Is Tesla Stock Going To 00 Soon?

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Well today i finally get to do a video i’ve been wanting to do for the past couple weeks i’m finally gonna do it we’re gonna talk about tesla stock into depth on what is going on with tesla over the next 6 to 12 months if you’re a shareholder of tesla i think you’ll find today’s video very very interesting out there if you’re a short seller tesla might not be the

Most interesting video for you guys here today all right i mean by the way at the end of this video i just got to talk about narrative in regards to tesla versus the other tech companies i think that will be very intriguing so first off i am blessed to like own tesla like i’m very thankful it’s my second best stock i have bought in 2018 the only stock i have that’s

Done better than this is eli but eli bought back in like january february tesla have hardly held it for any time so i’m very thankful to be holding tesla i have you know decent amount of shares in one account and then a very small amount of shares in another account we’re just doing very very well so i’m very thankful to own tesla especially with how rough stocks

Have been over the past let’s say month or so if we look tesla stock has just been absolute beast mode the past month right going from around 250 $260 range so now it’s up over 350 dollars in literally a month’s time alright meanwhile almost every other company you could possibly find is down substantially you look at where apples falling its falling massively

Over the past month google same deal amazon same exact situation facebook same situation all these massive tech companies have just been falling fall and if we look at even some of the hutt stocks like something like nvidia it’s down massively the past month netflix down all you know an unbelievable amount the past month and you know it’s just a stock after stock

Really the past month or so has gone down like it’s hard to literally find any stocks that have gone up over the past month and especially ones that have gone up 20 30 40 percent in a past month like tesla has guys so let’s just quickly recap what’s happened over the past few weeks and then we’ll get into what to look forward to over the next six to 12 months so

To quickly recap here why the stock has gone up so much in the past few weeks okay first off we had earnings come out in these earnings blew the doors off all right we’re talking about adjusted earnings of two dollars and 90 cents a share that was versus what analysts were expecting to have a loss of 19 cents okay you know so expecting them to lose money and they

Made a ton of money revenue came in at a six point eight two billion analysts had expected around six point three three billion so they had up about a half a billion dollar beat their on revenue also revenue surged 70 percent quarter-over-quarter in a more than doubled year-over-year there are very few companies in the entire world right now that have these type

Of revenue numbers and honestly if you’re looking at companies the size of tesla no one is doing even remotely close to these type of numbers where they’re doubling up the revenue year-over-year you just can’t find this stuff anywhere guys it’s it’s growth on a parabolic level it’s growth on a different level that any company has right now and most companies have

Ever had alright also we’ve seen some tesla shorts always actually throw in the towel alright we’ve seen several tesla short sellers actually cover their shares all right and just say we’re done with that short position we have a made money or we lost some money whatever we’re getting out of it but we’ve also seen a couple very well-known short sellers who were

Very bearish on tesla actually flip not only to cover their shares but actually go long tesla shares citing how much you know tesla is kind of owning the competition on how you know the competition is just so far behind tesla and whatnot so that is one of the biggest things you can see out there when you have well-known short sellers actually go from a position

Where they were short the stock and then in a matter of a month or two they literally flip-flop and they go positive on the stock all right so between what happened with earnings and then you have short sellers also and you know covering and then saying hey if we’re actually go long shares that has freaked out a lot of people that has caused more short sellers to

Cover when short sellers cover shares they have to buy back the shares that they originally shorted which can end up pushing up the price more and more and then on top of that elon musk over the past month has you know you know cleaned up things you know settled with the sec he got all that behind the company with that whole situation he hasn’t done anything in

The past you know few several weeks and pretty much the past month to make a short you know investors say oh we got a sell-off tesla shares because elon must did something crazy so you have a lot of positivity now starting to get into tesla stock and a lot of people will still wonder if elon never sent that tweet if never yo i never said we’re going private at

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412 $420 week if he never sent that a lot of people feel like tesla shares would be well over $400 right now a lot of people feel like tesla shares right now would be 400 450 somewhere around there but because he sent that tweet it just put a big huge negative narrative around the company in the short term all right so the question is what is coming in 2019 all

Right well first off here we’ll have earnings that will probably come out of somewhere around the end of january maybe very beginning of february all right and these are teams are gonna recap the october november december months for tesla the first thing i find very interesting is in elasaur only expecting tesla to make around two dollars and six cents per share

Of eps all right now keep in mind the last quarter they did they did three dollars and nine cents all right now a lot of people felt like you like tesla will probably make more money this october november december quarter than they actually made in the july august and september quarter so this will be very interesting to see analysts are not even expecting them

To be as profitable and i if you know test so they improve in a very massive way their production the way they do things even a lot of their pricing power and whatnot so it would be interesting to see maybe they they come in with another big beat there all right now something else i think is very interesting is in the march quarter analysts are only expecting

