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Hey you honest jeremy how are you not doing too well what’s going on no no it’s not like that at all i want to give you attention i know i haven’t made a video about tesla a few weeks whoa i’m so sorry no you’re right you’re 100% right i have not even given tesla enough attention don’t say that don’t break up with me today i just got this new top hat in the mail
From amazon i’ll make a video about tesla today okay i will find something to make a video about tesla today okay there’s got to be something going on okay just hang in there with me okay hang in there okay i’ll call you later please pick up what i do holy smoke as guys welcome into the financial education channel i am jeremy and an analyst thinks that tesla shares
Are gonna go up 80% over the next 12 months are you flipping my flapjacks holy smokes guys let’s look at this here the hand wringing over tesla’s ability to generate profits on the model 3 is over bloah now according to berenberg the firm raised his price target for tesla predicting that electric carmaker will be able to meet its 25% gross margin forecasts for the
Model 3 bernburg also reiterated its buy rating for the stock model this is a quote from him now model 3 gross margin to positively surprised the analyst said in a note to investors on friday the widespread assumption that model 3 margins can be directly inferred from model s or x is inherently and almost totally flawed he says ok totally flawed substantial gains
From lower labor content as well as capital and material use efficiencies should allow tesla to comfortably achieve a margin above 25 percent throughout the products i cle says the analyst raised his price target for tesla shares to $500 tesla shares are less than $300 right now just so you guys know to $500 from four hundred and seventy dollars represented an 81
Percent upside to friday’s close holy smokers guys the analyst said model 3 has significantly lower material cost for model s since it uses less expensive electric motor and takes away features such as air suspension in aluminum body he also estimates the labor content is about a thousand dollars per car for the model three versus four thousand dollars for the
Model s that’s a significant amount guys we’re talking about three thousand dollars per car their higher levels of automation and lower in source content the analyst played down recent fears that tesla will move away from a more modernized manufacturing process we think reports that tesla is reversing his automated manufacturing strategy over exaggerate the real
Changes to the production system he wrote we expect tesla to remain the battery technology leader as traditional oms have shown little effort to commit meaningful resource capital in the battery technology i would definitely agree with that statement there okay also another analyst came out this was a back last week he said tesla’s moving in a good direction was
Shut up the shut down so basically tesla shut things down for about six day period he thinks that’s actually a good thing things are moving in the right direction getting everything right not focusing on short-term and what not there on monday ceo elon musk told employees that the company plans to flatten its structure as it works to improve communication and trim
Activities that are not vital to its success elon musk has been very deliberate and stepping in i’m taking more control of the company in the last few weeks monster pointed out that sees must taking this next three months as a critical window for tesla success that’s a little scary guys like you never want to put like that type of short-term emphasis on you like
Oh the next three months are so vital for a company but that’s kind of the way they’re treating it right now right now we see tesla shares on earth honest he underperformed the market significantly over the past three years over the past three years tesla shares are up about thirteen percent while the nasdaq has gone up over forty five percent so in the past three
Years tesla has really been a dogged stock to be and you know if you look at it from that perspective the nasdaq has way outperform the dow has way outperformed the s&p 500 like usually the goal as an individual stock picker is to outperform the markets especially when you’re talking about a three year span but if you’ve been in test chairs for the past three
Years like you’ve you’ve underperformed the market so that’s unfortunate for any tesla shareholders out there but the opportunity in front of tesla is massive for this company the question is can they execute to get it there so this analyst is saying the cost is going to be significantly cheaper for model 3 i believe that is gonna be a factual statement i believe
The cost is gonna be way down as far as the labor as far as the materials and things like that that go into a model 3 compared to a model s okay big difference there also a lot of people think about the $35,000 price point for you know buying a model 3 because that’s the the price they mentioned but most people that are going to be buying these bottle threes are
Really going to be buying them for 40 or 50 thousand dollars because they’re gonna put in this upgrade that upgrade very few people get the base based model it’s no different than any car company right they all say oh our car starts at this but very few people get that base based model they usually get you know at least some more additional features this and that
And next thing you know their cars $5,000 $10,000 maybe even $20,000 more expensive than what the the base model is and things like that guys so and also he says the stock can go to $500 over the next 12 months like that’s a big price target there guys $500 that’s a massive move this stock we need to have they would definitely need to show some amazing quarterly
Results that we definitely need to show some of this profitability to get that that stock to a level like $500 over the next 12 months guys that’s a really big price movement we’re talking about there but i would love to know your guys opinion on tesla do you think this is a stock that’s going to $500 anytime soon or do you think this is a more of a long-term
Growth play and you shouldn’t really be focusing on the short-term or do you think like tesla’s gonna be bankrupt three months from now or 12 months from now or two years from now or something like that like i would love to know your guy’s opinion on this is one of those stocks that really causes a lot of controversy a lot of people feel one way or another they
Love the stock they love the company or they hate the stock they hate the company it’s usually a passion on both sides love to know your guy’s opinion down there in that comment section make sure you follow me on instagram thank you for watching and have a great day
Transcribed from video
"TESLA GOING TO $500 IN 12 MONTHS" By Financial Education