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Holy smoke is this a no jokers look at that tesla stock having a very tesla like day once again up big on a day when the market is down down down 191 points as i’ve taken these screenshots here tassel up 6% here today up almost 48 dollars a share up to about 850 dollars a share today on the back of a double upgrade yes not one analyst but two analyst firms came
Out today and upgraded tesla stock and they both became a little more positive around tests so we’re gonna look at what those analysts had to say one of them i think you know had some some interesting things to say the other i’m like i’m not so sure about okay no tell us a stock ok this was a stock they remember a few weeks ago it pushed up over 900 dollars that
Day it was absolutely incredible the stock just absolutely took off they closed over 900 that day and then a lot of folks start to feel like ok you know what especially after that big pullback the next day they thought this stock probably gonna go back to having that 500 $600 range and you look at the stock chart there it has remained incredibly consistently above
$700 and here we are today you know back around 850 dollars if not more than 850 dollars and so that 500 or $600 that people thought it might fall back down to it just never happened you know then they hit 968 on that day when i hit the highs and in who knows who i wouldn’t be surprised if tesla ends up you know approaching that value sometime soon but needless to
Say the 500s 600 is not looking so realistic as of now we’ve had a lot of debate and tesla stock chat over the past several weeks around tesla stock price and if this was going to continue to climb if it was gonna start to falter a lot of people have some pretty strong opinions as some have sold out you know over the last month let’s say hoping that tester stock
Falls back down but you know ultimately successful stock has been really strong okay so let’s look at these upgrades here that came out in regards to tesla stock here today okay there’s two of them okay so the first one is total stock spikes about $850 after bernstein sees no quote imminent negative catalyst this is a first upgrade we’re looking at here okay shares
Of tesla shot back up above $850 on tuesday for pairing some games after bernstein analyst tony saginaw he nearly doubled his price target saying he didn’t see any negative catalysts on the horizon for stock that wasn’t especially expensive saginaw he raised his stock price target to seven hundred and thirty dollars which is still 14% below current levels from
Three hundred and twenty-five dollars okay so let’s just i mean okay yeah his price target is still below for the stocks trading at now but guys he just raised it from 325 that’s where this guy was at it was at 325 he raised it to seven hundred and thirty that is an incredibly big price target jump there okay we’re talking well over a double well over a double up
From what he had before so you know he might’ve just made a big mistake and i’m in a 325 there okay he reiterated the market perform rating basically saying the stocks gonna you know perform like the market that he’s had on tessa for at least the past three years second augie said he’s been thinking about how to value tesla okay i think that’s kind of important to
Think about that buddy you’re an analyst of the stock you should probably should be thinking about how to compel you tesla like what what have you been doing all along like not thinking about it like what is going on okay he’s been thinking about how to value tesla following the stocks meteoric rise over the last several weeks using traditional auto valuations in
Discounted cash flows he said it would be difficult to justify the current share price which would suggest tesla will eventually become bigger and more profitable than volkswagen which i think is definitely a possibility and i would even consider that a possibility within the next five years you know i mean you look at you know i’m showing you a chart here kind of
The biggest auto manufacturer out there you see toyota you see v-dub right at the top in terms of the most vehicles made usually you know around 10 million maybe a little over 10 million sold worldwide per year and i think long-term test has a great opportunity to get to those type of numbers okay but the thing in with tesla is it will likely be much more profitable
The vehicles tesla sells will likely be much more profitable in 10 years than the profitability for you know v-dubs and toyota seoul today and never mind that when you talk about tesla stock you’re talking about the autonomous tax network down the road you’re talking about the solar business that battery business you’re talking about so many different elements
For tessa and how that company will expand over the next five to ten years that you’re not just getting up pure you know autoplay like a toyota or v double or something like that would be okay but neither say that you know that that’s their big huge opportunity over the next five to ten years okay however he acknowledged that investor perceptions have changed with
Tesla becoming the quote ultimate possibility stock it really is okay quote investors feel much better about tesla’s ability to be sustainably profitable model three demand remains healthy gross margins and operating expenditures are both poised to materially improve competition is sputtering absolutely in product and production pipelines are robust the analyst
Wrote in a note to clients okay second now he said he believes tesla’s addressable market will grow thirty fold over the next twenty years so even if the company shares of electric vehicle market gets cut in half it will still grow fifteen fold in addition tesla’s significant additional option ality through the truck self-driving business battery technology and
Solar markets as we just spoke about there okay so so far this seems like this analyst is i would say more bullish than bearish at least in terms of the notes he writes about tesla in general okay besides the possibility second nagi sees little downside risk in the near-term he says quote we are skeptical that the upside possibilities are likely to be expunged
