surrounding the Strait of Hormuz that it hasn't noticed that bond rates have gone up, which normally go down during war. And his concern with that is what happens when we face a deflation bust. Additionally, investors aren't even aware of how hyperscalers have been hurting their portfolios, thinking that they hold a diversified collection of stocks. (13:26)

Finally, George shares how U.S. bonds are losing their worth due to the weakening dollar and warns that folks should "run, not walk" from their bonds. While bond coupons are enticing, the value of the money you receive is not worth it in the long term. George believes that the value of the dollar is currently pegged to U.S. expenses and payments, and just like when it was removed from the gold standard, he says that we need to cut it loose to end the continuing downward spiral. And he leaves listeners with a word of encouragement – and caution for newer investors. (27:41)

Transcript

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0:00.0	Do you own Tesla? Yeah, you probably do. Even if you don't know that you do, you're probably buying it every two weeks in your 401k.
0:09.3	It's a stock everybody really needs to understand. And we got the guy to help us understand it today.
0:15.3	George Noble, a multi-decade Wall Street veteran. This guy was Peter Lynch's assistant. I mean, he's been
0:22.8	around. He's seen crash after crash after crash. He's got as much gray hair as me, maybe a little
0:27.7	more, and lots of experience, lots of knowledge. So let's tap into that mind of his. And we'll talk
0:34.5	about Tesla and a bunch of other stuff. Get out your pens and pencils. There's a lot going on here. So let's do it. Let's talk with our guest, George Noble. Let's do it
0:42.5	right now.
0:49.8	George, welcome to the show. Thanks for being here. Hey, thanks so much for having me. It's a real pleasure to be here.
0:56.2	Yeah, I've been wanting to get you on the show. The first thing we got to talk about is Tesla.
1:02.4	This stock has been, I mean, it's been years and years. You know, people have tried to short it and just gotten run over. They've been talking
1:11.9	about the value of the thing again and again and again. And now you're talking about that.
1:17.5	You had a great bit on X.com. I love your feed there, by the way, where you put the value,
1:23.7	I think it was you and what's it Gordon Johnson. You guys put the value somewhere between
1:29.3	it's like 54 and 25 per share and the thing is 374 as we speak. Right. So a touch, a scosh
1:37.7	overvalued. And it was hilarious. I laughed out loud in front of my computer because you said,
1:43.8	we're talking about Tesla and we're going to value it like an actual business.
1:49.8	Like anybody's doing that at a trillion and a half market cap, right?
1:54.7	It's insane.
1:55.7	You're open up Pandora's box.
1:57.8	Let me have that.
1:58.6	I could take up the entire show talking about Tesla. So let's try to take the 30,000 foot view. And let's go to the bulk case, all right? Because. Yes. And I know with interest, you know, that post, we had one post that got 3.5 million views. This one got 1.1 million views. I was blown away just because I tried to keep it simple, stupid. All right? And so, you know, people like to say, well, it's not a car company. Okay, let's not feel themselves. If a company is 87% of its revenues from autos and auto sales, some might call it a car company, but let's not just say it.
2:35.5	Forget about that. Forget about that. Okay. Let's forget about that. Okay. Okay.
	...

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