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Well guys earlier today i posted video on my second channel financial education – and in the comment section this video everybody was wanting me to talk about tesla and i do understand why tesla had their autonomy day to day where they met with a ton of investors and talked about their autonomous vehicles and how that’s going to go in the future and i want to
Go through the main takeaways from that those presentations which were like hours long i watched the whole thing so i’m gonna go through some of the main points they brought out that i want to share with you guys today and a lot of people are asking me about tesla stock buying tesla stock before earnings if they should sell test the stock things like that what
Moves i’m gonna be making so they you know once we’re done talking about the autonomous stuff then we’ll talk about tesla stock alright so i hope you guys enjoy this know a lot of you guys want it make sure you smash the thumbs up button as always alright so let’s talk about the main takeaways from the tesla autonomy day first is they just talked so much about the
Approach and how different the approaches for tesla versus other companies they didn’t really go out of their way to talk about this but a lot of people ask questions about hey so-and-so company is going about it this way when it comes to the hardware or the software or just kind of like the thought process tesla uses versus maybe what some of the other companies
Are doing such as cruise automation and some of those other companies obviously google is big into self-driving and you’ve got all these different companies trying robo taxis and things like that and it’s like well this company’s doing it this way why you guys doing it this way and just what i what i you know believe i saw from that presentation was just tesla
Has a very different approach to a lot of these processes than what the other companies do it doesn’t necessarily mean tesla’s right or tesla’s wrong obviously you know you’d many different engineers will have different opinions all this company’s doing it right this company’s doing it wrong i’m just gonna say tussles approach is a little different than a lot of
What these other companies are doing out there and i think that’s just something to understand as a tesla shareholder if you’re someone buying tests of stock in general just the processes tesla’s going about doing it are different than other companies and we’re gonna still see who’s the winner here in the long term the winner the winner being the one that gets to
A level five first and does this very well and gets us on a you know wide scale and i would say it looks like tesla’s processes are in the lead as of right now okay number two nasa looks overall crashes and overtake data this is something i’m was very interested to hear basically anytime you have your tesla on you know self-driving mode or something like that
Okay something where you know autopilot is engaged with that vehicle anytime obviously there’s a crash with the vehicle the tesla engineers are gonna look over that and they’re gonna say why did this crash happen was it the tesla’s fault was it the driver of the tesla’s fault maybe it was you know they they overtook the car and that caused an accident maybe it
Was another car from another lane causing the accident things like that they look over all that data whenever there’s a crash but not only that anytime you overtake the car when it’s on autopilot they look at why did that happen what went wrong with autopilot that the driver felt like they needed to take control of the car if anything went wrong or maybe the driver
Was just like insecure about you know how the autopilot was going or something like that so let’s say you like you’re going on an on-ramp and those those cars merging in let’s say a driver you know overtook the car why did they overtake that car i think that data is extremely extremely important because you’re gonna get to understand on a very very high level why a
Driver overtakes a car like that why do they do that very important number three tesla has a magnitude more self-driving data than any other company out there and it’s not really close it’s a big take away i had from this i had this idea way before today’s presentation but just like if you compare them to anybody else that’s in the self-driving space there’s really
No one that hayes even a remotely close amount of data that tesla has why because tesla has mass amounts of vehicles out on the road compared to anybody else that’s you know testing self-driving you know all these other companies that are you know maybe startups or companies that are becoming a little bigger through a ton of funding that have you know self-driving
Fleets or things like that out there that are testing what do they have out there five cars ten cars twenty cars it’s a very limited amount when you consider tesla has hundreds of thousands of cars out on the road probably actually more than a million cars on the road but hundreds of thousands and in terms of cars that people actually use autopilot on a daily basis
Or a weekly basis or something like that in all those cars with all that self-driving data that all goes to tesla so tesla is just getting a lot more real world data from all different states around even you know different parts of the world tons of different data that they can adjust and you know kind of fix the models and the artificial intelligence and kind
Of work that compared to anybody else and that’s just a huge huge advantage for tesla and i think it’s something that will you know get them to level-5 much faster anybody else and get them to a place where their vehicles are much safer than anybody else out there okay number four you know this just kind of brought me the point that i think people still don’t
Understand you know what makes a company so valuable and the real thing is data is what makes a company so valuable if you think about these these massive tech giants that have built up over the past you know decades basically facebook google amazon what makes these businesses so valuable at the end of the day and the real answer is the data they have and the
