{"id":103291,"date":"2020-07-11T01:00:00","date_gmt":"2020-07-11T08:00:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=103291"},"modified":"2021-09-22T00:49:02","modified_gmt":"2021-09-22T07:49:02","slug":"tesla-stock-price","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/ask-al\/tesla-stock-price\/","title":{"rendered":"Ask Al: Tesla stock price 1370 &#8211; Wow! What&#8217;s going on?"},"content":{"rendered":"\n<div style=\"position:relative;height:0;padding-bottom:53.125%\"><iframe class='sproutvideo-player' src='https:\/\/videos.sproutvideo.com\/embed\/a79cd9b21918eccb2e\/c92abdb27c5f3410?bigPlayButton=false&amp;emailTopText=Enter%20your%20email%20address%20to%20view%20this%20video.' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n\n\n\n&nbsp;\n\n\n\n<p class=\"caption\">Video duration: 11min 18sec<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Trading room Q&amp;A Tuesday July 7, 2020<\/h2>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Q: Tesla at 1370. What\u2019s going on? How did that happen?<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Tesla stock price rationale<\/h2>\n\n\n\n<p>Let me just say I own two Teslas. I like the car. I like \u2013 <a aria-label=\"the body is terrible, (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.youtube.com\/watch?v=Lj1a8rdX6DU\" target=\"_blank\" class=\"rank-math-link\">the body is terrible,<\/a> but comfort \u2013 I had a Lexus before the Tesla, and the inside of the car was a much better car. The car felt more solid, and I like the comfort factors in the Lexus more than in the Teslas. But the Tesla is a heck of a fun car to drive. I love it when some teenage kid pulls up next to me at a stoplight in a pickup truck. It\u2019s incredible how fast I can blow them away. So even though I\u2019m an old guy. It\u2019s fun to shut down the young punks. It\u2019s a really, really great car.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tesla the most valuable company in the world<\/h2>\n\n\n\n<p>Tesla is right now the most valuable car company in the world, more than Ford and General Motors combined, more than Fiat, more than Mercedes, more than Honda, more than Toyota. It\u2019s the single most valuable car company in the world. But this is not due to cars. They cannot sell enough cars to justify this kind of a price earnings ratio or that market cap. They just cannot sell enough cars. So this has nothing to do with what Tesla is doing. It has to do with what traders think Tesla might do.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Monthly-Chart.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"399\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Monthly-Chart-680x399.jpg\" alt=\"Tesla Stock Price\" class=\"wp-image-103310\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Monthly-Chart-680x399.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Monthly-Chart-300x176.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Monthly-Chart-768x451.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Monthly-Chart.jpg 1170w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><figcaption>Tesla (TSLA) Monthly Chart<\/figcaption><\/figure>\n\n\n\n<p>Monthly chart, we\u2019re just going parabolic. All along the way, every now and then they put some clown on TV saying, \u201cOh, Tesla, they\u2019re going to go bankrupt.\u201d People said similar things about Netflix and a little bit about Amazon. When I see those people, I think they\u2019re fools. I think Tesla is an incredibly great car. It\u2019s different from all other cars. It\u2019s a fantastic car. They\u2019re not going to go bankrupt. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Great products, great companies<\/h2>\n\n\n\n<p>Amazon, when idiots were saying Amazon was overpriced at 300, I\u2019m thinking, what are you talking about? I buy all kinds of stuff on Amazon all the time. All they have to do is raise their prices 1% or 2% and then they\u2019ll be making a ton of money.<\/p>\n\n\n\n<p>And Netflix, how can you possibly be saying Netflix is going to go bankrupt? They have a great product and they\u2019re the market leader. I remember \u2013 this is the monthly chart on Netflix \u2013 I remember back over here and up through here, all through Netflix, there were people on TV saying, \u201cIt\u2019s going to go bankrupt. Disney\u2019s going to put them out of business.\u201d You\u2019ve got a great product and you\u2019ve got a customer base that understands you have a great product.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Netflix-Monthly-Chart.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"399\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Netflix-Monthly-Chart-680x399.jpg\" alt=\"\" class=\"wp-image-103322\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Netflix-Monthly-Chart-680x399.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Netflix-Monthly-Chart-300x176.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Netflix-Monthly-Chart-768x450.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Netflix-Monthly-Chart.jpg 1170w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><figcaption>Netflix (NFLX) Monthly Chart<\/figcaption><\/figure>\n\n\n\n<p>Same is true with Tesla. If you\u2019ve ever driven one of their cars, it\u2019s an experiential thing. It\u2019s hard \u2013 it\u2019s like trying to describe a smell or a sound or a color or anything sensual. The words cannot convey adequately what the experience is. But for me, I like Tesla a lot. I like the car a lot. As I said, I bought two. I bought one for my wife.