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Well holy smokes folks this ain’t no dang jokers uh flapjacks are out here getting flipped today let’s put it that way uh invisible cheers to all tesla shareholders today what a day i wake up to see tesla stock up 14 yes 14 over a thousand dollars a share now over a trillion dollar market cap that is a good way to wake up nonetheless okay the gains have been
Insane now as of right now the stock’s up about 12 up about 81 000 which you know if tesla stock keeps going this way the the plaid that will be paid for which is tesla gains in a matter of a week or two it’s been insane the stock has been just a beast like obviously we know the run it went on you know in 2019 2020 but all of a sudden now here at the end of this
Year 2021 it is heating up again it is starting to run it’s extraordinary i’ve never been anywhere remotely close to this sort of gains on a stock before in terms of percentage like i’ve never had anything even close to two thousand percent it’s been extraordinary it’s it’s a fun ride but we’ve got to talk about everything that’s going on here in regards to tesla
My opinions what i’m personally thinking about doing with this stock what i’m thinking about not doing with this stock all those sorts of things hope you guys enjoy this as always all asking returns that you smash that like button appreciate you guys being here as always so it last night it was i was listening to an earnings call of a new stock i’m looking into and
Uh it was like 2 28 a.m i posted in the discord chat because i i checked stocks while i was listening to it you know like pre-market stocks tesla was already up over two percent pre-market at that particular time like 224 i’m like holy smokes you know this stock is this really about to go on another beast run because it obviously just hit a new all-time high right
It it hit 900 very early this year and then the stock just you know didn’t do anything just kind of floundered around from anywhere from like 550 to you know 800 so so breaking out above and hitting a new all-time high was big and then all of a sudden seeing it up two percent plus pre-market i’m like is this really about to go on another you know tesla run because
We know these tesla runs are crazy right and then also in the discord chat last night trevor had posted this he said my parents just ordered a model y it’ll be delivered in may i had no clue the model wise were pushing out that far now that’s extraordinary may oh my gosh okay colin posted this he said the mall x is estimated september next year with the backlog
And then we had somebody that said they had purchased a model x and yeah it was pushing out towards september of 2022 so like 11 months from now and so i’m looking at all this i’m like my gosh like i i you know i only i have a lot of stocks to track and a lot of stuff to do on a daily basis so i’m not always able to track like how far out these tesla models are
Pushing and the fact that i saw that i was just like that’s nuts man i had no clue like we were pushing out that far as far as dates then today we get this huge news okay tesla surpasses one trillion dollar market cap in value as hertz orders a hundred thousand vehicles now i have a lot of opinions on this okay the first thing is the first thing i thought about
When i saw this is how does hertz have the money to do this 100 000 teslas that’s a whole lot of money like am i tripping or was it last year that hertz was like going to go bankrupt like this is crazy and i was only going to order a hundred thousand tesla’s those cars aren’t cheap uh needless to say and so i thought that was the first thing i thought it was like
Dang hertz actually has money to buy tesla’s that’s crazy to me uh next thought i thought about is wow this is this is big for tesla right the fact that a rental car company like this right is going to order a fleet of tesla so this is more than a fleet of tesla’s this is going to essentially put tesla in a position stronger than ever where people are going to get
To try more tesla’s than ever before right you rent you rent a car from hertz and we know like onturo and think in apps like that like tesla’s rent for really good rates because a lot of people just want to try a tesla they never you know tried to tesla before right and a lot of people have very good experiences when they try those teslas and they end up getting
One right and so if all of a sudden there’s gonna be a hundred thousand teslas out there in the rental market that’s ultimately a very very good thing for tesla because the fact is the more people they get to drive a tesla and experience it realize oh this is a this is a really awesome thing and the more likely those folks are to order a tesla so the fact is the
More cars out there the better the next thing i thought about is how many other rental car companies or just as companies in general are going to be ordering tesla’s in future years as well that kind of crossed my mind then i got to think about well man if if tesla’s already pushing out you know this big backlog right and also when you have a a company like this
Order 100 000 vehicles that’s going to push the backlog out even further this could give tesla even more pricing advantage right because they just have a lot more orders coming in for tesla so i thought about that as well i also thought about wow a hundred thousand more cars well things are going to probably go wrong for those cars every once in a while right so
They probably need some sort of service and so needless to say this is just a really good overall thing for tesla and then you think about it from the context of a beating numbers right which is obviously a very important thing when it comes to wall street and when it comes to analyst estimates beating analyst estimates is a huge deal it usually helps your stock
Price go up in many scenarios right analysts expect those numbers to continue to climb for the company which aims to basically start making vehicles at two new factories that’s berlin and that’s also the austin yeah factory right based on its deliveries through september tesla’s in a position to deliver nearly 900 000 vehicles in 2021 and analysts forecast a company
