The Bull Run In Tesla And What It Means
The last week has saw the price of Tesla stock skyrocket. Many feel this is something that validates what is taking place.
In this video I discuss how the market is a terrible tool to try and get valuation from. Instead, it is neurotic, driven by fear and greed. Tesla's stock was all over the place the last year, at which point was the market right?
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I had set my Limit Buy at $101 a few weeks ago. Almost touched 😂
The market is a hard beast to time and I wonder if Elon still thinks Tesla is overpriced or not. I think it's good that Tesla doesn't have anything bad going on and it's going on as normal.
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Summary:
In this video, Task discusses the recent price run and valuation of Tesla. He emphasizes that he does not place much importance on market pricing as an indicator of valuation in both equity and cryptocurrency markets. Task highlights that Tesla's market volatility does not accurately reflect the company's performance or value. He points out Tesla's growth in vehicle production, balance sheet improvement, and cash flow generation. Task stresses the long-term hold potential of Tesla by focusing on its consistent growth in vehicle production, battery manufacturing, and expansion of factories.
Detailed Article:
Task starts the video by diving into the recent surge in Tesla's stock price and how it has excited Tesla bulls while affecting short-sellers negatively. He emphasizes his belief that market pricing is imperfect when it comes to valuing assets, comparing it to the erratic behavior of a teenager. Task points out that Tesla's stock price has seen substantial fluctuations, but questions whether the market has been accurate in valuing the company at different price points.
He highlights Tesla's financial performance, noting a significant increase in vehicle production and sales from the end of 2021 to 2022. Task mentions Tesla's strong balance sheet with $22 billion in cash and consistent free cash flow generation. He also discusses the company's efforts to pay down debt, expand factory capabilities, and reach milestones in vehicle production in Austin, Berlin, and Shanghai.
Task underlines that market fluctuations and short-term earnings reports should not distract investors from Tesla's long-term growth potential. He mentions the impact of Tesla's expanding user base and the potential for increased revenue from services like full self-driving packages, software subscriptions, charging networks, and power wall sales. Task stresses the importance of understanding Tesla's trajectory on the exponential growth curve, which he believes is a crucial factor for long-term investors.
In conclusion, Task reiterates the importance of focusing on Tesla's long-term prospects and growth trajectory rather than short-term market fluctuations. He emphasizes the company's strong fundamentals, consistent growth in production and sales, and potential for increased revenue streams from various services. Task's analysis provides valuable insights for investors looking to understand Tesla's current position and future potential in the market.