Tesla Stock vs Uber Stock! Which Stock Is Better?

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Good day subscribers hope you guys having a great day out there as always today we’re gonna make two companies compete against each other we’re talking overstock vs. tesla stock in what is the better investment in my personal opinion all right now first off there’s gonna be some people out there that say why even make these two companies compete why make luber compete

Against tesla why even compare these two companies they don’t compete it all today okay and so here’s our job as long-term investors in the stock market our job is to look around the corner look around the corner and see who’s going to be competing with you in the future who are going to be the massive competitors in different spaces two years from now three years

From now four years from now not just worrying about what’s going on today if all you’re worried about is what’s going on today you’ve already lost the battle the battles are the wars that will be won in the future all about what’s gonna happen in the future okay and if i look around the corner i’m seeing uber and tesla become two massive goliath competitors two

Years three years four years five years from now where’s a lot of people aren’t even looking at these two companies as competitors i’m looking at these two companies as massive competitors in the future okay two of the most competitive companies in the entire transportation industry in future years will be these two companies in my personal opinion okay so i hope

You guys enjoy this we’re going to get into this in depth who’s the better stock which one has a higher likelihood of winning these different markets and whatnot so hope you guys enjoyed this always make sure you smash the thumbs up button if you want to know the top five stock market apps and websites i use every day go ahead and join our messenger and we’ll go

Ahead and send that over to in a pdf okay so here’s what i’m thinking here’s why these two companies are absolutely absolutely on a crash course to compete strictly against each other okay if we look out self-driving in my opinion is about two to five years out when i kind of look at where tech is at right now what the self-driving vehicles can do if you have a

Tesla that has full autonomous mode as of right now and what that car can do and whatnot if i’m looking at all the things that are opted out there and whammo and those sorts of things what i’m seeing is this technology is about two to five years away from full scale adoption and most governments will start to allow this once it’s proven that it can be safer than an

Average driver and especially safer than a good driver now why were government’s want to allow this well one it would actually help out the economy in a huge way traffic alone cost the economy a ton of money each year and when you have accidents the more more accidents it’s not just about people getting hurt or people actually you don’t like dying in a car accident

It’s not just about that but it’s about if somebody gets in an accident on a highway what happens to the highway it gets very congested traffic picks up that actually hurts the overall economy obviously the government wants to die economy to do as well as possible so they can make more tax revenue and all those sorts of things right so if you’re looking at this

From an economic standpoint government would love self-driving vehicles to already be here not just because it would cut down injuries and deaths and whatnot because it would actually help out the economy when self-driving vehicles you have a ton of self-driving vehicles on a road if they’ll actually be able to follow each other much quicker they’ll actually have

Way less accidents because here’s the thing you have like three tiers of drivers on you know the roads on a given day you have your bad drivers which is a small percentage of the population but even if there are small percentage of the population they are the type of people that are consistently in accident so the type of people that are not very aware of what’s

Going on in the road the types of people that just follow other vehicles they just put everybody in danger when they’re on the road okay bad drivers most people fall into the average category of drivers meaning they can foresee some things they’re pretty alert on the road but they’re not at a place where they can almost avoid all situations there are some slip-ups

They can make once in a while there are some accidents they can create and then you have the last category which is a small percentage of drivers which are really really good drivers that are very alert on the road and they’ll pretty much never ever pause an accident in themselves the only way they could possibly be involved in accident as if they had no choice

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But to be in that accident because somebody like t-boned them or something and it was completely out of their control okay so as of right now if i look at the current act and when it comes to autonomous driving and whatnot we’re somewhere in between bad and average over the next several years i think we’ll get to a place where it will be even rather than a good

Driver in the likelihood of you actually being involved in an accident is like you know even less and if you were a really really good alert driver out there okay and so if i’m looking at this these two companies are on an absolute crash course with each other in the future okay uber uber needs self-driving vehicles so they can be profitable because as of right

Now this is a company that is bleeding a lot of money and a lot of the money on each overwrite actually goes to the driver themselves okay so imagine if you cut out the middleman the driver and the vehicle drives itself no uber gets it itself into a place where it has a much more likelihood of making big big profits on the back end okay so ober absolutely needs

Self-driving so they can actually you know make a lot of money now it is possible uber down the road could make money even in manned vehicles but i can tell you their likelihood of getting to massive profits you know explodes if we can get to a self-driving vehicles sometime soon okay so they need it for profitability reasons tesla needs it for a couple different

