While Tesla stock has gone up a tremendous amount in the past few months, Cathie Wood still believes that Tesla stock is still undervalued, with a base price target of $7,000. In this video, I go over why Cathie believes Tesla is still undervalued.
Source to Cathie Woodโs interview: https://youtu.be/gYl0QWU-fPU
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Source to Cathie Woodโs interview: https://youtu.be/gYl0QWU-fPU
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Over the past year, tesla stock has clearly gone up, a massive amount, and while the majority of the analysts claim that tesla is in a bubble, kathy wood, the ceo and cio of arc invest, takes a totally different stance in this video. I'm going to go over kathy wood's thesis behind why tesla stock is still undervalued if you're new to the channel. Please consider subscribing for more content like this and let's get right into it. During the dot-com bubble, we saw massive hysteria for the exponential growth of technology.
As we all know today, the excitement for tech stocks wasn't totally off, as technology eventually hit the exponential curve. Many years later, the problem with the telecom bubble was the timing, not the speculation. We also saw the same issue occur in the 2010s as when the cleantech bubble began to fuel up with companies like solyndra. The issue that caused the bubble to burst was not the growth curve, but rather the timing of massive capital inflow.
While these bubbles got the timing totally off kathy wood believes that the situation with tesla and electric vehicles is different. Not only is the exponential curve inevitable, with the cost of declines of battery technology, but the timing of the curve increase is on point. The exponential growth of evs isn't in events that will happen in 10 to 20 years. It's actually happening right now and that's what makes tesla stock undervalued.
Can you give me an example of something that felt like it was around the corner a few years ago, but is here today that'll make me believe that those things are in fact going to arrive. Oh my goodness! Yes, we have so many. You know all of the seeds of what i just uh mentioned, were planted way back in the tekken telecom bubble, and that's why you're asking the question too much. Capital too soon ended badly ended in tears.
Today, these seeds have been gestating for these 15 to 20 years. We are on the cusp of just amazing exponential growth curves. I don't think people understand what that means. Just one uh electric vehicles when we first started arcs six years ago, auto companies most analysts said maybe that's 10.
15 years away. We are at the cusp today of electric vehicles, dropping on a sticker price basis, dropping below uh gas, powered p vehicles in terms of price uh, and they will continue to drop further in price, as time goes on and as battery costs come down. I think the fear out there from an investment point of view, is related to the tech and telecom bubble. Everyone thinks we're in a bubble again and we are not.
This is the real deal as kathy mentioned in the recent clip. The ultimate turning point for the exponential growth of evs is when they become cheaper than internal combustion engines. This turning point will be marked by the inevitable cost declines of batteries, specifically the cost per kilowatt hour according to forbes tesla's battery packs, currently cost 127 dollars per kilowatt hour. The point where batteries become cheaper than internal combustion engines is 100 per kilowatt hour. According to many auto executives, tesla's project codenamed roadrunner has been looking to bring the battery pack costs below 100 per kilowatt hour and even with catl's batteries, the cost per kilowatt hour is already 80 once these cost declines are used for a cheaper vehicle which tesla has Been working on for months now, the exponential growth that will occur is so large that it isn't fully priced in yet, along with the growth of evs. Kathy also sees the potential with other cost declines and breakthroughs such as autonomous vehicles and energy storage, while elon musk may be too optimistic on autonomous vehicles when it comes to timelines. The truth is that we are still on the cusp of having full self-driving vehicles, whether it be in 2 or 10 years now, while the timelines for fsd vehicles is still unclear. Energy storage and solar is on the tip of growth, as the inevitable cost declines of solar energy and energy storage continue to occur.
The growth of tesla sales in these markets will continue to accelerate taking over the trillion dollar industry of oil. This is a tick that not only kathy wood has but also chamath, a famous venture capitalist who invested early into amazon, facebook and tesla one last question: how does this compare with previous booms that i've lived through? This is not similar to anything that either you or i and i'm much older than you are have experienced in our lifetimes. You have to go back to the early 1900s to see three technology platforms evolve at the same time, telephone electricity and automobile believe it or not. They were all considered technology back then uh.
Those were three. We have five now involving 14 technologies. Uh we, the this, is the most exciting period we are are ever going to experience. Certainly, we are uh and what's nice about these platforms uh, these five platforms is, they are launching pads for even more innovation and they are converging so autonomous.
