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Hey, this is Tom and this thing can literally send Tesla to 450 dollars per share I Always start with the bottom line first. As you can see, here's the bottom line: DCF Value of 450 today not a price Target in a year, not a price tagging. Five years today, 450 all it needs is one little Catalyst to actually materialize and it's not that far-fetched before we talk about that. Not that good stuff.
Let's start with the basics first. before we go through the you know, the modeling and everything. The first question I get asked almost on the daily basis are that with Tesla Before we go to that 450 price tag, it's like Tom Is it a good idea to buy this right now? Look it up 600. You know, 600 percent.
Dude, it's not up 600. It's up 64. Over the past three months, it's still down significantly. It's down 12 on the year and in fact, it pulled back from 300 all the way to 260 lately.
so it's not expensive. It's not over Heist if you look at the stuff we have here in stock. MVP By the way, this whole video is powered by stock MVP As you can see on the screen. but if I scroll down here.
look at the ratios right price to sales of nine price the earnings of 67.68 If we compare this to Nvidia I mean this is absolutely insane. Numbers: look at Nvidia which I think is not as good of a company from an AI perspective as Tesla I mean Nvidia has a lot of AI capabilities, but I mean comparing it to Tesla is kind of funny. Look Nvidia is definitely a great company, but let's hold the horses here for a second right? So Nvidia is creating it I mean I Would let's say that Nvidia is as good as Tesla right? Let's not say anything is better or worse. So if anybody isn't as good as this, all right look.
Nvidia is trading Priceless 44 price to earnings of 240. I mean come on dude. I mean Tesla it's not expensive. So first of all, let's get that out of the way: The current violation of Tesla is not expensive based on what you're getting, right? If you're buying Corvette we're buying a Porsche you're buying a Tesla Model S I mean yes, it's expensive compared to Corolla but you're not buying a Corolla my guy.
So number one. That's the first thing we have to talk about. So you know when in doubt, zoom out. look at the year chart.
I mean it's not expensive 260 Look at the ratios, look at the multiples. and by the way, we're just uploaded a lecture to our painting page and Patreon.com for Academy members. This is one of the final spot left in the academy before we move up to the 100 tier. so we just upload it right now.
A lecture a few minutes ago about how to do relative valuations, multiples, and all that good stuff to complement DCF modeling. So check it out, it's on our patient page. So basically, you know Number one: Tesla is not overvalued. That's just the kind of a premise.
I Want to explain here Number One before we even talk about. you know, in-depth stuff: Tesla is not overvalued. Uh, look. the other thing about this before that 450 price tag, is that you have to understand that there's not a lot of companies out there like Tesla Even even Nvidia is not as good in that metric. I'm about to tell right now. and Tesla is financially bulletproof. It's sitting on a pile of cash, it has no debt, it has an insane amount of demand, and the best margins in the business. It's literally bulletproof.
If there's good times in the economy and people are spending, Tesla is going to do well if there's bad times in the economy and people are not spending as much. Tesla is going to get wet, but they're not going to drown like foreign GM and the other companies. so this is very much set up with demand. the amount of cash they have with the cash flow they have with the margins.
Look at the free cash flow a billion, you know, no overhead because they don't spend on Advertising They don't have dealerships, so Tesla is very, very financially sound. Whatever times are you know happening, Tesla will be okay. They'll do better in the good economy. but they're not going to drown in a bad economy.
And you know, And as it stands right now, Tesla is already dominating the global stage. definitely in the US North America. But even on the global stage model Y is already the best selling car in the world. and they don't even have a truck yet, which is the most important category In the United States They don't have a 25 000 car yet out they're already dominating.
Imagine what happens when that thing adds. But now let's talk about that one thing I I Do want to point out to which is the the one thing that's going to send Tesla you know through the through the moon very quickly. Currently trading at 261 dollars right here. So look, Tesla is literally one full self-driving licensing deal with a large OEM away from hitting 450 per share.
we saw Ford we saw the other companies. we saw everybody succumb to the Tesla Supercharger standard. So Tesla has already become, you know, an industry standard in charging in EV charging. The next thing is Tesla coming in Industry standard in FSD Full self driving, autonomous driving, a driver assist, whatever you want to call it.
