Tesla Stock Is “Going To Go Up Huge” According To This Billionaire Investor

Tesla's stock performance has been a topic of discussion, with a billionaire investor predicting a significant rise. Despite a challenging quarter, Tesla's stock price has seen an unexpected increase, currently at $168 with a forward PE of 60.9 times. The company's future vehicle lineup is set to accelerate, aiming for over 3 million vehicles per year by 2025. Elon Musk's comments on higher sales this year and the potential for a product reveal in August have fueled optimism. The energy storage business is expected to grow, and positive cash flow could lead to share buybacks. Tesla's China numbers show a slight weakness, but the launch of enhanced autopilot subscriptions could pave the way for full self-driving in the country. There's also speculation about Tesla's entry into the Indian market and the progress of Full Self-Driving (FSD) in Europe. The focus is now on Tesla's ability to execute and deliver on its promises, with the second half of the year being crucial for the company's trajectory.

Takeaways

• 📈 Tesla's stock price has increased contrary to expectations after the earnings report.
• 💹 The forward PE (Price to Earnings) ratio is at 60.9 times, which is lower than the 5-year mean but still considered expensive.
• 📊 Despite a negative free cash flow this quarter, Tesla's price to free cash flow ratio has increased, indicating a potential rebound in future quarters.
• 🔽 Analysts have revised the average price target down to $183, suggesting a 9% upside from the current price.
• 🚗 Tesla's revenue sales for fiscal year 2024 are expected to be up around 2% year-over-year, with some suggesting it might be flat.
• 🔌 Energy generation services and other revenue saw a positive trend, with energy gross margin increasing by 1,370 basis points year-over-year.
• 🚀 Elon Musk predicts higher sales this year compared to last year and an accelerated launch of new models in the second half of 2025.
• 🚘 Tesla aims to reach over 3 million vehicles of production capacity, which could lead to increased output and financial benefits.
• 🔋 The energy storage business is expected to see at least a 75% growth in deployments for 2024 compared to 2023.
• 🇨🇳 In China, Tesla has launched enhanced autopilot subscriptions, hinting at the potential for full self-driving capabilities in the future.
• 🌍 Tesla's FSD (Full Self-Driving) version 12 is being demonstrated to regulators in Europe, with a focus on left-handed drive countries.

Q & A

What was the initial expectation for Tesla's stock after the earnings report?

The initial expectation was that the Tesla stock would drop.

What is Tesla's current forward PE ratio?

Tesla's current forward PE ratio is 60.9 times.

What is the average price target for Tesla's stock?

The average price target for Tesla's stock is $183, representing around a 9% upside from the current price.

What is the expected year-over-year growth for Tesla's fiscal year 2024 revenue?

The revenue for fiscal year 2024 is expected to be up around 2% year-over-year, with some suggesting it might be flat.

What is the current status of Tesla's energy gross margin?

Tesla's energy gross margin sits at 24.6%, which is up 1370 basis points year-over-year.

What is the outlook for Tesla's supercharger stations and connectors?

Supercharger stations are up 26% year-over-year, and supercharger connectors are up 27% year-over-year.

What did Elon Musk say about Tesla's sales for the current year?

Elon Musk said he thinks Tesla will have higher sales this year than last year.

What is Tesla's plan regarding the launch of new vehicle models?

Tesla has updated their future vehicle lineup to accelerate the launch of new models ahead of their previously communicated start of production in the second half of 2025.

What is the current capacity for Tesla vehicles and what is the projected output?

Tesla currently has the capacity to make 3 million cars a year and they are aiming to increase this to over 5 million vehicles.

What is the expected growth for Tesla's energy storage business in 2024?

The deployments for Tesla's energy storage business in 2024 are expected to grow at least 75% higher than in 2023.

What is the weekly insured number for Tesla in China for the week of April 15 to 21?

The weekly insured number for Tesla in China for the week of April 15 to 21 was 5,168.

What is Tesla's plan regarding the launch of enhanced autopilot subscriptions in China?

Tesla has launched enhanced autopilot subscriptions in China at $99 a month or $66 for 3 months, which could potentially open the door to full self-driving in China.

Outlines

00:00

📈 Tesla's Earnings Report and Stock Performance

The video discusses Tesla's recent earnings report and the surprising stock performance. Despite expectations of a stock drop, Tesla's stock rose to $168 with a forward PE of 60.9 times. While this is lower than the 5-year mean, it's still considered expensive. The price to sales ratio is 5.1 times, and the price to free cash flow has increased, reflecting a negative quarter due to negative free cash flow. The video also mentions that the price earnings to growth ratio is at 5.35, indicating growth expectations are negative. The average price target is $183, suggesting a 9% upside. Revenue sales for the fiscal year 2024 are expected to be up by around 2% year-over-year, with EPS expected to decrease by almost 177% before rebounding in the following years. The video also covers Tesla's energy generation services and other revenue, with a gross margin increase and a 26% year-over-year increase in supercharger stations. Elon Musk's comments on higher sales this year and an updated vehicle lineup are highlighted, along with the company's plans to reach over 3 million vehicles of capacity by 2025. The energy storage business is also discussed, with expectations of a 75% increase in deployments for 2024 and a return to positive free cash flow in the second quarter.

