DON’T SAY YOU DIDN’T KNOW | Tesla Q1 Earnings Preview

Summary

In this video, the speaker discusses concerns surrounding Tesla's upcoming earnings call, focusing on the potential for a decline in earnings per share (EPS) and the lack of clear guidance for 2025. They emphasize Tesla’s high valuation, its energy division's slow growth, and Elon Musk's distractions as possible risks. Despite these concerns, the speaker advises sticking to a well-thought-out investment plan, recommending a Dollar Cost Averaging (DCA) strategy for those new to investing. Overall, they urge investors to stay focused on long-term goals and avoid impulsive decisions based on short-term stock movements.

Takeaways

• 😀 Tesla's Q1 earnings report is crucial for stock performance in 2025, especially with expected lower earnings and the potential impact on stock price.
• 😀 Elon Musk's push to lower prices, particularly for Model Y and other vehicles, could significantly influence Tesla's market share and profitability.
• 😀 Tesla is still considered a volatile stock, requiring cautious investment strategies due to its price fluctuations and market unpredictability.
• 😀 The speaker highlights the importance of having a well-thought-out investment plan with price targets and valuation before buying any stock, especially Tesla.
• 😀 Dollar-cost averaging (DCA) is presented as a safe and straightforward method for investing in Tesla, particularly for those new to stock trading.
• 😀 Developing a modified DCA strategy, which is more selective, can be beneficial for experienced investors looking for better timing in the market.
• 😀 The market has experienced significant volatility, and the speaker mentions their ability to accumulate shares during dips as part of their strategy.
• 😀 Long-term investors who bought shares at a lower price may not need to purchase more stock, as they are already satisfied with their position.
• 😀 The speaker advises against FOMO (fear of missing out) and trading based on hype from social media, emphasizing the importance of sticking to one's own investment plan.
• 😀 The speaker invites viewers to participate in an earnings flash sale for coaching on stock valuation, developing investment plans, and improving investor skills.
• 😀 Building experience and learning valuation techniques are crucial for achieving success in the stock market and avoiding emotional trading decisions.

Q & A

What is the main concern regarding Tesla’s upcoming earnings call?

The main concern is that Tesla's Earnings Per Share (EPS) could decline again, especially since their delivery numbers have missed Wall Street’s expectations and margins have been under pressure.

How does Tesla’s energy business factor into the upcoming earnings?

While Tesla's energy business is showing growth, it doesn't contribute significantly to the bottom line. Its uncertain impact on Tesla’s stock in the near term is noted, as Elon Musk’s cautious guidance further reduces the potential for short-term catalysts.

Why is Elon Musk’s involvement in politics a concern for Tesla’s stock?

Elon Musk’s political activities and public statements are seen as a distraction, which could negatively affect Tesla’s stock, especially if the company’s earnings fall short. His divided attention could impact investor confidence in the short term.

What impact does Tesla’s decision not to provide formal guidance have on investors?

The lack of formal guidance raises concerns about internal uncertainty at Tesla. If this trend continues without a valid explanation, it could signal instability within the company, further reducing investor confidence.

Why is Tesla's valuation a point of concern?

Tesla’s stock is trading at a high valuation compared to other companies, and its recent performance does not justify such a lofty price. If earnings miss expectations, the stock could fall even further, making the high valuation a potential risk.

What could be a catalyst for Tesla’s stock to rise?

A potential catalyst for Tesla’s stock to rise would be detailed information on the next vehicle model release, especially if Elon Musk provides clear timelines and specific guidance. This could renew investor excitement.

Is the current downturn in Tesla's stock performance short-term or long-term?

The downturn in Tesla’s stock appears to be more of a short-term issue rather than a long-term problem. However, it depends on whether Tesla can overcome these challenges and maintain growth amidst external market conditions and internal uncertainties.

What is the recommended investment strategy for someone with a full position in Tesla?

For those with a full position in Tesla, the speaker suggests selectively adding shares or simply holding. They emphasize sticking to the plan and being cautious, especially if the investor is content with their existing shareholding.

What is the suggested strategy for new investors looking to buy Tesla stock?

For new investors, dollar-cost averaging (DCA) is recommended as a safer, more consistent way to buy Tesla stock. This approach avoids the risk of making emotional decisions based on short-term fluctuations in the stock price.

What is the speaker’s overall view on Tesla’s long-term potential?

The speaker believes that Tesla has significant long-term potential, but warns that the stock may face volatility in the short term. The key to success is to develop a solid investment plan and avoid getting caught up in speculation.