As Tesla Stock Collapses, Bull URGES Tesla To Act NOW

TL;DR

Tesla's stock has dropped to a 12-month low, prompting calls for a 10+ billion dollar share buyback to take advantage of the undervalued stock.

Transcript

Tesla stock is officially half price and at a 12 month low and another Tesla ball has joined the chorus pending an open letter to Tesla's board of directors urging them to consider a 10 plus billion dollar share buyback so ladies and gentlemen before we get any further in today's video one you should definitely join patreon with the card in the cor... Read More

Key Insights

• 😘 Tesla's stock is currently undervalued, reaching a 12-month low despite the company's strong performance.
• 😘 The proposed share buyback would be a strategic move to capitalize on the low stock price and increase shareholder value.
• 🧘 Tesla's financial position is robust, with a significant amount of cash and no debt, making it an ideal time for a share buyback.
• 😒 The use of debt for the buyback is a viable option, considering Tesla's predicted strong cash flow and future profitability.
• ❓ Utilizing a portion of Tesla's excess cash for the buyback or using debt would have minimal impact on the company's financial flexibility.
• 🍉 Share buybacks have historically been preferred by Tesla shareholders over dividends, as they offer favorable long-term capital gains tax treatment and flexibility.
• 📽️ EPS estimates for Tesla continue to increase, highlighting the disconnect between the stock price and the company's projected earnings.

Questions & Answers

Q: Why has Tesla's stock reached a 12-month low?

The reasons for Tesla's stock decline are not entirely clear, as the company's execution has been strong and it has a solid financial position.

Q: What is the proposed solution to the low stock price?

The open letter suggests a share buyback of at least 10 billion dollars, which would help to increase shareholder value and take advantage of the undervalued stock.

Q: Should Tesla use debt or cash for the share buyback?

The author argues that Tesla should utilize debt, as the company's strong cash flow projections and future profitability make it a low-risk option.

Q: Will a share buyback impede Tesla's growth?

No, the buyback would only come after internal projects are funded, and it can be managed opportunistically to take advantage of fluctuations in the stock price.

Summary & Key Takeaways

• Tesla's stock has reached a record 52-week low, despite the company's strong performance and lead in the automotive industry.

• The stock is down 50% year-to-date, almost 30% over the last one year, and close to 35% in the last one month.

• An open letter to Tesla's board of directors suggests a 10+ billion dollar share buyback to capitalize on the undervalued stock.