I Mean they don't have competitors. You have the Intel subsidiary called Mobileye which is light years behind. Tesla Nobody has capabilities. Nobody has the mileage.
Tesla has so many more miles every single day. So the gap between Tesla and everybody else is not just huge, it's getting bigger by the day. So at some point it's inevitable. Not a question of if, but when at some point there's a large OEM like Ford did with the supercharging that's going to come in and it's going to basically say hey, Tesla sell us you know license to us your FSD We're going to put it in our cars.
Once that happens, the floodgates will be open Because right now Tesla is basically trading at 50 growth right? The Assumption here if I do 50 growth. look it's a 322 dollar stock, right? Let's adjust here the discount rate to 14 and let's look at what we have like: 250. Okay, so Tesla based on the 50 line growth right here and based on 14 discount rate, it's trading at 250 per share. Okay, cool. Okay, so that's the current trading. You know trading volume of softly. it's around that price. Now let's assume that FSD comes in and you know somebody licenses out FSD The moment that happens, you have to adjust your Revenue growth perspective.
I mean you cannot stay flat on 50. So even if you do just sixty percent Revenue growth instead of 50 because of FSD and obviously you have to adjust the discount rate because the discount rate as it stands right now, you know the banking crisis is over. the FED is towards the end of their hike cycle, so you know at the end of the day you cannot keep discounting at 14 Tesla for until 2028, so you'd probably have to adjust to 12. So if you go to a 60 Revenue growth and 12 discount based on macro and the FSD deal with the first OEM that's going to come out there, populate, calculate thank you stock MVP 448 dollars So the moment the moment the next OEM comes in and says hey, we're licensing FSD test is a 450 stock right there and then this minute.
and now that we talk about the fact that the energy business of this is going to be way bigger than all of this combined. Um I Mean look, not talking about the fact that I have a price target of fourteen hundred dollars and twenty four hundred fourteen twenty for this company. By the way, the 1420 was absolutely accidental. didn't even notice.
Um, let's leave this aside. So based on the most conservative estimations right here, uh, you know we're talking about a company that's you know. Uh, literally away from 450 training to 60. So that's a 72 upside in the you know in one very probable event.
look don't be Kramer in 2010 Jim Cramer Told you 13 years ago that Tesla is all hype. Tesla's all air and he told you to stay away from the IPO if you listen to Jim Cramer in 2010, you've lost on 21 000 of gains. give Tesla is cloud. Give Tesla what it deserves Tesla is literally one FSD deal away from you know, blowing the lid out of the sock right now.
so again not this is not Financial Advice: I'm not telling you to buy or sell the stock I'm just saying my own personal opinion is that Tesla could be 450 very quickly assuming FSD matures and gets license out. it can happen within the next six years, within the next month, within the next year. We never know with Elon when things are ready. but I think at the end of the day, ask yourself this question if you think that's less expensive right now, why invest well Even if you think Tesla is expensive right now, why invest? Because in 10 years time Tesla is going to make a generational wealth I mean at the end of the day again another thing is certainly live except death taxes in Tesla That's how I personally see it. my own personal opinion, not advice my own personal opinion that if you invest investor today and you have the patience and you don't need to take out the money and you can stomach the volatility in 10 years time, putting money in Tesla is going to make you a very nice return. Again, not telling you to buy Tesla or saying is that even if you ignore that FSD stuff you if even if Tesla is just a car company if Elon leaves tomorrow Tesla stays a car company. they don't develop anything else. They just remain the model 3D model Y for the next five years, it's still going to give you 10 percent a year Basically, which is the S P.
So the floor of this company is The Benchmark or the S P index. but it has so much more Upside: It's absolutely exciting. A huge shout out to the Tesla community and everybody who educating the retail crowd. and at this point you know, test is kind of A so it impressed me so much over the past few years.
If the retail investors are now more educated about Tesla than institutional investors and the unfortunately, institution investors lost a lot of money by not participating in this game, it kind of is changing right now. Recently I've showed you this: Tesla On the institutional side. It's it's happening. It's happening and it's happening quietly.