Anytime soon suggesting no imminent negative catalysts for their stock and quote you also suggest that that tesla stock is quote not unprecedented spensive even after the recent bubble like rally okay who’s calling it a bubble like a rally okay i don’t know about that okay no stock didn’t move for like five years you know i don’t know if i call this necessarily a
Bubble like rally just because the stock has been very strong last few months okay notably tesla’s a single fastest growing large cap tech company today in the scarcity of such a profile in blee commands a premium especially in this market the analyst right no this is where it gets really really interesting to me personally okay he said at $800 tesla stock would
Be valued at thirty three times consensus 2023 earnings before even okay while netflix trades at 20 times amazon trades at twenty four times and service now trades at twenty nine times all of which have slower growth i think that is a very important paragraph to look at there because you could say tesla’s value a little higher when it comes to ebit versus some of
Those other players but also test doesn’t much much stronger growth in any other companies if you think about the growth profile of tesla versus netflix versus an amazon versus a lot of these other players in my opinion tesla will easily outgrow those companies revenue wise easily over the next five to ten years especially if you’re looking at the next five years
There’s no way in my opinion netflix is gonna be able to grow you know nearly 50 percent per year which tesla should be able to do keep in mind elon musk has gone on record in the last conference call that the company should be able to grow 50 percent out of 50 percent rate for you know many many years into the future on back of model wide a min model 3 demand cyber
Truck coming down the road the semi business the solar business ramping the battery business continuing to ramp and all those sorts of things so when you look at tessa from that ratio you know you’re looking at a company that is actually might be cheaper than a lot of players out there because tesla just has a lot more growth going forward in the future male this
Inless note i would say this sounds very very positive like most of what this analyst brought out very positive things okay but here’s where i have an issue okay this analyst at the end of the day is not a positive on the stock if this analyst was positive on the stock he’d have a buy rating on it okay or a strong buy rating okay or at least just a buy rating okay
He doesn’t have to put a strong buy but at least a buy rating he is a market perform let’s not forget this okay this analyst has a 730 dollar price target on it means he thinks the stocks going to 730 over the next year which would mean the stock goes over the next year and he has a market perform which means that he expects a stock to just do whatever the markets
Doing and if the market goes up 10% this year then tesla stock will go up 10% this year and if the morgan goes down 10% this year there you know tesla stock would go down 10% this year he expects tesla just do whatever the markets doing and then at the end of the day is not bullish okay this is just a pure contradiction in my opinion i’m seeing this from so many
A notes out there and this is why it’s hard for me to respect analysts they just contradict themselves they say oh we believe this but at the same time we believe this and they want it both ways they want it both ways they’re just contradicting themselves they want if the stock goes up a bunch to say hey look if we had some positive things we mentioned about this
Stock okay we had said this could happen we have said that can happen but at the same time if the stock goes down over the next year or doesn’t move they may look and say well look at we had a market perform in the stock look at it did kind of what we we we thought it would work and we had a lower price target on the stock than what it had at the particular time
And so they constantly contradict themselves these analysts and i’m just like you know i don’t get it okay okay and this is why it’s hard for me to respect a lot analyst out there okay morgan stanley raises its bold case on tesla to $1,200 okay that’s the one you probably saw in the title as a video okay twelve hundred bucks they say then all for their bull case
Tesla’s going to over the course of the next year okay morgan stanley raised its bull case scenario for tesla shares to $1200 a share from six hundred and fifty dollars a share tesla shares have more than tripled in the past six months morgan stanley’s most optimistic scenario would mean that rally continues with shares climbing another 50 percent from its current
Level near $800 morgan stanley’s overall view continues to be that tesla stock will fall the firm stuck by its underweight rating on tesla and raised its base price target okay oh here we go here we go again with another one of these all it’s a base price and all we have a bearish price and all we have a bull price okay but the base price target is $500 they is
That from 360 dollars nearly 40% dropped from the stock spurned price okay amy with adam jonas wait a minute that name rings a bell adam jonas the jonas brothers i feel like i made this joke once before on this channel maybe twice before maybe three times before adam jonas the long-lost jonas brothers i feel like i’m having flashbacks or something deja vu okay
Analyst adam jonas said in a note to investors that quote we believe the shares offer an unfavorable risk reward skew compared with other auto stocks adam jonas let me think about this oh i remember i remember adam jonas the long-lost jonas brothers he is the gentleman that had a $10 bear case on tesla stock that’s right he had had that bear case and ninety seven
Dollars and then he moved his bear case to ten dollars basically you know let’s just call it zero i mean if you want to put tesla ten dollars your minds well put tesla zero dollars and that was just last year what’s just in 2019 i remember making that video a member that’s coming out morgan stanley cut its bear worst case forecast for tesla stock from $97 to just
$10 on tuesday citing concerns about the company’s increased debt load and geopolitical exposure in particular morgan stanley analysts said the reduction was driven by concerns around chinese demand for tesla products which on our per share basis is $87 bridging a gap between our old bear case in 97 dollars in our new bear case of $10 a note said however jonas kept
