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Well there he is the man the myth the legend himself elon musk aka also known as elon musketeer elon musk and many other names how’s that guy gotten better looking as time went on it just doesn’t make any sense he’s better looking nowadays than he was 20 years ago i’m just still trying to figure out that one but we got some big news in regards to elon musk and
What he has said here today about tesla’s stock price okay big news and i want to give my opinion in this video on basically what elon musk has said about tesla stock price here today because this is a big one okay hope you guys enjoyed today’s video as always if you don’t mind smash a thumbs up let’s get into this okay tesla stock price has already risen over
400 this year but ceo elon musk said in an interview that he thinks the company will be worth more in five years in an interview with kara swisher for the new york times podcast he says some critical mass of the market has concluded that tesla will win i guess said musk on the stock price increase i’ve gone on record and already said the stock price had been too
High and that was well before the current level well before the current level but also if you ask me do i think if tesla will be worth more than this in five years i think the answer is yes this is a big statement out of elon musk because he’s basically saying the stock price is overvalued however on the flip side he also believes in five years from now the stock
Price will be higher than it is today quite a dramatic thing and let’s just give elon musk some respect for a minute okay there are i mean how many said i i’ve been the stock market for 12 years now okay taking this stuff super serious for 12 years i don’t know of another ceo i’ve ever seen that comes out and publicly says their stock price is too high or it’s
Overvalued or something like that like that’s just that’s next level stuff okay that is super super rare i mean you just don’t find that if anything yeah you know ceos are trying to get their stock prices up not try to get their stock prices down just crazy okay in may musk tweeted that tesla stock price was quote too high which sent it down 12 that day however
Since he made those remarks which are just what four months ago or so shares are up almost 200 percent unreal in the wide ranging interview musk also said tesla at this point is not in mortal danger as it was say three years ago he added the thing that tesla has been able to achieve is get to volume manufacturing and have sustainable positive free cash flow from
A car company standpoint this is a real achievement of tesla said elon musk tesla should be measured by how many years we accelerate the advent of sustainable energy said elon musk quite interesting okay now you’re seeing headlines all over the place here today elon must say tesla stock might be overvalued but it might be worth more than five years but just i
Mean the fact that anything gets brought up in regards to elon musk saying the stock price could be too high or anything like that i mean it makes you kind of think tesla stock price must be down and down and down and down and down here today and so let’s log into the public account and no tesla stock is up today okay it’s up 3.67 percent here today all right
Tesla stock has literally added i think around 14 or 15 billion dollars worth of market capitalization here today i mean you think the stock would have been down big with all those headlines all that stuff about elon musk thinking tesla stock price might be too high you think it would be down no it’s up okay way outperforming the market here today okay now i’m
Somebody that’s been valuing companies now seriously for 12 years i am a tesla investor and so what is my opinion on what elon musk said about tesla stock price and his overall opinion about tesla stock price okay first off i 100 agree with him that if you’re looking at a short-term basis tesla stock price is too high it is overvalued if all you’re judging tests
Off of is short-term metric and where the company is today versus you know the market cap and things like that i mean it’s a big market cap it’s like 300 what was a 60 70 billion dollars massive okay trailing p of 936 forward p of 116 price to sales ratio of 14.4 any of these numbers you look at if you’re just judging this company market cap versus where they’re
At today it makes literally no sense i mean it’s way overvalued so i 100 agree with elon musk on that okay keep in mind stock prices aren’t just reflecting what’s going on with the company today a lot of times they’re supposed to reflect what’s going on with that company three years out five years out from now okay and the question is you got to ask yourself is
What’s going to happen with tesla over the next five years 2021 2022 2023 2024 2025 what is going on with this company over the next five years okay well this company by the end of 2025 should be doing revenue of probably around 150 billion dollars if not more okay i mean that’s a substantial uptake from here the next five years of growth on top line should be
Massive but that might pale in comparison compared to the growth on the bottom line this company if you go out past 2025 this company should be doing net income of over 10 billion dollars now that number could move around based upon many different factors how much is a company trying to grow in other segments trying to build out infrastructure for other business
Segments autonomous taxi network is that something that loses money in the short term if that’s something that’s rolling in a major way four five six years out so there’s a lot of moving parts there but even with those moving parts and assuming tesla continues to reinvest in the business big time and continues to add additional costs to the business this company
Should still be doing around 10 billion plus dollars of net income if you go out to those years okay and they should also be the dominant auto player in the world where right now if you just look at where tesla’s at 2020 tesla’s starting to be respected as obviously the dominant ev player in like an overall like you know fast growing company a company is still
Growing this year i mean every automaker is going to see their sales go down dramatically in 2020 here tesla is actually growing so we’re at an inflection point where tesla’s starting to be taking more and more serious but if you go out five years from now six years from now this will be seen as the dominant auto player in the world in my personal opinion there’s
Just no doubt in my mind okay and also hardly anybody will want to buy a new gas car after 2025 i can tell you that i think there’s going to be a massive change in consumer sentiment in the way people think about vehicles basically over the next three five years and after 2025 it’s almost impossible for me to imagine somebody going on to a car dealer parking
Lot in in buying a new gas car okay a new ice vehicle but i’ll use the used market will continue to thrive in terms of you know gas cars ice vehicles for at least the next decade or two okay but new sales look for those to begin to get like non-existent five years out from now okay which is going to be a huge boom for tesla never mind if you add stuff like this
California’s ban on new gas cars further up ends auto industry talking about 2035 after that it’ll be like illegal to basically sell a new gas car in california and don’t be surprised if some rules like that get kind of put out there more and more over time in other states and you look at something like that that’s just kind of fueled to the fire but i don’t even
