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.