Wall Street Hates Tesla.. Another Analyst Downgrade

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Wall Street hates Tesla stock right now. Another anyalst downgrades comes today. It is a straight pile on for Tesla stock. I can only imagine what Elon Musk and Tesla executives are thinking right now with this Wall Street gang up on Tesla.

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Well yes cowboys it is true Wall Street does indeed hate Tesla stock here this morning Tesla stock has been downgraded once again by another analyst I want to go ahead and look at what this analysts had to say I want to look at what their price target is. I want to talk about the analysts death spiral I call it for stock in Tesla is in this right now.

I want to talk about that I want to talk about if I made any moves in regards to Tesla we got a lot to get into today guys, so let’s get into this. Okay, well, Busch Gardens praise target on Tesla shares to $230 from $275 on Monday, citing major concerns about the growth plan of.

Ilan musk electric vehicle company as well as us demand for the key model three this gentleman says quote with a code read situation at Tesla musk in CO are expanding into insurance, Robo taxis and other sci fi project endeavors when the company instead should be laser focused on shoring up core demand for model three and simplifying its business model and expense structure in our opinion with headwinds abound.

Wedbush analyst Daniel Ives said in a note to investors, obviously Tesla shares fell four plus percent in the pre market trading and yes, that is accurate is down about 4% in pre market and as soon as the market open and actually open much more than negative it was in the 195 $196 range. Okay, unbelievable. Move down.

I’ve said Tesla’s ability to reach the end of your production forecast will be a quote Herculean task, the company forecast that it will produce 360,000 to 400,000 vehicles by year end Ives estimates a quote best case scenario of 360,000 to 370,000 vehicles, although 340,000 to 355,000 is a quote, likely path given the current tea leaves in the field around demand.

Okay, first off here, let’s just have some numbers there that basically have green underneath them. Okay. 360,300 70,300 55,000. Does anybody that’s a core Tesla shareholder out there a long you know, Tesla shareholder? Does anybody really care if Tesla moves 355,000 vehicles this year? 360,300 70,000. No, I don’t know one long.

That’s in Tesla shares that literally cares if they go 355 or 370, or 360. Like everybody that’s a long shareholder in this company is in this one for a huge long term opportunity in this one. So the fact that they would talk about these numbers like like the matter to us Long’s like, literally, like no one that’s an actual real shareholder of Tesla.

That’s a from the long side tears about this, maybe traders care about this and trying to hit a specific number. But from the long opportunity in front of this company, what we believe is going to happen for Tesla over the next 357 years has nothing to do with basically them moving 355,300 70,000 like if they beat those numbers, and they do 375 do you think we really care? No, we honestly don’t.

We care about the long term opportunity. And the fact that this is a company that could be moving a million vehicles in the future, or a couple million vehicles in the future. That’s where the that’s where the real goal is that not if they move 355 or 370. Like it literally doesn’t even matter for us.

So it’s just it’s hilarious, okay, he says Tunstall is facing a quagmire. giggity as the company is in the midst of building out its next flagship factory in Shanghai, with the Gigafactory, three in the early stages of tooling blueprinting its model y for production, which is slated to start in 2020.

And ramping production for its mid range and base model three in the US, all while facing a cash crunch and high expense structure. Oh, you see that red texture? That’s me. Okay. Oh, so Tesla’s trying to pull off something challenging. You don’t say? Like, it’s amazing. These analysts try to tell us something we don’t know, obviously.

What Tesla’s going after, what tests was pulling off and what they’re trying to pull off is complicated things, right? This isn’t just something that you snap your fingers in and like, oh, it just magically all happens, right? tufts is a miracle company that they’ve gotten to this stage.

And they’re a company that consistently pulls off miracles it’s just the way it is. So basically, this analyst is telling us nothing we don’t already know like this is this is hard stuff to pull off. This is not easy stuff. Okay? This is not just you know, just something that happens so easy.