The company to do around a dollar and fifty five cents of eps keep in mind here they’re gonna probably start deliveries to europe and maybe even some to china for the model 3 in that quarter all right now obviously shipping cost could go way up you know to ship the cars that are made in in fremont california to europe to china because obviously you know you tesla

Doesn’t have factories up and running in those places yet they will in in about a year or two but as of right now they do not right keep in mind some of those vehicles those model threes are gonna be the highest end model threes so if analysts are just counting on those those cars are gonna be sold at a loss or a very small profit i would say they’re probably

Gonna be very profitable model threes because they’re probably gonna be the highest of the highest end you know tesla generally does that now at the same time you risk maybe maybe the $35,000 model 3 comes out around that time you know roughly i’m not even sure we’ll be baked into that quarter so that might be a very low number for that march quarter next thing

I think is interesting is analysts are expecting around seven just over seven billion dollars in revenue for this current quarter that would be up just barely very very slightly versus this past quarter right but in them then in the march quarter they’re only expecting the basically the same number even a little bit less now keep in mind is tesla probably has

A ton of demand still coming from the states that they’ll be filling into at that particular time right but then on top of that and they have europe then they have possibly some china deliveries in that same quarter so i think to think that they are basically not gonna grow quarter over a quarter as far as revenue goes that’s a little surprising to me so we’re

Looking at a situation where analysts do not have their numbers at stages where it’s like oh my gosh that’s going to be impossible for tests so they hit that and that’s gonna be super hard for tesla to hit those numbers when i look at the numbers over the next couple quarters i’m looking at them like tesla might be holed up you know beat these type of numbers

Pretty easily that should be very interesting all right we also have some news that just came out here a couple days ago that tesla has opened up model three orders to customers in china this is very big news all right elon musk tweeted back at somebody that asked him a question he said we’re probably gonna have some deliveries on model threes in march but april is

More certain so you could have some deliveries of the model 3 especially the higher-end models come toward the end of march and in that corner right but you it looks like for sure that april quarter is when they’ll start delivering to china in mass they’re so already put out this they said tesla model 3 fever is sweeping across europe in china as it gears up for

Possible march deliveries these are some scenes from europe look at these pictures here you can tell you know people are very excited in europe for the model 3 coming out the stores are absolutely jam-packed lines around the door minds me of apple back in the day when they would show off some of their new products and iphones and things like that it’s just it’s

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A lot of excitement over there in europe for the model 3 and that’s just something can be a massive massive market you own must educated me on that last conference call he kind of poked at the numbers and he said there’s a chance that that tesla can actually have a much much bigger market in europe than the united states because the united states so many people

Drive suvs so many people drive trucks so in terms of model 3 passenger cars are so much of a bigger thing out in europe so the way elon must looks at it he’s saying man we can do we can actually be a europe can actually be a much much bigger market from model 3 than the united states of america and that and i looked at the numbers and the numbers just kind of

You know the show proof in the pudding there that meant you know europe has a chance to be literally they could be like a 2x market in terms of model 3 sales compared the united states because just so many people drive trucks so many people drive and so many people drive suvs in the united states whereas europe is a much bigger passenger car market that is very

Exciting then it looks like in the late spring or maybe early summer we should finally get the $35,000 base model 3 all right now this is the model 3 keep in mind that the masses masses really want not everybody wants a 50,000 60,000 plus dollar model 3 right not everybody can afford that one not everybody’s willing to pay that but you have a gauntlet of people

That are willing to pay thirty five thousand or something under forty thousand dollars for a model 3 so this is going to be very very exciting to see what type of numbers as far as production numbers tesla ends up starting to put up toward the back half of 2019 based upon is actually starting to sell those 35 thousand dollar models that is gonna be very interesting

Alright then on top of that we should have model y be shown off i would say sometime in early spring maybe even march maybe sometime in march maybe april i would very much expect them to show off model y sometime in the first half of 2019 because they are expected to get that into actual production in 2020 and if we know elon musk generally he likes to show off the

Vehicles at least six to twelve months before they actually start producing them then they can start taking reservations started getting an idea for demand and things like that so model y in my opinion is gonna be the one of the biggest opportunities for tesla over the next few years as far as you know boosting those production numbers up to ridiculous levels all

Right then on top of that we have this semi more information on the semi ra we just had albertsons placed an order for around ten of the semi trucks that are all-electric right and that tesla makes keep in mind someone like albert sentence has over fourteen hundred trucks in their fleet all right that’s just one grocery store out there think about how much of a

