Why Tesla Stock is going to hit $400 way sooner than most people think...

Summary

The video discusses Tesla's stock potential, predicting a rise from $250 to $400 per share based on strong fundamentals rather than technical analysis. Over the past three years, Tesla's business has significantly improved, with sales, revenue, and profit nearly tripling, yet the stock price has dropped 50% from its peak. The presenter argues that the gap between the company's performance and stock price will inevitably close, highlighting Tesla's advancements in autonomy, energy, and humanoid robotics. A bonus checklist is offered for viewers interested in the presenter's investment insights and strategies.

Takeaways

• 🚀 Tesla's stock price is predicted to rise from $250 to $400 per share faster than most investors anticipate, based on the company's strong fundamentals rather than trading or technical analysis.
• 📈 Over the past three years, Tesla's business has nearly tripled, with significant improvements in sales, profit, and revenue, yet the stock price is down 50% from its all-time high.
• 🕰 The speaker believes that time is the best friend for a great business like Tesla, which has been undervalued in the stock market, and this gap will eventually close.
• 🤖 Tesla's advancements in autonomy, energy deployment, and humanoid robotics position it ahead of the industry, with the potential to significantly increase its market value.
• 📊 Tesla's net income has increased by 1,000% over the past three years, and its revenue has grown by 160%, despite the stock price still being down 7% year-to-date.
• 🔑 The speaker attributes his investment insights to a simple system based on eight key elements, which he applies to evaluate companies like Tesla and others he has recommended.
• 💡 Tesla's FSD (Full Self-Driving) and Optimus (humanoid robotics) are seen as having the potential to be worth more than Tesla's current market cap, offering significant future value.
• 💰 The speaker emphasizes the importance of increasing revenues, cash, and pricing power, as well as having a founder CEO, recurring revenue, a large market, customer stickiness, and the ability to sell during crises.
• 🏆 The nine stocks recommended by the speaker in 2023, including Tesla, have on average returned 116%, outperforming the S&P 500 index.
• 🛠 The speaker invites viewers to use his investment principles, which are freely shared, and to explore resources like his Academy on Patreon and the Stock MVP software for further investment education.
• 🔗 For those interested in a community discussion on stocks and investment strategies, the speaker invites viewers to join his free Discord community, which has recently surpassed 12,000 members.

Q & A

What is the main thesis of the video regarding Tesla stock?

The main thesis is that Tesla stock will go from $250 to $400 per share much faster than most investors realize, based on the company's strong fundamentals and significant business growth over the past three years.

Why does the speaker believe Tesla's stock price will increase significantly?

The speaker believes Tesla's stock price will increase significantly because the company's business metrics, such as sales, profit, and revenue, have improved substantially over the past three years, while the stock price has not reflected this growth.

What is the speaker's opinion on the relevance of Tesla's current stock price fluctuations?

The speaker considers current stock price fluctuations almost irrelevant and emphasizes that the stock price will eventually align with the company's strong business performance.

What future developments does the speaker highlight as significant for Tesla?

The speaker highlights Tesla's advancements in autonomy, energy deployments, and humanoid robotics as significant future developments that will greatly impact the company's value.

What is the speaker's investment strategy or system for choosing stocks?

The speaker's investment strategy involves looking at eight elements: increasing revenues, increasing cash, a founder CEO, recurring revenue, pricing power, total addressable market (TAM), client stickiness, and the company's ability to sell during bad times.

How does the speaker view Tesla's net income and revenue growth over the past three years?

The speaker views Tesla's net income growth of 1,000% and revenue growth from $35 billion to $95 billion (almost tripling) over the past three years as clear indicators of the company's strong performance.

What is the speaker's perspective on Tesla's Full Self-Driving (FSD) and Optimus projects?

The speaker believes Tesla's FSD and Optimus projects are incredibly valuable, potentially worth more than the current market cap of Tesla, and that these projects will become major revenue streams in the future.

What comparison does the speaker make between Tesla and other companies in terms of pricing power?

The speaker compares Tesla to Apple, suggesting that both companies sell products based on value rather than price. Tesla's ability to sell vehicles at a premium despite competition from cheaper models is highlighted as an example of its pricing power.

What other stocks does the speaker mention as having performed well in 2023?

The speaker mentions stocks like Google, Palantir, CrowdStrike, Bungie, SoFi, Anet, SMCI, Nvidia, and the S&P 500 as having performed well in 2023, with an average return of 116%.

What resources does the speaker offer for those interested in learning more about investing?

The speaker offers resources such as an investment academy on Patreon, a free Discord community, and a stock analysis tool called Stock MVP for those interested in learning more about investing and improving their stock analysis skills.