Hey, this is Tom mash and I have an important warning for every single Tesla shareholder out there. Whether you're an existing shareholder or you're thinking about becoming a Tesla shareholder, listen to this video. I made a similar warning back in May of 2022 and I was right and a lot of people who didn't listen lost out on a lot of money. so you better listen up.

This is important. Look, the bottom line of my videos always comes first. So before I dive deep into my actual analysis. Here is the bottom line.

If you don't want to watch the whole video, I'm going to show you in this video why Tesla is the biggest opportunity right now in the stock market, the most misunderstood company in the stock market, and probably the most undervalued stock of every single big cap out there, despite its Behemoth of an 880 billion dollar market cap. I Know that sounds crazy, but follow through with me if you got time till the end of this video and I'll show you statistically logically based on the objective facts on calculations why this is indeed the case before we go into this deep dive analysis. I Want to explain to you something? Even if we follow through with the flawed logic where Tesla is just a car company and we ignore everything else, we ignore the fact that Tesla is an energy company, an AI company, a robotics company, a tech company, a million different other things that it does well and we just go with the car business. Even based on that logic, the current price is more than Justified.

Look, the total addressable Market of Tesla currently is still massively untapped right now. in the United States Only six percent of all vehicles sold are electric vehicles. 94 of the market is still untapped. Now who's leading that market Who sells the most amount of EVS in North America it's Tesla by Country Mile and it's going to continue to be So because it has the best products, the best software, the best infrastructure, etc etc.

there's many reasons why: Tesla You know more data than everybody else and it builds more factories than anybody else, the biggest ramp up the best margins I can do this all day. Tesla is going to remain the number one EV producer in the world. specifically in North America is going to dominate because it's playing against Bozos. GM and Ford are not even trying I Mean at least you got VW in Europe and you got Byd in China somebody's trying over there in the US nobody's even giving in competition.

So even if you look at Tesla as a car company, the car company that I'm talking about here is still fairly valued at 880 billion dollars. Look at my most recent DCF which I posted. My most recent DCF only takes into account the auto business with this cyber truck. Now with this cyber truck, this is a 270 dollar stock just based on the auto business and that confused a lot of people in my previous video because they said well Tom your DCF showed the Target price of 270 for Tesla the stock is currently 290 So based on your DCF Tesla is overvalued.

Well this is kind of a misunderstanding of the point I was making number one I was running an extremely bearish this year looking what was the floor? What was the bare case of Tesla based on just the auto business So in my DCF what I was showing you is that what Tesla is worth as a car company based on only 35 growth and if 14 discount rate based on these harsh parameters, the stock price was 270 dollars. So that's the floor of Tesla right now. in my opinion, this is not a recommendation to buy or still Tesla this is not Financial Advice: I'm just sharing with you my opinion might be inaccurate, might be wrong, might be the ram is of a Madman You know the drill. But basically now we start adding layers on top of this and we're saying well Tom right? If the car company Tesla at its worst is a 270 dollar stock, how much is the stock actually worth to you? Now you're asking the right question and now you understand why I've been basically buying the crap out of the stock for the past three years along with palantir.

Well here's the reason. Check it out. Look at what's going on right now with AI there's a massive AI hype cycle. everybody's excited about.

AI What is the flagship of this AI hype cycle? You know the answer. It's Nvidia Everybody's looking at Nvidia as the leader in Ai and rightfully so. They're terrific Company: Great CEO Terrific products. You know, great strategy.

Great Runway You name it. Nvidia has got it. and you know they're the best in their business. But you have to understand that Tesla is also an AI company.

In fact, Tesla has an AI product which is a B2c AI product that actually makes money actually is being used by millions of people every day. which is the FSD and that FSD is getting better every single day because it acquires so much data every single day. So we're talking about a company with massive amounts of data which is a leader in AI. So I would say it's pretty comparable to Nvidia and Virend Tesla are both leaders in Ai And now the rubber hits the road because now I'm going to show you how you can actually compare these two companies because at the end of the day, a DCF a discounted cash flow valuation is not the only way to evaluate a company.

When I was working for Deloitte as a senior manager, this was my job. I was evaluating companies performing due diligence On Target companies on behalf of my client and I can tell you with a hundred percent certainty that there isn't a single one way of evaluating company. you look at the company for every single possible angle you do a DCF You run a comparables analysis. You look at multiples.

