So Tesla gets a huge upgrade from Adam Jonas from Morgan Stanley raising his price Target from 250 all the way to 400 with a 550 dollars as a bull case. So Morgan Stanley shifted to an overweight rating on Tesla on The View that the biggest value driver looking ahead is the company's software and services. Revenue Alice Adam Jonas said that the same forces that have driven Amazon's AWS to reach 70 of the company's total ebit can work for Tesla and help it open up new adjustable markets that extend well beyond selling vehicles at a fixed price. The dojo play is based in part on the rationale that the company can develop a more efficient system for their specific needs while not funding as suppliers.

60 gross margin. Basically, what he's talking about here is that Tesla is not about to fund Nvidia's 60 gross margin to build this thing. They're going to build their own and gonna make it bigger and better and gonna create an extra 500 billion dollars of Enterprise Value now Morgan Stanley hiked its price Target in Tesla to 400 from prior price I Guess 250 and call the electric vehicle stock a topic in the sector. the 52-week hyper Tesla is 315, so that's well above that.

Essentially what Adam Jonas for Morgan Stanley is saying here: Beyond Dojo beyond the extra 500 billion dollars he's saying here one of the first analysts from like a sell side perspective. that's saying the Tesla is far more than just a car company. It's literally the first guy from the institutional side that's saying the same things that people out of the retail Community have been saying for the past three years. but nevertheless, it's better to be late than never to arrive.

So welcome to the club! Adam Jonas And let's talk about what I see here as far as where this thing is headed. Um, I Think that someone in mainstream media will undoubtedly spin this as a negative story I Don't know how exactly, but I'm sure these mother lovers will find a way to take the story and turn this into something negative, probably bad-mouthing Adam Jonas and Morgan Stanley They're gonna try and discredit what he's saying. They're going to try to say that you know sell side analysts. they don't know what they're talking about which is partially true, but at the end of the day it's gonna be a negative story for Tesla and the mainstream media.

Nobody is going to give Tesla its flowers. Now to me, it's a huge sign. It's a sea change. We have a major Wall Street analyst that accepts that Tesla is not just a car company.

Now according to what people think on Twitter or X or whatever you want to you know, look for. this is no inside information for sales side analysts. so people tend to think well. Adam Jonas must know something, right? He must have the inside track.

He must have some inside info and now he's raising his Target price on 250 to 400. I Hate to break it to you, but sell side analysts they're the bottom of the food chain. and Wall Street they have absolutely no access to inside information whatsoever. so I can guarantee you Adam knows nothing more than you.

it's just his analysis now is changing it. almost like you woke up one day and realized oh my God Tesla has full self-driving dojo and Ai and Robo taxi. Oh he's like where were you for the past three years but hey, at least you're here unlike some of the other analysts on Wall Street Now I do want to clarify here something that's going to cool down the excitement about this because obviously there's going to be a lot of excitement here, right? This isn't a Target price that is based on in DCF This isn't an intrinsic value from Adam Jonas about what Tesla should be valued at even though they're trying to disguise it as such. If you read the report, it's going to sound as if there's intrinsic evaluation going on here.

and then Adam Jones is saying well, yeah, it's a 400 per stock based on this model that says that this is the value. No, this is not how sales hype analysts value companies so sell site analyst basically change their price targets according to how the wind blows. So the only thing you can get out of a sales side analyst for the most part, as far as an indication of where the market sentiment is going, it's not any indication of intrinsic value whatsoever. They only care about the trend, the momentum, what this trade says.

So this is not an intrinsic evaluation. This is a comparable evaluation. And it still has value. even though it's only a reflection of what the market thinks about.

Tesla It's still very, very important because it shows us that Discrete is now starting to open up to the idea that Tesla is more than the car company. For the first time, this conversation is happening outside their regular Tesla circles. now. I wouldn't discount completely the value of comparable valuations based on what Discrete is saying.

Look, if you want to sell your house right, if you want to sell your condo, you're going to do an intrinsic evaluation that condo. You're going to do a DCF on that condo. No, you're gonna see how much other condos or how much other houses in your neighborhood with similar parameters are selling for. And then you know what the price of your house is.

You know, not going to run a DCF on your house, right? So sometimes intrinsic variation is dead on Mayor and sometimes comparable valuations do have a lot of value. So the fact of the matter is, let's understand what this is. This is: Adam John is giving you a comparative valuation based on what the screen is thinking. It has value, but it doesn't have the value that some people would think.

it's not a model. it's just what the sentiment is about. Tesla Now I Just want to point out that the last time that Adam Jonas went balls deep into Tesla was September or October 2021. Can't exactly recall the perfect date, but last time it did it Tesla went to all-time highs.