To deliver about 1.4 million in 2022 as a new the two new factories are you know set to start production obviously right and so this is a day that a lot of short sellers that said you know tesla would never get to mass volumes when you start doing over a million a year you’re starting to reach mass volumes and then tesla’s on on pace to start doing multi million
Vehicles probably starting as early as 2023 and so this is a huge deal this is a you know huge moment for the company right that folks like myself and a lot of you guys that are super bullish on the stock for the last you know four or five years this is the day we’ve been talking about right tesla getting to mass volumes of vehicles and there’s a lot of other
Reasons we’re bullish on tesla right autonomous taxi network uh the energy side of the business the artificial intelligence side of the business like there’s so many reasons to be bullish on tesla the battery business it’s unbelievable right but this is a this is a huge monumental day when we see things like this actually happening and coming to fruition and um
What we believed was going to happen coming true right and kind of like the manifest destiny of this whole situation and so this is this is absolutely massive we cannot deny that right then you see this come out tesla hikes prices up by up to five thousand dollars tesla raised prices of the s the three the x and the y all right all prices going up the electric
Automaker this this weekend hiked by the way come on fox news what’s going on here man come on we can’t be spelling weekend wrong height to the base uh price of its models by as much as five thousand dollars the entry level model three sedan and model y compact suv received two thousand dollar increases bringing its starting prices to forty three thousand nine
Hundred ninety dollars and fifty six thousand nine hundred ninety dollars while prices for the model s and x rose by five thousand dollars each okay so wow the first thing i think about in regards to this and i think about tesla’s you know usually able to drop the prices basically how much it takes to make a tesla tesla’s been very successful at bringing costs
Down on these vehicles over time right and you know what it used to cost tesla to make a model s or a model three is is significantly less despite inflation than it used to be and so if tesla’s hiking prices by two thousand dollars don’t be surprised if most of that if not all of that hits the bottom line and guess what that does to gross margin guess what that does
To net income right and so then you put the company in a situation where gross margins could end up potentially destroying what analysts are expecting and where eps net income ends up destroying what analysts believe for this company and those are huge metrics for tesla those are huge metrics for uh you know wall street right and think about it like this everybody
Knows everybody knows that tesla is a huge revenue growth piece there’s no you know unless there’s somebody that’s insanely bearish like everybody with with a brain knows that this company is a revenue story right and the revenue growth is extraordinary the two things you could point out for tests on the past has been margin and has been net income and if you’re
Talking about raising the price of all these vehicles guess what that’s going to likely help out margin in a massive way in profitability in a massive way which is a game changer obviously for tesla this is a huge huge thing and keep this in mind the price bumps come just three weeks after the model three and model y prices were raised by two thousand dollars so
Here’s the thing guys like these prices just got raised not that long ago and so we’re in a situation here where tesla’s gonna likely see better margins in the coming quarters than they’ve seen ever in the company’s history and where the company’s profitability is likely going to be better than we’ve ever seen for this company and those two things are huge for
This company because those are the things that the bears the shorts whatever you want to call them the people that are negative on this company that is the thing they always point at and they always say well yeah they’re growing but look at this over here and you know it just it cracks me up because there was a time period i remember in 2018 2019 where the bears
Were trying to say tesla didn’t have the demand they’re like oh tesla has no demand things like that it’s like what are you guys talking about okay obviously that was proved wrong now let’s talk about the stock let’s talk about the stock price let’s talk about kind of my feelings on all this okay so in regards to tesla obviously this is a huge monumental day for
Tesla maesta a trillion dollar market cap now right now in regards to tesla i can’t i can’t sell this stock today the the market cap is higher now technically than i thought it would be a long time into the future but here i am today looking at this stock and i can’t sell it for a few reasons all right a minor reason let’s start out with the minor reasons and
Then we’ll go to the uh major reasons okay minor reasons minor reason taxes right if i sell uh my tesla shares massive tax implications for me remember look at the cost basis 34 000 you know at the time when i invested in this what was that 2018 or 2019 whatever that was right 34 four thousand seven seven sixty three so do do the numbers on just how much of that
I would have to pay for the government right now right and so and we’re getting close to tax season so i’d have to cash you know if i cash right now it’d be under this tax year i’d have to you know so that’s a minor reason i’m i’m not selling out of tesla today right another minor reason i’m not selling out a tesla is i’m having trouble figuring out what the true
4p for the stock is it would be easy if i could say well tesla’s uh super overvalued on ford p basis because here’s the thing guys they’re reason they’re raising the prices of all their cars they got this crazy demand and i’m trying to figure out for next year what the profitability is going to be for this company and maybe this company’s not trading nearly as rich