Taxi networks are the convergence of robotics. Autonomous vehicles are robots, energy storage. They will be electric. I just told you: the costs are, are dropping and and will mandate it, and they will be powered by artificial intelligence.
Ultimately, the main reason why kathy believes tesla stock is still undervalued is because of her five year outlook on tesla, with four technologies that are facing exponential growth, those being electric vehicles, full self-driving, energy storage and solar tesla will be worth at least seven thousand dollars per Share from kathy's point of view in a recent tweet kathy stated if successful, which we believe will be the case, a tesla ride-hailing service will lower the probability of our base case substantially during the next five years, bolstering our base case at seven thousand dollars. We are encouraged that few analysts are modeling. This possibility. Let me know in the comments section below whether you agree with kathy's, take on tesla stock at this time. If you enjoyed this video, please hit the like button and subscribe and i'll see you in the next one.
Tesla will be worth much more . But right now it is not. Shes just talking up her best investment.
Forex trading has been a source of income even though I barely trade by myself.
I have to say the lady seems to try and is not rude or aggressive and tried to explain and do the best she can , Iโd say she is maybe one if the best analyst in the world today
I believe this, I will buy more when the budget comes.
God bless, Revelation 21:4
Can there really be a stock that will hit that amount? Berkshire Hathaway class A is about 300000 per share but a class a stock. Microsoft stock is only $230 per share and is a tech stock and per my research I haven't found any stock that comes close to that prediction. Not hating on Tesla, just wondering if it's possible?
right now its overvalued so its either going to drop but that depends on where the market will go or it will trade sideway for 5 years because a lot of expectations is priced in
Please don't try to lure people in and sell yours when you get that profits Kathie Wood! I know your game and that's so bad, just like the Grandfather Buffer!!!
Except now Sheโs selling near enough everything in Tesla, for its now over valued and messed up the hole prediction model
Fine, then quickly go out and buy more since it is undervalued.
There is no way I buy when it is so overbought
Ya $7000 in 5 yrs is a low target price in my opinion
If you look closely, Cathie Wood has a 25 percent probability that it will hit $15k in 2024. The $7k figure is a 50 percent chance
Not being in any way qualified as to the technicalities of share dealing I accepted the Tesla arguments 9 years ago, using first principles thinking about my own car ownership experience over 55 years. I ordered a Model S unseen and being RHD waited over 2 years for delivery. The first Tesla I saw was mine, when I collected it in England, and drove it away to catch a ferry. The first few minutes, in city centre traffic, confirmed all my beliefs in the Tesla philosophy.
Since then I have demonstrated the car whenever possible, to spread the word. Soon after taking delivery I started to build a position with TSLA, trading dips and peaks as closely as I could and now hold 17,000 pre-split shares.
Throughout I have maintained TSLA is a phenomenon and not to be judged by standards set over the last century. Even though I believed in electric, computers and vertical integration I did not see the full breadth of the possibilities we now see developing. Inspiration, imagination and determination combining to defeat stagnation, thanks to young minds pioneering so well. Sweeping away the old is not always successful but in this case it is absolutely the right thing and a benefit to both population and ecology. The developing spread of lessons learned into so much more than vehicles. This is exactly why it is already a phenomenon though only in the early stages with much more to come.
The ARK says it will go to $7000 n yet they sold when itโs over $400 based on whatever policy they have to follow. It may even go to $10000 but what YEAR?
Fantastic cars, self drive, safe etc.. May be true.
But doesn't chage the fact that tesla is a zombie company and overly priced and pumped. It is all about playing with the perception of the people with the magic word " technology ".
In addition, how dare allon musk can say that they do military coup where ever they want to get the raw materials.
How evil a person can get?? and cause suffering and loss of lives of the poor!!
This silly bitch talks nonsense
anything but bluffing about her stock position
Please. The recession is the only reason Tesla is as high as it is.
I'm hoping for $7000 after the split!
$100/kwh isn't some magic number. Model 3 is cheaper and better than BMW 3 series. But to beat the Toyota Camry, it will have to decline further. It isn't some magic point people. It's a curve.
I never trust a woman. Even Elon said it is over priced. How much TESLA does she hold ๐
I need to stop watching his video so I can cover my short position because every time I watch his video it convinces me to hold or short some more.
I'm long Tesla, and a snorting bull, but I'm not seeing this kind of stock price she's projecting. Achieving regulatory approval for FSD will take years and years. I see 5 to 10 years out. This will pull the stock price back.
