TESLA (TSLA) STOCK ANALYSIS: Why It's Undervalued Now! 2X Growth? | Summary and Q&A

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April 27, 2023
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The Intelligent Investor
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TESLA (TSLA) STOCK ANALYSIS: Why It's Undervalued Now! 2X Growth?

TL;DR

Tesla stock is currently undervalued due to the market's short-term focus, ignoring the company's long-term strategy and prospects.

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Key Insights

  • 💇 Tesla's strategy of cutting prices on Model 3 and Model Y is aimed at increasing market share and collecting autonomous driving data.
  • 🍉 The market is focused on short-term earnings, while Tesla's long-term strategy is centered around dominating the EV market.
  • 🦔 Tesla's cost advantage and large economies of scale give it a competitive edge over other EV manufacturers.
  • 💗 Tesla's energy storage business is growing rapidly and may become a significant revenue contributor.
  • 😨 Despite facing competition and high car financing rates, Tesla aims to deliver 1.8 million vehicles in 2023.
  • 😌 Tesla's average cost per vehicle is expected to decrease by 50% through improved manufacturing processes, enabling the production of more affordable EVs.
  • 🍉 Tesla's long-term goal is to produce 20 million vehicles per year by 2030.

Transcript

hi everyone welcome back to the intelligent visual channel in this video I'm going to talk about why I think Tesla stock is likely underwatering now compared to its interesting business value more importantly I will talk about why I think the market is wrong about Tesla's long-term prospects and long-term strategy again just to give you some contex... Read More

Questions & Answers

Q: Why has Tesla's stock price been decreasing recently?

Tesla's stock has decreased due to the market's disappointment with the company's strategy of cutting prices to increase market share, which has impacted its operating margin in the short term.

Q: What is Tesla's long-term strategy?

Tesla's long-term strategy is to dominate the EV market by increasing its market share through price-cutting on Model 3 and Model Y. This allows them to collect more autonomous driving data and monetize it through services like full self-driving.

Q: How does the market valuation of Tesla compare to its intrinsic business value?

Tesla's market cap has decreased significantly from its peak, but its intrinsic business value is likely higher due to its long-term prospects and dominance in the EV market.

Q: Should investors buy Tesla stock?

The decision to buy Tesla stock depends on individual risk tolerance and investment goals. However, considering Tesla's strong competitive advantage and long-term prospects, buying undervalued shares could be a viable option.

Summary & Key Takeaways

  • Tesla has implemented a strategy of cutting prices on Model 3 and Model Y to increase sales and market share in the EV market, which has negatively impacted its operating margin.

  • The market is disappointed with this strategy and believes Tesla should maintain higher prices to preserve operating margins.

  • However, the long-term focus is on Tesla's plan to dominate the EV market and collect autonomous driving data, which can be monetized through services like full self-driving and robo-taxi.

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