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Yawn no we cannot take it private for 420 how many times do i have to tell you dude it no we cannot okay some prick on youtube last week put out a video on why it thinks the stock is going to three thousand dollars over the next five to ten years and now everybody in their grandma thinks tesla stock is gonna go to three thousand dollars a share i know so we can’t
Take it private for 420 okay we needed at least take it private for a thousand or so do i have the money to help you take it private do i have the money hell no well what a day it was in tesla stock today i wasn’t even gonna post a tesla video but then so many people were commenting on the video i released earlier in day about all you you got to talk about tests
I’ll talk about tesla tesla the tesla so what i thought i’d do today is i want to really break down why tesla stock exploded up so much today so many people think it’s as simple as oh well then he just settled with the sec so stock goes up huge there are a lot of things going on behind the curtains that i kind of want to explain on how you get a move this massive
Today in tesla stock okay so we’re gonna go through all this and it actually starts back on friday okay so if you haven’t been keeping track back on friday essentially what happened was at that time tell you know elon musk was gonna fight against the scc alright then we’re gonna go to court it was going to be a big ordeal and anybody who was a shareholder of tesla
Anybody who knows anything about securities law and anybody who really wants tesla to succeed said this wasn’t gonna be a horrible idea if he decided to fight them okay they’re like why didn’t you just settle already so that was the assumption that he was gonna fight okay and this was a very very bad thing for the stock on friday okay so we had some long sell
Looking at this and saying elon musk is now a jeopardy of not being the ceo of the company you know being thrown off the board maybe he’s not even part of tesla at all and so you lose the elon musk factor at tesla and it’s like okay if you don’t have you on must there at all what do you have left there okay so you definitely had some long selling out you also had
Some traders sell out because with this stock has attracted some traders since the kind of bottom dollar like i think it was around 262 ish or somewhere around there you know back when the whole situation happened that the sec was looking into and whatnot and basically so a lot of traders kind of piled in is saying you know while the numbers are gonna be phenomenal
So maybe we can play this as a swing but then the traders found out that oh man elon musk is at jeopardy of maybe not being with the company maybe this could go further south let’s just get out of this now so you had traders selling and then last thing you had you had shorts going heavy on friday ok because the way shorts were looking like this they were they were
Rubbing their hair things like bird man man because they were looking at this and they were saying this is the perfect situation you’re gonna have a massive a situation for months and months now a big legal battle between tesla elon musk and the sec and generally the sec wins these type of cases okay so the the shorts were looking at this is old man this is this
Is a perfect scenario for us okay so that’s what happens on friday so you get a massive sell-off in the stock on friday okay then all of a sudden the massive news comes out saturday night that elon has went ahead and decided he was gonna settle with the sec this was massive news i obviously covered around the channel and whatnot so what you essentially had here
Today is a lot of things going on okay one you had short start to cover all right now i have all shorts covered absolutely not okay but you definitely had a big segment of shorts go ahead and cover this caused a big short squeeze in the stock today which is one of the reason why you get this massive move move up because a lot of the shorts also now looking at and
They’re like wait so now all the sudden this sec situation is behind the stock now said we’re gonna have to hear about model three numbers over the next you know let’s say few quarters that’s not gonna be good for us and then model why is probably gonna be announced at some point in 2019 and so you had you as shorts kind of looking at this and i’m like okay some
Some of our bearish case is going away now the last piece of kind of the bearish case right is if tesla can get to be a profitable company so if some shorts are looking at this to like wait the sec things going away that’s gonna go on in the past their numbers are gonna be phenomenal even a lot of shorts you don’t believe that as far as their sales numbers and then
You have a situation where they’re gonna possibly be profitable and you know in this quarter maybe next quarter and maybe four here on out we don’t know about that but that’s a possibility and so the shorts are kind of looking at this and saying you know what i don’t think i i think i just want out of this okay then on top of that you’ve had a lot of traders that
Are swing traders jump in this today that’s are saying to themselves this is a perfect scenario you got the sec situation behind it in the these numbers should be unbelievable the deliveries should be unbelievable in next few quarters for the model three okay tesla’s should have revenue rises of a hundred plus percent for the next few quarters so you have a lot
Of swing traders saying you know this is a stock that was beating down it was everything was negative and now sudden you know everything could have potentially be positive obviously if they’re not profitable in q3 they take a massive loss that would be a hit to the stock or delivery numbers were really bad that could be a hit to the stock but delivery numbers are
