Wall Street Has Given Up On Tesla Stock. Have I Given Up?!
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It is official… Wall Street has given up on Tesla stock. It is officially just doom and gloom around Tesla. You can get Tesla shares today in 2019 for lower than in 2014! Let’s have a serious discussion about this.
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Well guys here today, I want to go ahead and have a serious discussion about Tesla stock. And the fact is, if you were buying Tesla shares here today, you are buying them at a lower price than you could have. even five years ago, five years ago, you could have paid about $229 a share here today, if you buy in, you buy in for about $218.
And I hear some, you know, trolls out there some short saying why you want to even be in the stock like Tesla, what a garbage stock that is, it hasn’t moved in five years, it is down. Why would you even want to buy into that? As you guys know, over the past several months, I’ve been plowing a lot of money into Tesla shares.
And so it’s a fair statement. Like, why is that smart? Or something like that? Well, here’s the first thing you got to understand, okay. It doesn’t matter where a stock has been. It matters where a stock is going. If you’re buying stock a you know, XYZ today, it matters where that stock goes over the next 510 years, not where it was at last five or 10 years.
Okay, so I want to have a discussion on if you bought Tesla shares five years ago, what were you buying into as a company versus buying shares for basically the same price or cheaper price here today in 2019? Okay, now, also, I wanted to just kind of discuss, like, literally doesn’t matter where a stock has been over, you know, a period of time.
Okay, I’m gonna show you a little stock here called Nvidia, you may have heard of it before. Okay. Nvidia Corporation in 2011. You could have bought this stock for about 24 bucks a share 2324 bucks a share. Okay, guess what, four years later, you could have paid $19 a share. Okay. And guess what?
This Fast Forward another three years later, you could have paid $244 a share for video shares, okay, so literally, it does not matter at all where stock has been, it matters where stock is going. I’m not saying necessarily a Tesla stock to do an Nvidia or you can look at a stock like AMD, AMD was a stock that was like two to $4 stock for years and years and years, it was long gone forgotten about Okay.
And then also it goes from a two to two $3 stock to $12 stock and from a $12 stock to I don’t know, it’s probably 30 something dollars now, in a snap of the fingers. Okay, so it literally doesn’t matter where stock has been in matters where stock is going. It doesn’t matter if a stock hasn’t done anything in four or five years.
Maybe that’s because people that were buying the stock made very bad decision at that time. And you’re coming in at the right time, do stock market investing is all about timing. Same thing with real estate investing or anything across the board. It’s all about the timing. All right.
So we’re going to talk here about Tulsa stock in 2014. Over on this side, versus today in 2019. And what you’re getting back then versus what you’re getting now for basically the same share price. Okay, so back then the Evie Revolution, the electric vehicle revolution was a far far away thing.
It was like galaxy as a way it’s like, Man, that would be so cool. If we could have a lot of people have an electric vehicles or we could all have electric vehicles. Okay. It was like, you know, a far far away thing back in 2014. Whereas you fast forward now to 2019. Okay, we’re in May of 2019. And the Evie revolution has started 2018, in my personal opinion, was the year the electric vehicle revolution really started.
It was the year when for a super, super nice thing to awesome, this big growing category that the masses started adopting, okay. And also, it’s like, Whoa, electric vehicles are actually here, the revolution is starting, look at the numbers, look at the numbers, you know, electric vehicles are starting to do specifically tests, obviously, they they’re, you know, the dominant dominant player in electric vehicles, okay.
And in my personal opinion, this is my opinion, okay, if I look at all the trends, if I look what’s going on in real life, if I look at the numbers, in my personal opinion, within three years, so 2022, we could fast forward to 2022, you know, May of 2022, let’s come back to this video.
In my opinion, nine out of 10 people who go to buy a new car, they will be purchasing an electric vehicle, okay, that’s within three years, nine out of 10 people that go to buy a new car in three years from now, they’re not going to buy an ice vehicle, they’re going to be buying an electric vehicle could be a Tesla could be another competitor, a Tesla.
Who knows, one thing we do know is electric, you know, as far as electric vehicles go, you know, Tesla’s by far the number one and market share. So even if you know other players come in the space, as long as they can maintain the number one, you know, place in basically electric vehicles, like imagine the wind that can be down the road.
So if I’m looking at the trends, if I’m looking at what I see in real life, nine out of 10, people are going to be buying electric vehicles, if they’re going on the lot, you know, in May of 2022. Versus today, when I think still even today, most people don’t care necessarily about electric vehicles.
The trend is getting bigger and bigger as far as the amount of people caring about electric vehicles, but it’s not like nine out of 10 people not even close to that right now. Nine out of 10 people are still going to, you know, buy a used vehicle as of right now, three years from now, it’s going to be completely different in my personal opinion.
Okay. Then in 2014, you’re looking at a Tesla. Now, they only had the Model S in the market. That is it. That’s the only vehicle Tesla had in the market. They were selling model S’s and that was it was a super, super Super niche player in the automobile market.
