This popular topic concerning if Tesla is facing demand predicament or not was answered by the CEO Elon Musk in an Automotive News’ Daily Drive podcast released on Friday.
According to Mr. Musk, the company’s electric vehicle demand is super strong despite the coronavirus pandemic, with consumers choosing to shop online instead of offline.
Musk believes having a traditional dealer network, which is something he considered in the past, appears increasingly unnecessary.
“We saw strong orders through the whole pandemic, we still had a good order volume,” Musk said. “I guess people are less inclined to want to go to a dealership, do the test drive, and hang out in the lobby and that kind of thing.”
When asked about the massive 2020 over 230% rally of Tesla Stock, Musk said the market has a way of sorting itself out, and that as long as Tesla keeps manufacturing great cars to meet up demand, investors would be happy.
He also appreciates China by saying “China rocks in my opinion. There are a lot of smart, hard-working people and … they’re not entitled, they’re not complacent, whereas I see in the United States increasingly much more complacency and entitlement.” he said.
During the Q2 earnings call, Musk also insisted Tesla doesn’t have a demand problem, Tesla has just a couple of manufacturing problem instead, he added. Reasonably that’s why Tesla continues building more and more factories to meet up with demand.
Tomorrow is the judgment day guys. Will Tesla smash Q2 earnings and take investors into the amazing world of the S&P 500? or will it pull the break on the insane rally that started late 2019?.
Tesla is currently up almost 3% pre-market, trading around $1690.
Electric vehicle giant Tesla Inc! is set to report second-quarter earnings tomorrow after market closes. This guys, is like American Super Bowl 2020 as every analyst on earth will be watching super close.
90% of Analysts have been playing catch-up as the stock has blown past their price targets on the heels of better than expected vehicle deliveries, and speculation of inclusion in the S&P 500 if it reports a profit for its latest quarter.
“Why we’ve been dragging our feet about the price target is really about the earnings power, and that at the end of the day we think is driven by the gross margins,” said Oppenheimer analyst Colin Rusch, who has a ridiculous price target of just $968, while Tesla is currently trading almost double of that target.
The Most Important Thing To Watch Tomorrow
GUIDANCE: The full-year outlook is to be watched closely. Tesla is yet to update the full-year guidance after smashing Q2 deliveries by delivering 90,650, instead of the 72,000 expected by wall-street analysts. Before the Coronavirus pandemic, Tesla promised investors to deliver about 500,000 vehicles in 2020. Whether the pandemic has affected that guidance to deliver 500,000 vehicles this year or not, is left to be seen tomorrow.
MODEL-Y: Also, Model Y’s price was reduced by $3000. If that price reduction increased or affected the sales of the vehicle that Tesla expects to take them to the next level or not is left to be seen tomorrow.
CHINA: Chinese EV demand has been insane. China is not the frontline in the EV war against ICE cars. Analysts expect Tesla to deliver about 150,000 vehicles in China this year. The Coronavirus pandemic has not affected Tesla negatively in China, even though its factory was closed for some weeks while China was the hot zone earlier this year. Tesla’s Model 3 has outsold other EVs in China and all over the world, and it doesn’t seem to be slowing down. According to China’s Passenger Car Association (CPCA), Tesla sold 14,954 Model 3 vehicles in June, up from 11,095 units in May and 3,635 units in April. Insane numbers right?.
CASH AT HAND: Free Cash Flow is something analysts will be looking super closely at as well. This shouldn’t be a problem for Tesla, as Tesla is now the king of cars. Tesla is the most valuable vehicle maker in the world and now sits on a market cap of about $304.735B. Some are arguing that Tesla should use this opportunity to raise more money, as Tesla can literally knock on the door of any bank in the world can walk out with a huge pile of cash. Tesla is expanding aggressively and surely free cash flow is very important. There is nothing like too much money. According to CFRA analyst Garrett Nelson, “Tesla shares have gotten ahead of underlying fundamentals and do not appropriately reflect various risks surrounding the story, including the fact TSLA is entering a major spending cycle with the construction of Gigafactories 4 and 5.” factory projects will also “act as a significant drag on free cash flow over the next several quarters,” adding risk to shares, he wrote.
