The NASDAQ is down 29 this year and there is one company that I have been a big proponent of that is well underperforming the NASDAQ 100 Technologies and that is Tesla Tesla is down 52.25 at the time of this recording and I Hate to say it, but Tesla stock is a hedge for Twitter. It's that simple. I'm about to expose some things that, uh, we we know from Elon Musk This is not terribly surprising, but it is a terrible pisser for a company whose artificial intelligence is growing and becoming extremely good. for a software company exploding. Tesla For a company that's about to deliver its first semi trucks and the semi-truck supercharger network is already being built and becoming operational for a company that expects to start selling the Cyber truck next year and finally has its production. to a point where people don't have to wait six months to a year to get a freaking vehicle for this company which is such a growth company that it will during this earnings recession still grow earnings per share at a magnitude greater than other companies in the NASDAQ 100 or the S P 500 on average. Why is this company suffering so much? After all we know or at least expect EPS for Tesla We'll be somewhere. it will be growing at a rate of 40 to 50 percent. The PEG ratio for this company is a bargain right now. The amount of value in Tesla is so great in my opinion that Tesla's almost starting to look like a value stock. NOW Obviously it's not because it's still too new, it's still a growth company and we know that growth over the next six months is expected to see EPS declines on average, whereas value is actually expected to see EPS growth over the next six months on average. value would be like your your BPS your Dow chemicals your Occidental companies right? Those are your values right now, whereas companies like growth are going to be your your Amazons your Google your Facebook Microsoft Nvidia AMD right? Those obviously are suffering and we expect EPS declines across the board at all those companies. except Tesla We expect massive EPS gains to test. So why then is the stock underperforming so much? Well, it's simple folks: Elon Musk sold 20 million shares of Tesla stock, much of which to fund his purchase of Twitter and markets believe that purchase of Twitter is not going well for Elon Musk and the worse it goes, the more likely it is. Elon Musk has to go back to the piggy bank that is Tesla Tesla stock is Elon Musk's Piggy Bank. That means Tesla stock is a free Hedge for Twitter Anybody who invested in Twitter knows that Twitter Can't Fail no matter how badly Elon screws it up because Elon will just go over and sell more shares of Tesla And this is where what you have is a first of all: something completely unexpected: I didn't expect this I didn't expect this garbage when I bought. uh, when I went really heavy on Tesla earlier this year like this sucks. All right, So all of that known. Hopefully things start sounding better for Twitter because as long as Twitter can prove that it could go profitable with all these layoffs, but it may be new subscription Revenue news and hopefully too many advertisers don't leave and Tesla proves its EPS growth over the next two quarters. Maybe maybe Tesla could actually see some strong green shoots which would create a really big buying opportunity for Tesla. Now maybe that's going to take a lot of hopium that Twitter actually starts getting its act together and we don't keep getting all this crazy bad press for Twitter but until then it's actually more pain at Twitter is more pain for Tesla Why? Well it's simple because all you have to do is look at what Elon said The Verge Got this audio recording and they transcribed it Elon says look in a recession advertising disproportionately is affected. that hurts Twitter So we have a high sense of urgency because if we go into a deep recession, we could be in a very dire situation from a revenue standpoint. in fact, Elon Then goes on to say you may have read that I sold a bunch of Tesla stock. The reason I did that was to save Twitter not because I lack faith in Tesla I think Tesla stock is going to be worth an immense amount of the future I sold the stock for Twitter to keep Twitter alive. Great! So at the same time time and we knew this. Okay, this is really not the huge surprise, but basically at the same time as you're like I think we're going into a serious recession probably a year or two of serious recession and it will disproportionately affect us. What does that mean Great. You're potentially going to go back to the Piggy Bank of Tesla and keep putting downward pressure on Tesla So what does that mean? It means it's really difficult for institutional investors to justify buying Tesla even though I think Tesla is at a really good value point and I know some people will disagree with me. They'll call me a testable whatever. I Think the reason Tesla stock is sufferings disproportionately more is not because