Why It's Ok to Buy Tesla Stock at $2000 Dollar Share Price скачать в хорошем качестве

Why It's Ok to Buy Tesla Stock at $2000 Dollar Share Price

So a couple of weeks ago, I made a video about why Tesla will eventually reach $2000 dollars a share. And that was back when Tesla was trading around $1400 dollars a share. Now I posted that video before Tesla released the news that they were going to do their 5 for 1 stock split, which I think is the primary catalyst for Tesla breaking the $2000 dollar barrier, but I still think the things I said in my last video on Tesla hold true. We need to talk about Tesla’s valuation first. If you watch the news or read stock articles then you would know that Tesla is a very polarizing stock. If we look up the price targets for Tesla, we can see very big differences between analysts. Right now the median price target is $1450 dollars which is not too far off of Tesla’s current stock price. But if we look at the highest and lowest price targets, it gets a little ridiculous. The high price target is $2400 dollars but the lowest price target is only $87 dollars. So clearly analysts don’t really know how to value this stock, or at least they can’t agree on how to value it. One of the reasons Tesla is so hard to value is because they are not a car company. In my opinion they are a technology company. And I talked about this in one of my other Tesla videos but right now Tesla stock is being valued more in line with stocks like apple and Netflix if we compare the revenue to market cap ratios of each stock. If you want to watch that video I will put a card up in the corner for you to click on. So right away, I would say any analyst giving Tesla a very low price target can be ignored because they are not valuing Tesla stock correctly. The first catalyst would of course be the stock split happening this Friday. The stock will split with each share being broken down into 5 shares. So all this means is that instead of Tesla stock trading at $2000 a share, it will trade at $400 a share after Friday. Other than the share price changing, nothing else about Tesla's fundamentals will change. So the market cap will not change, and the valuation of the stock will not change. But if you have 1 share today, you will have 5 shares on Monday. And while nothing about the fundamentals of the stock will change, usually when companies announce stock splits, it is a bullish sign because it makes the stock cheaper for average investors to buy. One of the reasons that I think Tesla is doing the stock split now is because they are anticipating huge investor demand after battery day, which is only a month away. Tesla is expected to announce big advancements in battery technology and this will most likely result in a big increase in demand from retail investors. And so splitting the stock so it is only $400 dollar a share will entice more retail investors to jump in. The battery advancements that Musk has hinted at would be very impressive. Some of those potential advancements include the million mile battery and batteries with high enough energy densities that would make electric airplanes viable. Also, I am guessing that we can expect to hear some good news in terms of cost reduction of the current batteries Tesla uses which would greatly increase Tesla’s profit margins on their vehicles. So in my opinion, I do think battery day will drive a lot of investor interest in Tesla stock. The really exciting part for Tesla investors is that even though Tesla is already experiencing exponential growth, there are many different catalysts that will most likely accelerate this growth rate moving forward. Those catalysts concern new markets and new products. For new markets, China is a huge opportunity that some analysts say will add $400 dollars or more to the share price. And in terms of new products, there is the model Y and the cybertruck. The model Y is basically a bigger version of the model 3. Which is important because the model 3 was the top selling electric car worldwide last year, outselling the next closest competitor by a 3 to 1 ratio. So we can expect the model Y to be a big driver of sales growth over the next couple of years. Also the Tesla cybertruck will help Tesla attack Ford and GM head on in the lucrative pickup truck category. So if the cybertruck can sell well like Tesla hopes it will then that will give Tesla a huge competitive advantage. Also, Tesla is getting ready to start production on the Tesla semi soon which will be another growth driver for the company.