As it looks like right the 4p if you were to look at it on yahoo finance and things like that right the 4p looks like it’s probably 140 uh or somewhere around there roughly right but who’s to say we’re not actually at a ford p of under a hundred right now when you think about the margins that are going to hit this company in uh when you think about a full year
Of the new s and x lineup which margins should be crazy on those right when you think about the three and the y and the price raises there and there’s an extremely low probability tesla’s going to lower prices anytime soon on those because they can’t even keep up with demand if you’re pushing out model y orders till may and you’re pushing out model x orders till
September of next year 11 months from now and you have all these orders continuing to pile up on you and keep coming in and you have cyber truck coming in 2022 which is a whole other thing how in the world is tesla gonna there’s no reason tesla would lower prices anytime soon right and so if you’re in that sort of scenario where if anything tesla’s going to raise
Prices maybe even again in 22 this is a company that’s set up to potentially have an amazing 2022 in regards to its margins and in regards to its net income and so when you think about it from that context yeah how can i make a decision to sell the stock based upon valuation when i’m not even able to accurately figure out what the true forward p for this stock is
Right now is it possible that tesla earns 10 billion plus dollars of net income in in uh 2022 and if you look at margins and you look at the the amount of vehicle deliveries it’s not out of the realm of possibility guys for tesla to maybe hit a number as crazy as it sounds because that’s a number of tesla’s even never even gotten close to 10 billion plus in net
Income it’s not another realm of possibility for them to hit that and if you if you say they do 10 billion plus let’s say they do 11 billion 12 billion something like that net income right which who knows some people maybe even believe those might be low numbers based upon these price increases and the fact that tesla’s always able to bring down the cost of making
These cars generally speaking right maybe tesla here today is trading at a forward p of like 90 or 95 or something like that and you think about this company when does tesla stop growing fair question when does tesla stop growing i don’t know but it’s no time soon and so that’s where you get in this hard situation where it’s like my gosh a trillion plus dollars
For tesla but then you think about the margins that are hitting this company think about the profitability and you think about all these long-term things that we talk about that the company’s not even really benefiting from right the energy business is still a baby compared to where most folks believe that business is going to be in five or ten years the autonomous
Taxi network isn’t even touched yet that’s something that will start probably hitting i don’t know maybe in the back half of 22 but there’s a bunch of crap around regulations and what the government wants to do as far as that goes so maybe that pushes out to 23. but you think about the the long-term implications for tesla’s business model in regards to autonomous
Taxi network right you think about that you think about the artificial intelligence side of the business you think about like all the technology all the patents that tesla’s developed all the amazing engineers at tesla right and you think about it from that context and most of the story still hasn’t even been touched and yeah it like one side you look at it and
You’re like man trillion plus dollars for the stock i remember paying you know not that dang long ago just a few years ago i remember paying a 30 or 40 billion dollar market cap for this company and now we’re at a trillion and sometimes it’s hard to even like wrap your head around that right like really i’m you know this company’s really trading at a trillion plus
Right now and the thing that the shorts and the people that are negative on the stock they just get wrong is they they still want to compare tesla to other companies and say okay tesla’s going to produce let’s say 1.5 million cars in 22 right analysts think 1.4 but let’s say 1.5 they say okay that’s still a really small number compared to these other car companies
Right like a toyota or whatever that produces 5 million 10 million cars a year they’re going to say that right and they’re going to say look at tesla’s valuation look at these other car companies but what they still are missing is they’re missing all the other elements of tesla’s business model that’s going to play out over the next decade plus and they’re missing
The fact that tesla has margins that are going to far exceed any of these legacy auto manufacturers and what that means for tesla’s profitability is crazy okay so in regards to tesla stock i still remain uh bullish on it right am i out buying tesla shares today no am i still holding my shares gladly yes because i’m still trying to figure out what tesla’s real
Profitability it’s hard for me to sell tesla if it’s under a forward p of 100 because of all the long-term growth this company has so as long as it’s under a forward p of a hundred then it is hard for me to sell if it’s at a ford p of 150 200 something like that then then it gets a little more realistic for me to cash out right but i’ve got to really dial in and
Try to run these numbers and try to figure out is it realistic for tesla to do 10 billion plus i’ll keep you guys updated on that if i run my numbers let me know if you’re interested in seeing projections and things like that uh i got some work to do let’s just put that in regards to this one okay hope you guys enjoyed this video as always all asking returns that
You smash that like button that’s literally it guys if you’re looking to join us in the private stock group right now we got a free seven-day trial going on you’re looking to scale your portfolio much higher levels check out pin comment down there much love as always guys and have a great day
Transcribed from video
TESLA STOCK TO $1,420 😱 DO THIS NOW By Financial Education