anything's changing at a company it's solely because of Twitter And it makes sense when you consider again. if a hundred thousand people watch this video, then every single one of them had 38 000 of buying power to buy Tesla this year and all of that evaporated dude that straight up sucks. So uh, you know. Elon talks about how he's somewhat paranoid about dying during recessions like during X and PayPal in the early 2000.com Bubble recession 2009 recession keeping Tesla online GM and Chrysler went bankrupt and he predicts even though it's impossible to predict the actual severity of a recession or length of it, he predicts that we have to be prepared because of the recession's shallow and short. Great. But if you predict that it's shallow and short and then it ends up being long, you're screwed. That's why. I Always say, especially to those of you in the courses on building your wealth. Get out of margin. Don't be in margin. Don't be exposed to speculation. Don't speculate. Now is not the time to speculate. It's the time to be paranoid as Elon must be paranoid and only the paranoid survive now. Does that, in my opinion, change anything about my price targets for Tesla in 2025? No. because I think whatever happens to Twitter will happen between now and then it'll probably go profitable. Will it be a good deal to buy in the future at an IPO I Don't know, look at the numbers then. but we need all this Twitter drama to get out of the news cycle. All of that's got to be gone. and when that's gone, we actually hear hey, good news Twitter is now turning profitable Great, But what do you have right now? Well, you're left with Elon Kind of being a little misleading I Hate to say it. Okay, I I'm a big fan of Elon but he's been a little misleading. Talks about how uh, Tesla's going to be worth as much as Apple and Saudi Arampa Ramko combined about two weeks before dumping. uh, you know, four million plus shares. Dude, a little shady. Okay, A Little shady. I Hate to say it. uh, you know he's he's on. Twitter Talking about how oh well, because the Dems donated Sambang or uh, because Sambangman free donated to the Democrats he'll never be investigated. Okay, you might believe that you might be watching this video and go like, well, I mean that's probably true. You might be thinking that and you know what? Maybe I think that. But let me tell you this: if I'm the CEO of Twitter and I'm relying on advertisers to keep Twitter alive, Am I going to come out with that sort of opinion to piss off any organization that sells products to Democrats Come on man, that's just stupid. It's poor. PR it's just dumb. uh and again, I'm a big fan of Twitter but he really needs somebody by his side to just muzzle him or kick him in the ass when he needs it. And right now I think Elon should really double down on. first of all, shutting up. It doesn't help to post Twitter usage statistics going. look. usage on Twitter is going way up. dude. Anybody with half a brain knows Twitter becomes much more popular around an election. duh. If you look at Twitter usage going into the election, it's going to be higher. Everybody wants to know what's going on, You know? So it's things like that that piss me off. I Think he's a great leader I think he's a Visionary I think Tesla's a great and phenomenal company I Highly admire and respect any individual who works for Tesla and I am sad to see that their stock options are becoming worth less because of Twitter Uh, I don't really like Twitter that much and I anyway I don't know I think I've said enough. Okay, so look, long term, is this a buying opportunity? Yes, have price Targets in my opinion, changed for Tesla no Am I basically laying everything on Twitter here and fully blaming them without blaming Tesla Yes. Is that fair? Should I be doing that as a licensed financial advisor? Then again, this is not personal financial advice for you, but from a financial advice point of view. Uh, non-personal Does it make sense to be all in on on? Tesla Hell no. Does it make sense for in my opinion, potentially everybody to have exposure to Tesla Probably. But again, I can't give personal financial advice and I can't just give blanket Financial advice I Do though think from a fundamental point of view, it makes sense to have exposure for many people to. Tesla I Think people should look at their own situation, talk to a financial advisor themselves and go. Does Tesla make sense for my portfolio I Think there's a great value opportunity in growth in the future, but you you have to make that decision yourself with your professionals. Okay, but for what I can control or the financial advice that I can give I think Tesla is is a phenomenal opportunity and the disaster it is facing is disconnected from the fundamental value of Tesla. It has to do with it being a piggy bank for Twitter and unfortunately that could lead to more downside problems in the long term. Thanks for watching, we'll see the next one.