<\/p>\n\n\n\n<p>But the car, it&#8217;s not the value of the company, the market cap of the company is huge. I don\u2019t know what it is now. It\u2019s probably in the $200 billion price area. There\u2019s no way they can sell enough cars to justify that, but people are wondering, are they going to do things beyond cars? For example, will they take all Ford\u2019s business for the F-150 trucks? But even if they took all Ford\u2019s business ,and all the 18 wheeler business, and every car in the world, that price is way too high. If you put together all the car companies in the world, it\u2019s too expensive. The market cap is too big.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Innovation drives growth<\/h2>\n\n\n\n<p>So why is it up there? <a href=\"https:\/\/www.brookstradingcourse.com\/ask-al\/automated-trading-and-emotions\/\" target=\"_blank\" aria-label=\"Obviously, a lot of it is emotion (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">Obviously, a lot of it is emotion<\/a>, but a lot of it is also people thinking that the car is an innovator, the company is an innovator, and that they\u2019ll keep innovating and that will make them increasingly valuable, and they will do things that are unimaginable now. It\u2019s kind of like Apple 10-15 years ago. They came out with the \u2013 I guess it was 15 years ago, maybe 20 years ago, they came out with the iPods, and it was revolutionary. Then they came out with the iPhones and the iPads, and people bought because they just expected new ideas, things that nobody else had thought of before.<\/p>\n\n\n\n<p>That\u2019s why Tesla is doing this. People think that they\u2019re going to come out with ideas that no one has thought of before. And what are those ideas? How am I supposed to know? No one has thought about them yet. But maybe self-driving taxis. Basically a totally automated Uber. They have talked about that. That will happen. And then maybe batteries that, instead of getting 200 to 300 miles per charge, you can get 1,000 miles per charge, and maybe the battery, instead of lasting 200,000 to 500,000 miles, it\u2019ll last a million miles. They\u2019re talking about that.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tesla longevity<\/h2>\n\n\n\n<p>Just think about it. If you have a car and the doors and windows \u2013 they\u2019ll wear out eventually. The tires will wear out. But if you think about the motor in a Tesla, it\u2019s <a href=\"https:\/\/www.youtube.com\/watch?v=wvLmBfwmA04\" target=\"_blank\" aria-label=\"basically like a power drill, a big power drill. (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">basically like a power drill, a big power drill.<\/a> How often do you buy new power drills? Once every 30 years or something? The motors, the electric motors last forever, and the Tesla motor is going to last a long time. If they get a battery that can last a million miles, then Teslas are going to last a million miles. People will be buying Teslas with 800,000 miles on them, thinking that they can get another 100,000 miles.<\/p>\n\n\n\n<p>Right now if you\u2019re buying a used car and you can get 100,000 miles out of it, you\u2019re willing to pay a lot of money for that used car. If you\u2019re buying a used car and expecting 20,000 miles on it, you\u2019re not going to pay much. But if you think you might get 100,000 to 200,000 miles on it, you\u2019re going to pay a lot. So the resale value of Teslas is going to go up. That\u2019s going to support the price of Teslas. The price of Teslas will go up.<\/p>\n\n\n\n<p>If you buy a Tesla 3 or 4 years from now and it has a million mile lifetime to the battery, Tesla is going to charge $10,000 more, even though it might cost them $1,000 more to make. So that\u2019s tremendous profit potential.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Self-driving vehicles<\/h2>\n\n\n\n<p>What happens if they finally figure out how to do the full self-automation, self-driving? I have self-driving on both of the cars. I don\u2019t think it works all that well, and it certainly does not work all that well on city streets. <\/p>\n\n\n\n<p>I went through a roundabout about a month or so ago, couple months ago, with one of the cars, and I had it set to go at the speed limit, and the car approached the roundabout and it would\u2019ve just run right up in the middle of the roundabout had I not grabbed the steering wheel and turned it. <\/p>\n\n\n\n<p>So as a driver, I can see the roundabout and I know you\u2019ve got to turn right when you get to the roundabout. But the stupid car didn\u2019t realize that. So right now, the self-driving is okay. It\u2019s entertainment, but it\u2019s not all that good.<\/p>\n\n\n\n<p>I believe at some point in the next 2 or 3 years, <a href=\"https:\/\/www.bbc.com\/news\/technology-53349313\" target=\"_blank\" aria-label=\"it\u2019s going to be so good that people will fully self-drive (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">it\u2019s going to be so good that people will fully self-drive<\/a> and do very little personal driving. At that point, all of a sudden you\u2019re going to get driverless taxis, right? Uber, Lyft, they\u2019re trying to do the same thing. Google is trying to do the same thing. But Tesla is in the best position to do it. So pretty much all the taxis in the world, all the Ubers in the world, Lyfts in the world, it\u2019s all going to go away, and it potentially could all be Teslas. So they have another big income stream there.