$200 if you had invested just $200 in Tesla stock exactly five years ago in July of 2019 today you would be holding $3,000 $3,000 I'm gonna count all of it just to show you that I ain't bullshitting $3,000 200 to 3000 in five years now Tesla has always been good at punishing the short-term traders and really benefiting the long-term investors who have been nothing but patient with this company. Now, money aside, look, let's talk about what happened yesterday. So, the earnings came out.
The beat on revenue was great. The miss on earnings per share wasn't great. The entire mainstream media went tits up and basically started throwing fear, uncertainty, and doubt at retail investors. investors, the same old thing, the same old conversation. Most of us have been through that a million times before.
If you started investing in the past 12 months, six months, you haven't seen it yet, but it's the same old story. Then you have all the cockroaches coming out of the holes, starting to talk about how bad Tesla is, how this is just a car company, how Elon is bad, basically the same old shtick they do all the time. Now in this video, what I'm going to do is a few things.
Number one, I'm going to dispel the myth. versus the reality. Think of me as the myth busters of Tesla stock.
We're going to do this right now. So yes, Tesla missed an earnings per share, but let's look at the stuff that actually matter. So let's talk about the fundamentals.
And I couldn't have said it better than Elon Musk on the call where he said, look, guys, if you don't believe in the long-term vision of Tesla, sell the stock. What's the problem? Sell the stock. Why are you crying and moaning about it on X, which is his platform, by the way, sell the stock, sell the stock. Those who sold, I'll show you in a second.
Had really, really good results. I'm going to show you right now. So, Tesla, if you actually bought it in January of 2021 at $300 per share, and then you sold it in May of 2021, you know, just four months later, because the stock dropped from $300 to $190. Oh my God, the stock is finished, blah, that spiel boom november of 2021 just six months later this stock goes from 190 to 400 dollars per share so then you buy it again and then the stock drops in march just four months later to 265 dollars Oh my god, the media starts all over again. You sell at $265.
And then in April of 2022, just a month later, it goes from $265 to $361. In June of 2022, just two months later, it's down from $361 to $216. Oh my god, you sell again. September of 2022, stock goes to $275. It rises again.
Euphoria. Everybody buys. By January of 2023, just three months later.
It's down to $113 from $275. Oh my God, it's over. Tesla's finished. Ross Gerber. July of 2023. Stock is up from $113 to $274.
From $113 to $274. In six months. Oh my god, we gotta buy, we gotta buy!
April 2024, the stock is down to $150 per share. What happens? Everybody sells. Yesterday, the stock is at $250, up from $150. And then today, it's down...
$225,000 might drop even further. In fact, most likely it's going to keep dropping. Who knows?
I mean, it's Tesla stock. But basically what has happened is the Tesla stock has completely punished the people who were impatient with the stock. If you've been long on this company for a very, very long time and you didn't budge, you've made money. But if you follow this trend in which the media screams, buy, buy, buy at the top and sell, sell, sell at the bottom, all you've done is made money for the sharks, for the people who manipulate you through mainstream media. Now let's talk about the fundamentals.
Look, automotive revenue up again, quarter of a quarter from 17.4 to 19.9 billion. So they've just increased by 2.5 billion, the automotive revenue in a single quarter. I wouldn't say that's bad.
bad. Energy revenues are now $3 billion. It is insane. Up 100% year over year.
It's no longer insignificant iota this is a big big big industry right now and tesla is becoming an industry leader in that services up 21 2.6 billion dollars and that's before fsd licensing which is going to be a game changer of epic proportions 80 gross margin industry standard absolutely monopolizing this industry that's before that it's still up 21 percent you Operating income. Everybody talks about margins. Oh my God, Tesla's margin. So let's look at the bottom line. What kind of impact that the reduction in the margins had?
Operating income is up. Net income. Well, that must be bad. Margins have gone down, right?
Net income is up 30%. from the previous quarter. Net cash from operations, that's the one that counts, up 18% year over year. And by the way, in the previous quarter, that was 240 million.
This quarter, it went up to 3.6 billion. An increase of, oh, $3.3 billion quarter over quarter in net cash from operations. That's really, really bad.
Cash up 33% year over year. $30.7 billion, a record-breaking Tesla quarter. I mean, Tesla has never had so much money, literally.
Cash position is strongest it's ever been. So now you're going to tell me, oh my God, yes, the margins. Look at the margins, Tom.
The operating margin is 6.3. down from 9.6 last year. Look, by the way, that operating margin is still up from the previous quarter from 5.5 to 6.3.
So it's actually getting better. But yes, it's not as good as last year. But let me tell you something. When you drop prices on vehicles, you make less on every vehicle. For sure, margins go down, professor.
But guess what? You sell more vehicles, you make more money, you get more revenue, you get more money in your pocket. So the declining revenues serve a bigger purpose, which is more revenue and more income, which is literally what happened.
You just saw the fundamentals. Tesla sold more cars. They've made more money and they've made less, a little bit less per each vehicle.
Oh, my God. This is the end of the world. Look. It's the same conclusion we have every year. This is a stock that's only relevant if you believe that this is not a car company.
If you think that Tesla is a vehicle producer only, it's not worth what it's selling for right now. I will agree with you. If you think this is a car company, it's too expensive.
I agree 100%. But the problem is that Tesla isn't a car company. A car company doesn't sell $3 billion of energy up 100% year over year. As a tech company with leadership in FSD, autonomous driving, with robotics, with the whole infrastructure and energy that they've basically been monopolizing for the past few years, that is a whole different enchilada. Because each one of these components is worth more than the entire market cap of Tesla today.
And that is why my price target for Tesla is $1,400, even though it can go a lot higher than that. I think in the next few years what happens is that autonomous sales, they go through the roof. FSD becomes an industry standard. Right.
Tesla basically holds the monopoly and they sell it to all the other OEMs. Car companies will have to install cameras and computers in the new vehicles and they'll just license the FSD from Tesla. It's the cheapest, best solution. Tesla becomes a software company that basically sells on 80 cents on the dollar gross margin. Auto sales, by the way, will continue to rise.
It's not going to go through the stratosphere, but people will still keep buying Tesla vehicles because they're freaking good. Energy is going to keep growing at this massive pace. It's going to be a behemoth. And we haven't said a word about Robotaxi and Optimus, which are absolute moonshots. If any of these succeed, if Robotaxi or Optimus succeed, it's going to be worth much, much more than the current entire market cap of Tesla.
Much, much more. If both succeed, oh my goodness, we're talking about a quantum leap. So for everybody who's been asking me this question over the past few weeks, when will Tesla drop to 200 again? 220?
I want to buy. Look guys. When the stock price drops, it doesn't happen in a happy-go-lucky environment when everybody's just excited about the stock. Bad sentiment drives stock prices down.
And this is the opportunity. This is the opportunity to DCA. Now, usually, when the company does better and better and better every quarter, but the stock price keeps going down or stays flat, that is a trade-off I'm really excited about.
I would love to invest in any company that does better, but the stock price stays flat. And that's exactly what's happening with Tesla. So, ignore the noise. Ignore the bullshit, do your own analysis, make your own research, and if you like Tesla, you're now getting it at 10% less than what you had it yesterday.
And that's not a bad deal. I'll see you next one.