Data they’re able to collect on users that’s truly what makes a platform like facebook so valuable okay it’s not just the fact that you don’t all these a new york billions of people are using the different facebook properties it’s the fact that they know so much data about you that advertisers can use to run advertisements to you google is the same exact thing
Okay whether we’re talking about google search whether we’re talking about youtube which you’re watching right now amazon ok animas on what makes amazon so valuable the massive amount of data they have around companies when it comes to amazon web services and their retail products when it comes to you actually placing orders every time you place an order there’s
Data being collected there on the backside as basically saying oh we need to suggest these type of products in the future and then it goes into algorithm and says ok somebody bought this product they’re more likely to buy this other product in the future this is what makes these type of companies so valuable at the end of the day and here we are with tesla just
Having the you know mass amounts more day a you know data than anybody else out there when it comes to self driving and self-driving is you know uh you know a platform that’s gonna be worth hundreds of billions if not trillions of dollars in the future and you’ve got to say who’s gonna have the most data here bio a by a mile it’s without question tesla and there’s
No one even close in that space guys number five elon basically said tesla will have robo taxis in two years robo taxis meaning you don’t basically tussles that drive around and pick people up and take people they want to go kind of like you do with an uber lift now but with literally no driver in there he said within two years he said it’s just gonna depend on
Regulation you know what what countries are what states or who would allow this first who would allow you know the the pilots out there the test pilots but he says they’re gonna be able to have robo taxis in the market within two years this is a huge thing because if tesla could have a massive fleet of robo taxis in a few different areas are a few different states
Or cities they could be one of the first companies to really have that because there’s really you know the of the other competitors there really isn’t anybody that’s really has robo taxis to the full extent where they don’t have drivers in them yet okay i know in tempe arizona they’re you know google has a product basically out there with weibo that basically they
Have robo taxis but it’s really not a robo taxi because there’s still someone in the front seat who kind of like watches a car and whatnot it’s not really a robo taxi the tesla it looks like it could be potentially the first to truly have robo taxis in the market we’ll have to see about that but he says a lot has to do with regulation who actually allows that first
Okay number six robo taxis will be worth at least a hundred thousand plus dollars they mentioned several hundred thousand dollars okay and here’s the thing model three costs about thirty eight thousand dollars to make a base model maybe a little lower than that roughly and that price is going to be going down over time as batteries get cheaper not just that it’s
The parts they’re gonna be able to remove and this is something i never even really like contemplated before you know tesla you know yo i must brought out a great point in regards to like the model threes in the future like these robo taxis tesla will have he was basically stating you know they’re gonna be able to take parts away from the cars as these parts become
Less and like like as someone has no interest in driving the car anymore you can also take away a steering wheel okay and you can start building ball threes with no steering wheel you could take away the pedals because why you need pedals if the car always rides itself all around why do you need shifters things like that olson you can start to take away thousands
Upon thousands of dollars of cost so basically you put these things into a car now but in three or five years when the car drives itself completely level five why do you need a steering wheel at that point you don’t it would actually make the car you know more unsafe to have a steering wheel and actually have a driver driving it right if we have perfect you know
Level five autonomy or you have pedals in a car okay so that is a very interesting thing that these robo taxis they they you know basically that is a valve is a value per car they value them at at least $100,000 it’s not several hundred thousand and when you’re talking about a car that costs thirty eight thousand as i’m now to build roughly and going down in the
Future you can see this can be a very very profitable endeavor for tesla and something i’ll bring up here is it sounds more and more like tesla’s main competitor now at this point it’s not really the car companies i think they understand they’re just gonna beat all the other car companies out there because they’re so far ahead an electric wave and the self-driving
Wave compared to everybody else that that all the other car companies the vehicle makers are really going to be less of a competitive threat in future years they have been in the past but they tested us so far in front of these guys that they’re really not the kind of competition in my opinion tesla’s really if you really listen that presentation today they’re
Really viewing uber and lyft as the main competition this is something very important to pay attention to okay number seven elon i basically evo must basically said you know they expect to get to a place where they’re building 10,000 plus cars per week in production this year in 2019 their big goal was to get to 5,000 per week production last year in 2018 now
They’re talking about 10,000 plus we’ll see what happens i think it when once they get the shanghai factory on i have you know no no belief that they can’t hit 10,000 plus once the tesla shanghai factory gets up and running and that babies getting built really really fast okay number eight level five autonomy coming in 2020 elon basically stated okay he believes