<\/p>\n\n\n\n<p>As I said, this is the stuff that people are talking about now, and this stock chart is because people think that they\u2019re going to come up with other things. That\u2019s what is going on here. People are thinking that they\u2019re going to succeed in all of the things that I just said, and they will come up with other things right now that nobody is thinking about.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tesla in the home and beyond<\/h2>\n\n\n\n<p>I don\u2019t know if they\u2019ll do stuff related to the house. I don\u2019t know if they\u2019ll expand beyond \u2013 maybe they\u2019ll make air conditioners for the house. Maybe they\u2019ll develop battery packs that are so big that you can store 2 or 3 days\u2019 worth of electricity in your house and never have to worry about a power outage. Maybe you can buy five or six battery packs for your house and store enough electricity for 2 or 3 weeks. There are millions of houses in the United States, and how much would people be willing to pay to have a 100% guarantee of never having a power outage again?<\/p>\n\n\n\n<p>So the solar panels, you generate electricity, and you can create tremendous stores of it. Cities, governments, they will \u2013 if Tesla can make huge battery packs, governments, countries, everybody\u2019s going to buy it. I think there\u2019s a lot of potential there. Obviously, given what we know today, this is crazy. You have an overbought market. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Daily-Chart.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"404\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Daily-Chart-680x404.jpg\" alt=\"\" class=\"wp-image-103318\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Daily-Chart-680x404.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Daily-Chart-300x178.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Daily-Chart-768x456.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Daily-Chart.jpg 1170w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><figcaption>Tesla (TSLA) Daily Chart<\/figcaption><\/figure>\n\n\n\n<p>This is the daily chart. Here\u2019s the weekly chart. You have an overbought market, and it\u2019s just rallying in an extremely unsustainable way. But ultimately, I don\u2019t see why anybody would not buy it.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Weekly-Chart.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"403\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Weekly-Chart-680x403.jpg\" alt=\"\" class=\"wp-image-103319\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Weekly-Chart-680x403.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Weekly-Chart-300x178.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Weekly-Chart-768x456.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/Tesla-Weekly-Chart.jpg 1170w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><figcaption>Tesla (TSLA) Weekly Chart<\/figcaption><\/figure>\n\n\n\n<p>It was interesting when the market was down here at 200 and Musk was joking it would go to 420, the marijuana thing. He smokes marijuana. And everyone kind of thought he was just stupid, that why would it ever go to 420? Well, look what happened with the pandemic crash. It tested 420. Tested 400. So 420, 400 was resistance, and now it\u2019s support, and now this area is support, 1,000.<\/p>\n\n\n\n<p>But I gave a very long answer regarding Tesla, but right now, people are betting that it\u2019s the new Apple. Apple was the great innovator, and Apple still is a great innovator, but their product line does not overlap with Tesla. Tesla has the potential of being absolutely huge with those batteries. If they can do something spectacular with those batteries, it will change the world. The electric car is changing the world, but not everybody will buy an electric car. But if the entire power system of the world switches over to have these batteries all over the place, that will change the world. It could easily justify Tesla at 2,000, 5,000, pick some thousand number, but some big, big number.<\/p>\n\n\n\n<p>All right. Hope everybody has a good night.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Video duration: 11min 18sec Trading room Q&amp;A Tuesday July 7, 2020 Q: Tesla at 1370. What\u2019s going on? How did that happen? Tesla stock price rationale Let me just say I own two Teslas. I like the car. I like \u2013 the body is terrible, but comfort \u2013 I had a Lexus before the [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":103309,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[161,268,267,265,266,264],"class_list":{"0":"post-103291","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ask-al","8":"tag-aapl","9":"tag-amzn","10":"tag-nflx","11":"tag-tesla","12":"tag-tesla-stock","13":"tag-tsla","14":"entry","15":"override","16":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2020\/07\/tesla-model-s2020.jpg","author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/103291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=103291"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/103291\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/103309"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=103291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=103291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=103291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}