More than likely going to be very strong the only question is how profitable are we talking on a non-gaap basis there okay so you have a swing traders jumping in so you already have a lot of shorts covering which when a shorts covers they have to actually buy the shares back okay so it puts another buyer in the market you have to true the swing trader is jumping
In this and bigger than ever right then you have some of the long’s come back then maybe i’ve sold off this said you know what we don’t want to be part of a company that is at risk of losing elon musk now certain elon musk is gonna stay ceo and they’re gonna have better board of directors oversight now at this point joe a lot of long saying you know what okay you
Know i believe in the company a lot i believe in all the things they’re doing let me go ahead and jump back in the stock now so that’s what we had there and then you have some long’s that have loaded up heavy some people that were you know still stayed long on friday looking at this one and they say now that all this is behind the company now no we just get to focus
On model three numbers so you had a lot of long say okay man i want to go super super heavy on this now okay so what we have going for tesla what’s gonna be important for tesla over the next month or two is we need to get some clarity around or the model three numbers still coming in and mass okay we need to get a clarity on when exactly is the actual thirty five
Thousand dollar model three gonna be available we you know it still isn’t available like if you want to go ahead and place an order for the thirty five thousand dollar model three you literally still cannot do it can we get some clarity around that is it you know i’ve seen on their websites to something like a four to seven months or something like that last time i
Looked yeah you know is it four months is it seven months is it gonna push out you know later than that when is that gonna be available because that could be the one that really sells in mass right now you got to start at a forty nine thousand dollar model so we’re talking about a fourteen thousand dollar difference to some people you know they just can’t order a
Forty nine plus thousand dollar car all right it ends up being fifty five plus and once you get it out the door but some people can’t afford a $35,000 car so can we get some clarity around that that will be very important in this upcoming earnings call is this company profitable on a non-gaap basis and are they extremely profitable or they barely break even where
We at with that and then if we get any guidance as far as where we’re q4 numbers are going to be that’s going to be very important and then any clarity around when exactly either the chinese factory is you know expect it to open do they have a date on that yet is it gonna be fall 2020 is it gonna be you know spring 2021 what year are we talking about that factory
Starts to open and be able to produce a lot of vehicles out there in china and then the last thing is is there is there any specific date around model y because that’s the next real height thing for tests of stock that’s the next i don’t necessarily want to call it height thing that’s the next really exciting thing for tesla stock is model y model three is great
And all the numbers that model three is gonna put up over the next few quarters and sort of the remainder of the year and probably going forward that’s exciting but that’s kind of like you know not ancient history but that’s what we have going on now that’s the current the futures about model why that’s the one that you know everybody’s looking at and saying this
Could be a really big opportunity for the company okay so can we get any clarity around any specific dates any time of year and 2019 and then when a win would that actually go into full production what not what are the price points around that those would be some very exciting things so as far as the stock you know this is how you get a ridiculous move up in the
Stock okay you get you know when some people said oh elan musk you know he did this on purpose he knew the shorts would load up heavier on friday by not settling with the sec and you know you know having everybody think that oh i’m gonna you know battle these guys out and whatnot and you know how much of a bad thing that would end up being then he goes ahead
And settles and some people are saying oh he did this on purpose so it could cause a massive short squeeze and you know he could kind of you know start burning the shorts and whatnot that would be stock manipulation and you can’t make decisions just in with you know thinking in mind i want to burn the short side would be stock manipulation i don’t think elon musk
Wants to go that route after you know everything he’s been through over the past few months i doubt he’s all sudden thinking again let me try to manipulate the stock or do anything like that so it is uh it’s quite a situation guises than just oh he he’s settled and that’s why the stock is up big today there’s so much going on around what traders are thinking what
Shorts are thinking at this point time what long’s are thinking i want to know what you’re thinking down there in that comment section what is your feeling around this i would love to hear from you guys in that comment section as always if you love keep it up with stock market news make sure you follow me on instagram always post a lot of stock market news and my
Instagram stories thank you for watching and have a great day you
Transcribed from video
THE REAL REASON WHY TESLA STOCK EXPLODED TODAY By Financial Education
