Lets talk about the recent stock market valuation of Tesla, the stock price, and whether or not it’s overvalued - enjoy! Add me on Instagram: GPStephan
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Just in an effort to be COMPLETELY transparent, so you know my affiliation before watching this video - YES, I do own a Tesla Model 3. YES, I bought Tesla stock awhile ago at $260 a share, and YES I’m still holding on to it.
But, what about Tesla, and current price TODAY…is it REALLY worth what it’s trading at?
If you’re PESSIMISTIC on Tesla, you’ve got quite a few arguments to back up your reasoning:
One, at this level, Tesla is valued at MORE than Ford, GM, and Chrysler…COMBINED. And that could be concerning when you consider that Tesla only delivers a FRACTION of the cars that nearly every other automaker produces.
https://wolfstreet.com/2020/01/24/tesla-global-deliveries-compared-to-top-10-volkswagen-toyota-gm-ford-honda-fca-mercedes-chart/
Second, Tesla shares are trading at 85 times the projected $1.4 Billion Dollars of earnings in 2020…and, again, when you compare that to ANY other automaker…it’s A LOT.
https://www.gurufocus.com/term/pettm/VWAGY/PE-Ratiottm/Volkswagen-AG
Third, Tesla has only barely turned a profit…and even though things are OPTIMISTIC, there isn’t enough history behind the company to guarantee that this will continue, and demand will continue, for the foreseeable future and beyond.
https://www.cnn.com/2020/01/29/business/tesla-earnings/index.html
Fourth….Tesla is expected to face more and more competition from automakers who want to take away marketshare. And automakers all agree…electric cars are going to be the future, so they’re sinking a LOT of money into EV development.
That might cause one to believe that…based on quite a few factors…Tesla is OVERVALUED, and to reach a valuation similar to other automakers, Tesla would have to continue posting many years of 50% year over year growth in order to “Grow Into” what it is today.
However, the people who are OPTIMISTIC about Tesla would argue entirely differently - and would see it as UNDERVALUED.
Tesla focused on the technology - Their proprietary technology is why Tesla gets significantly more range than other, competing car companies…and not only that, but Tesla’s batteries are less expensive to manufacture, which would lead them to even further profit.
Second, one can argue that Electric Vehicles would be a similar adoption to that of the internet, or smartphones, or even the television when it first came out…and this follows an S-Curve of growth.
Third, Tesla is expanding with no stop in sight. They’re pushing out even more cars, they’re coming out with new concepts, and they’re expanding their manufacturing over the next few years. They’re also one of the few car manufacturers to post consistent growth in this space, while every other automaker has largely “Failed” at producing their own electric car.
Fourth, arguably…Tesla can move pretty quickly. It doesn’t seem as though they have a chain of command like other companies - instead, it’s Elon Musk and his crazy visions - and then, people just make it happen.
And finally…from my own, anecdotal experience…Tesla is a good product, and I didn’t fully “understand it” until I bought one.
And my thoughts, as far as where we’re at right now…even as a Tesla owner and stock holder…I can’t help but think a lot of this recent value is pushed more so by hysteria and excitement over making money, than it is about the prospect of Tesla overtaking the planet.
Now, that’s not to say that Tesla doesn’t have INCREDIBLE technology…and there are a LOT of promising features to come in the near future, like full self driving…or, maybe one day, autonomous Tesla Model 3 taxis. But right now…I think there’s still quite a few things that will need to happen, first, before we get there.
But who knows…maybe one day, we’ll all be driving Teslas…on the moon.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Just in an effort to be COMPLETELY transparent, so you know my affiliation before watching this video - YES, I do own a Tesla Model 3. YES, I bought Tesla stock awhile ago at $260 a share, and YES I’m still holding on to it.
But, what about Tesla, and current price TODAY…is it REALLY worth what it’s trading at?
If you’re PESSIMISTIC on Tesla, you’ve got quite a few arguments to back up your reasoning:
One, at this level, Tesla is valued at MORE than Ford, GM, and Chrysler…COMBINED. And that could be concerning when you consider that Tesla only delivers a FRACTION of the cars that nearly every other automaker produces.
https://wolfstreet.com/2020/01/24/tesla-global-deliveries-compared-to-top-10-volkswagen-toyota-gm-ford-honda-fca-mercedes-chart/
Second, Tesla shares are trading at 85 times the projected $1.4 Billion Dollars of earnings in 2020…and, again, when you compare that to ANY other automaker…it’s A LOT.
https://www.gurufocus.com/term/pettm/VWAGY/PE-Ratiottm/Volkswagen-AG
Third, Tesla has only barely turned a profit…and even though things are OPTIMISTIC, there isn’t enough history behind the company to guarantee that this will continue, and demand will continue, for the foreseeable future and beyond.
https://www.cnn.com/2020/01/29/business/tesla-earnings/index.html
Fourth….Tesla is expected to face more and more competition from automakers who want to take away marketshare. And automakers all agree…electric cars are going to be the future, so they’re sinking a LOT of money into EV development.