Are you super pumped as we at Frunkla.com are?. Will Tesla beat estimates and take investors to S&P 500?. Kindly share your opinion with us.
Longtime Tesla Stock bear, Carson Block, warns that betting against Tesla Stock is a bad idea. He warns short-sellers to stay the heck away from short-selling Tesla.
Carson Block: “Short it at your own risk. I wouldn’t do that.”
Carson Block is one of Tesla critics since day one. Block is a short-seller and the founder of Muddy Waters Research. Block is known for documenting and alleging fraudulent accounting practices in publicly traded Chinese companies.
In an interview with Bloomberg’s Tracy Alloway and Joe Weisenthal on the Odd Lots podcast, Block thanked God for not shorting the stock that has ruined well established short selling funds.
“I’m not short the stock, thank God,” – Block
“We used to joke that Tesla, when it files for bankruptcy, will probably have a $30 billion market cap. Short it at your own risk. I wouldn’t do that.” – He added.
According to Block, you can bet against Tesla, but never ever bet against Elon Musk. Well we guess that equally means, never ever bet against Tesla as long as Elon Musk remains incharge!.
For the year 2020, Tesla stock is up more than 300%.
If you are like other thousands of investors that are wondering why Tesla is rising exponentially for months, today is your lucky day as we will be diving deep into this insane rally and try to shed light into why the stock is up over 300% year-to-date.
At a market cap of over $300 billion, making it the 10th largest U.S. stock by market value according to FactSet, it’s no surprise that CEO Elon Musk is arguably the most talk about celebrity-ceo in town.
Last week Friday, after the Shares of the electric car-making giant closed for the first time ever at $1546, beating search giant Google in terms of closing price, CEO Elon Musk zoomed past Warren Buffett on the Bloomberg Billionaires Index to become the world’s seventh wealthiest person. Musk’s fortune rose more than $6 billion Friday, according to Bloomberg, after Tesla’s stock surged 10.8% to a record $1,544 per share. Its market value stood at $286.5 billion.
Tesla shares is up over 50% this month alone after the electric vehicle maker smashed delivery estimates in the second quarter, delivering about 90,650 vehicles.
On opening today, Tesla’ stock gaped up to open at $1,659.00, shocking both bulls and bears, and sending short sellers deeper under the water.
Tesla short sellers lose more than $1.5 billion in one day as Tesla stock skyrockets on earnings back in January 2020. Investors betting against Elon Musk’s electric-auto maker Tesla collectively lost more than $1.5 billion on Thursday, January 30th 2020 after its solid earnings. Those numbers are now like a joke next to the over $20 billion that short sellers are now down with.
Last week Thursday, CNBC reported that Tesla short sellers were down $18 billion this year, including another $4 billion in July, we believe short sellers are now down over $6 billion for the month of July at the moment.
According to S3 Partners director Ihor Dusaniwsky: “The reason behind Tesla’s short squeeze is obvious and straight forward, large mark-to-market losses are forcing out some short sellers as they hit their loss limit thresholds,” Dusaniwsky wrote. “If Tesla’s stock price continues to trend upward, we expect even more short covering as mark-to-market losses accumulate.”.
Why Is Tesla Stock Price Skyrocketing All Of A Sudden?
Tesla’ stock was consolidating for over 5 years, within 2013 – 2019, before the massive rally began. The chart below shows the price action of Tesla stock price before and after the massive rally began.
In February 2020, Ark Invest CEO Catherine Wood told CNBC that she stands by her latest five-year price target of $7,000 per share for Tesla.
“Our confidence level that this stock is heading for $7,000 over the next five years is very high,” Wood, the founder and CEO of Ark Investment Management, said on “Fast Money.”
“We’ve arrived at that price by weighting the probabilities of 10 different scenarios, including bankruptcy, to be honest. So we’ve tried to be as fair and balanced as we could possibly be,” added Wood, whose firm has about $11 billion in assets under management.
“The electric vehicle is going to drop below the price of a gas-powered vehicle, like-for-like, within the next 18 months to two years, and then will continue to fall,” Wood said in an interview on Barron’s Market Brief. “So, it’s going to be a no-brainer. Electric cars are going to be cheaper and they’re better cars, they’re better calls.” She added.
