Hey everybody, this is Tom Nash and today is a great day for you if you are a Tesla investor over the weekend. Tesla smashed deliveries with 466 000 Vehicles delivered way more than anticipation and 480 000 Vehicles produced way more than the anticipation. This is a theme that's recurring with Tesla although some experts are always surprised somehow every single time that happens. but Tesla always always delivers and some now in this video I want to cover two things that are important to me as a test investor and I'm assuming they're important to you as a test investor.

Number one, what does it all mean for Tesla investors going forward and number two: what is my personal strategy with my Tesla shares Given what just happened and in this notebook I got all the answers. So you want to stick around till the end of the video where I'll give you my strategy going forward as far as my Tesla shares and my investment plans going into the future with Tesla. But before we do so, we have to talk about what just happened Tesla over delivered again. They prove that they're really good at executing again and yes, I know Elon Sometimes over promises things and he doesn't always give them to you on time, but think about it this way.

would you rather Elon give you something that's Half Baked just to meet a deadline. Here's a large soundtrack for you, right? Come on. He wants it to be perfect and yes, the Cyber track is delayed. The semi is moving slow sure, but he's not going to put out something that's not to his eyes good enough.

and I respect that. Now the same people who were telling you that Tesla will never give you 500 000 vehicles in a single year back in 2018 are now telling you that Tesla is never going to outperform VW and Toyota and all them companies out there. which is some sort of a joke, but let's talk about it. So Tesla delivered more cars in the first two quarters of this year than they delivered in the entire three quarters of last year.

And currently they're on page to deliver 1.8 million Vehicles this year now. Obviously, nothing is certainly life except death and taxes and there's no certainty of anything, but they're on the right path. Their pace is absolutely phenomenal and yes, I know this is exciting and you all want to jump on the train. Start buying Tesla stock like there's nothing more of it.

Wait, wait a second. There are hurdles and there are challenges we have to talk about in this video because I'm not here to fluff the Tesla share price or hype it up or just ignore the things that you know raise doubts. You have to be in the position to be able to doubt to be skeptic about your favorite company and Tesla is definitely one of my two favorite companies. I'm not gonna lie about it, but here's the problem.

What we got yesterday over the weekend is just half the picture, but that half is beautiful. Don't get me wrong, absolutely great deliveries, but you have to remember that Tesla draw prices to get to that point. When you drop prices, the amount of demand goes up. It's basic economics.

so when Tesla dropped prices and we got that spike in The Leverage that's great. But now we have to wait and see for the quarterlies which are coming up soon. What is the impact on the profitability of Tesla Because if this profitability gets eroded and goes down way way lower than it was before, this increase in the demand and sales is not going to be as important as it could have been if the margins stayed. High What I'm trying to explain to you here is that margins matter.

So the question here is: how do these deliveries look in the context of Tesla's financials: How much money Tesla made off of all these extra cars that it sold And I have a number in my hand. So Tesla if they can deliver about 20 gross margin for automotive gross margin minus credits is terrific and I have a feeling that we're going to be very happy with the results, but they might just poop out some bad results. Who knows? We won't find out until we see the quarries. I'm not going to pretend here like I got all the keys to the Future because I don't I don't have a crystal ball now.

I Heard all this chatter about Tesla is never going to outsell Toyota and VW and all that crap. Look, Tesla is already on the path to becoming the you know, the best-selling car in the world right now. The model Y is almost an 800 000 vehicles per year. The Corolla is at 1.2 million per year at the pace at which Tesla is growing.

That pace is phenomenal. Let me just remind you Tesla sold 500 000 vehicles in a year just three years ago. In those three years, they went from 500 000 vehicles to currently 1.65 million trading 12 months vehicle sales. So Tesla tripled their vehicle sales in three years.

Toyota I can assure have not tripled their vehicle sales. So if model Y is currently 800 000, Corolla is 1.2 million, the model Y is going to outpace the Corolla within the next two years. It's almost a certain. Again, be careful with that word certainty.

but you know what I mean here. So if Tesla overrides Corolla that's going to be just the first step in an inevitable process in which Tesla is going to become the world's largest auto manufacturer. So do you buy now like crazy? Do you go? Oh my. God We haven't even said anything about the robo taxi, the insurance, the AI, the Robotics and Tom is already talking about Tesla overtaking.

The Corolla number is the Toyota. Oh, hold your horses. Okay, so this still has a huge constraint to overtake Toyota It still needs to go from 1.8 million cars a year to 10 million cars a year. so it needs to 5x its production.

And although the only thing that's stopping Tesla from becoming the world's largest auto manufacturer in the world is their ability to produce those 10 million cars. That is true. that ability is not simple. You can just like here's five more million cars.

Here's my final: It doesn't work like this. It takes years. So I mean hold your horses. It's not happening that fast now as um, a prudent objective bull of Tesla Here's how you look at: Tesla The first thing you take a look at is the fundamentals.

Now at the current price level of Tesla currently ranging in that 270 to 280 dollars per share, we have to take a look at what's the value here for the investors. straight up without all the hype. and if we take a look at stock MVP which is the platform I Co-founded which has all these tools for you to evaluate companies. That's why we built it and you put Tesla through the ringer, you're going to see a few interesting data points.

