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Well, let's talk about the Tesla earnings and it's safe to say it could have gone a little bit better. The stock has dropped 8% after these earnings and everybody's talking about the failure of Tesla and how everything is now over. The story is over. The stock is dead.

It's the end of electric vehicles in general Run for the hills and in this video I'm actually going to show you why it's not the case, you know I don't like to keep you hostage in these videos. So the bottom line is there's nothing wrong with Tesla In fact, this might be the best buying opportunity we've had in a long time. Not Financial advice, just my own uneducated opinion. So first of all, let's talk about what happened here.

Look, obviously there was a Miss Top Line Miss And bottom line: Miss We had 71 cents EPS earnings per share versus 74 expected and we had 25.1 billion of revenues versus 2 wife, 2 wife, 2 wife. happy life. 25.6 billion have expected. So obviously slight misses stop Top Line And bottom line: so you did.

Miss Market Expectations You deserve to get the hit in aftermarket. Fine. That's okay. Now where I think Tesla took the brunt of the hit.

Here is in two areas: One is the margins, the other one is the guidance not specifically the misses I think were the problem. Again, the misses is never the problem I Know what's going on today. It's Freud Look, the operating margin for Tesla in this quarter was 88.2% Now talking about the margins What? I Think freak people out is the fact that Tesla went from 16% operating margin last year to 8.2% in this quarter which is a huge drop, but it ain't nothing new. They actually improved operating margin compared to last quarter.

Last quarter they came in at 7 and a half% and everybody was ready to jump from the hills. But this time they're actually improving the operating margin by 6% So yes, it's not as great as it it used to be. nothing is, but it's actually getting better compared to last quarter. And at 88.2% operating margin, there's still light years ahead of any other auto manufacturer anyways, so it's nothing really to be concerned about, especially when you cutting prices to eliminate competition and your cutting prices to increase the amount of sales you have.

so lower margins with more money coming in is actually not a bad idea. Now if you look at the automotive Revenue which I think is the bread and butter for this company right now. They came in at 21.6 billion which is identical to what they had in Q4 last year so nothing really horrible happened here. Now I think the biggest concern even more than the margin was the fact that Elon Musk is a very unexpected guy and we never know which side of the bet he's going to roll off before the earnings call.

We never know what's he going to say, we're never know what kind of Bombshells we're going to hear from him. And yes again. Elon Musk is being Elon Musk and that's part of the business here. Look, the guidance for the upcoming year right now was was not great.
They basically said look, it's going to be notably lower than 2023 so we're not going to do as good in 2023 and that sent people running for the hills like you haven't seen before. a total Stampede out of the stock. Now what people forgot to do is to listen to the end of the sentence because in that statement, they've also said why and the reason is because we are working on actual new Next Generation vehicles and additional factories. So by saying that Tesla actually confirmed the report that came out 24 hours ahead of this call from Reuters telling us that Tesla is in full-blown ramp towards the $25,000 car Now in this call, they've actually confirmed this saying yeah, Tesla is focused on the new Mass adoption vehicle on new factors and that's why 2024 isn't going to be as great and 2023 is faring selling specific Vehicles Now people kind of take it for granted, but look, Tesla still delivered 1.8 million vehicles in 2023.

That's not bad for a company that hasn't sold a single pickup truck or a single $25,000 car. The two best markets to be in in North America is the sedan $25,000 and the pickup truck. Tesla is selling 2 million Vehicles almost per year without being in either of these categories, which is now changing. We have the Cyber Tru rolling out a lot of critics there about the range, about the shape, about the design, whatever people are always going to hate on things that Elon Musk does.

And now we have news confirmation from Tesla themselves that they are working on a new $25,000 car. So this means that by 2025, 2026, Tesla is going to be competing in two additional categories within pickup trucks and the $25,000 sedan, which is going to be extremely lucrative from a revenue perspective and definitely given what Tesla have done in the past from a margin perspective compared to its competitors. Now look, the analysts on this stock are really, really predictable every time the stock price goes up because the Euphoria sets in the analyst rate ra their Target price. Of course there's a few exceptions of great analysts, but I'm talking about the mass and every time that something bad happens that sends people for the hills, there's a lot of panic, a lot of fear, all of a sudden price targets drop.

