Could Tesla Stock Reach $1,420, and What Should Shareholders Do Now?

TL;DR

Tesla’s rally is being driven by strong demand, a growing vehicle backlog, and Hertz’s order for 100,000 cars, although the transcript does not establish that the stock will reach $1,420. Shares rose 14% to more than $1,000, pushing Tesla above a $1 trillion market cap. Read on for the speaker’s analysis of Hertz’s order, customer exposure, pricing power, and delivery backlogs.

Transcript

well holy smokes folks this ain't no dang jokers uh flapjacks are out here getting flipped today let's put it that way uh invisible cheers to all tesla shareholders today what a day i wake up to see tesla stock up 14 yes 14 over a thousand dollars a share now over a trillion dollar market cap that is a good way to wake up nonetheless okay the gains... Read More

Key Insights

• 👲 The surge in Tesla's stock and market cap showcases a significant achievement for the company.
• 🚙 Hertz's order signals increased demand for Tesla vehicles and highlights the potential for more sales in the future.
• ✋ Tesla's profitability is expected to improve due to the price hikes on their vehicles, resulting in higher margins.
• 💆 The projected delivery numbers for 2021 and 2022 suggest continued growth for Tesla as they aim to reach mass volumes of vehicle production.
• 🚙 The potential for more rental car companies and other companies to order Tesla vehicles in the future presents additional opportunities for sales.
• 👨‍💼 Tesla's long-term growth prospects, such as the autonomous taxi network and the battery business, contribute to its bullish outlook.
• 🚕 The increase in Tesla's valuation poses a challenge for selling shares due to potential tax implications.

Questions & Answers

Q: Why did Tesla stock rise above $1,000 per share?

The speaker connects the rally to Tesla’s new all-time high, strong vehicle demand, and news that Hertz ordered 100,000 Tesla vehicles. Tesla stock rose 14% and surpassed a $1 trillion market cap.

Q: Does the transcript show that Tesla stock will reach $1,420?

No. The title presents $1,420 as a possibility, but the transcript excerpt only reports that Tesla traded above $1,000 per share and exceeded a $1 trillion market cap.

Q: What is the significance of Hertz ordering 100,000 Tesla vehicles?

The speaker believes the order will put more Teslas into the rental market, allowing more people to drive and experience them. He argues that positive rental experiences could encourage some drivers to order a Tesla themselves.

Q: How could the Hertz order affect Tesla’s vehicle backlog?

The speaker says Tesla already had a substantial backlog before Hertz ordered 100,000 vehicles. He expects the additional order to push delivery dates out further.

Q: How could Tesla’s backlog strengthen its pricing power?

According to the speaker, a larger backlog and continued order growth could give Tesla more pricing advantage. His reasoning is that strong demand may allow the company to raise prices while orders continue coming in.

Q: How long were customers reportedly waiting for Tesla vehicles?

One customer reportedly ordered a Model Y for delivery in May. A Model X was estimated for September 2022, roughly 11 months away at the time discussed.

Q: Why might rental Teslas generate future vehicle sales?

The speaker says many people want to rent a Tesla because they have never driven one before. He believes people who have a good experience with the vehicle may be more likely to purchase one.

Q: Could the Hertz deal create opportunities beyond the initial vehicle sale?

The speaker notes that a fleet of 100,000 vehicles will occasionally require service when problems occur. He also wonders whether other rental-car companies or businesses may place Tesla orders in future years.

Summary & Key Takeaways

• Tesla's stock has surged by 14% in a matter of days, reaching a value of over $1,000 per share and a trillion-dollar market cap.

• Rental car company Hertz has ordered 100,000 Tesla vehicles, which will increase the exposure of Tesla cars and potentially lead to more sales.

• Tesla's profitability is expected to improve significantly due to the price hikes on their vehicles and their projected delivery numbers for 2021 and 2022.