Cost of ownership and ownership experience is already better for EVs.
Price parity is a nail in the coffin for ICE cars.
When you make the right decisions and take the right steps in stock trading the chances of losing your funds becomes slimmer and almost impossible especially when you invest with a broker as good as Mr Charles my broker. As newbie i would recommend him for the job.
Nikola vaporware, Tesla is going to make me a millionaire!
Can't find Ark in etoro? Any reason why?
How about Now ? 5 for 1 split … Still to 7,000 ?
2020: Remember when the iPhone first came out
2050: remember when the first tesla came out
The issue with her hypothesis is that she expects Tesla to take virtually the entire share of the market due to these new technological advancements. She doesn't look at any fundamental numbers or any fundamental projections within reason. Given that a suggested video after this shows Cathie talking down Nikola (a competitor) seems to indicate she's more focused on heavily hyping the price of Tesla stock. At current valuations, people need to understand that Tesla is valued at more than Toyota, the largest car manufacturer in the world. Existing automakers are not standing still. They are taking a more tempered approach with mild hybrid systems and select fully electric models. At the end of the day, if you can't charge from 10% to 100% in terms of range within 5 minutes like you can with combustion engine vehicles, the main stream consumer will not sign. Current sales growth relies on individuals who feel they are helping to solve climate change and who are able to access charge stations with relative ease. The real game changer will be when battery technology advances to the point that charge times take single digit minutes and not hours for a full charge.
Wow, and I thought Tesla stock was in a bubble. I had no idea it was going to keep going up forever.
[This is exactly what people say just before a bubble bursts…]
Amazon hasnt made it to 4000 yet. And Tesla will go to 7k? Yeah, it could be 10 years
Covid19 was made in a laboratory in the USA, how do they know? PhD. James Alianz Wheeler,
Says
The genome of Corona virus
Contains 4Hiv genes edited into the sequence.
7k? Not anytime soon. Future? sure along with inflation.
Can't tell me tesla is worth more than…
Gm, bmw, Ford, Toyota, Honda, Nissan, etc, etc, combined.
Btw all these companies have ev's coming out.
Hey idiot watchout cuz Fisker,Nio,Workhorse,Lordstown Motors,Nikola etc, are all in the game, and u bullshit keep talking shit and try to pump stock. SMH!
Why NVAX will value $350 (8/6)
1ใOn 7/22๏ผ8/4, 8/6 update:
NVAXโs 2020 EPS is raised from -1.03$ to 7.67$ on 8/4, today (/86) to $7.98
And its 2021 eps is raised from $10.37 to $18.95 on 7/22,then $19.75 on 8/4, today (8/6), to $23.74
Accordingly, its targeted value by the end of 2021, now should be raised from $160 with a FPE of 15, to $350, with the same FPE of 15.
*This 8 billion dollars company has DODโs 1.6 billions exclusive contract for vaccine. (July 7 (Reuters, NOVAVAX ANNOUNCES $1.6 BILLION FUNDING FROM OPERATION WARP SPEED).
-Expect to gain at least 2-2.5 X value in 2021.
> Barron's Article Logo A link that brings you back to the Barron's section page.
** Analysts Say Its Covid-19 Vaccine Might Be the Best.
THREE more UPGRADE :
1a). On 7/10 ,
DBDโs EPS for 2020 & 2021 are upgraded , respectively , from
-$0.13 to 0.37 for 2020,
-$1.26 to 1.44 for 2021,
-It is also upgrade from โholdโ to โbuyโ by Vector Vest.
1b).On 7/30 , after 2nd quarter Report
DBDโs EPRs upgrade again!
-from $0.37 to $0.84 for 2020
-from $1.44 to $1.74 for 2021
-It shall value at least $26 (PE @15) for its fast selling self checking machines at supermarkets, by the end of 2021.
2). CTXR turn from hold to buy (7/7)
-CTXR will earn $0.74 for 2021.
At $1.26 on 7/30, It has Forward PE about 2.
3). DRAD (turn from hold to buy on 7/7)
-DRAD will have a EPS @$1.73 in 2021
-At $2.75, price, it has a FPE around 1.6 !
-DRAD values at least 10 X by the end of 2021.
Also Check out
-COLL , high growth
-PE is 15 for 2020 and FPE is 5 for 2021
Notes๏ผAll EPS cited here are from Ameritrade.
Hahaha: Joke of the century, PE ratio of tesla is 746 and it is Cheep ๐