Institutional investors. They don't like to tell you when they're you know, pummeling into a stock because they don't want to pump up the price. but you know, just go on stock. MVP Scroll down on Insider Look at institutional shareholding and you're gonna find what's going on with Tesla over the past two years.
look even over the past year, this is institution. I'm not even going to say anything. This chart tells you everything Need to know about how much institutional investors are buying Tesla recently over the past year so you know? don't say I didn't warn you And a huge shout out to everybody who came in today. Thank you so much Of course, don't forget to check out our patient Patron.com Nash One final spot left for the Academy Whoever grabs it gets it the 35 next batch is 100 and then we're going to raise it again and again because this is you know it's an expensive course.
Thank you so much I'll see you in the next video. Huge shout out to everybody.
FSD is a few years away … and always will be.
Tesla’s competitive advantage cannot be sustained.
There will be one more pump and dump before enough people get tired of the failed promises.
I think $4.50 would be a more realistic valuation
Institutional investors didnt just loose out, they lost so much shorting it lol
Tom is the next Warren Buffett and his patrion is even better lol
What good is it if a large oem licenses FSD if most of them are goin bankrupt by end of decade? 🤔
Tom, better to just keep buying TSLA or for the shorter term maybe a QQQ or QQQM ? Big exposure to TSLA ?
I disagree this is based on the idea that the legacy OEM’s have a lot of EV’s out on the road. They’re getting killed by Tesla and are barely delivering six figure amounts annual. Even if Ford for instance confirms this that’s banking on all of their EV’s having FSD. If the take rate for FSD now for Tesla is pretty low how will it be higher for Ford who’s buyers are more clueless compared to the average Tesla buyer.
Hahahaha tsla going to 200
wet dream, but I agree
Death taxes and Tesla – great shirt idea
In my opinion, the Tesla cars havent good quality inside the car. Chinese cars or german cars have much more of that. Hunydai is very good too. But tesla????
Why r u so bullish on tesla? Cant understand this never ending hype.
Sell everything in your portfolio and go All in on TSLA ⚡Tesla will 🚀 to the 🌕🦾
for other oems to put in the hardware required in their products is the hard part I think… not gonna happen soon
Much as I love your channel this is as they say in the UK ‘Poppycock’. Tesla will solve FSD but it’s miles away from approval and licensing.
Elon said on the last earnings call that they’re already in discussions with a major OEM, so I think it will happen sooner rather than later.
Even if an announcement is akin to the "cold fusion" of many years ago, when do you expect an FSD announcement be made? Three weeks, month, years?
FSD is an world event slot of business will want to make money of it ! It’s more than 450 I am sorry but licensing makes it higher than 450 . Imagen using it in boats in the future that’s a whole new type of transportation, Optimus using it in industries and so on
One of the few advantages of Tesla disappeared with opening up to charge at Tesla. The queue for the charging station is getting longer and the only advantage disappeared. In addition to that, the margins are reduced now that Tesla is forced to lower the price.
Short term tsla will probably crash a little and there is no way tsla go to 450 instantly
Tesla is a buy for me under 200 dollars.
I am pretty sure the jumps in institutional shares is due to stock splits
Let’s hope this doesn’t happen so we can buy more at 150
Elon said in twitter the first fsd12 is built….and he said 12wont be beta
When FSD gets liscenced Tesla will make more profit on every car sold than the manufacturer that sold it.
Would tesla licence their FSD? If a Ford car with FSD crashes, it’s going to be the blame game. Why would they take that liability risk?
Will you sell when a price exceeds your evaluation? I am of the opinion that I am just going to hold unless I need the money for a big expense like a house or when I need to re-balance for old age
You lost me at "lets assume FSD comes in"… for the next 6 months Tesla like all others will miss their sales targets and that will send the stock to 170. After that we can get back to "assuming".
Hahah so Tesla or Palantir Tom ?
I think TESLA is facing some headwinds over the next 10 to 12 month… mostly because of the high interest rates, people suffering and therefore buying a new car is not the highest priority… ESP will be lower that expected… On the other hand … if FSD V12 would be released in this timeframe… this would be a hole different story … (FSD V12 will not be beta !) 🖖🏼😎
Tom any comments on NVIDIA DRIVE End-to-End Solutions for Autonomous Vehicles to compete with Tesla Self driving. It seems like there numerous car manufactuters are using it.