Tesla Stock still over $ 1,000 bargian and trillion dollar market cap


One of Tesla’s top analysts is Gary Black, who has a very grounded and in-depth approach to his Tesla research. He’s a Tesla bull, but not a hyper bull. He sees positive catalysts for Tesla, but places no value on the range of Tesla vehicles.

Other members of the Tesla community place great importance on stand-alone software and potential uses for Tesla Bot, seeing Tesla reach a market cap of $ 20 trillion or more in the decades to come.

Whichever “camp” you find yourself in, Tesla shares are still relatively cheap today. You are probably going to beat the S&P 500 with Tesla because Tesla has many advantages and I believe that even without range, without power and without Tesla Bot, Tesla will reach many higher multiples than today in this decade alone. .

Tesla has many advantages and is one step ahead

Tesla is in a very similar situation to what happened to smartphones in 2007. Meanwhile, Apple released the first iPhone and it was a very clean phone with no extra buttons to tap like all other phones. Other phone companies failed to catch up, and ultimately Apple and iPhone (as well as Android) ended up taking most of the market. It will be the same for Tesla. Mainstream automakers are now talking about switching to electric vehicles, but it’s too late to play the game, as are the original phone makers.

Tesla is very advanced in battery manufacturing and battery contracts with suppliers as well.

Here are the Tesla perks that make inventory a steal today and for many years to come. Tesla is in the early stages of growth and I think it will hit 20 million vehicles sold by the end of the decade, per year, along with autonomous driving and Tesla Bot revenue.

Tesla is the first engine of electric vehicles

Tesla has been working on electric vehicles, with Elon Musk, since 2004, with the original Roadster coming out in 2008, 2012 for the Model S, 2017 for the Model 3 and 2020 for the Model Y. We might see the first CyberTrucks in China and the United States at the end of 2022, as well as Tesla Semi and the new Roadster soon after. We will then see the “Model 2” shortly thereafter, and Tesla will likely begin to manufacture a van, bus, and any other vehicle it deems necessary to meet market demand for each vehicle segment.

this pioneering advantage is impressive, even though Rivian is already starting to deliver electric trucks. Even though Rivian has a head start now, I think Tesla will quickly overtake them in volume production with the CyberTruck once it begins production in late 2022.

Tesla has a huge manufacturing advantage

Elon Musk has repeatedly stated that Tesla’s main advantage is its ability to manufacture. Elon Musk repeats over and over again that prototypes are easy and mass production is very difficult. He has the experience to make this claim and even says it to warn other companies that are starting to make electric vehicles, like Rivian, Lucid Motors and others to help them meet expectations and see what they are doing. must be successful. Elon Musk wants the world to switch to sustainable energy and doesn’t want other electric vehicle makers going out of business. It will just take them a lot of work to achieve volume production AND be profitable.

Tesla is already at a production rate of over a million vehicles per year. For example, Lucid Motors wants to reach 250,000 vehicles per year in 5 years. Tesla is already going to do it in Q1 TODAY.

Tesla will soon have 4 huge Giga factories operational

Giga Berlin and Giga Austin (TX) are about to start production and deliveries to customers. Early next year, we should see the first vehicles delivered to customers. With such demand for Tesla vehicles and Tesla’s production being limited, it would be great if Tesla could open another giga factory.

I’m not sure if this is happening because Tesla has its hands full with everything that needs to be done in existing giga factories and there is not enough skilled talent to run another giga factory efficiently. We know that since Tesla’s last shareholders meeting, Tesla will probably start defining areas for a new giga factory in 2022, and announce a location and start building it in 2023. I think India makes a lot of sense though. Tesla can do this work and significantly reduce the cost of the vehicle.

Tesla will eventually capture every vehicle segment

A number of vehicle segments have yet to be captured by Tesla. These include:

* Launch of CyberTruck for the pickup truck segment
* New Roadster released for the expensive sports car segment.
* Let go of the semi
* Release of a van
* Drop a bus
* Release of the compact vehicle “Model 2”
* Release of a version even cheaper than the compact Model 2 to compete with the Toyota Corolla.

Are there vehicle segments beyond these that make sense? I don’t see any. By the time Tesla produces vehicles for all of these major segments, it is possible that the batteries will reach a point where the production of a vertical take-off and landing flying vehicle will start to make sense.

Either way, once Tesla tackles all of these major segments, they will produce over 20 million vehicles a year and the revenues will be staggering.

Tesla Robotaxi and Autonomous Driving Will Happen

Gary Black places no value on the robotaxi for Tesla and believes everyone will have level 5 range by 2025. I see it a little differently. Autonomy solving is not a simple problem and even if Lidar and Radar become cheaper, you still have the problem of having to make a decision that you are right as opposed to seeing with cameras.

Tesla did the right thing and removed Lidar from its vehicles. With just cameras and vision now, Tesla can create autonomous vehicles at very low cost. All it takes now is for Tesla to continue to get more and more real-world data from its FSD beta testers and create a system that can easily handle all of the world’s road scenarios, including including construction and all dynamic and peripheral cases that occur.

I think Tesla will get there first, ahead of everyone else, and they’ll dramatically reduce the cost of transportation per mile, putting Uber and Lyft out of business if those companies don’t adapt. Hertz, who bought 100,000 Tesla Model 3 vehicles, has adapted and I think they will be successful in the long run.

Tesla Bot has huge potential if it works

The big wild card in all of this is Tesla Bot. No one knows exactly what Tesla Bot will do except that Elon Musk has said it will be used for mundane, boring, and dangerous tasks. It remains to be seen how many people and businesses will benefit. But, if Tesla can use the same principles as autonomous driving and the neural network for this, it stands to reason that Tesla will be able to train a neural network for a robot to walk around and interact in the real world.

If Tesla Bot goes mainstream, it will only increase Tesla’s revenue and market capitalization by billions of dollars. After all, Elon Musk asked, “What is the limit of the world economy?

What do you think of Tesla stock at its current price and price / earnings ratio? Is it still a good deal today? Will it continue to increase in value or come down a bit?

Leave your comments below, share the article with your friends, and tweet it to your followers.

Jeremy Johnson is an investor and supporter of Tesla. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. He has since grown into a Tesla Bull, covering everything he can find on Tesla, while also taking an interest in other EV companies. Jeremy covers Tesla developments at Torque News. You can follow it on Twitter, Facebook, LinkedIn and Instagram to stay in touch and follow her Tesla news coverage on Torque News.

Source link

Leave A Reply

Your email address will not be published.