Tesla Suspends And Resumes Production
In March 20, 2020, Tesla’s shares went down 8% in after-hours trading following the decision to suspend production at the Fremont, California plant, when local authority instructed people to stay at home in a bid to stop the spread of the coronavirus.
That announcement was made just as Tesla was ramping up production of its Model Y sport utility vehicle at the factory.
It took Tesla CEO over 5 weeks to fight back and force local authority to allow his employees to get back to the factory and continue the Model Y ramping.
Tesla Fan Base
Elon Musk is the only CEO that response directly to customers using twitter. Anybody can contact the billionaire CEO on twitter and luckily get a response. This amazing selfless acts has helped Elon Musk build a massive super loyal fan base, Frunkla.com included.
Tesla fans have created massive educational contents on Youtube and reached out to millions of people using personal blogs, websites, word-of-mouth, social media, among others, which directly and indirectly is helping Tesla mission to accelerate the world’s transition to sustainable energy.
You can never find as many loyal super fans elsewhere as you would find in the Tesla fans community.
Just 3 weeks ago, Youtuber “Solving The Money Problem” bought a 1000 pieces of Tesla Shares when the share price was $1000. He made a video about it and titled it “All In On Tesla Stock — My $1M Stock Portfolio Revealed“.
Another popular Tesla super fan that has built a business around Tesla is known as Vincent, founder of Tesmanian.
Tesla, Inc!. Q2 2020 Financial Results and Q&A Webcast
Set to take place on Jul 22, 2020, 2:30 PM PDT. This is literally the most important date in 2020, apart from Tesla Battery Day.
This is the day that is most likely to continue or break the insane parabolic price rally that started last year, with no end in sight.
“Tesla will post its financial results for the second quarter of 2020 after market close on Wednesday, July 22, 2020. At that time, Tesla will issue a brief advisory containing a link to the Q2 2020 update, which will be available on Tesla’s Investor Relations website. Tesla management will hold a live question and answer webcast that day at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time) to discuss the Company’s financial and business results and outlook.“ – Tesla
As of June 30th, analysts expected Tesla to report a GAAP loss of $1.82/share and a non-GAAP loss of $1.16/share according to estimates compiled by FactSet. There is a higher chance of Tesla beating expectations again which leads us to the end of this amazing educative blog post,…..
The S&P500 Inclusion.
Tesla jumps over 13% today, following the s&p 500 inclusion speculation. As the company’s market cap. climbs ever higher, speculation is growing that Tesla will soon join the S&P 500.
Standard and Poor:
The S&P 500 is a stock market index that tracks the stocks of 500 large-cap U.S. companies. It represents the stock market’s performance by reporting the risks and returns of the biggest companies
According to Reuters, in a Friday article discussing Tesla’s index inclusion, Tesla could rise 60% if included in the s&p 500. The article pointed to what happened to Yahoo’s stock after it was included in the S&P 500 back in 1999, saying that shares of Yahoo! jumped “64% in five sessions between the announcement …and its actual entry.” Reuters also wrote that analysts predict high demand for shares upon Tesla’s entry.
“If Telsa was to “pull a Yahoo,” the stock could hit $2,200 and give the company a market value of more than $400 billion. That math is fun with numbers, but bullish Tesla investors can hope.” – Barrons
Please share your opinion with us in the comment section. Weather the psychological resistance of $2,200, according to Barrons, will stop this mad bull run or not.
The Stock is on a seven straight session rally after several good news hits investors.
The stock opens with gaps day after day, giving investors over 50% gain in a very short period of time, amid coronavirus pandemic.
Analyst Dan Levy of Credit Suisse upgraded the stock from underperform to neutral with a price target upgrade from $415 to $580.
According to him, in his note: Tesla now “competitively has more edge in the transition to EV as coronavirus disruption will make it more difficult for legacy automakers to balance the long-term shift to EV in the face of near-term cycle disruption,” Levy wrote. Traditional car companies must make “tough choices in product investment.” Still, Levy questions whether Tesla will be able to ramp up supply and he estimates that the shutdown of the company’s Fremont factory could be driving $300 million a week in cash burn.