Huge market this could be in the future as far as their semis are electric semis we have basically almost every single big company is placing orders for the semi but small orders right now because they want to try them out they want to get used to them and whatnot so as far as semi revenue i would not expect those numbers to be big in 2019 at all all right they’ll

Probably be very small and maybe even in 2020 but at 2021 and past one so a lot of these these retailers and all these and think about these massive trucking companies right to have huge fleets of trucks you know we’re talking ten thousand plus the ones these guys get to actually try the all-electric semi in kind of you know realize it’s the real deal and whatnot i

Think we’ll start to see big volumes for that probably 2021 in pass so so it’s exciting to kind of see what the progress is there in 2019 and then who’s ordering more pretty much every big company out there is gonna be ordering at least some of the electric semis to try them out all right and also what do you guys think about this illustration theo chin and chris

Don’t automotive ended up doing do you guys think this is a good-looking tesla truck this is just an illustration here i think it’s very i think it’s very intriguing there is that something like tesla’s gonna put out there in the market or not what are your guys thoughts about that picture but it’s gonna be interesting to see if we get any more information around

The tesla truck it seems like elon musk is very very excited about that he spoke on the conference call recently about how excited he is does that get shown off at some point in 2019 i doubt it i don’t think it will i think the truck will probably get showing off in sometime in early 2020 i think 2019 will kind of be more about the model y and then maybe 2020 can

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Be more about the truck alright now let’s talk about something very very big that we didn’t discuss here all right this is something i like to call narrative the narrative is going so much in tesla’s direction right now what do i mean like this by this well think about all the big tech companies out there a lot of them have sold off and a lot of fund managers and

A lot of you know high net worth individuals and whatnot have money sitting on the sidelines right now ready to deploy it they’re looking some of the big techniques out there they’re thinking apple and right now the warrior round apple is oh my gosh i can’t grow iphones and what now so a lot of people are like i don’t really want to invest in apple a lot of people

Are looking at google and facebook and saying you know what i don’t think i want to invest in those companies because you know of possible regulations coming and things like that we’ve seen europe you know do some very questionable regulations around maybe possibly google and facebook and anybody that’s in advertising industry online so we have a lot of people

Looking at apple facebook amazon and google and saying do i really want to put money in those companies maybe not and then you see a lot of the smaller names that have just kind of gotten destroyed because of maybe some slowing growth there or maybe the china worries and whatnot and then you have this company named tesla and the narrative is totally going toward

Them they’re the ones with a massive massive growth right they’re the ones that profitability is starting to increase in a dramatic way right they’re the ones that kind of almost seen as the good boys out there on the block right whereas everybody vilifies you know google or facebook or some of these companies especially facebook right now right oh my gosh you know

Facebook such a bad company and everybody kind of looks at tesla and it’s really hard to poke at them and say oh that’s a bad company right because they’re you know changing the world they’re trying to get everybody on electric cars they’re trying to get you know it’s being solar you know solar we’d even talk about the solar business that could be something that

Could become much much bigger in 2019 right and so a tesla right now the narrative is coming to tesla which means a guess what ends up more and likely happening more and more money floods into tesla because some of the you know these other big tech names people are just saying we don’t want to be in those because growth has come down so much in those companies

Or they have other questionable problems and you look at tesla and all so it’s like look at this company look at the way they’re expanding market share look at the will you know the demand they have for their product look at all the exciting products they have coming down over the next two to three years and people are in a lot of investment managers and a lot

Of people that run money in general they’re gonna look at this and they’re saying you know tesla looks pretty interesting here so i found if anything in 2019 i could almost see tesla becoming a crowded trade meaning it’s just kind of like you know almost like too many people get involved with this stock and i creates a crowding situation we see this a lot in the

Stock market where you’ll just see a stock just continue fly up and fly up because it becomes a crowded trade and just everybody wants to get in it and the narrative just starts to turn in such a big way right we’ve seen it with nvidia in the past we’ve seen it with amd in the past and we know we could go through a million different companies we’ve seen it with

In the past amazon for instance this past year amazon went from you know something around $1000 so then it was trading over 2000 now it’s around 1500 where some of these trades just you know get so much excitement in it and it just ends up creating a situation where the trade gets crowded so it’ll be very interesting but if in my opinion if anything tesla will see

A lot more money flooding into it just because of the narrative and people starting to realize this and even short sellers start to realize this and say man there’s so many positives going on here over the next 5-10 years how can we short these because how can we short these shares right now we might get our heads into us in this whole situation so anyways i want

To know your guy’s opinion down there in that comment section let me know what your opinion is on tesla tesla stock especially over 2019 i would love to hear from you guys in that comment section as always thank you for watching have a great day

Transcribed from video
Is Tesla Stock Going To $500 Soon? By Financial Education

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