Reasons tesla need self-driving vehicles so they can really be the dominant auto sales company in the world if tesla wants to get to scale where they are selling millions upon millions of vehicles each and every year around the world it can’t just be that the biggest electric vehicle maker we know ton of you know folks are coming on and competing in the electric

Space over the coming years but also if they can actually be the ones that have the best autonomous driving out of all the vehicles out there then you’re looking at something that puts a massive massive competitive moat around the company because it’s like oh it’s not just about tesla being a cool brand oh it’s not just about tesla being electric but these vehicles

Can literally drive themselves and so that would put you into a situation where they have just a massive massive competitive advantage over all their competitors out there okay so they can do that if they want to get to a place where they have really really huge dominant sales selling millions upon millions of vehicles a year and they also have ambitions to have

Autonomous fleets okay so not only do they have their own vehicles that will basically be driving around and having an uber like service but just there’s no oberer driver in it but also you know if you own a tesla like i do you can actually add it we flee and if you were like let’s say all night long you’re like i don’t need my car for anything that car can go

Drive people around right you can go ahead and you say okay i want people you know to drive people around from midnight to 6 a.m. and book there the car goes and goes and drives people around okay so tesla has huge ambitions in autonomous fleet uber obviously wants to get there for profitability reasons on a longer term basis so there are two questions we got to

Answer now okay who will actually win this is it more likely be tesla is it more likely to be uber and who has an actual better business as of right now if we’re talking today who has a better business out of these two is it uber or is it tests okay so let’s answer those two now already guys now let’s go ahead and chat about where these business models are right

Now where’s opers business mall at right now where’s tesla’s business model at right now okay so as of right now uber is the number 1 or number 2 player in ride sharing service pretty much around the world if you look at all the markets around the world uber’s usually the number one player and pretty much every single market you would want to be in if they’re not

They’re usually the number two player okay that is a massive massive in itself because that means most consumers out there are used to using this service to get transportation around okay especially if they don’t have a car or they just need some supplemental ride they’re very much in the habit of like getting an uber ride okay and for a lot of us in you know either

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The united states or europe it’s gonna become like pretty synonymous that if you like even think about like like getting a ride somewhere you say hey are you gonna get a uber ride there okay it’s kind of almost become a brand name like a kleenex or something like that right it’s oh you’re gonna get it uber ride that’s just what people say and that’s amazing from a

Branding standpoint and that’s amazing from a psychological standpoint when you’re talking about consumers out there okay know tesla they’re the number one player in electric vehicles okay they’re doing the biggest numbers by far when it comes to electric vehicles i mean you look at their revenue numbers they’re now doing multi billions of dollars of revenue each

Quarter okay and keep in mind china is about to become a much bigger market for tesla because of the shanghai giga factory opened here in a few months okay now over in tufsa they do have other businesses to them okay they just have these businesses but if you’re thinking about the core business of each company for uber its ride-sharing service and for tesla it’s

All about electric vehicles ok so you’re looking at two companies that are very forward-thinking or in or in the space that you want to be ok ride-sharing service you would love to be the number one player in that right in electric vehicles all vehicles are going electric in the future and so if you’re the number one player there it’s a very good thing and when

People think about electric vehicles the first name by far in a way that comes to their mind is a tests ok just like the first name that comes to an average person if they’re thinking about getting a ride somewhere is an uber okay so both these companies very big markets already they’re going after and remember they got other businesses they’re doing as well okay

Tesla’s are a little over a forty billion dollar market cap as of right now which is not too high when you kind of think about everything tesla’s going for and everything they’re doing in the future okay uber on the other hands a little over a sixty billion dollar market cap so you are paying about a fifty percent premium roughly for basically buying uber stock

Versus buying tesla stock and that’s something you got to think about which one of these has a bigger chance of success in the future at least as of right now wall street’s saying uber because that market caps obviously much bigger but there are some individuals like myself that see tesla as having this massive massive opportunity in the future and believe you know

40 plus billion dollar market cap is way too undervalued for this business okay if we look at also where the businesses are at right now tesla has positive free cash flow for three of the past four quarters and this is big for the business overall okay people who always have said you know they can’t get to a place where that positive free cash flow they can’t be

It to a place where they’re going to be profitable they’re starting to approach levels where they’ll likely be profitable probably almost all quarters in 2020 and if they just cut back on spending a little bit here and there if they could you know pretty much almost a hundred percent for sure be a profitable company they do have the ramp of model y coming in 2020