Don't be fooled by this crap. and in fact, Barclay's just dropped their Target price from 250 to 225. There's going to be more of this. These analysts only reflect the State of Mind the mood on the street about a stock.

Now we're getting to the interesting part. We talk about margins coming down. We talk about test cutting prices, but look at something that happened that most people missed. The net income for the quarter for Tesla was 8 billion in itself.

That is kind of impressive I am struggling to think of a company that actually is building tangibles that generates $25 billion in Revenue 21.5 from vehicles and gives me8 billion in net income. That's a very high margin in any industry, But they' crazy part is that this 8 billion that they've generated in net income for this quarter, that's actually double than what they've done in the same quarter last year. that number used to be 3.7 billion in Q4 last year. So despite cutting prices despite lowering margins, despite all of this, Tesla has doubled its net income from the previous year to this year.
And people tend to ignore these sort of things because they're complicated to explain. It's much easier to listen to CNBC and listen to the misses and the bad guides and all the stuff that people want to focus on. And they want to tell you how you need to sell, sell, sell right now because the company's doing bad. But look at the end of the day we're talking about a company that's sitting on $30 billion in cash, but a company that virtually has no debt, but a company that's launching the Cyber truck.

Now they're working on a $25,000 car. They're selling 2 million cars a year. On top of it, they have robotics, they have the energy business, and they have the Monopoly or the next scurve of the entire Auto industry which will full self driving. Nobody's even close.

There's no second. So these guys are going to dominate the Auto industry from a software perspective. and they're already dominating from a hardware perspective. And we haven't said a word about robotics or energy or the other million things they're working on.

So for me, I'm not scared at all. For me, this is an opportunity. But again, here's a word of caution here. and it's important that you guys listen: Tesla is like a mousetrap.

It will punish and it will abuse people who try to time this stock. It is insanely irrational. It has a very irrational and unexpected CEO But in all the existence of Tesla it did one thing and one thing perfectly, which is transfer wealth from the impatient traders to the patient long-term loyal investors that stuck with the stock for years and years, making lifechanging money for long-term investors that are not easily spooked. And one note, before you go, if you want to support what we do here on the channel our work, check out Stock MVP It's my platform.

It's a stock research platform built by retail investors for retail investors stock Dmv.com We have a special coupon code in which you can get 25% off all the details below. Check it out. Try it out for a week for free! We build this so you guys can get empowered and not get fooled by mainstream media and all this crap. Do the research for yourself.

Trust yourself, trust your brain. You can do it. I'll see you in the next video.

By Stock Chat

where the coffee is hot and so is the chat

34 thoughts on “Tesla is finished”
  1. Avataaar/Circle Created with python_avatars @jeffreyjflim says:

    What are your thoughts about the advances we've been hearing about solid state batteries? Tesla does not appear to be in that area, and is still working on non-solid state.

  2. Avataaar/Circle Created with python_avatars @user-zr3gn1qu7h says:

    love it! this phrase is historical!: it's not as great as used to be, but then nothing else. just like our entire life. best to you and thank you.

  3. Avataaar/Circle Created with python_avatars @patrickwestlake says:

    Dispelling fly spell on an enemy….

  4. Avataaar/Circle Created with python_avatars @MysticSage-hg3jh says:

    Opportunity will be at $150, not now

  5. Avataaar/Circle Created with python_avatars @fakeaccount6230 says:

    Hi Tom, can you review ENPH stock with your stock MVP

  6. Avataaar/Circle Created with python_avatars @River313 says:

    Wishing you all the best in 2024 Tom ❤ health wealth and happiness

  7. Avataaar/Circle Created with python_avatars @Murrauder585 says:

    I love that you can laugh at yourself in the video, demonstrates great self confidence! thanks for video!

  8. Avataaar/Circle Created with python_avatars @Raps2019 says:

    Buy buy buy

  9. Avataaar/Circle Created with python_avatars @slewcharles926 says:

    Chicane said peice at 63$ that's a crazy lie number.. went would he assume that low ?

