Big News JUST Confirmed (Tesla Stock JUMPS) | Elon Drops New Product Hint

Summary

The video discusses Tesla's potential growth amid challenges like the removal of the EV tax credit and skepticism around Full Self-Driving (FSD). It critiques Wall Street analysts who undervalue Tesla’s capabilities, particularly in FSD, and highlights how Tesla remains profitable in a competitive EV market. The video also emphasizes Tesla's long-term advantage as legacy automakers struggle to profit from EVs. Despite short-term setbacks, Tesla’s technological dominance, profitability, and leadership in the EV market are seen as key factors that could push its stock price to $1,000 per share in the future.

Takeaways

• 😀 Tesla's future growth potential is tied to its ability to profitably scale EV production, unlike legacy automakers struggling with EV profitability.
• 😀 The potential removal of the $7,500 EV tax credit could actually be a long-term bullish move for Tesla, as it exposes weaknesses in competing automakers who are losing money on EVs.
• 😀 Gary Black, a Wall Street analyst, argues that removing the EV tax credit would harm the industry, but the speaker disagrees, believing that Tesla will benefit as competitors struggle.
• 😀 Elon Musk has long advocated for the elimination of all subsidies, including those for oil and gas, aiming for a level playing field across industries.
• 😀 Tesla’s Full Self-Driving (FSD) technology is expected to be a key driver of stock price growth, with Musk’s belief that Tesla will dominate autonomous driving.
• 😀 The removal of the EV tax credit is expected to lead to a rush of purchases before it’s phased out, benefiting Tesla in the short term.
• 😀 Long-term investors are more optimistic about the removal of subsidies, believing that it will ultimately strengthen Tesla’s market position.
• 😀 The speaker likens the situation to past industry transitions, such as feature phones to smartphones, where companies that didn’t adapt were left behind.
• 😀 Tesla's lobbying for the EV tax credit was motivated by its desire to be included in the benefits, despite Elon Musk’s general opposition to subsidies.
• 😀 Tesla's profitable EV production sets it apart from other automakers, with legacy companies likely to scale back production or go bankrupt without subsidies.
• 😀 Recent developments in Elon Musk’s other ventures, like SpaceX's upcoming launch record and the appointment of a pro-Musk FCC chairman, further bolster the positive outlook for Tesla and Musk’s companies.

Q & A

What impact does the potential removal of the EV tax credit have on Tesla’s stock?

The removal of the EV tax credit is expected to cause a short-term drop in Tesla's stock price by about 15-20%, primarily due to reduced earnings estimates for 2030. However, some investors view this as an opportunity because it could accelerate the collapse of competitors who cannot profitably produce EVs.

How does the speaker view Gary Black's perspective on Tesla?

The speaker strongly disagrees with Gary Black’s negative stance on Tesla, particularly regarding the company’s progress in Full Self-Driving (FSD). The speaker believes that Black underestimates Tesla’s ability to dominate FSD, which they view as a key driver of Tesla's future stock price.

Why does the speaker consider the EV tax credit's removal to be potentially bullish for Tesla in the long run?

The speaker argues that while the removal of the EV tax credit might hurt Tesla in the short term, it could be bullish in the long term because other automakers, unable to make EVs profitably, will scale back production or go bankrupt. This would leave Tesla as the dominant player in the EV market.

What is Tesla’s stance on government subsidies according to the script?

Elon Musk has expressed the belief that Tesla does not need government subsidies, including the $7,500 EV tax credit. He advocates for a level playing field where subsidies are removed from all industries, including oil and gas.

What role does Full Self-Driving (FSD) play in Tesla’s future stock value according to the speaker?

The speaker believes that FSD will be a major driver of Tesla's future stock value. They argue that if Tesla successfully solves FSD and makes it safe, it will dramatically increase the company’s value and market share, which contrasts with analysts like Gary Black, who do not believe Tesla will dominate FSD.

What is the significance of the $7,500 EV tax credit in relation to Tesla's market position?

The $7,500 EV tax credit has historically provided financial incentives for buyers of electric vehicles. While its removal could affect Tesla in the short term, the speaker argues that it will help Tesla in the long run because it will hurt competitors who depend on such credits to remain viable, whereas Tesla already profits from selling EVs without needing the subsidy.

Why does the speaker believe that legacy automakers will struggle in the future?

The speaker believes legacy automakers will struggle because they are currently unable to make EVs profitably. As the industry shifts to electric vehicles, those companies that cannot scale EV production successfully will likely fail, leaving Tesla as the dominant player.

What is X.ai, and why does the speaker believe Tesla should invest in it?

X.ai is an AI company founded by Elon Musk, focused on developing supercomputers for Full Self-Driving (FSD) training. The speaker suggests that Tesla should invest in X.ai because it could further enhance Tesla's capabilities in autonomous driving, helping the company maintain its competitive edge in the EV market.

How does the speaker view Tesla’s competitors in the EV market?

The speaker views Tesla’s competitors in the EV market, especially legacy automakers, as lacking the ability to make EVs profitably. They argue that these companies will either scale back their EV production or go bankrupt, allowing Tesla to capture a larger market share.

What recent developments involving Elon Musk are mentioned in the script?

The script mentions several recent developments involving Elon Musk, including his meetings with political leaders such as the president-elect of Argentina, the appointment of a pro-Musk chairman to the FCC, and SpaceX breaking launch records. These developments suggest that Musk’s influence is growing, which could positively impact Tesla’s future prospects.