Okay. Now in 2019, you’re getting a company that basically that has the Model S in the market, they have the Model X in the market, you know, the high end SUV, so they have a high end car in the market, a high end SUV in the market, a mid priced vehicle in the market, obviously, the model three that’s the mass car for electric vehicles, right.
And then now they have model y that’s coming in about a year right now this is going to be the kind of the Affordable the mid price space as far as electric vehicles as far as SUVs go, it’s going to be a huge mover In my opinion, it probably has even bigger potential than model three over the long term. Okay.
Also the semi is coming in 2020 the Roadster is going to be coming in a year or two, those are kind of a little more niche, in my personal opinion, although semi could be big number for the semis they sell for they even if you don’t do huge volumes, they’re so expensive, you know, these could be you know, 200,000 plus dollars, they’re so expensive that you know, Tesla could end up running up some pretty big numbers there.
So you’re getting it literally 2014 Model S and now Model S Model X model three model y is right around the corner semis red car on the corner. And the roaches are like, well, when would you want it to invest in tests? Okay, back then or now, right? In 2014 Tesla didn’t even have an autopilot feature.
Okay, it didn’t have an autopilot feature. By the way. something I’d even mentioned up here is autonomous taxi network, you know, capabilities, but I didn’t even touch on that. Okay, but neither say Tesla didn’t have any autopilot feature back then. Now they have highly advanced autopilot.
Where literally these cars, you know can do most of the driving without you now in probably within a year or so they’re going to be able to do literally all the driving probably better than most humans out there. Okay, so we went from no autopilot to highly advanced autopilot in a matter of five years.
Okay. Very different story around Tesla. Now, it’s not just an electric vehicle play. It’s a play on autonomous driving in that being the future. Okay, back then in 2014, they didn’t have any custom chip for basically running any of their software’s as far as self driving goes.
Now they have a custom chip, and I’m no expert on chips or anything like that. Okay, so I defer to the actual experts on the people that break these things down. And from what I’ve seen from expert after expert basically the custom chip Tesla has its one to two years ahead of what Nvidia has which Nvidia is the main competitor with with Tesla when it comes to kind of like self driving vehicles and whatnot as far as the chips go, that is sick.
Okay, this is Tesla is a company that pulls off miracles consistently, if they could be one to two years ahead of Nvidia with a custom chip like, like I can’t even explain like how ridiculous that is, guys. And that’s what the experts are saying. That’s not what I’m saying.
Okay, that’s what you know, people that have, you know, very high level knowledge on chips, and you know, those sorts of things. They say it’s one or two years ahead of Nvidia, ridiculous, okay, and those chips are shipping into Tesla’s here today.
Okay, that’s just insane, guys. So you know, tuffs is a company that pulls off miracles on a consistent basis, most companies can dream to pull off a miracle. Tesla just pulls it off. Like it’s it’s another thing Okay, revenues in 2014 for Tesla were non existent.
Like I said, they had the Model S in the market and it was super DC at that time, revenues were literally non existent for Tesla was like a joke of a business model. Okay. Whereas in 2018, they just did over $21 billion in revenue in 2018 $21 billion as a was a business.
That was mostly just selling in the US now as a business that is starting to sell more and more internationally 21 plus billion dollars in revenues in 2018, you’re talking about a company that is starting to reach some pretty big scale, okay, in my opinion, they got a long way to go to really reach their full abilities.
As far as scale goes, Okay, and 2014 if you were buying the stock, you’re buying a stock that didn’t have a Giga factory, they didn’t have a Giga factory, they only had the Fremont plant and that’s all they had at that particular time. Now they have the.
Gigafactory Reno which is fully up and running, okay, that’s a massive facility is supposed to be the, you know, the biggest facility in literally all of the world and they should have the China Giga factory up and running within six to 12 months. Okay, that one is being built at a very rapid pace.
They should have another Giga factory coming in Europe at some point time, but neither say as of right now Giga factory Reno’s up and running, and China should be up and running within six to 12 months. That is a huge thing. Okay, especially when you’re going after the Chinese market, which is a massive opportunity for Tesla, okay.
In 2014 profitability for this company was like miles and miles away, like you couldn’t even foresee profitability. It was kind of almost like an Uber, like you buy Uber stock today, you know, it’s kind of like, You’re, you’re hoping they’ll be profitable someday, but it’s a long, long way away, right?
Same thing with a company like Lyft, right? That was Tesla back in 2014. It was like, man, they might be profitable one day, but it’s like 100 years from now. Okay. Whereas now, to have the past three quarters, this company was profitable. So they’re starting to get to a place where.
They can probably start churning out more profitable quarters than last quarters, and then what’s going to end up happening after they can start producing, you know, more and more, you know, profitable quarters, eventually, I think they’re going to get to a place where every single quarter, they’re profitable, and so that’s very, very close, whereas you know, 2014 and Like, he made it Sunday, but it’s like a million miles away. Okay.