Okay, it’s amazing tussle pulls off these I have folks that I have full faith that they will be able to pull off model wide you know, ramping successfully, especially after what they learned from model three I have full faith that the Shanghai Giga factory will get up and running and that’s going to be a full unit production at some point in 2020.

They’ll probably start going into some production maybe in 2019 That one’s being built so fast. It’s unbelievable guys, check out the latest video, gentlemen posted out of China basically showing the progress on the Shanghai Giga factory check out that video when this one’s over.

It’s sick Okay, just type in like Tesla Shanghai Giga factory is crazy guys. Okay. The company is also trying to rein in expenses. I said as musk declared an email to employees last week. I He said Tesla faces a Kilimanjaro like uphill climb to hitting its profitability targets in the second half of 2019.

While the recent raise of $2.7 billion in capital was smart for Tesla, I’ve said the company’s management especially with an inexperienced CFO at the helm is a risk moving forward a somewhat I will give him like that’s a somewhat fair criticism, obviously a new CFO and you know, he does have to prove himself out and whatnot.

But at the end of the day, I really feel like Ilan musk at this point in time really controls the money and kind of dictates you know how the company is run financially at this point in time I really feel like Musk is really running the full show which is a certainly if you don’t feel comfortable with musk running the full show then it’s not a stock you want to be in this is really a stock that you have to really believe in, you know the.

CEO Ilan musk and if you don’t believe in Him, then it’s not really you know, stock you can really be in Let’s just be completely honest, if you don’t feel like you know, because Musk is really the guy who’s directing the whole show that let’s be very clear about this.

Okay, to show you another breakdown of how much Wall Street really hates the stock right now. There are 15 analysts sell ratings on this stock right now. Okay. And then there are 10 holds. There are no strong buys from what I see right now. And there’s about 11 by ratings.

Okay, so 15 sells 10 holds that he don’t but yet that consensus price target is $301. Figure out that one right. Okay. And this comes after several downgrades last month, obviously on April 22. Tesla was downgraded at Evercore on slowing demand across all models.

Then a few days later, Tesla’s profitability will not magically return an analyst says as q1 was a debacle for muscles go ahead and downgrade the stock once again there. So we just see this EA no downgrading from Wall Street, Wall Street just does not like Tesla stock right now.

It is the way it is. Okay. So what did I go ahead and do in regards to Tesla stock today, and then we’ll talk about the analysts death spiral and why you should maybe welcome the analysts death spiral. Okay. Well, what I went ahead and did is I bought another 29 shares of Tesla this morning.

I got them for $196.66 was just under a $6,000 trade there. And so I’m thrilled to get some more shares in Tesla and I will continue to be a buyer of Tesla shares as a you know, continue to be weak like they are now I’ll continue to kind of nibble off shares, you know, 20 shares here. 15 shares here, 30 shares here.

Okay, so the analysts death spiral, you know, I always say an analyst can be your best friend or worst enemy, I think one of my courses have actual, like a full video, like dedicated to the fact that an analyst can really be your best friend or worst enemy in this game.

Okay, here’s the analyst death spiral for a stock that basically happens, analyst comes out in downgrades the stock, okay, this can make the stock price go down all sudden, you know, those clients, they sell out the stock, or it’s just kind of like negative sentiment around that stock, because oh, an analyst came on downgraded stock moves down, okay, then the stock moves down.

So as some analysts start actually cutting their price targets, because they’re like, oh, now our price target that was way up here, we have to bring it down, because we’re going to look really stupid, since the stock is way down here now. So let’s go ahead and cut our price target for the stock.

So analysts start cutting price targets. And what does that go ahead and do? Well, that goes ahead and sends the shares no more, the stock goes down even more, and this starts becoming like a fulfilling prophecy, okay. And so then the stock continues to go down.

So you know, instead of thinking shoot, man, I should probably come out and downgrade the stock because it just continues to move down. We’re way up here, we’re going to look stupid at the stocks way down here, let’s go ahead and downgrade the stock and it causes the stock to move down more, and then more analyst price target cuts.