You look at all these things together. So if a DCF is not my only way, what else can I look at? Well, let's go back to our Nvidia versus Tesla. If Nvidian Tesla are somewhat comparable as leaders in AI, then let's look at their multiples. Nvidia is currently trading at a massive 44 price to sales now Tesla is trading at 11 price to sales.

so it's definitely four times worse than Nvidia based on these numbers we just looked at. yes and the numbers are provided by stock. MVP Stock Dash Mvp.com It's a platform that I've held to build. I'm one of the co-founders you can try it out.

It's a great platform to evaluate stocks you can do your own. DCF Look at financials. do analysis like this. Use the code last 40 to get it.

It's 40 off for the entire lifetime of use and you got one week to try it out for free stock. MVP is the way to go. Now look, here's the answer to your question: I Don't think Nvidia is four times better accompanied than Tesla and I think most people would agree with me. So if that's the case, what are we doing here? Let's look at other metrics.

Let's put aside price to sales, which is one comparable we can use. And let's look at Price to earnings. Price to Earnings is one of the favorite ones to use out there by retail investors. Okay, price to earnings This is trading at 80.

Nvidia is trading at 240. So again, is NVIDIA three times better than Tesla As a company I doubt it does. Nvidia have more upside. Do they have better technology? better? AI Better people? I would argue Tesla has the best engineers in the business.

It has massive amounts of cash, massive ramp up, massive total addressable Market 90 percent of which isn't even yet you know, tapped in. Yet even at my most pessimistic estimations, at least 30 to 40 percent of the U.S market is going to be electric right now. it's six. All of it is up for grabs.

Many many dollars that will count down the pipeline for Tesla many revenues and then if it a margin of 19 which I think they will keep it's massive amounts of profits. And here's the problem here when I went to business school and did my MBA this is what they taught me on day one. The market is perfect, everybody have all the information and everybody knows everything at the same time. and every stock is perfectly priced in.

This is the Assumption of the perfect market. And you know if this assumption was 100 true, then we couldn't make any money in the stock market to begin with. So by definition this definition is faulty. but I wouldn't go as far as saying it's complete BS The market as a whole is really good at pricing the entire Market on average, but the market is notoriously bad at pricing in individual companies for a short period of time.

And when this is short I mean two to three, four, five years. Five years is a short period of time. So at any given time point, a certain company has a good chance of being mispriced by the market. and if you can catch it when it's down, you can ride the wave when it actually gets priced in.

This is how Warren Buffett made his money. He bought cheap companies that were undervalued and eventually the market picked up on it and the companies gained value. And he made money. So even if you look at my own DCF in which I ran the Tesla DCF based on the car company assumption with just the Cyber truck, you'll find out that on the side I had an ebitda multiple calculation and even a multiple calculation is something I always add to the mix to have a nice average not to be stuck just on my DCF and as you can see, the number I used there was 10.

I Took the final year of massive growth of Tesla before it went long-term growth four percent. I've multiplied it by 10 and I discounted it back to today using a 14 discount rate and the value I got for that was about 900 billion dollars. And now let me ask you a question. What happens if we change that number that 10 you see over there and we put in 21.

But why would we do that? Tom Well, because when you evaluate a tech company, the right multiple for the ebitda multiple system is 21, not 10. the only reason I use 10 is to be cautious and to be an a-hole With my DCF and my valuation, the proper way to evaluate a tech company is a 21 ebitda multiple. So in a 21 ebitda multiple, Tesla should be valued at 1.7 trillion dollars. and that's with a 14 discount rate which is very harsh.

Tesla Even at 800 plus billion dollars is still an incredible opportunity to make a lot of money in the stock market. if you are patient, and if you're willing to give time to the market to price it correctly I think it's still heavily mispriced. That's why I'm dollar cost averaging into the stock every single day and I'm dollar cost averaging based on my system which we teach on our Patreon Patreon.com forward slash Tom Nash We have a system which we teach on Tom's Academy on how to DCA into a company that's actually little bit higher, a little bit lower. How to look at the price How to DCA How to build your own system, your own process with discipline take out all day Motion Become a better long-term investor.

Build your own DCF Build your own models. All that good stuff. and on top of that we have a 5 000 member Discord which is Super Active where we have a dedicated Tesla room when you can come in and talk to like-minded people that are also an opinion about Tesla about the possibilities. Also a lot of people who don't like Tesla on Discord where a lot of Tesla Bears there as well everybody's invited and even if you are a Tesla bear you're more than welcome.

Join us. Maybe you'll change your mind. We'll see you in the next video.