05:00

🚗 Tesla's Global Expansion and FSD Developments

The video touches on Tesla's global expansion efforts, particularly in China and India. In China, Tesla has launched an enhanced autopilot subscription, hinting at the potential for full self-driving capabilities. There's speculation about a significant announcement regarding FSD in China on August 8th, a date considered auspicious in the country. Regarding India, Tesla is reportedly on track to establish a base there, despite Elon Musk postponing a meeting with Prime Minister Modi. The video also discusses Tesla's FSD developments in Europe, with FSD2 running in Germany and demonstrations being given to regulators. Elon Musk's confidence in the readiness of version 12 for left-handed drive countries is mentioned, with right-handed drive countries expected to take longer. The presenter expresses caution about the timeline for FSD's wide release, citing regulatory challenges and recent recalls related to safety issues. The video concludes with a focus on Tesla's need to deliver on its promises, especially with the upcoming event in August and the next-generation vehicle launch. The presenter suggests that successful execution and timely product releases will be crucial for Tesla's continued success.

Keywords

Tesla Stock

Tesla Stock refers to the shares of Tesla, Inc., a company known for its electric vehicles and clean energy solutions. In the context of the video, the discussion revolves around the performance and future prospects of Tesla's stock, with a particular focus on recent earnings reports and market expectations.

Earnings Report

An Earnings Report is a detailed analysis of a company's financial performance over a specific period, typically a quarter or a year. It includes information on revenue, expenses, profits, and other financial metrics. In the video, the host discusses Tesla's recent earnings report and how it has affected investor sentiment and stock price.

Forward PE

Forward Price-to-Earnings (PE) ratio is a financial metric that estimates the price of a company's stock based on its future earnings. It's calculated by dividing the current stock price by the company's expected earnings per share. The video mentions Tesla's forward PE, indicating its current valuation in relation to anticipated earnings.

Price to Sales

Price to Sales (P/S) ratio is a valuation indicator that compares a company's stock price to its revenues. It's used to determine the market's valuation of a company's sales for each dollar of stock price. The video discusses Tesla's price to sales ratio, which has implications for investors assessing the company's market value.

Free Cash Flow

Free Cash Flow (FCF) is the cash generated by a company's operations after deducting capital expenditures. It's a key financial metric that indicates a company's ability to generate cash to pay off debt, reinvest in business operations, or distribute to shareholders. The video notes that Tesla's free cash flow was negative in the reported quarter, which is typically seen as a negative signal.

Price Earnings to Growth

Price Earnings to Growth (PEG) ratio is a valuation metric that compares a company's price-to-earnings ratio to its growth rate. It's used to determine if a stock is overvalued or undervalued relative to its growth prospects. The video mentions that Tesla's PEG ratio has increased, reflecting the market's expectations for the company's growth.

Analysts' Price Target

Analysts' Price Target refers to the projected price at which a financial analyst believes a stock will trade. It's a common tool used by investors to gauge the potential future performance of a stock. The video discusses the average price target set by analysts for Tesla, which provides an estimate of the stock's potential upside.

Revenue Sales

Revenue Sales represent the income generated from the sale of goods or services by a company. It's a fundamental financial metric that reflects the company's top-line performance. The video talks about Tesla's expected revenue sales for the fiscal years 2024, 2025, and 2026, indicating the market's expectations for the company's growth.

Elon Musk

Elon Musk is the CEO of Tesla and a significant figure in the technology and automotive industries. His statements and actions often have a substantial impact on Tesla's stock price and public perception. The video references comments made by Elon Musk, which are seen as influential in shaping investor sentiment towards Tesla.

FSD (Full Self-Driving)

Full Self-Driving (FSD) is an autonomous driving technology developed by Tesla that aims to enable vehicles to navigate and park without active driver supervision. The video discusses the progress and regulatory challenges of FSD, particularly in relation to its potential launch in China and Europe.

Robo Taxis

Robo Taxis refer to self-driving taxis that operate without a human driver. They are part of Tesla's long-term vision for autonomous transportation. The video mentions Tesla's plans to enter the robo taxi market, which is expected to contribute to the company's future growth and stock performance.

Highlights

Tesla's stock price is currently at $168 with a forward PE of 60.9 times, which is lower than the 5-year mean.

The price to sales ratio is at 29.1 times and the price to free cash flow has increased to 5.1 times, reflecting a negative free cash flow for the quarter.

The price earnings to growth ratio is at 5.35, indicating that growth expectations are currently negative.

The average price target for Tesla's stock is $183, suggesting a 9% upside from the current price.

Analysts expect Tesla's revenue sales for fiscal year 2024 to be up around 2% year-over-year, with some predicting it could be flat.

Elon Musk expects higher sales this year than last year and has updated the future vehicle lineup to accelerate the launch of new models.

Tesla aims to reach over 3 million vehicles of capacity when fully realized, which will increase output on current investments.

Billionaire investor Ron Baron believes Tesla's stock is going to go up significantly, and it's currently at a bottom.

Tesla is venturing into Robo taxis and plans to manufacture a low-cost car, leveraging their excess production capacity.

Energy storage deployments for 2024 are expected to grow at least 75% higher than in 2023, with a reversal of inventory build expected in Q2.

Tesla's weekly insured numbers in China for the week of April 15 to 21 were 5,168, indicating some weakness in the market.

Tesla has launched an enhanced autopilot subscription in China, which could pave the way for full self-driving in the country.

Despite Elon Musk postponing a meeting with Modi, Tesla's plans to establish a base in India are on track.

Tesla's FSD2 is running in Europe, specifically in Germany, and the company is demonstrating it to regulators.

Elon Musk believes version 12 of FSD is ready for supervised FSD in left-handed drive countries, with right-handed drive countries taking longer.

There have been reports of recalls of FSD due to safety issues, which could hinder its wide release outside the United States.

Tesla has set goals for this year with a significant emphasis on an event in August and the launch of the next-generation vehicle.

The second half of this year is crucial for Tesla, with the expectation that they will deliver on their promises and timelines.

The stock may have found a bottom, and the stage is set for Tesla to excel, with execution being the key factor.

An August 8th product reveal is anticipated, with hopes that it won't be a repeat of the Cybertruck delay.