And it’s like a literally like a fulfilling prophecy. And they just continue to move the stock down and down and down, until eventually it bottoms out. And that’s what happens with all stocks eventually bought them out. And then they start moving the other way, okay. But the inverse can also happen.

I’ve seen it a million times, not just you know, this, this happened, but the inverse, where basically, it’ll be an upgrade, and then the stock moves up, and then the stocks moving up, because it has momentum in general, there are buyers coming in the market, then then in all these analysts start raising their price targets causes stock to move even more.

And then an analyst comes out and upgrades it again. And it’s like literally this, but in the inverse way, so the stock just continues to go up. Okay. And this is why an analyst can really be your best friend or worst enemy, but it depends on if you’re a buyer or seller, and this is really kind of the way you should view it.

If you’re a buyer in the market, okay, you’re trying to buy a stock, you’re trying to buy more shares in a stock you’re trying to, you know, add to a position, then really, you want the stock to kind of be in an analyst death spiral at that particular time, because that’s going to give you better and better buying opportunities.

Obviously, you want to buy as many shares as possible each time you go to buy those shares, let’s say you got $1,000 a month to put toward a stock, right? You want to be able to buy those shares at the cheapest price possible. So if you’re a buyer in the market, this is kind of actually what you’re looking for.

Now, if you’re seller in the market, you you hold shares of a stock and you’re trying to sell out of that position. You don’t like that stock, you don’t want to be in that stock, then obviously this is not the situation you want to be in. If you’re just trying to sell Tesla shares right now you don’t want to be in Tesla shares.

This is an absolute nightmare for you because it shares literally just Continue to move down pretty much day after day or week after week, if you’re a buyer, it should be very welcomed, okay, but if you’re a seller, you should hate this. If you’re a seller, the inverse is what you want.

You want to be in a situation where you’re you’re being able to sell into strength, where an analyst can come down upgrades the stock, and they, you know, say the price is gonna go up even more and oh, we need to raise our price target for this stock. That’s the situation you want to be in as a seller, you know, you’re going to probably hate this.

If you’re if you’re someone trying to sell out a Tesla shares, you’re going to not like this at all. But if you’re a buyer, you know, what would I could have bought, let’s say, you know, Tesla shares are buying that are at $296. Today, how many shares Could I got with my 50 $700? At $296? versus how many I got today at $196.

Okay, so if you’re a buyer, you should welcome this. If you’re a seller, obviously, you’re not happy at this particular time. But I don’t see this kind of going away, we’re probably going to bottom out pretty soon here. I don’t want to make any call on you know, a specific price.

I would say if I had to guess if I was forced to be put on the spot and say, oh, we’re gonna bottom out somewhat soon, I would say probably somewhat soon. You know, can I see Tesla shares going lower than let’s say 150? Probably not. Outside of maybe a mass recession.

I can honestly see tons of shows going on under 150 everything’s possible it could happen. Okay. 180 maybe that’s where we bought them out. That’s where the stock hit, you know, a few years back I think that was in the 2016 I think was like February 2016 or something like that the stock had kind of like bottomed out and that was the lowest had been in in years.

Right now. There’s only one time in the last five or six years that the stock has been this low. Okay. And that was in I think it was around February 2016. So you know, all things are possible we’ll have to see how everything shakes out all I know from a buyer perspective, a tussle stock you know, although it’s annoying to see you know, constant negativity around the stock.

If from winning from a buyer perspective, it’s literally the best situation you can possibly have Could you just get so many more shares for such a better price than any other situation guys? So anyways, let me know what you think about this analyst in that comment section. I would love to hear from you guys.

Do you think he’s right? Do you think he’s wrong? What do you think about Wall Street in general and how they gang up on stocks. I would love to hear from you guys in that comment section. As always, make sure you smash that thumbs up button if you enjoyed this video today. Thank you for watching. Have a great day.

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