His main price target on the stock of $260 and also so let’s keep in mind his wife he actually thought the stock was going was $230 you know basically this year in 2020 and here we are well well over $800 right now okay let’s not forget it that’s not left lee’s analyst off the hook this guy adam jonas the morgan stanley analyst he thought the stock would be 230
Dollars right now stocks 850 or whatever okay and also a bull forecast of 391 he announced oh ava none ders best-case scenario that starts well over double up where he thought it would be and so i’m glad i remember i’m glad i have a decent memories i remember adam jonas of the long-lost jonas brothers okay okay let’s go back to his his new numbers now that he’s
Changed since tesla’s had a few strong quarters here and since the stocks gone up a lot okay he says quote our new bull case reflects four million units of auto volume by 2030 with a 12% operating margin this compares with our base case forecasts of 2.2 million units and 10% operating margin by 2030 okay i have those those numbers in red there okay let me just say
2.2 million units if tesla’s only doing 2.2 million units by 2030 now i will call this investment a failure of mine okay i expect tesla to be at a place where they’re doing 2 to 3 million units within 5 years never mind if we’re talking 10 years in 10 years i expect the company be doing somewhere between 5 million in 10 million units a year if we’re talking 10
Years out so if the company is only doing 2 million in five years i would call a disappointment never mind if we’re talking ten years down the road you know everybody’s got different bullish scenarios around tesla stock but i’m just telling you my bullish scenario i have this company getting to a place where they’re doing millions of units a year within five years
Never mind ten years we’re talking five ten million units a year you know if we’re talking 10 years from now so that’s my bullish forecast and that’s my main bullish forecast around this company and the fact that we’re gonna continue to expand electric vehicles all over the world especially in developed markets over the next five to ten years and tesla will likely
Be the biggest player in that market that’s why i believe this company’s gonna get to a place where they’re able to do 5 10 million cars a year within the next 10 years ok so let me just say there’s a big difference between what this analyst believes in what i personally believe is gonna happen for the company over the coming you know let’s say 10 years jonah said
The bottom line of his price target is that quote investors should expect a very challenging first quarter for tesla here we go again okay remember last year it was all about that challenging first quarter for tesla there were so many worries about you know the first quarter was gonna be we get in that first quarter was weak for tesla stock absolutely got slammed and
You know it was what it was okay he forecasts so we’ll deliver 89 thousand vehicles in the quarter below wall street’s consensus view about ninety nine thousand okay so he thinks they’re gonna miss by ten thousand here in the short term and this is first quart okay and we’ll report a quarterly loss of four hundred and forty million dollars which would be a pretty
Dang big loss therefore test especially if consumer company has been doing pretty well lately when it comes to losses and profits jonah says we expect 1q twenty twenty to be notably weak as tesla works through the china production in mala y rant and deals with potentially weaker demand in certain european markets as well as potential disruption from coronavirus
Jonas said so jonas goes ahead throws up this big bull case number of $1,200 yet this is the same guy that you know last year in 2019 came out with a bear case of ten dollars on this stock this is the same guy that says you know q one’s gonna be really weak in his base cases like five hundred dollars for the stock it’s another one of these analysts this is so
Frustrated i like the analyst community like as all like always made me very frustrated in mad but they’re just making me more mad than ever because they want to go out here and they want to slap a ten dollar price target on the stock and they want to you know put a five hundred dollar price target on the stock and twelve hundred dollars it’s like what are you
In us or you are you bearish are you in the middle or you’re bullish and to really find the truth in these things you’ve really got to actually read through these notes okay the first gentleman he actually sounds very very bullish on the stock but yet his his market perform in a stock price of the stock going to seven hundred over the next year doesn’t seem very
Bullish but yeah you read that note and it’s like that is very very bullish know lately you got to get more bullish about this stock like you a you wrote clearly a bullish no why not slap a buy target on this stock you’re talking about the company’s not expensive here like why not put a buy rating on the stock like like are these some of these analysts you like
Like scared to go out there and say you know let me slap a buy target on the stock even though it’s up to eight hundred dollars or whatever and here we are adam jonas you know say his bull case is twelve hundred bucks and yet you read through that note and it was very very bearish that was a very very bear no and i won’t forget that this guy put a $10 price target
On tesla stock just last year for his bear case none of us should ever forget that guys so on you know the analyst community is driving me more crazy than ever guys but anyways in that comment section let me know what you guys expect tesla stocks to do over the next year and also let me know what you think tesla could be doing potentially in ten years from now no
Adam jonas has you know them doing 2.2 million units in 2030 that’s ten years from now i think that’s going to be a number that they could you know triple up quadruple up maybe even the 5x but i would love to hear your guy’s opinion down there in that comment section alright smash comes up if you enjoyed today’s video as always thank you for watching have a great day
Transcribed from video
Tesla Stock Gets Upgrade to $1,200! WHY? By Financial Education