Media manipulation leads to poor investment decisions: buying high and selling low.
Message from Elon Musk: If you don’t believe in Tesla’s long-term vision, sell the stock.
Fundamentals of Tesla
Financial Metrics (Recent Quarter)
Automotive Revenue: $19.9 billion, up from $17.4 billion (quarter-over-quarter).
Energy Revenues: $3 billion, up 100% year over year.
Service Revenue: $2.6 billion, up 21% from last quarter.
Operating Margin: 6.3% (up from 5.5% previous quarter, down from 9.6% previous year).
Net Income: Up 30% from previous quarter.
Net Cash from Operations: $3.6 billion, up $3.3 billion from previous quarter.
Cash Position: $30.7 billion, a record high.
Key Points on Tesla’s Margins
Lower margins due to price reductions on vehicles.
Despite lower margins per vehicle, overall revenue and profit increased due to higher volume of sales.
Lower margins linked to higher long-term gains.
Tesla’s Future Outlook
Beyond a Car Company
Diversified: Not just automotive, but also energy, autonomous driving, robotics, etc.
Energy Sector: $3 billion and growing, becoming an industry leader.
FSD Licensing: Expected to become a major revenue source.
Potential for high margins: Especially with FSD-related sales.
Price Target and Vision
Price Target: $1,400 (longer-term), backed by fundamental strength and growth potential.
Future Growth Factors: Autonomous driving, FSD, energy growth, potential in Robotaxi and Optimus projects.
Investment Strategy Recommendations
Ignore Media Noise: Media often misguides with negative sentiment.
DCA (Dollar-Cost Averaging): Especially during periods of negative sentiment and price drops.
Focus on Fundamentals: Continued operational and financial improvements make Tesla a strong long-term investment.
Conclusion
Overall Message: Tesla remains a strong long-term investment despite media-driven fear and temporary setbacks. Focus on own research and fundamentals rather than market noise for better investment outcomes.