In 2014, they had no supercharger network. Now they have a full supercharger network in most places around the world. I think that’s going to be a huge profit engine down the road. I know some people said, you know, Elan Musk said things like, oh boy, you won’t make profits from the supercharger network or something like that.
I don’t believe that at all. I believe they will make profits from the supercharger network over time as demand continues to rise for that product. And as they need to, for the really the business model to really start churning out profits and then returning that money to shareholders and then building out for future things and future projects and whatnot, without having to raise capital, you have to make big profits.
I think the supercharger network will be a profit machine in the future, okay, that in 2014, Tesla had not proven any type of scale production, if they were making, you know, maybe 100 vehicles in a given month or quarter or something like that. It was literally a joke, right?
Whereas a now in 2019, this is a company that has proven they can scale production in 2018, they just produce cars that were worth over $21 million. Okay, that is scale production, when you start doing 10s of billions of dollars in a given year. In basically vehicle sales. You are, You have now reached scale production.
Okay, so this is a company that’s proven they can do it. So now we’ll model y comes here, okay, like Tesla’s already proven they can do this, okay. So if model y sells 100,000 vehicles in a year, or 200,000, or whatever, I have full, I have full faith that Tesla will be able to produce 100,000 or 200,000, model wise, a year, because they’ve proven they can do that already with model three.
Okay, whereas before, it was like, I hope they can do that. Maybe they can do that. Now it’s been proven to you is so much worse, proven now than versus back in 2014, where almost nothing was proven. Okay. auto companies back in 2014. They were like, EBS or Joe joke they’d maybe not didn’t say it in those words.
Well, some actually did say those words, but a lot of them were kind of like, you know, brushed off to the side, like Oh, man, maybe that could be something some day maybe that could be a little cya, you know, fun side project for us. Whereas now the tone has completely shifted five years later, every single big auto manufacturer out there says he V’s are the future.
All our cars in the future are going to be electric vehicles, all car sales in the future are going to be electric vehicles. So you went from Oh, it’s just kind of a joke to five years later, oh, it’s everything. Okay? That is a massive shift in the mindset when you go from, you know, whatever about it to always are everything now.
Okay? massive, massive shift there, okay. And Tesla stock on Wall Street. And 2014 was just all hype and hope it was double h okay. It was hype and hope, hype and hope, hype and hope it was all people were, you know, basically kind of going for out there. It was just like this, hype it and let’s hope everything works out.
Whereas now, if you’re betting on Tesla, okay, you’re betting on a company that has proven a ton of things that is a million miles ahead of where they were like their company was a joke in 2014. It’s actually a legit big organization now in on their way to becoming one of the biggest companies in the world as long as they continue to execute.
And you’re looking at a stock now that Wall Street has completely jumped ship, you look at the sales that was like Wall Street follows each other, okay, that all these fund managers, they follow each other. And if a stock’s down trending like Tesla’s been down, trending down trending over the past six months or so, five, six months, basically what happens is fund managers continue to sell, they don’t want to be associated with that old man.
And it continues to go down What if it gets worse, let’s sell out our shares. And so Wall Street just kind of follows each other. And it’ll be the same exact thing, when Tesla starts to go up, when Tesla starts to rise, it’s just going to be a funnel of fund managers jumping on the ship and trying to get on as fast as they can, because they want to be associated with Tesla when they start to rise once again.
But right now, Tesla’s a down and out stock, it’s beaten down Wall Street has no faith in it, blah, blah, blah, and mainly Wall Street, just like I said, these fund managers, they just follow each other around so they can look good. And when their high net worth clients come to them and say, hey, you’re not in Tesla stock, great.
They can say, Nope, I’m not in Tesla stock, okay. And then when Tesla stock gets hot again, guess what they’re gonna do, they’re gonna buy it back, and then all sudden, the clients are gonna say, hey, you bought Tesla stock, right? That’s the ones going up like crazy. I’m like, yeah, I’m in Tesla stock.
It’s, it’s the same thing with these fund managers over and over again, you’re buying a proven, let’s wait, I look at it, I’m buying a super proven business model. All the trends are going toward electric vehicles. They’re the dominant market share, that’s where everything’s moving autonomous vehicles. You know, they’re, they’re in the front end.
And you know, as far as that goes, everything’s moving toward them. And back in the day, 2014 people that were buying the stock in 2014 I don’t know what they were thinking they were just hyping and hoping. And that’s the bottom line. People are speculating and gambling. I feel like the chips are on my side now.
Okay. And the fact that I’ve been buying the stock over the past several months and continue to buy it heavily the chips are on my side now I’m the casino now. You were buying stock back to five years ago and Tesla, you were the player at the casino you were hoping that maybe things could work out okay.
You’re paying a way overpriced valuation back then for a company that hadn’t proven anything. Whereas now I feel like I’m the casino, okay. It’s a different it’s a you know, things had moved and we’re gonna man I don’t want to say for sure we’ll do amazing on Tesla but I’m, I’m pretty fairly confident let’s put it that way guys. Thank you for watching and have a great day