You know the full autonomy like we’re talking full self-driving city streets all that stuff he believes that’s gonna be a 2020 thing okay and another important thing he brought out was basically if you’re not buying a tesla thing it’s kind of a very very dumb financial move and i talked about this on the channel that talked about this a million times in the past
Basically if you look going forward you have to have an electric vehicle okay so if you’re not buying an electric vehicle now link what are you doing why would you buy a new gas vehicle you know any any years in the future why would you do that just for the mere fact that you know three or even five years sitting in the future who’s gonna want a gasoline car no
One’s gonna want to buy a new gasoline car maybe use gasoline cars maybe it makes sense but a new if you’re buying a new car in five years from now who in their right mind would buy a nice vehicle it literally make no sense okay so which means if you want good resale value you’ve got to buy electric vehicles you know moving forward basically and then self-driving
In five years who’s gonna want a vehicle that does not have self-driving it like literally wouldn’t make sense okay it’s like like going backwards literally so basically on it’s kind of saying basically as as simple as possible it’s a dumb financial move to not buy a tesla right now and buy some other vehicle i think that’s a very important point there and he
Basically stated that tests us to do a better job of explaining this to consumers out there and i agree with this house has to do a better job because some of us understand this right and we understand like like you know going anytime in the future now if you buy a nice vehicle a new one i’m talking you know the fresh off the lot it’s just a really bad financial
Decision because you it’s just going to depreciate at even a faster clip than ever before because it doesn’t have self-driving and it’s not electric and so if you’re gonna resell that vehicle three five seven years who’s gonna really want to buy that at the end of the day okay so that’s a very important point he brought out will have to see if they get to really
Like a level five autonomy in 2020 i think it’s very very possible because they are so close at this point in time if you look at the real-world data and you’re driving in some of these tehsils and what they can already do right now you give it another year year and a half and it’s gonna be fun to see where test is that so that is a definitely a very possible thing
If not maybe 2021 we’ll have to see what happens with that as far as level five goes okay now let’s talk a bit about tesla stock obviously tesla earnings are coming up here in less than 48 hours you know a lot of questions about this my opinion let’s get into that now guys now that we talked a little bit about the tesla autonomy day today now let’s go ahead and
Talk about tesla stock that all you guys want to talk about in basically tesla’s coming out with earnings less than 48 hours from now a lot of people are wondering am i gonna buy more tesla shares here before they’re earning am i gonna sell my tesla shares obviously i hold tesla shares and i want to kind of talk you through a few things here okay so number one
Something you’ve gotta expect you know understand what these earnings it’s not much as expected okay most the numbers we kind of already know them we don’t know specific eps numbers and you know things like that but most of the production numbers and deliveries and a lot of those numbers we already know at this point in time so and there’s just not a lot expected
From these earnings stock has fallen and fallen and fallen over the last several months so basically the earnings are kind of expected to be blah or bad earnings essentially for this current quarter they’re about to report here okay so that’s the good that’s kind of good news if you’re a long-term shareholder you know from a long-term shareholder perspective because
You never want to really go into an earnings where everything in the world is expected to be great because a lot of times a company will disappoint then the stock will shoot down even if the earnings are bad which a lot of people are expecting them to be bad i’m not so sure the stocks gonna fall a bunch just because you know a lot of people are already expecting
Kind of like worst case scenario with these current earnings okay second thing is guidance is going to be very very important okay the guidance is going to be the more important thing and that will be what actually drives tough so stock in the future days future weeks and probably even over the next few months is what they have to say around their guidance numbers
For this upcoming quarter which is april which were already in the april through june court are going to be very very important the previous quarter was january february march okay now we’re getting into april may and june quarter and we should expect some strong deliveries guidance for the april through june quarter and the reason being is if we look at the past
Quarter we saw you know a big production numbers but weak delivery numbers there you know obviously the open deliveries up to china and europe and i think they just have a lot of troubles around you know basically hitting those vehicles to those countries and in situations like that so in my opinion we should see actually much stronger delivery numbers in april
Through june quarter than what we saw basically in the january through march quarter which is obviously a very good thing because tesla makes their money when they actually delivery these cars and they actually you don’t get the money for those cars so that’s very important so i’m actually expecting some pretty strong deliveries much stronger delivery numbers in this
