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Well guys last night was one of the most exciting nights for tesla in quite a while they just unveiled the model y and what do we have today we have tesla stock crashing down another fourteen plus dollars a share today down about five percent two parts of this are bad one the markets up big today so most stocks are having a great day and then you have tesla falling
5% to tesla has been having a rough 2019 it was an amazing stock basically in the fall running up to the wintertime and then it reached about 370 and from there it’s just been kind of falling and falling and falling okay i want to give my full opinion about the model why why the stock is crashing in my opinion today all this type of stuff okay the good the bad
The ugly everything okay so first off look at model y like just like me looking at the vehicle like almond press i think it’s a good looking vehicle is it something that like wow’s you like maybe the model x did with the falcon door something like that probably not but at the same time it’s not in the same type of price brackets right small x you could be looking
At a hundred thousand dollars or so this is a vehicle that’s priced more toward the you know the high 30s maybe all the way up to like you know high 50s type range okay you can actually order the tesla model y now on the website as of right now okay they kind of advertised it as an all wheel drive vehicle about 300 miles of range if you kind of look at what models
They’re offering right now they offer one model a rear-wheel drive model that’s about forty 2700 but that’s after savings okay they also offer a long range model in a performance model now if we look at the long range model what do you get so first off that’s about a forty-seven thousand dollar car and that’s before savings okay you get about three hundred miles
Range about 130 top speed like who goes 130 miles an hour you get five point five zero to six d alright that’s basically what you get for that and then i think the other most popular one at least was right now would probably be the performance model because you know a lot of folks like to have the highest of the highest end if you look at this you’re looking at
About 60,000 bucks are you that’s once again before auto pilot and those type of things and that’s before savings that one gets about 280 miles range which is more than enough for most people out there 150 miles per hour top speed zero to 60 in 3.5 seconds that baby can get up and move now in terms of the cheaper model if you do that forty-seven thousand dollar
Model right and you do the auto pilot and whatnot you’re basically looking at a purchase price of around 55,000 that’s not just autopilot but that’s also the advanced feature that they’re supposed to be coming out with later this year that’s even supposed to be able to drive and you know with traffic lights and basically basically city driving and whatnot not just
Highway driving so you’re looking at about 55,000 if you want all those type of features out the door for that type of model okay if you want the base base base model this would just be the electric suv like the cheapest way out right now you know nothing add it to that vehicle or anything across the board but it’s an electric suv you would be looking at somewhere
Around maybe six hundred and seventy bucks a month maybe it down to like six hundred bucks a month in terms your loan obviously to depend on you know what your down payment is and whatnot so needless to say you’re getting into price brackets that are more affordable for a lot more people out there i think a lot of people as far as you know when they have loans on
A car they pay anywhere from four hundred bucks a month to up to of maybe seven hundred bucks a month obviously some people can pay in the thousands of dollars a month depending on what type of car but most folks is 400 to 700 so they do have a model now that would kind of meet that criteria and let’s keep in mind the cheaper model the cheapest model is going to
Start around thirty-nine thousand dollars when they actually come out with that so then we’re talking about even cheaper okay so even a more affordable model all right now there are a few things that caught my attention that i think are kind of the things that makes making the stock crash today okay couple of things so first off production is not even going to
Begin too late next year okay so meaning probably wintertime maybe late fall time but probably more toward winter time of 2020 so we’re talking about you know well over a year and a half before production likely starts on these vehicles okay which means most people that let’s say you’re placing an order for this you’re probably not gonna get that vehicle until
Like 2021 that’s a long time away okay and so i think a lot of folks have expected earlier also another thing is the standard range production which is the the cheapest one right the one that’s going to start at 39,000 they’re talking about that’s not going to be available until 2021 in terms of you actually going into production early 2021 that could mean january
That could mean like april we’ll have to see what type of time that is obviously but that’s like we’re talking about those are like two years away if not more than two years away from even going into production so that’s a long time and i think a lot of folks even including myself expect the to begin in the first quarter of 2020 and i was thinking maybe worst-case
Scenario begins in the second quarter of 2020 and what it sounds like it honestly is gonna probably be more like a fourth quarter of 2020 production would just start so that’s gonna put a lot of people having to wait a long long time before they didn’t get their hands on a model why all right now let’s take it back to the stock for a minute so once again stocks
Down five plus percent today okay so bad news you know if you’re trying to read like the tea leaves i guess you could say of the bad news this situation obviously i think that it’s going into production later then i think a lot of folks expected on wall street to honestly we just got to view this guy’s test is a little desperate for money the fact that they come
Out with a vehicle this far in advance and take people’s money basically because you have to actually pay for the vehicle if you want to model why you have to pay for that now get all that ready to go that’s a long time away okay so the twenty five hundred dollars you know that’s basically a refundable money but you know when you just kind of look at this it’s
Obvious this was a play on tesla wanting to get a lot more cash around okay i can’t necessarily blame them for it but it’s pretty obvious i think if they didn’t have to make that debt payment they did recently the 920 million i don’t think they would have came out with model y and showing it off already i think this was something that was set up probably toward