That might cause one to believe that…based on quite a few factors…Tesla is OVERVALUED, and to reach a valuation similar to other automakers, Tesla would have to continue posting many years of 50% year over year growth in order to “Grow Into” what it is today.
However, the people who are OPTIMISTIC about Tesla would argue entirely differently - and would see it as UNDERVALUED.
Tesla focused on the technology - Their proprietary technology is why Tesla gets significantly more range than other, competing car companies…and not only that, but Tesla’s batteries are less expensive to manufacture, which would lead them to even further profit.
Second, one can argue that Electric Vehicles would be a similar adoption to that of the internet, or smartphones, or even the television when it first came out…and this follows an S-Curve of growth.
Third, Tesla is expanding with no stop in sight. They’re pushing out even more cars, they’re coming out with new concepts, and they’re expanding their manufacturing over the next few years. They’re also one of the few car manufacturers to post consistent growth in this space, while every other automaker has largely “Failed” at producing their own electric car.
Fourth, arguably…Tesla can move pretty quickly. It doesn’t seem as though they have a chain of command like other companies - instead, it’s Elon Musk and his crazy visions - and then, people just make it happen.
And finally…from my own, anecdotal experience…Tesla is a good product, and I didn’t fully “understand it” until I bought one.
And my thoughts, as far as where we’re at right now…even as a Tesla owner and stock holder…I can’t help but think a lot of this recent value is pushed more so by hysteria and excitement over making money, than it is about the prospect of Tesla overtaking the planet.
Now, that’s not to say that Tesla doesn’t have INCREDIBLE technology…and there are a LOT of promising features to come in the near future, like full self driving…or, maybe one day, autonomous Tesla Model 3 taxis. But right now…I think there’s still quite a few things that will need to happen, first, before we get there.
But who knows…maybe one day, we’ll all be driving Teslas…on the moon.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Ben Mallah just took his first test drive. Check it out.
Great video! I think electric cars are a great thing!
I am excited for Tesla
Would be interested in seeing an updated tesla video.
Ahhhhhh the good days when Tesla was below 1000 per share… (currently 1700+)
If it drops I will be happy to buy more for less. If it sky rockets I will be happy to already be bought in. There are no way to lose on this.
Stock is now at $1400…
Tesla is actually an iPhone on wheels. It is totally different and very innovative. Even their simple car ac mechanism is different than others and it feels really good.
What if something bad happened to Elon Musk? Mind you, I look up to him like Jesus, but still he is human. Something terrible could happen. What would happen to Tesla's stock then?
Uhhhhh imagine spacex going ipo
No true good trader speaks like this guy. Most great traders are, for lack of any better words, humble. That's because they have been through all of the hype and have gone on to keep trading, despite getting crushed by their own hubris from time to time This includes overbought bull markets on speculative stocks. It seems Tesla was absolutely punished by wall street lately, losing 50% of it's value at one point, when the market was down 30%. This makes Tesla a very speculative and weak stock, it's weaker than the overall market now.
Tesla is still up a lot from last year, for sure. However, it looks like this is a recession. Tesla only had buyers during the strongest bull market in history (past 10 years). Both it's stock price and sales will likely be down. For a company that only had an accounting profit one quarter in its history, this doesn't bode well for the stock.
I can't predict the future, but the old trading rule of thumb is that when everyone is sure of a sure thing, it's going down. That is pretty much what happened here.
I don't see anyone commenting on Tesla for the past month, probably because the stock price has been down for 3 weeks straight. Where is your faith? Gets tested when you have less money than you thought.
Hey Graham I love all your videos can u do one on stocks? For someone that dont know nothing completely nothing about it? Stocks and bonds or trading either one all or all of them would be very appropriated…step by step of course
Hey Graham, I believe that the problem with your phone not unlocking the car could be that your phone is restricting the app from running in order to save on battery life. I'm not 100% sure that this is the case, but it's what makes sense given how mobile operating systems work.
Tesla heavily relies on Elon being the CEO. Anybody else, and it might not be the same or as good of a company.
Same is happening with virgin galactic — since people can’t buy Space X stock they are buying the next best thing.
really REALLY well-made videos.
Did you order your Cyber truck?
This hype train will stop soon once the market corrects itself. I think people who invested Tesla because they missed out on Amazon, Apple, google and etc. It’s just bunch of wishful thinking. $7000 per share in the near future, kind of out of reach don’t you think???? The fault is not in the stars but in ourselves.
Dat like button ain't the only thing I smashed Graham 😉 lol jkjk. Also Graham inspired me to start my own YouTube, I'm on the road to a million!
Question for the month …..do you see Teslas on the road ?
Bruh Tesla went up like WHOAAAAA and down like NOOOOO this week. Rip. Also Graham kinda inspired me to start my own YouTube channel. I'm 19 years old and have a few videos up about my portfolio growth, and what different companies and ideas I'm going to invest in apart from the market! I'd love it if you could go and support it as I am just starting out, any constructive criticism is needed. Thank you. 🙂