So why is tesla stock pulling back if it beat expectations? This is a question that a lot of people have what's going on team, a tricky with tech, but solutions. I wanted to show you guys the q1 earnings report right be expectation. So what does that mean? They expected to the eps, which is the earnings per share, expected it to be anywhere from 0.7 to 0.8, so they have averaged it at 0.78 and they reported a 0.93 as well as their revenue was something that they ended up exceeding. But i think it's what be uh falls behind the revenue.

I wanted to make a super short kind of like presentation. First off a lot of you guys know that i've been like shorting tesla as i've been learning how to short sale. Uh. Yesterday i made a little bit over two thousand dollars as tesla sold off a little bit.

I covered my i covered all of my short positions and i began to pick up and load up on tesla as it sold off four percent right, because we we explained that big picture, regardless of the earnings tesla, tends to recover or attempts to correct itself regardless. If it pushes up or pulls back right, so i'm not too influenced by the earnings or what what it was that was said, but i want you guys to be a little bit more aware. Please don't even just stop here. I just wanted to share with you a couple bullet points, what i took away from it, so tesla q1 earnings, their earnings - was 438 million in the quarter compared to 16 million in q1 of 2020..

So if you take into comparison, you know q1 of 2020 and q1 of 2021, a big increase right sales were up 74 over q1 again. Another positive notion, vehicle production is on track to exceed 2021 production by 100. Also, a great positive notion, one of the things that a lot of people right. I wanted to talk about very good things about tesla, but also, let's talk about what is kind of rubbing people off the wrong way and please comment down below if you feel like.

I missed anything or sharing your opinion, but 110 million dollars of its net proceeds right or net profits from its bottom line came from its bitcoin earnings right elon musk yesterday shared a tweet that tesla sold 10 percent of their shares. I don't know if that's their 1.5 billion dollars that they originally invested in tesla uh or in bitcoin, but they made 110 billion uh 110 million dollars in profits, which they added to their earnings, because it is part of their bottom line. So it's just kind of fishy for people that it looks like. I think it's great right.

I mean he is doing something that big picture, especially for all the focus and attention that he has it just kind of goes with his character. But as a company, especially on the traditional aspect, i can see why it rubs people off the wrong way. He's making money in other areas that isn't producing vehicles right, so 110 million of that came from bitcoin um, 511 million came in regulatory credit. This also rubs some people off the wrong way.

Uh. There are certain programs, especially from the government, that they subsidize ev companies and tesla on average, for the past couple of quarters has at least received 400 million in subsidized credit. This quarter, they beat it. They they made 511 billion in subsidized credit and the reason that that rubs people, the wrong way is, if i'm not mistaken, i think their total earnings or something like that was uh.

594 million and 511 million of that came from regulatory credit. So you can see that again people that just love to look at the negative are just like. And again i don't. I don't like to point figures or anything like that, but it's just like.

I can see why people are like well. If this credit was didn't exist, tesla wouldn't be profitable to some degree. It's true right wouldn't be reporting a profitable earnings to some degree. It's true, but guess what these regulatory credits do exist and tesla, just like any other ev company right is going to take advantage of them.

So because of that you know, is it elon's fault that this is out there? No he's just doing his part to take advantage of it and because of it, he received 511 million in regulatory credit which allowed him to report a profitable earnings feel free to share your opinion down in the comment section. One of the main reasons that i am reading that tesla is pulling on back, i want to share with you right, is supply chain issues as well as part shortage. This is all something that we're aware of right, uh, that there was a shortage with a series of different tesla parts, which kind of put it a little bit more in a back order as well as, if you guys look at forward slash and q. The overall nasdaq market is pulling on back uh.

This is why you're probably noticing that not only tesla's pulling on back, but as well as maybe a lot of your other tech stocks as nasdaq has a big focus on tech. So make sure you take that into consideration before you freak out or before you sell, due to emotion, right, plus 19 billion dollars, cash on hand, no appreciable debt, they're spending 600 million in r d, billions of new production facilities right. You guys heard about that texas plant and selling everything they can make and then some so of course tesla is um. You know experiencing huge back orders, which means that they are selling more, that they can make, which is great when it comes down to demand.

So let me know in the comment section what you guys think about those bullet points that i shared with you i wanted to talk about. You know very positive things about tesla. I wanted to talk about uh certain things that some people were saying that you know they weren't the biggest fan of the regulatory credit, the profits that they made on bitcoin. You know: can you blame elon for trying to be creative, with the way that you know he reports a profitable earnings? You know that's really up to you right.

If you don't believe in elon, if you don't believe in tesla, then yeah, obviously you shouldn't invest in it right. The way that i viewed this is just like i explained in previous videos is if tesla pushed up um and it became super overbought due to earnings. I was probably going to take a light short position if tesla pulls on back, then guess what i view this as a dip by opportunity and of course it can continue to sell off so make sure you take that into consideration. But i viewed this as a dip by opportunity where i can load up on a couple of shares.

So i wanted to do my part in sharing what i read and please simply do your part in dropping a thumbs up and sharing down below. If you feel like, i missed any, i hope that this short and sweet video kind of uh answered your question uh and just make sure again you don't freak out just because tesla's pulling back a little bit. A majority of that i feel like is influenced by the overall nasdaq market pulling on back every time we see the nasdaq market, pull back uh, we see quickly, you know tesla follows so just make sure you understand the correlation between that. So i appreciate you guys time.

I hope that we earned your thumbs up, don't forget to subscribe to the youtube channel. I upload new videos every single day and if you want to stay connected with our free facebook group, we have over 311 000 members and that's that first link in the description. I'll see you tomorrow for our live trading session. And if you want to join the fun, that's that second link in the description until then, like always, let's make sure that we end the year on agree now.

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