Tesla Stock Worth $350… or was it $1,963? CLOWN Show 🤦‍♂️

TL;DR

Wall Street firm Guggenheim's price targets for Tesla and Lucid are criticized as clueless, while a CNBC commentator's claim that Tesla's vehicle styling will affect its growth is deemed absurd.

Transcript

tesla is able to make a lot more money on the sale of those and they don't have the legacy costs they don't have all those costs uh for pension and the legacy issues with factories that many of those other competitors that you're rightly calling them competitors they are competitors but they have significant dealer networks and everything else that... Read More

Key Insights

• 🎯 Guggenheim's price targets for Lucid and Tesla are criticized for being unconvincing and oblivious to the companies' growth potential.
• 😀 Lucid's valuation is deemed unjustifiably high, considering the challenges it faces in scaling production and becoming profitable.
• 🖤 Tesla's financial strength, execution capabilities, and lack of legacy costs give it a significant advantage over competitors.
• 🧑‍🏭 The importance of production capacity, manufacturing efficiency, and technological leadership in Tesla's growth is emphasized over superficial factors like vehicle styling.
• 🥺 The author believes that Tesla's earnings and delivery estimates for 2022 will exceed consensus expectations, potentially leading to a significant increase in Tesla's stock price.
• 🍉 The disconnect between Tesla's stock price and earnings estimates presents a buying opportunity for investors who believe in the company's long-term growth.
• 📁 Dealerships' additional costs and inefficiencies are highlighted as disadvantages for traditional automakers compared to Tesla's direct sales model.

Questions & Answers

Q: What is the main criticism of Guggenheim's price targets for Lucid and Tesla?

The author criticizes Guggenheim for giving price targets that match the current stock prices of both Lucid and Tesla, suggesting that they lack understanding of the companies' growth potential.

Q: Why does the author believe that Lucid's valuation is insane?

The author believes that Lucid's valuation is unjustifiably high, considering the company's limited track record and the challenges it faces in scaling production and becoming profitable.

Q: What are the advantages that the author highlights for Tesla?

The author points out that Tesla has a strong financial position, a proven ability to execute flawlessly, and the lack of legacy costs that other automakers face. These advantages give Tesla a significant edge in profitability and growth potential.

Q: What is the main criticism of the CNBC commentator's statement about Tesla's growth potential?

The author dismisses the commentator's claim that Tesla's growth will be hindered by its unchanged vehicle styling, stating that it ignores more important factors such as production capacity, manufacturing efficiency, and technological lead.

Summary & Key Takeaways

• Guggenheim initiated coverage on Lucid with a $38 price target, which matches its current stock price, and Tesla with a $924 price target, slightly above its current stock price.

• The author criticizes Guggenheim's price targets, calling them clueless and embarrassing, especially considering Tesla's anticipated growth in the next year.

• The author highlights the challenges Lucid will face in scaling production and surviving the decade, contrasting it with Tesla's proven ability to execute flawlessly.

• The author emphasizes Tesla's strong financial position, growth potential, and lack of legacy costs, which give it a significant advantage over competitors.