Hey guys, it's sasha as i'm recording this video tesla stock is trading at one thousand and ten dollars, which is approximately 120 or 13 up since roughly the same time yesterday, and this might seem like it came completely out of the blue, it might seem completely odd Or if you read the media, the bounce is because elon musk just did an interview that came out last night where he said he's done, selling the stock, but the truth is more complex than that and a whole lot more interesting. Tesla stock got absolutely smashed in december, falling from 1 171 at the beginning of the month trading below 900. Yesterday and tesla wasn't alone in this. If you are invested in other grey stocks like me, you will have seen this happen right across the board.

In fact, tesla actually did well compared to most other growth stocks, because tesla fell by barely 25, while many other grey stocks like palantir pinterest of fiverr lost between 30 and 60 in november and december, and that alone. This fact alone should have told you something, because, when you have an exogenous impact on a group of stocks based on some kind of characteristic, that does not affect the fundamentals in any way. When that exogenous impact happens from the outside, the relative hits should, in theory, be quite similar. So when investors are panicking because inflation is jumping and interest rates are rising and the most gross stocks are getting smashed, but tesla only seems to go down half as much as the average.

That is really good news, and that is an indicator that something is happening. But behind the scenes that we're just not seeing in the numbers yet on top of the general market worries elon musk helped things along by selling the most stock ever sold in a year, and he did it in just the space of about three weeks, which is Insane but the stock soaked, all of that up and now we have this completely unforeseen rebound in that interview last night, elon musk alluded to having sold his roughly 10 already. So all the media outlets this morning, a printing headline saying that he's done he's finished selling except they're all wrong. They forgot the fact that, after that interview was filmed another tranche of his pre-planned option.

Executions was done yesterday because remember elon musk had a load of options that were expiring in august 2022 and he's decided to go and collect the whole lot of those in one go, convert them into shares and when he goes and exercises those options to make them Into shares, he pays about six dollars per share because he's had those options, since when tesla stock was a little bit cheaper than it is today and because he is paying so little, he has to pay tax on the difference between the current share price and the Price at which he is buying those shares and to pay that tax, elon musk is selling a chunk of the shares that he has just acquired from those options to pay the tax. Now these transactions are agreed in advance, and so, as far as elon is concerned, the sale is already done. He's already signed it off. It is already happening he as far as he's concerned.

It is finished, although technically it is still happening, and the likelihood is that we're probably still gon na have another two rounds of those options being exercised this side of new year. So another two rounds potentially of elon selling even more stock, maybe even today, while the price is going up - but here is something really important that you need to understand: elon selling his biggest ever number of shares in history, the doom and gloom of inflation, the fear Of rising interest rates and all the other short-term suppressing factors are here, and they are just that just short-term suppressing factors. In reality, these mean relatively little to the long-term optics for tesla shareholders and the moment these suppression factors stop being suppression, factors stop being potential fears and pass real factors will come to the fore, and i mentioned what these are going to be a few weeks ago, When i explained how big the catalyst for tesla from that point, when i was talking were to the end of january - and the great thing is that the catalyst that i was talking about have not gone away, we have just had news a few minutes ago that Tesla has now submitted all of the final paperwork required to get the final approval for their berlin giga factory and the brandenburg premiere diet. Whitka has publicly state stated that they expect the final approvals to be granted by very early in 2022..

At the same time, we've had other reports that tesla has already made a few hundred model white cars in that berlin factory. Now, technically, they can't go and sell those to customers, because the permits have not yet been issued, but these can reportedly be used for things like marketing purposes. Various different european crash and safety tests, as well as being used for transport around the berlin factory site. Now elon musk has also said the gigatexas is going to host a big party to celebrate its opening in early 2022 just three days ago.

So tesla is a few days away from starting production in two of the biggest car factories in the world. Ever literally, the number one and the number two, the largest factories by some margin once they ramp up production and especially once they build additional buildings on the huge sites they have now, q4 production numbers will be coming out in less than two weeks for tesla and All the indicators are there suggesting that it's going to be a complete blowout, completely smashing all analyst forecasts, i'm being pretty much bang on to the forecast that i made at the beginning this year and shared on this channel, and then we will have the q4 financials A few weeks after that which elon has said he will attend, and we should get some updates on the cyber truck 4 680 cells that are already being scaled in california, and the tesla semi and quietly behind. All of this tesla has just released full self driving version 10.8 and the reports that i am looking at the everything that i am watching. Everything that i'm consuming is showing insane levels of improvement.

We are seeing that the fsd software in the recent versions dramatically reduce the need for manual intervention. If this pace of development continues, i think tesla stock could be in for some seriously ballistic stuff in 2022.. Over the last few weeks, the usual negativity around tesla stock has reared its ugly head again as the share price fell. There's been a massive load of keyboard warriors on my channel, telling me how tesla is a meme stock and the day of reckoning has finally arrived and social media has been absolutely full of very similar nonsense.

But there is an old english saying that says he who laughs last laughs the best, and here we are with tesla up 13 in one day now i'm going to be the first to say it before the inevitable comments turn up. It is going to be a very bumpy road for sure over the coming months, even over the coming days, where you're likely to see big ups and big downs is probably going to happen. Inflation and rising interest rates have not gone away, they've not gone anywhere and they're going to come back and they are likely to look ugly in january in february in march and throughout the year, and no doubt there will be another tesla investigation of some sort happening That will be completely blown out of proportion by the media and we're going to be talking about the competition that is coming imminently and is going to completely change the game. Even though, as i am recording this video, both gm and ford have actually suspended manufacturing off their evs because of recalls neither of them is making evs, except for the hummer.

I'm not sure that really counts, but yeah that competition is going to continue to be coming and even as tesla's revenues and profits go up massively next year, the p e ratio will still be in the triple digits and people will still say that the stock is Horribly overvalued because too many people who call themselves investors don't understand what a gross stock long-term projection actually looks like or how you'd construct it. In fact, they would look at a typical one for a typical grey stock and ridicule it, because the rate of growth to them looks a little too high and yet, at the same time, wall street investors are tripping over each other to raise their target prices. To sixteen hundred dollars, two thousand dollars, or even higher, which is particularly entertaining to watch because realistically there is no significant material data at all that is available now that we didn't have two months ago. So to me, the movement of these target prices by such massive amounts just showcases how flawed and pathetically bad the process of setting them by those people is in the first place.

But hey the market likes them and it seems that a lot of big money absolutely swears by those valuations. So when the target prices go up, so does the big money that starts buying into tesla, and here we are with tesla stock back over a thousand dollars. The important lesson here is that short-term fluctuations and general news that does not really affect long-term optics only really ever serves one purpose to offer seasonal discounts on your favorite stocks, and i said the exact same thing when the share price was down in the dumps when Everything was looking really bad and it was probably a little hard for people to process it at that point, when you know when the portfolio is read when all the news is negative and everything seems like it's going down, but this is exactly what i was talking About fast forward a little bit in time and nothing really has changed, but suddenly a different wind of sentiment is blowing and now tesla shares are back at a thousand dollars and apparently tesla shares that a thousand dollars are now cheap. When, yesterday, those exact same tesla shares at 900 were really expensive, if you found this video useful, please don't forget to smash the like button for the youtube algorithm.

Thank you so much for watching. I really really appreciate it and, as always i'll see you guys later, you.