Think that stuff matters at the end of the day i just think there’s going to be more and more people wanting tesla’s just flat out more and more i mean people love tesla people want tesla’s product it’s a great product it’s very similar to what happened with smartphones versus flip phones and feature phones right the smartphone experience was just so much better
Than the feature phones the flip phones things like that that smartphones ended up winning out over time and became a bigger and bigger thing and you look at something like tesla’s right and i’m talking about tesla today in the market i’m not even talking about what they’re gonna have in the market five years from now today in the market they’re talking about
Cars that the driving experience is second to none you hit that accelerator and that baby just goes okay the car can drive itself around i mean it’s unbelievable what the vehicles can do today how great the experience is today never mind where this company’s going to be at five years from now it’s just gonna completely make everything else look irrelevant over
Time it’s very similar to how smart phones made flip phones feature phones you know just like irrelevant over time like ice vehicles i think we’re gonna look back at five ten fifteen years from now and be like wow we we used to actually drive those things around i mean after you drive a tesla and you have to go drive an ice vehicle it’s almost uh comical let’s
Just put it that way it’s like you can’t even compare these things okay and here’s the thing even after 2025 even if we go out past five years from now tesla will still be a growth beast like it’s not like this company’s just gonna grow like crazy for the next five years and then they stop growing no tesla has literally at least a decade plus of growth in front
Of this company just based upon the product pipeline that they have now okay just based upon the product pipeline they have now okay if we want to go out we want to start thinking about 2026 2027 2028 2029 2030 okay they will be the biggest auto player in the world there’s zero percent doubt in my mind that tesla will be the biggest auto player and they’ll be
The most dominant auto player in my opinion that we will have seen in basically modern history let’s just put it that way when we start going out to those years okay and you know unless somebody somehow comes out and just starts uh like uh builds a company that grows way faster in tesla which is completely unrealistic because tesla’s reached scale and the only
Ones that ever had a chance to even try to compete in that space were the big auto players but those guys are all three five seven years behind if they’ll ever get to the place tesla is today never mind if tesla keeps running they’re just going to keep accelerating that race okay they just keep accelerating faster and faster okay autonomous taxi network how big
Is autonomous taxi network going to be okay i mean literally just think about that for a moment how big is that market going to be i think tesla might win that market and more and more i’ve thought about it over time the more and more i’m convinced that tesla will win autonomous taxi network and that’s a game changer in the transportation industry forever okay
Think about the energy business reaching mass scale this is a business that right now investors aren’t even i mean most investors aren’t really looking at this as that big of a thing or that important and you know this could be the aws for tesla the energy business okay and we’ve heard you know certain individuals elon musk and some others okay talk about the
Energy business and how it could be potentially as big as auto business long term just think about that for a moment that’s something most investors aren’t even thinking about you know none of my bullish case for the most part when i got in the stock about a year or two ago was really around the energy business it was all around autonomous taxi networks and what
The car company was doing in general in terms of their vehicle being better and how they i thought they would be the biggest auto player in the future and things like that imagine if that energy business continues to scale over the next you know five ten years app store services think about it once there’s tens of millions if not hundreds of millions of tesla’s
On the road right there’s gonna be a ton of app store developers that want in that app ecosystem and subscription models and things like that no different than obviously it’s huge in the smartphone space so app store services things like that going to be huge profit centers for tesla long term never mind future products and services coming from tesla over the
Next five to ten years okay i mean you just think about the product pipeline right now for tesla is about the most exciting you’ll find of any public company or any company in the world period never mind what they’ll likely come out with five years from now 10 years from now and how many game-changing products they’ll come out with over that period of time okay and
So when you look at tesla if the company let’s just imagine for a moment tesla’s valuation doesn’t move for the next five years okay it stays exactly where it is which let’s just say it’s a little under 400 billion dollar mark cap or right around there and we’re five years into the future okay i think if this company is valued at 400 billion or somewhere around
Here five years from now i think we’ll look at this company as undervalued and has an undervalued stock which is just wild to think about for a moment because everybody’s talking about is tesla overvalued right now and i think if the stock price stays around where it is and it’s still here in five years from now people would be looking at tesla and be like that’s
A deal oh you’re only 400 billion for tesla that’s a deal okay crazy and that’s exactly where i think we could go and when i started getting involved with this stock a year two years ago right i looked at this company and i said it was really really significantly undervalued i mean a lot of short sellers talking about it was overvalued i’m like what this is one
Of the more undervalued companies i have found and obviously it’s done tremendously well and uh you know so yeah i’m 100 in agreement tesla stock price likely going to be higher in five years than it is today and in terms of the stock price in the short term you know the valuation is too high on the short term but long term man that’s what everybody’s in the
Stock for the long term vision and mission and thank you for elon musk just being quite frank about the stock price i i really appreciate that and that’s one of the you know i always look for like trust in a management team and i can definitely trust a management team that’s not trying to pump their own stock price they’re just they’re just calling it the way
They see it and i absolutely love that okay hope you guys enjoyed today’s video as always if you don’t mind smashing the thumbs up it helps out the youtube channel massively also if you want to try to apply to get in my private stock group you can do so down there first link in the description you can go ahead and apply down there and if you ever get in that that
Stock group and you’re a tesla shareholder tesla fan make sure you join us in the tesla chat we just talked about tesla stock all day in there what’s going on with the car opening visions for the future and things like that it’s uh pretty fun if you don’t test the stock that is thank you for watching and have a great day
Transcribed from video
you won't believe what Elon Musk said about Tesla Stock Price today! By Financial Education