Coronavirus-related market gyrations led Tesla shares to drop as much as a 61% from a record high on Feb. 19. The stock has been steadily advancing since the company reported better-than-expected first-quarter deliveries on April 2 and is back to the levels it was trading at in early March.
“There is some clear optimism from the bulls,” Wedbush analyst Dan Ives wrote to clients on Monday. China production and demand appear poised for a significant rebound and should be a key growth driver over the coming quarter, he said. He maintains a Hold rating on Tesla.
Even so, it is now a “virtual impossibility” that Tesla will be able to reach its original annual delivery forecast of at least 500,000 units, according to Ives. Bullish investors are also looking past the shutdown of the company’s vehicle assembly plant in Fremont, California, which could last at least another month, further complicating the delivery trajectory for the coming quarters, he said.
Electric vehicle manufacturer Tesla Inc!. is estimated to report 2020 first quarter earnings before end of month.
Tesla remains world most valuable smart electric vehicle manufacturer, with a market capitalization just little below $100 billion.
Tesla First Quarter Earnings Report
Tesla, Inc. is estimated to report earnings on 04/22/2020. The consensus EPS forecast for the quarter is $-0.99.
Analysts expects Tesla to earning per share of about $-0.99, which means losses. The high EPS forecast is $0.18 and a Low EPS forecast is $-2.88 for worse case scenario.
Coronavirus Covid-19 Pandemic
Coronavirus Covid-19 pandemic has crippled more than half of the world economy, with some experts saying we are now officially in a global depression.
China, the ground zero of the pandemic, is almost back in business fully, after shutting down most of its cities for over 4 weeks to prevent further spread of the virus.
Tesla Shanghai was only closed for about a week in February during the Chinese holiday, but has since been operating almost at full capacity.
Historically, Tesla has reported quarterly deliveries sometime during the first week after the end of the latest quarter, but due to the ongoing pandemic, it’s been postponed to end of month.
On March 23rd, Tesla started to close manufacturing plant doors in Fremont, California, in an effort to slow the spread of Covid-19.
Numbers Of Vehicles Delivered By Tesla In Q1 2020
Analysts expects Tesla to deliver about 82,000 cars in 2020 first quarter, according to consensus.
Popular Tesla analyst Wedbush’ Daniel Ives downgraded his price target to $425 from $710, with a Hold rating.
“With consumers in a virtual lockdown facing a once-in-a-century outbreak focusing on their health, food, and flattening the curve, buying a new Model 3 and other auto purchases is very low on the priority list,”
Tesla Is Sitting On Enough Cash
Before the coronavirus outbreak, Tesla raised about $2.3 billion from stock offering. This puts Tesla in a solid position after it generated $1.1 billion in free cash flow in the fourth quarter of 2019 alone, and it finished the year with $6.3 billion in the bank.
“We believe this level of liquidity is sufficient to successfully navigate an extended period of uncertainty,” – Tesla.
Three days ago, Piper Sandler analyst Alexander Potter lowered the price target on Tesla to $820.00 (from $928.00) while maintaining a Overweight rating. This is still a solid upside price swing in the middle of this historical ongoing pandemic.
What do you guys think about the upcoming Q1 ER?, will Tesla make it or break it?.
On Friday, Ford Stock closed at 2012 level ($4.30), after the company announced suspension of its dividend and withdrew its 2020 guidance.
Ford also said it would draw $15.4 billion from two credit lines. The company said that it plans to borrow $13.4 billion under its corporate credit facility and an additional $2 billion under its supplemental credit facility.
How Does This Benefits Tesla?
“Like we did in the Great Recession, Ford is managing through the coronavirus crisis in a way that safeguards our business, our workforce, our customers and our dealers during this vital period,” Ford CEO Jim Hackett said in a statement. “As America’s largest producer of vehicles and largest employer of autoworkers, we plan to emerge from this crisis as a stronger company that can be an engine for the recovery of the economy moving forward.”
