Copper miner vs. Tesla: ESG portfolio manager's stock picks

Copper (HG=F) or cars — Is there a better pick for investor portfolios during times of uncertainty?
Hennessy Stance ESG ETF portfolio manager Bill Davis joins Julie Hyman on the newest installment of Good Buy or Goodbye to give insight into his investing preferences when it comes to the commodities and autos spaces, and which stocks will provide the best value for your portfolio.
Davis picks Freeport-McMoRan (FCX) as his Good Buy, citing its operation size being one of the largest mining operators in the US and copper's standing as a high-demand metal. Copper shortages in tandem with high barrier costs to enter the mining industry, leaves little competition for Freeport-McMoRan.
"It takes billions of dollars to even begin to think about mining copper. To give you an example, one of the challenges in the copper space is that over time, the quality of the copper as you extracted from the mine goes down somewhat. So you have to make up for it by increasing the milling rates and the productivity of the extraction," Davis explains.
Davis pivots, discussing why EV maker Tesla (TSLA) is his Goodbye, first citing its loss of market dominance within the last year. He continues by breaking down the Tesla's recent discounts on its electric vehicle lineup to bring in more customers — especially in China's auto markets — and CEO Elon Musk's behavior:
"The combination of high interest rates and expensive cars is not a great recipe for growth. But I think that speaks to kind of the beginning of the foundation crumbling with Tesla. And that is that they in an effort to become the leader that they were — and I don't take anything away from some of the things that they accomplished — they also basically ceded the market to the low-cost entrants and sort of the next evolution of growth in the EV space is not going to be people buying $100,000 sedans."
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