And that is expensive whenever you ramp a vehicle in mass like they’re gonna do but if you’re looking outside of that is a company that would likely be profitable every single quarter in 2020 and some of those quarters actually making some pretty good profit it’s okay if you look at uber as a- free cash flow company and on the bottom line and if you look at the

Actual net income it’s a company that’s losing mass amounts of money so if you’re thinking about which business is close to the profitability which business is closer to you know always having a positive free cash flow it is definitely tesla / uber as of right now doesn’t mean ober can’t get to profitability and you can’t get to a place where they have very positive

Free cash flow in the future i’m just saying if you look at it right now the company that’s much much closer to getting that place it is tesla okay it’s just you look at the numbers and tesla’s just been trending the right way in the right way then you have model y coming you have shanghai giga factory coming all those things should produce much better likelihood

That the company can reach profitability okay now if you think okay if these companies do continue to take losses over the coming years like who’s got more funding connections well both these companies have tons of funding connections okay tesla has tons of funding connections elon musk can raise money in any situation possible he has connections to pretty much

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Any investor you want any bank out there you want like if elon musk needs a few billion dollars he can raise it in a snap of a fingers okay he even raised money like during the recession and coming out of the recession and that’s when raising money like the faucets were turned off during that time completely okay the man’s amazing when it comes to kind of like

Raising funding and whatnot uber same exact thing uber’s got plenty of connections everybody wants to see hoover succeed it’s a tech darling of a silicon valley they have connections with anybody so even if these companies took losses over the next few years they have all the funding connections to get them through those losses okay now we got to talk about who will

Win self-driving in these are two very different philosophies for how they’re attacking on this okay on one hand you have luber uber is attacking this problem with basically trying to make partnerships we see them have a partnership with volvo and what not now they’re trying to partner up with companies almost like outsource some of it and so they can have like

Ride-sharing fleets in the future and self-driving fleets in the future but they don’t actually build the car they just have some of the tech behind it and whatnot and they actually use other automobile manufacturers out there kay so they have a philosophy is we’re gonna partner our way to get there and if you look at tesla it’s a completely different philosophy

Tesla completely in-house they’re saying we want to build the car we want to build the technology when it comes to self-driving we want to build the electric batteries we want everything and we’re gonna actually operate the whole service network in itself the autonomous fleet we’re gonna operate that okay so as tesla’s looking at we’re going to do everything

In-house and ubers looking at is we’re gonna do some but we’re gonna partner with others to kind of help get us there okay and if i think about which one of these is probably a better philosophy i believe it is tassel okay and this is why i believe tesla has a great likelihood of actually being the number one player when it comes to autonomous vehicles because

Tesla’s doing all this in house and if i look at the tech that tesla actually has out there in the real world right now i’m not even talking about what they could have in two years from now or three years from now talking about what tesla has in the market right now around fully autonomous vehicles and what not if i look at their tech they have now it’s really

Unparalleled with any other auto manufacturer in the world and so if i think about that we’re test was already at and how fast tesla moves and how fast they get things done and then you’re taken into a account like the fact that there’s hundreds of thousands and potentially millions of tesla’s getting on the road over the next coming years and those vehicles will

Be you know at least partially on autopilot systems if not completely on autopilot systems that’s gonna give mass amounts more of data to tesla to make the systems better and better and better at driving and that’s how i remember earlier we talked about tiers of drivers bad average and good that’s how tesla likely over the next you know year two years three years

Will get to a place where their vehicles are even better than good drivers okay so if i’m looking at this i can definitely see uber being successful there i’m just thinking i think tesla actually has an advantage because of the mass amounts of vehicles in data the data they’re gonna be able to collect is what will actually win them the battle when it comes to

Autonomous driving in the future in my opinion so if i’m looking at these two stocks ubers pretty interesting tesla at the end of the day is just more interesting not just because of where their business models at now but the the likelihood that they will actually win autonomous taxi networks you know five years from now ten years from now out and what we think

About that market you know it’s just it’s such a big market all around world what that will end up being that it shouldn’t be overstated enough guys so huge opportunity for both these companies i think tesla has more of an advantage let me know your opinion in the comments section i would love to hear from you guys as always make sure to smash the thumbs up button

If you enjoyed today’s video thank you for watching have a great day

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Tesla Stock vs Uber Stock! Which Stock Is Better? By Financial Education

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