CNBC reports that Separately, Ford and its U.S. dealers are offering customers a variety of services, including six months of payment relief for some new car buyers, the company said in a statement. Ford will pay for three months and customers can defer for up to three more for a total of six months, the company said. The program is only for people purchasing 2019 and 2020 model-year vehicles, excluding 2020 Super Duty trucks.
Dividends mean you don’t have to sell shares to realize a return. Although bonds and CDs are more traditional income investments, a stock that pays a dividend also generates income for investors.
Tesla investors don’t invest based on dividend because Tesla don’t pay it. Tesla investors on the other hand, are investing in Tesla based on the future of the company, on the ability of Tesla CEO to make a great impact in the world and help humans transition from dirty ICE cars to clean autonomous electric vehicles.
Dividends are also attractive for investors looking to generate income. However, a decrease or increase in dividend distributions can affect the price of a security. The stock prices of companies that have a long-standing history of dividend payouts would be negatively affected if they reduced their dividend distributions. Conversely, companies that increased their dividend payouts or companies that instituted a new dividend policy would likely see appreciation in their stocks.
Back in 2013 when the world most valuable electric automaker started to power its 480-volt Superchargers with solar panels and storing the electricity in lithium-ion battery packs, the CEO Elon Musk made a powerful statement that seems to fit this present scary coronavirus Corvid-19 period.
“when the zombie apocalypse comes, you’ll still be able to drive your Model S electric sports sedan coast to coast in the US”
Tesla is the most recession-proof automaker out there that is worth investing in for a longer period of time, that can withstand the current economic recession caused by the crash of Oil and the Corvid-19 coronavirus.
The Social Distancing Economy
Air-condition and Heating: Tesla cars use a compressor that is “similar to the one in a domestic fridge. This means the air inside a Tesla car is much more cleaner than that of ICE cars. The compressor, like in your IC engine-powered car, pushes the refrigerant through the chilling unit and cools the air before reaching the AC vent. This means you air is very clean, as long as the doors/windows are shut. No air is literally coming into your car from outside.
Buy A Tesla: To buy a Tesla car you don’t need any middleman/dealership. All you have to do is go to tesla.com, select your specs, input payment method, and hit the buy button. Your car can be delivered to your doorstep within days, depending on where you live. This eliminates contacts with potential sick workers or car sellers. You may then disinfect your car, and enjoy your healthy life.
Tesla Is Loaded With Cash: Tesla now sits on over $8 billion in cash going into a recession. Yes they have some debts to settle this year, but with such a huge capital raised few weeks ago, the risk is off the table. Tesla was profitable in third and fourth quarters 2019, pushing Tesla stock price to fresh all-time-high closer to $1000, and the market capitalization above $100 billion, until most recently.
Tesla Has Factories In USA and CHINA: Tesla is neither limited to one location nor is it limited to one continent. Tesla Giga Shanghai went into production last year in China where the coronavirus case is significantly slowing down, after record factory construction. The Shanghai factory was shutdown last month for about a week, but now fully back in making electric cars. Tesla is presently building a fourth Giga factory in Berlin, Germany. The factory is set to start producing Model Y in 2021 once construction is completed, with a target of over 150000 cars per year at start. Elon Musk is also presently looking for the fifth Giga Factory location to build the controversial Tesla Cybertruck.
Tesla Infotainment: Tesla’s recent in-car infotainment moves include a service called “Caraoke” and linking to Netflix, Hulu and YouTube accounts. According to Tesla CEO Elon Musk: “It’s not just some sort of transport utility device with no soul and no character.”. Elon Musk has said it several times that his goal is to create an infotainment system that provides “the most amount of fun you can have in a car.”. This means, you can always drive to a beautiful beach side with amazing view with your family, and enjoy a in-car cinema experience.
Over The Air Updates: Tesla vehicles regularly receive software updates via radio, which set up new features and improve existing functions via WLAN. As soon as an update becomes available, a message appears on your touchscreen. You then have the option to install the update immediately or at a later time. With the premium connectivity package set up, you can also download updates via the mobile phone connection of your vehicle. Your car never gets old!.
Alright guys, this list can surely go on and on but lets keep that for another post. Don’t doubt your vibes with Tesla, just buy it!.