Upcoming quarter than basically the last quarter okay number three is a why buy or sell rate before earnings okay this is something i hear a lot and you know just people would be like jeremy should i buy this stock before earnings i sell this stock before earnings and i’m just kind of like you should never make a my opinion investment decision based upon whether
Companies report earnings that the you know in the next two days or the next two weeks or anything like that you should always be making your investment decisions based on where you see a stock going over the next you know two to five years in my opinion that’s what you should really be doing so regardless if tesla’s reporting earnings tomorrow or reporting earnings
In a year from now or a month from now it really shouldn’t have any bearing on whether you buy or sell a stock when you go to buy when you go into putting in your little buy order your your sell order and robin hood or to fidelity or t v– ameritrade or whoever you do your your trades through okay you should be thinking about valuation valuation is the key do you
Believe that stock is undervalued do you believe that stock is that fair value do you believe that stock is overvalued okay most of time if you feel stock is overvalued it makes sense to sell it if you feel like you know over the next two to five years that company is significantly undervalued pretty much doesn’t matter if the you know earnings are coming up you
Should always hold that stock if that is your belief because why would you sell that stock and then it goes up ten twenty percent on those earnings and then you just sold a stock you believe this you know severely undervalued that’s just usually a very very bad financial decision guys so to make financial decisions based upon an earnings is a bad move you should
Really be thinking about well you know unless you feel like there’s way better money to be put somewhere else like let’s say you hold tesla stock right now you don’t really believe in tufts of stock that much anymore you think it’s just you know it’s a fair value or whatever you’ve got somewhere better you think to put the money then go ahead and make that move
Like that’s your move to make if you feel like there’s somewhere better for your money but if you don’t have anywhere better for your money to be put then tesla shares and you believe they’re undervalued why would you sell tesla stock and at the same time why would you specifically go out of your way to buy more tesla shares right before earnings if you have money
On the sidelines and you believe tesla’s undervalued then you can go ahead and buy some more shares and it really has nothing to do with earnings being tomorrow or the next day or something like that because anything can happen on you know the day after earnings as far as a stock price move you might as well flip a coin in the air and see what it lands on heads or
Tails in terms of whether that stock price goes down and or up i’ve seen companies report great earnings and their stock goes up a ton i’ve seen companies report great earnings and their stock falls dramatically i’ve seen companies report bad earnings and their stock goes up and it’s like what those earnings were awful i’ve had i’ve held stocks before they report
Horrible earnings and literally their stocks went up i’ve had companies report horrible earnings and their stock got killed okay it’s literally like flipping a coin on earnings and you’re trying to guess where the stock price is going to go in the next day all i can tell you is is there’s obviously not that much expected in tesla for this current quarter so the
Question is will i be buying or selling tesla shares before these earnings and the answer is no okay certainly not selling any tesla shares before these earnings once again it could go down who knows but that’s every stock okay every stock could go down on their earnings okay like i said it’s like flipping a coin 50/50 on whether the stock will go up or down on
Those earnings so if i’m looking at tufts of shares i’d be much more interested in buying because i feel like tesla significantly undervalued i’m not gonna go out of my way to buy this week i’ll probably buy some more tesla shares over the next month i wouldn’t be you know i’d be very surprised if i don’t add to my tesla position over the next month or so but i’m
Not specifically gonna go out of my way to buy tesla shares here just because i don’t have a lot of free money right now i just actually you know got a tesla or i ordered a tesla which i’m supposed to get tomorrow model 3 performance version i just got a big house so unlikely we have a lot of money going a lot of places right now so if i had a lot of free money i
Would buy more tesla shares right now just for the mere fact that i feel that the company is significantly undervalued however that doesn’t mean you should go do it you should be making decisions on what you believe is best okay but like i said no matter what over the next 30 to 45 days i can definitely see myself buying some tesla shares they would have to shoot
Up a dramatic amount for me not to be interests in tufts anymore at this position i just feel like they’re significantly undervalued i feel like they’re way way ahead of everybody’s in on autonomy vehicles and i feel like that’s you know market that’s gonna be worth hundreds of billions of basically market cap they’ll be added to tesla over the coming years and
Then they’re way out in front of electric vehicles you know you on basically pointing he’s like name one electric vehicles that’s anywhere even comparable to the mother – the model s that came out in 2012 nothing and we’re seven years into it guys and there’s still where’s a competition that guys so very important to kind of pay attention to there but that’s not
My feeling about the autonomy day and test the stock buying or selling before earnings i hope you guys enjoyed this as always make sure you smash that thumbs up button if you enjoyed this here today and share this with somebody that enjoys talking about tesla thank you for watching and have a great day
Transcribed from video
BUY TESLA STOCK BEFORE EARNINGS?! plus my take on tesla autonomy day By Financial Education