So I assume it's going to be a very similar knee-jerk bullish reaction in the short term, which is to me, absolutely irrelevant and should be to you as a long-term investor as well. Now I think it's impressive and I'm I'm I'm going to be a little bit cynical here. sorry Adam Jonas I Think it's impressive when experts from the sell side analysts for for side like Morgan Stanley it can see something so obvious and uh, you know, so clear-cut to the level that middle school children could have seen this three years ago and now you know every time that this comes out all of a sudden the price spikes and the retail investing Community is crying. oh my God we missed the bottom Tesla and it's now 400 bucks.

It used to be a hundred. Well, where were you? For the past three years we've been saying to you that this is insanely undervalued. I Mean this isn't news, but again, some people that were sitting on the sidelines will undoubtedly see this happening. They're gonna sit out thinking the Tesla is too expensive, it's running up too fast and they're gonna be sorry Didn't get in.

Now to that I Want to say something that's going to again cool down the excitement here a little bit before you fall more into Tesla. Listen up. look. short-term volatility with Tesla is to be expected.

It ain't going to go to 400 on the straight line from 250 to 400. Forget that. that's not going to happen. There's no way the Tesla goes from 250 to 400 on a straight line.

Zero percent. There's more chances of Grandpa quitting alcohol than this happening. Now what it most likely will do. It will continue to be extremely volatile, up and down in a very, very unpredictable Manner and eventually the fundamentals which get you know which can clearly see the fundamentals are so strong for this company.

The fundamentals will catch up with the price and they will get to 400 and Way Beyond that. but it's not going to be in a straight line. So at the end of the day, if you are thinking about investing in Tesla right now, it's not too late. It's not too late to invest in Tesla Even if it runs up today, if it goes crazy runs up like eight ten percent today, it's not too late to invest in Tesla And I emphasize the word invest, not trade invest.

It's not too late to invest in Tesla if you got patience, if you got discipline, if you got acceptance of uncertainty and extreme volatility. If you can stomach all these things, then it's not too late to invest in Tesla In fact, it's never too late to invest in Tesla Like Peter Lynch said decades ago, it's never too late to invest in great companies. Now to me, look, Tesla is a leader in AI skills Their leader in growing the best talent in the business. They have a great track record of execution.

Yes, they're not batting 100, but neither does Steph Curry He doesn't shoot 100 from three, right? They have the best track record in the business. They're the best skills. They have the best people. their best you know amounts of data are not even comparable to anybody else.

The amount of data that FSD generates for Tesla to train all these models and the AI stuff is absolutely insane. Nobody comes close to Tesla So I think that in the long run this is going to make a lot of people very, very rich and a lot of people who stayed out. You know you're going to see a divorce rate in the In the in the High Teens so to speak. I'm just kidding.

obviously. Now look at the end of the day, what would you do as a long-term investor looking at Tesla probably running up today I Still don't know what's going on in the market today. Well, as a long-term investor, there's only one thing you can do if you like Tesla which I Think you have to be an idiot not to like Tesla But if you like Tesla what do you do if it runs up right now? well, you just start dcing dollar cost averaging to the stock. If you have already, just keep going, stay the course, lower your head and keep going like a freaking bot.

DCA Dollar cost average. Buy a certain amount every single week, no matter what price goes up, price go down. you still buy the same amount of shares. If price drops below a certain level where it becomes very attractive, you can buy more if price goes up above a certain level.

When it's a little bit more expensive, then you still keep buying. but you buy a little bit less. You adjust your dollar cost averaging activity based on the swings in price and how you do it. which is the price points which levels all of these things we teach on our Academy Me Peyton.com forward slash Tom Nash We teach the system of how to dollar cost average to get to a lower cost basis in order not to overpay for really good companies.

We have members who started buying calendar in the high 20s and now they're sitting at single digit averages because they have dollar cost averages same with Tesla same with Nvidia Same with Asml. All these companies they can be bought and held and invested long term without overpaying. if you just dollar cost average slow, and be opportunistic when the price declines now. I Would love to see you there.

We have a zoom call this Thursday so if you sign up before that I'm gonna get to see you this Thursday Hope to see you there See you next video.