Investors are now faced with the most important question of our time: Where should I put my money in this world economic recession?.
We think below is a very good answer for that question.
“There can only be one most important thing. Many things may be important, but only one can be the most important” – Ross Garber
Almost every powerful stocks got hit very hard past weeks due to Oil crash and the exponential spread of the deadly Corvid-19 coronavirus outbreak that has infected over 150,000 people across the globe, and killed over 6,000 people so far according to worldometers.
Diversification keeps you wealthy while Sameness makes you wealthy.
Let’s use texting while driving a car as an example.
According to research from the Virginia Tech Transportation Institute, texting while driving is associated with the highest risk of all cellphone-related tasks. The research found that text messaging causes drivers to take their eyes off the road for 4.6 seconds over a six-second interval.
Texting while driving is known to be multitasking. Multitasking is a word coined and used for computers way back, but the fact is that computer don’t really multitask, a computer is instead going through lines of codes at a super fast pace, making we humans believe computers are multitasking.
According to Wikipedia, the words juggling and juggler derive from the Middle English jogelen (“to entertain by performing tricks”), which in turn is from the Old Frenchjangler.
Diversify your portfolio with more than 1 stock makes one a stock juggler. It is impossible for most humans to concentrate on two things at the same time, as described above in the texting while driving example.
Everything cannot matter equally.
According to Johann Wolfgang von Goethe. “Things which matter most must never be at mercy of things which matter least”.
This post is highly inspired by Gary Keller and Jay Papasan’s The One Thing. In the number one Wall Street Journal bestseller, Gary Keller has identified that behind every successful person is their ONE Thing. No matter how success is measured, personal or professional, only the ability to dismiss distractions and concentrate on your ONE Thing stands between you and your goals. The ONE Thing is about getting extraordinary results in every situation.
Why Tesla ?
Tesla CEO Elon Musk, in 2008 made the decision of his life by going all-in in his dreams, Tesla and SpaceX. Elon Musk is today worth about $31.5 Billion, while Tesla is worth over $90 Billion.
“I could either pick SpaceX or Tesla or split the money I had left between them. That was a tough decision. If I split the money, maybe both of them would die. If I gave the money to just one company, the probability of it surviving was greater, but then it would mean certain death for the other company. I debated that over and over.” – Elon Musk.
Bill Gate of Microsoft (Worth about $103 Billion), Jeff Bezos of Amazon (Worth about $110 Billion), Late Colonel Harland David Sanders of KFC, all did something similar during their time. They went all-in on their dreams by focusing on the most important one thing.
KFC founder Colonel Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant franchising concept, and the first “Kentucky Fried Chicken” franchise opened in Utah in 1952.
Start here to learn more about Tesla. Experts advice to buy portion by portion as we go through this tough times.
“there is always a light at the end of the tunnel”.
GLJ Research analyst Gordon Johnson is out with another shocking Tesla price prediction, this time he believes the Share price of the world most valuable electric car marker is headed below $200 by EOY 2020.
In Q42019, Johnson predicted that Tesla will miss all estimates dramatically by 12%, and reiterated a Sell rating and price target of $44.52. That prediction though, did not end well for the analyst.
Tesla beats all estimations front and back in Q42019.
For Q42019, Johnson said the data through May 2019 suggested global shipments of about 92.5K, versus the company’s guidance of around 104.8K – a 12% miss. Tesla on the other hand, broke that record, and delivered 112,000 cars in Q42019.
Gordon Johnson latest comment on Tesla delivery is based on the most recent Oil price crash. According to him in an post shared by NYPost, oil crash will impact the electric car marker massively.
“Lower gas prices are very bad for alternative energy. As gas goes down to $1.50, not as many people will want to buy electric cars, and at the same time a credit crunch will mean that fewer people will be able to finance them. This whole halo around Elon Musk is going to disappear,” Johnson added, predicting that Tesla will fall to less than $200 this year and around $90 in 2021.
Weather Johnson is right or wrong, only time can tell. What do you guys think about his comments?. Please leave your opinion with us in the comment section. Will Tesla drop below $200 by EOY?.