You know the back half of 2019 i could have pictured them you know kind of showing it off in 2019 which you know late 2019 like november december which would have made a lot more sense because then you’re looking at maybe a year out but this point guys were well over a year and a half away from anybody even getting their hands on these cars so it’s definitely a
Little desperate play you know obviously i love tesla and a lot of us love tesla and we’ll never say anything bad about tesla for this be honest and this was any other company out there the apples of samsung’s we’d be looking at this right now imagine you know one of those companies says oh we’re going to come out with this amazing smartphone gonna be the best
Smartphone ever and you know they start taking people’s money and they’re like oh yeah we’re you’re gonna get it like two years from now we’d be looking at that and being like are they desperate for money cuz that’s a little sketch right but tesla they can kind of get away with whatever they want all right now another thing is elon is just being stubborn in this
Situation all right they could just raise money do you want to so hell-bent on not raising money and whatnot a lot of us investors feel like they should raise money i’ve come out in this channel said many times i would be fine with them raising money it’s still pretty easy to get capital i think it’s just worth doing i know a pretty sure galileo over at a hyper
Change i’m pretty sure he has the same opinion you know tesla could just raise money or something like that i have no no you know i personally i don’t have an issue with it i know elon doesn’t want to give up any more equity but i’m like you could just raise the money and then you’re not like conflicting with customers and whatnot or causing any problems there and
Just making you know people mad that you know because now they’re in a situation where they have to start pretty much coming out with those in a year and a half or two years from now and if they don’t and then they’re just gonna make a bunch more customers mad and things like that so in my personal opinion it’s just not the best way to do business in my personal
Opinion okay taking people’s money and it’s like you know oh yeah we’re gonna give you this product or service but it’s gonna be like two years from now yeah that’s just not in my personal opinion the best way to do business okay they could just raise money and and they would have plenty of cash around and do whatever they want but leon doesn’t want to do that and
It is what it is okay no good news liz well i like to get out the bad news first let’s talk about some good news around this number one the model y looks good in my personal opinion it looks like it’s gonna be a good value we’re talking about you know like we talked about 39,000 starting maybe go up to you know the fifties or something i think for an electric suv
I think it’s a you know affordable enough for enough of the masses out there i think it’s a good looking car that’s a good value in my personal opinion suv space okay that’s my opinion there number two the mall i was a really big event there’s be very clear most car companies out there don’t have anybody show up at their events if they even have an event like
This this event was streamed by massive amounts of people i know i was on youtube and you know there were different channels that were live-streaming it that had 10,000 plus you know live viewers nevermind the ridiculous amount of people that were you know viewing it live from the tesla web site and things like that so in my opinion this attention this event got
It’s just unparalleled compared to any other you know auto manufacturer in the world name one other auto manufacturer in the entire world that gets this type of attention when they launch a vehicle there’s no one okay it’s pretty much tesla has this mass amount of attention and then no oh no nobody else has this type of attention even close i think the type of it
Tenshun tesla gets for event like this is even bigger than like an apple event for instance like you know apples events are always huge especially the ones they come out with the fall the new iphones whatnot but when i look at like this like there’s really no other auto company that can compare with this type of attention around launching a new vehicle so that is
And then i just don’t agree with some of the what’s being put out there by mainstream media and what not around you know tesla shares falling day because it was an underwhelming model why is that completely a completely 100% disagree with an underwhelming bottle why okay that was a good looking vehicle it’s an all-electric suv and we’re talking about a price point
Of around 40,000 dollars starting i don’t think there’s a lot of other auto manufacturers out there that can you know release anything around those type of price points or even fifty thousand or something that’s actually a decent looking vehicle so i don’t think it was an underwhelming event if anybody was expecting the model y to blow the doors off it’s completely
Unrealistic cuz we’re talking about this is gonna this is like what model 3 was to tesla right the affordable car the model why is that for suvs so you shouldn’t expect anything crazy with that okay the model x was a crazy idea with the falcon doors and it’s a super complicated vehicle but it’s also sells for a hundred thousand dollars and not most folks can afford
That right so if anybody was expecting something crazy from model y i’m just like what were they imagining like what were they imagining this vehicle to be for forty or fifty thousand dollars that’s an electric suv that’s just completely unrealistic so i don’t agree that it was underwhelming i think it was great i think just wall street’s kind of caught up in this
Thing of kind of realizing that not man wise tests are taking these orders so far in advance and not only that but they’re kind of looking at this and saying the production is still a long time away so model y in terms of you know actually helping out the revenue numbers in a big big way obviously they can take all those you know refundable deposits in and carry
Those in cash for right now but in terms of actually you know getting the the sales numbers and what now we’re looking at probably two years before those start to really add up if not more than two years so i think that’s why wall street’s kind of looking at this and like okay you know this is still a long time away and obviously tesla the type of stock there’s a
Momentum name growth name and a lot of folks are looking at it and now they’re like well how much growth is there going to be over the next couple years i think so it can still grow over the next few years even without lo y but it’s just not gonna be it nearly as fast of a cliff as if they came out with model y sometime soon so anyway so let me know he would sure
Guys opinions on the model lie down there the launch event i would love to hear from you guys as always in the stock in general i would love to hear from you guys thank you for watching and have a great day
Transcribed from video
Tesla Stock Crashes after Model Y Event! I Explain Why By Financial Education
