Should You Forget Tesla and Buy These 2 Millionaire-Maker Stocks Instead?

Tesla is portrayed as a stalled high‑growth name with flat-to-declining revenues since end-2023, operating income down by more than half and EV unit volumes no longer growing as its AV/robotics pivot shows little near-term payoff. Remitly reported active customers up 21% YoY to 8.9 million, revenue up 25% to $420 million and generated positive net income, and management projects roughly $3 billion revenue and $600 million adjusted EBITDA in the coming years versus a current market cap of $2.85 billion. Nintendo’s Switch 2 is selling nearly 100% more year‑over‑year through the first three quarters of fiscal 2026, the company sits on a large cash position with market cap ~$62 billion (enterprise value under $50 billion) and management sees annual earnings rising well above $5 billion as software, film sequels and theme‑park assets monetize the install base. The piece recommends Remitly and Nintendo as more attractive investments than Tesla based on valuations, guidance and product momentum.

Analysis

Market structure: Remitly (RELY) and IP-rich consumer franchises (Nintendo/NTDOY) are the primary beneficiaries of the story — RELY gains fee- and UX-driven share in a stable $700B+ remittance market while Nintendo monetizes a fast-growing Switch 2 install base plus movies/parks. Losers include high-multiple growth/EV exposure (TSLA) facing flat unit demand and margin pressure; rising chip prices are a transient headwind for Nintendo but unlikely to flip its FCF profile. FX and bond markets matter: USD strength reduces remittance flows into some corridors; higher real yields compress growth valuations (negative for TSLA, neutral-to-positive for cash-rich Nintendo). Options IV will stay elevated in TSLA and rise around Nintendo game/film release windows.

Risk assessment: Key tail risks are rapid stablecoin on‑ramp adoption that cuts remittance conversion frictions (>20% fall in on/off‑ramp costs within 12 months), stricter immigration policy materially reducing US-origin flows (>10% yr/yr), or Nintendo failing to ship flagship titles (delays >6 months). Immediate (days) risk: headline volatility (earnings, movie release news); short-term (weeks/months): chip-price trajectory and Qs; long-term (quarters/years): execution on RELY’s path to $3B revenue / $600M adj EBITDA. Hidden dependencies: merchant & local FX liquidity providers, corridor regulatory changes, and consumer smartphone penetration in corridors.

Trade implications: Tactical allocations: long RELY (fundamental upside vs sub-$3B market cap) and long NTDOY (cash‑adjusted EV low vs projected >$5B earnings), funded by cutting high-beta TSLA exposure via capped put spreads. Use LEAP calls on RELY (18–24 months) and 3–6 month put spreads on TSLA to limit capital; reallocate 3–5% of portfolio from EV/AI growth into fintech and IP-rich consumer names. Monitor quarterly active customer growth (RELY) and Switch 2 unit growth & game release cadence (Nintendo) as primary entry/scale signals.

Contrarian angles: Market is likely over‑discounting Remitly’s near-term threat from stablecoins — conversion and local FX rails keep incumbents relevant for 12–24 months, creating a window to capture share. Conversely, TSLA’s negative narrative may be near-term efficient but underestimates long-dated optionality in autonomy/AI — short sizes must be tiny and time‑boxed. Nintendo’s cash-rich balance sheet + diversified IP monetization is analogous to rare platform turns (e.g., early PlayStation cycle); mispricing exists if Switch 2 sustains >30% YoY sales for two consecutive quarters. Unintended consequence: a positive Tesla tech/AI surprise or outsized Nintendo title can produce sharp mean reversion; position sizing must reflect event risk.

Key Decisions for Investors

• Establish a 2–3% portfolio long position in RELY using staggered buys: initial 1% now, add to 2.5% if stock drops 15–20%. Size conviction on management guidance to ~$3B revenue and $600M adj EBITDA within ~24 months; set a stop-loss to exit if active customers decline sequentially or full-year guidance is cut >15%.
• Allocate 1.5–2% long to NTDOY (ADR) aiming for +30–50% upside over 12–24 months. Add another 1.5% on a >20% dip or if Switch 2 unit sales remain >30% YoY for two consecutive quarters; hard stop at -15% from entry if flagship game delays exceed 6 months.
• Implement a tactical bearish hedge on TSLA sized to 1% portfolio risk: buy a 3‑month 10% OTM put financed by selling a 20% OTM put (put spread). Close or reduce if Tesla posts QoQ revenue growth >5% or gross margin expands >200 bps on the next quarterly report.
• Rebalance 3–5% from high‑multiple EV/AI exposure into RELY and NTDOY over the next 4–8 weeks. Trigger reallocation immediately if 10‑yr real yields rise >50 bps (valuation headwind) or if RELY Q results beat revenue and active‑customer consensus by >5%.