Wow, we have a lot to talk about regarding Tesla We're going to talk price targets evaluation, We'll talk earnings recession, what's going on in South Korea and some updates on Musk. First though, I Want to announce that on December 9th this is a really special opportunity. I Am going to be able to invite some of you to the stock exchange both inside and outside. so 4 P.M Closing Bell mark your calendar December 9th If you are a course member, there is a form in Discord that you can click on under course member announcements and you can enroll to actually come inside of the building. If you're not a course member, we'll be doing a meet-up outside or if you don't get in, we'll be doing a Meetup outside. so December 9th New York Stock Exchange And really excited so stay tuned or watch on TV That's gonna be really fun! So Tesla First of all, uh, Big Wall Street Bear just came out and actually moved their sell position on Tesla to neutral which even though their price Target is only 100, 176 dollars is a big deal and one of the reasons we're seeing this sort of shift is, well, in their words, they're suggesting that the year-to-date pullback has balanced out their near-term risk reward. Basically a fancy way of saying hey, we think a lot of the excess fat of the valuation is gone and now there's potentially a moment of upside. Uh, to come Now One of the reasons people say oh, look, look at Justice evaluation. Now it's not actually that bad anymore is because when you look at the 2022 earnings estimates for EPS, you're actually at a valuation now of under 50. Uh, that is a P E ratio of under 50. And if their growth rate is 50, you're at a PEG ratio of under one. which is really, really incredible. But if you look at 2023 estimates which are basically the forward 13 month estimates now, your valuation actually goes to under 30 on a P E ratio Multiple this this that's actually pretty freaking incredible. Uh for Tesla So some really neat upside there. Personally, I've still got my 550 price target for it. I'll talk about why I think Tesla's price has been so depressed in just the last month. For example, Tesla's down 20 percent. There's a special Catalyst for that while the S P is rallied at six and a half percent. So a little bit of pain here. Uh, but so we'll also talk about sort of my thoughts on earnings recession. but I Want to hit this piece of news first and that has to do with a Tesla South Korea Elon Musk is now considering South Korea as a top candidate for a new gigafactory specifically for batteries and not only for Batteries but also as a way to diversify from Shanghai. Think about the protests that are happening at Foxconn that's causing Apple to have to delay some of its iPhone shipment capabilities and the last thing we want is Shanghai to get locked down again. There's a lot of pressure on Tesla to use their excess cash to do a stock buyback. but what if Shanghai gets shut down for all of 2023 and Tesla would have some substantial problems ahead of it? Now it's got plenty of cash. It's got cash flow. Even with Shanghai, it had essentially had operating cash flow although it was near break even without Shanghai. When you look at the Investments they were making in Berlin and and um, at Austin Texas Uh, but look, the last thing we want is another shutdown in Shanghai. Knock on wood on that, but see, what's actually kind of neat is an investment in South Korea could be pretty dang brilliant for the inflation reduction act. What's unique about South Korea is that we have a a trade agreement a free trade agreement with South Korea that was entered into March 15th of 2012. That's The Ides of March I'm a big fan of dates by the way and not actually like dates with women because the only dates I go on are with my wife whom I've been with forever, but also the Black Friday date which is in two days. Make sure you take advantage of the 60 off coupon code. Any program that you join will get you in to the raffle. just fill out that form one once you've join. keep in mind you get lifetime access to all the lectures. We've got a bunch of new lectures dropping on Friday We got the Elite Hustlers course coming out on Monday We've got the five million dollar trading challenge starting. We've got new lectures coming for stocks and Psych the real estate, the property management courses. no you, you all should know this by now. Nobody works harder than me and my goal is to make sure these products are amazing. So I'm doing a nice end of the year revamp to really help add value and next to you I'll be adding more lectures as well I just keep adding more content. That's my goal provide more value. So South Korea is pretty unique, not only because we have a free trade agreement with them, but that actually then enables us to take a full advantage of that 7 500 credit for Batteries manufactured in South Korea or a region uh, or country that qualifies for inflation reduction act. and Energy Credit rules which require that uh, these these batteries come from countries with which we have a free trade agreement which China's not. now. what's unique about Korea is they already export thousands of Kias and Hyundais GM's got a plant in Korea They also export other Optical equipment fuel Machinery to the United States think Samsung there are six largest a trading partner South Korea is also really interested in growing the battery charging Network within South Korea so they can push more of a sustainable energy, a platform and and plan and a Tesla could really be a win-win relationship for South Korea See, my biggest belief is that what you need is Tesla to get their act together at Giga Austin that's uh, Giga taxes right? Get their act together at Giga Berlin maximize the potential production there once they figure out the model and perfect it, copy and paste it Indonesia India Uh, you know South Korea more in South America Now of course, the inflation reduction act has kind of moved that needle from maybe countries like China where we have trade tariffs and not necessarily free trade. That's again, what a tariff is after all and move that over to free trade countries. and I believe that once the model is ready to be copy and pasted. Elon Musk just needs a pace Pace Pace Pace paste and that is going to be a gorgeous opportunity to deploy that cash War chest that Tesla has which is a really, really big deal for increasing production Now of course, Uh fud over demand will never go away. For example, Tesla just reduced prices in China They also came