Number one, you're going to see the Tesla is trading at 70 price to earnings. That's not cheap by any stretch of the imagination, but that's not hella expensive like some other companies that are on the AI hype. It's very far from it at 70p given the fact that we have 22 billion of cash, virtually no debt, a 14 operating margin, this is a very, very interesting stock. Now again, you have to pay for quality and 70p isn't cheap, but I would call it in the range of reason.

On the expensive side, how expensive? Well again on Stockton VP We have this tool called the DCF this kind of cash Revolution model and it will auto calculate it for you if you just give it a growth percentage. So if we give Tesla if 50 growth percentage for the next five years with a 14 discount rate, we're getting a value of 244 dollars per share. which is a little bit a little bit expensive given the current 280 dollars per share. So Tesla currently is trading above the range of 50 growth for the next five years.

Every single year it's a big ask for Tesla Now they can get it, they can get it, but it's not going to be simple and by now at these prices is pricing. In a lot of this risk, you'll be swallowing a lot of that risk. But of course you can run your own model and figure out what's the price for you stock. Dash Mvp.com Use the code last 40 to get a 40 off lifetime.

The code expires soon because we're moving to the iOS and that place has no coupon codes not allowed so this will go away in a few days. Last chance to get it at 40 off last 40 is the code run. you're on the CF decide for yourself. But the one thing I can tell you is that no matter which DCF you run, you're never going to get to the conclusion.

When Tesla is currently very, very cheap, it's currently trading on this slightly more expensive side. It's just a matter of fact now whether you think it can get to twenty five hundred dollars per share or not, which I think is possible. Currently at the existing fundamentals of this company, it's not creating cheap and no matter how much you love this company, it's just a fact. So if it's not trading cheap, but you still think it's a generationally insanely good company you want to own.

What do you do in this situation? Do you really buy it at 280? Well, yes and no. I'm going to explain Now we have a method of buying great companies that are a little bit on the expensive side with the lower cost bases than most I'm going to talk about in a second now just to show you that I'm not blowing smoke up your bum. Our opinion member Captain Chuck used this method and now three years after he started buying Tesla his cost basis in the company is 216 dollars. In that time from which he started buying Tesla all the way to now the share price range from 147 to 407 dollars.

If he had tried to time it perfectly God Knows what his cost basis would have looked like, but because he used the system, he's much closer to that 150 than to the 400. His basis is 216. it's almost at 150. So what is the system and how to use it for Tesla And how did Captain Chuck did it? Well, Very simple.

So look at Tesla It's 52-week high is currently 317 dollars per share. If you calculate 10 below that, that point is 280 dollars. So you know the 280 dollars is that 10 line below the current 52-week high. Now if you already decided for yourself that you got a dollar cost average into Tesla by putting a fixed amount of dollars every single week into the stock.

as long as the stock is below that threshold amount the 280 dollars, then you're putting double the amount that you've allocated and when the share price jumps above that 10 threshold in our case, the 280 dollar line for Tesla. at that point, you go back and you start investing your regular fixed amount. Simple example: if I invest a hundred dollars every week into Tesla as long as the share price is 10 below the 52-week high or lower, I'm gonna go double and I'm gonna put in 200. but the moment the share price goes above 280 dollars above the threshold, line that 10 off of the 52-week high and it goes inside that range I'm gonna go back into a hundred dollars no more 200 per week now I'm at 100 per week and I'm gonna stay at 100 per week as long as the share price stays above that threshold line.

And that way, I'm creating a weighted average of my cost basis. So when I look at it three years later, I'm way closer to the bottom than to the top. Very, very simple, very effective. That's how Captain Chuck did it.

Now the system is not complicated I just showed you that you don't need my opinion for that. But the hard part about the system is not the dollar cost average system. The hard part is picking the right companies. If your dog was average into a Lord's Town you're in trouble my guy.

That's all I'm saying. So in my opinion, the hardest part about the system isn't the discipline. Isn't the dollar cost average is picking the right company to DCA into for three years because if you made the right choice, great if you made the wrong choice, you're screwed. So on our painting page 4 500 members.

That is what we teach. We teach you how to pick the right companies, their right companies to stay invested in for the Long Haul The companies that will stay there and be there and dominate for the next 10 years by learning how to evaluate companies, learning how to dissect due diligence and actually look at a company as an objective investor. Now if you learn this part, this system becomes very easy because the rest is just mathematics. but picking that company that's an art and that is exactly what we teach on a trading page paid in the com forward slash Tom Nash We have a new tier called Palms Academy If you want to join that, there's literally two spots left and then it's closed for a while you're going to be part of a group which I'm teaching exactly that, how to locate the next Tesla the next volunteer the next big company because as far as Tesla volunteer the secret is out just DCA to to Tesla descent to volunteer it's not Financial advice my opinion it might be an accurate might be wrong you know, doing research but what the other companies out there there's still more opportunities out there.

So the way to find them is to locate these great companies and then they say into them. If you want to learn more about this, join the painting. Community Put in the comfort become a part of something great. Thank you so much for spending this time with me.

And of course don't forget to check out stock of AP stock. Mvp.com Last 40 is the code to get it 40 off. Thank you so much I'll see you next video.