  10. Avataaar/Circle Created with python_avatars @winterwolfsong says:

    What happens if Elons takes his ball and goes home?

  11. Avataaar/Circle Created with python_avatars @Mr11ESSE111 says:

    of course earnings will go down because Tesla must cutts prices by 30% if they want to keep sale just like all others

  12. Avataaar/Circle Created with python_avatars @Mr11ESSE111 says:

    same thing will /could be with porsche and VW which pushes some of their best selling models into EVs like Porsche Macan so i dont see that they will sold in 2024 not even near to last year numbers of 88000 of Macans

  13. Avataaar/Circle Created with python_avatars @yogilife2619 says:

    Elon VS Short sellers

  14. Avataaar/Circle Created with python_avatars @shandyashley3259 says:

    Amen brother!

  15. Avataaar/Circle Created with python_avatars @nitishbhatia25 says:

    Double income is due to 1 time profit realisation.
    Actual profit is 8-5B = 3B

  16. Avataaar/Circle Created with python_avatars @kaijen2688 says:

    They lowered % to increase market share. You have to sell more to make the same. With the release of v12 self driving is here. Not to mention the construction of several factories.

  17. Avataaar/Circle Created with python_avatars @larryhorowitz6690 says:

    Elon’s top priority is to help the planet. Other companies have picked up the EV baton. He wants to now work on AI that serves mankind’s interests, and will move on from Tesla to do so. His request for more control of Tesla, which will be denied, is giving him the excuse to move on.

  18. Avataaar/Circle Created with python_avatars @wong4334 says:

    Hi TOM, Thanks for your update. how about nvda ? Do you think that Nvda future will also good? How will you compare with Tesla ?

  19. Avataaar/Circle Created with python_avatars @markusherold2581 says:

    💪💪🖖🖖👍👍

  20. Avataaar/Circle Created with python_avatars @TechnicalInvestorWong says:

    Tom is right about the irrationality of Tesla and how it is impossible to time 👍

  21. Avataaar/Circle Created with python_avatars @maxthemagition says:

    Sinclair C5?

  22. Avataaar/Circle Created with python_avatars @jacka7211 says:

    Tom, I believe your words are true and I will watch and learn every day.

  23. Avataaar/Circle Created with python_avatars @cpangws says:

    The top geniuses who worked and that made Tesla & Elon look good have left the company. I think you will see more leave the company soon. Wall Street don't care if you miss you miss. So go ahead and buy the dip to hell!

  24. Avataaar/Circle Created with python_avatars @jimmywang100 says:

    Don’t know why Tesla is not offering FSD monthly subscription for $99 until full version is out ..

  25. Avataaar/Circle Created with python_avatars @user-yb9dl6ok9r says:

    i guess the table slapping stopped.

  26. Avataaar/Circle Created with python_avatars @vaibhavsaxena1084 says:

    Margins matter dude. Cutting prices is what you do when you have an undifferentiated product. Compare this with Apple’s revenue share vs profit share in smartphone market.

  27. Avataaar/Circle Created with python_avatars @AlgoNudger says:

    Elon is Ye with different color. 🤭

  28. Avataaar/Circle Created with python_avatars @alanmonroe6585 says:

    Great job again, Tom.

  29. Avataaar/Circle Created with python_avatars @NaughtyGoatFarm says:

    Buy buy buy. About to drop another $50k more on tesla shares.

  30. Avataaar/Circle Created with python_avatars @QuesttoFIRE says:

    You know what they say- “Happy wife, don’t get knifed!” 😂😇😉🔪

  31. Avataaar/Circle Created with python_avatars @FirstClass- says:

    Time to jettison Elon though… he’s too distracted by X…

  32. Avataaar/Circle Created with python_avatars @HT-sd4to says:

    Buy buy buy more!!!!!!!!!!!!!!!

  33. Avataaar/Circle Created with python_avatars @patrickn.165 says:

    The major problem for Tesla is they’re spending tons of money for RD inventing great technologies and innovations but they don’t file patents for their IP. Others can copy quickly and catch up and build car for cheap. Tesla quickly loose it superiority.

  34. Avataaar/Circle Created with python_avatars @misob says:

    👍👍

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