out with a new Treasure Chest referral style system to where when you refer people to get a Tesla or buy a Tesla uh, they could win a belt buckle, a Model S stroller, a custom home Chargers Things like that. There are reports now that in the first three weeks of Uh November, we only saw 50 000 orders and expectations were higher than that and so some people are a little fussy about that. Tesla China has responded and said no, this is fake news. We don't have a demand problem Elon Musk has regularly said that Obviously, if you believe that there's going to be a demand problem with Tesla's you probably just don't want to invest in Teslas. You're probably also one of those people who looks at all the recall articles and actually thinks that thousands of Teslas get recalled all the time when the reality is, There have been 19 recalls this year and they get fixed via a seamless, over-the-year update that installs at night while you're sleeping. it's it's pretty ridiculous I actually tweeted that and they got like four or five thousand likes. Follow me on Twitter By the way, if you haven't yet I Real need Kevin but uh, look, I will tell you you know I mentioned this earlier. Uh, that? I would that I would tell you this. Why is Tesla suffering so much? Look, Tesla's suffering for one simple reason in my opinion. Twitter that's it. Elon's really gotta relax with his attitude on Twitter and he's got a strong attitude on Twitter Okay, let me give you an example of what I mean and remember: Tesla declined 20 of last month while the S P 500 went up six and a half percent right after the Twitter Act was a acquisition, and the anticipation of that has led Tesla to suffer, I'm going to talk about earnings recession as well in a moment, but I'll tell you people are so deeply questioning Elon Musk's management style at Twitter that Tesla has really just now become a hedge for Twitter and it's a free Hedge for Twitter investors that is if Elon Musk screws up at Twitter and needs more money, breaks the piggy bank of Tesla Rob's Tesla shares by dumping them on the market and taking that money basically and throws that money into Twitter to save it. He has said himself, he sells Tesla stock to save Twitter those are his own words now. Can you fault him for that? No. I mean he's got a new business venture. Is that what's leading to a lot of pain for Tesla stock? Of course, because there's so much drama about what Elon Musk is doing over at Twitter but I will say he probably needs to relax with his attitude. like here's just an example: Business Insider posts this uh, this article here Sam Bankman Freed reportedly owns a hundred million dollar stake in Elon Musk's Twitter and then he goes false also. So Business Insider is not a real publication. just give up. I mean like, okay, it's one thing to say false, but like the aggressive opinion. not really necessary in my opinion. especially when you jump over here and you look and you say you know you look at the actual article spokespeople for Twitter and FTX did not respond to a request for comment. So it's like you know they like they they reached out to you to ask you if this was true. They're just reporting on the rumor and they give you all the details in the article you know I I Know the headlines says reportedly owns 100 million dollars taken. Maybe that's what people are upset about, but like I think if Elon Musk just toned back the aggressiveness a little bit, he'd be a little bit more CEO like and then he can actually align better with institutional investors see institutional investors I think are sitting on the sidelines I mean you've had Dan Ives who's been a big Tesla bull moved to the sidelines on Tesla he actually no longer calls it uh, his sort of like uh, deal of the month or stock of the month. he's removed that a lot of this because it's hard to Advocate buying Tesla when there's so much drama going on with Twitter Elon's adding fuel of the fire with his left versus right thing. uh and and I know some of it is Justified But as a CEO you have to remember that if you piss some people off, those people go to their institutions and their hedge fund managers and they're like I will take all my money out of your company if you support this Elon Musk guy they could be you know, like super super devout Democrats or super devout Republicans Who knows? It just takes one thing to piss them off. So I don't know. like I think Elon would just be best served. Shut the F up on Twitter Man, that's it. In the meantime, go do what you got to do with Twitter I have faith in Elon I Think this is a buying opportunity for Tesla because it's really Twitter fud that's dragging down Tesla I Also think that and I I like I've said it before, I think Tesla will do very, very well in the recession. Uh, that I know the stock performance the last you know year to date here hasn't been great because it's about 57 so that might seem ridiculous. But what I've always said is that I believed Tesla's EPS would outperform other companies and I think over the next three to four quarters. As long as Shanghai doesn't shut down, you're going to see exactly that come to fruition. Uh yeah, I Know fundamental analysis sometimes takes patience, but there's nothing fundamentally bad about Tesla right now. If anything, the fundamentals, in my opinion, are just improving. The only risk could be that demand falls off a cliff. in my opinion. in my opinion, if demand falls off a cliff, Tesla valuation will continue to fall, it will be very, very bad. So I would not invest in Tesla if you think they're not going to be able to fulfill uh, you know all of their deliveries because there's not enough demand I would not invest in Tesla Then if you think there is more demand than production capabilities for the next few years, Tesla's probably a really good bet. And even though I'm a licensed financial advisor and I've got educational courses on building your wealth, this is just in my opinion. I Want to be very clear? it's not personalized Financial Advice for you, but what is a suggestion is that you check out that 60 off coupon code. Make sure you sign up for that bell ringing event on December 9th. Again, you could either you're what you're invited to meet outside. We'll probably do a little meet up around 4 30 outside or fill out the form for the raffle to come inside the actual Stock Exchange And if you sign up for the courses, you got plenty of time to be part of that raffle. Thanks so much for watching! We'll see you next one. Goodbye.