Okay, so the day of the battery is almost amongst us. Do you smell the battery in the air, folks? Oh, I got that whiff of battery. And in honor of battery Day, the market got battered. Which by the way, congrats to folks who caught the runs in our short funds like Lab D, S, Triple Q and volatility fun Uv Xy.

This is why we put them in our morning briefings for Zip Trader Eu members when it comes to downward direction days. but this isn't a time to talk about the broader market. this is a time to talk about Tesla. In this last video before battery Day, we are going to be quickly breaking down some of the last minute updates and things that you've likely missed.

For example, what did Elon Musk tweet about where he said there was an important note that you needed to know before battery day, what does this mean and why did it tank the stock in the after hours? What do these so-called Tesla leaks say about what is coming tomorrow? Why are some analysts drastically increasing the price target for Tesla ahead of battery day? And why is it that the biggest catalyst for Tesla tomorrow may actually have very little to do with their cars? Well, we'll be talking about all of that in this video. and we're going to be finishing with of course, whether or not you should buy stock in Tesla right now. And let me just say we've already covered in depth the main event in our this is coming Soon time sensitive Tesla video that I put out like 10 days ago and I'll link to that below. but in this video, I'm not going to repeat anything else that we've already covered.

This is going to be for the remaining details that many of you have missed and that you need to know, as well as some of the breaking news that you haven't yet heard about. So let's go ahead and violently break this down step by step. So, Battery Day is the day that Tesla will show the world not only its new battery technology, but also its forward ability to conquer the combustion engine and take over a much larger chunk of the car market. But folks, it's more than just that.

Battery Day will uncover Tesla as something more than a car manufacturer, Battery Day can unveil. What many are calling Tesla's most bullish division one that some are saying may even have more potential than its car division. Elon Musk himself said, this department will grow much faster than electric cars. And do you know what this division of Tesla is? I am talking about Tesla Energy and this is a segment of Tesla's business that I'm sadly finding missing from like 90 of the conversations.

When it comes to Tesla, tomorrow will set expectations for years. Down the line when it comes to the role of Tesla Energy in our world, and some of the few woke analysts are projecting Tesla's energy business to reach more than 200 billion per year in revenue When you consider that Tesla's entire revenue in 2019 was only 24.5 billion, you could see that the Tesla energy segment paints quite a different picture of the type of company that Tesla will be far in the future and creates a much much more bullish picture on Tesla. And that's even if the analysts are only half, right. But what actually is Tesla Energy? Well, it's the solar panels, solar roof, and battery storage pack division of Tesla.

A few weeks ago, I watched Elon Musk answer questions outside his new factory in Germany, and he said that there are three elements that are necessary for a sustainable energy future, and essentially the three elements that are needed for a sustainable energy future: Our sustainable energy generation, uh, energy storage, and sustainable Transport Electric cars. So the three elements are sustainable energy generation, sustainable energy storage, and sustainable transportation. However, most people are only focusing on one of these when it comes to Tesla the transportation segment. But energy generation and energy storage are the other two main parts of Tesla's goals.

Moving forward, Tesla Energy has sort of been the quiet Goliath underneath Tesla. It has rapidly been expanding to meet more and more demand on the residential, commercial, and even citywide mega level. And as the world moves more into sustainable energy, the Tesla energy storage business will increasingly grow. And that's why Elon Musk and Tesla expected to outpace the rest of the company.

Okay, next the Road Runner Leak. So Teslarati put out an article talking about the Roadrunner Cell leak image that suggests that the battery unveiled tomorrow will be a lot more insane than even expected. Elon Musk tweeted to this article and said it will be very insane. and if you go on to read the article it says it is evident that the cell is massive, closer in size to a super capacitor than a traditional battery cell.

Initial observations by battery enthusiasts online point to some radical improvements that such a cell design would bring. So what you need to know about this is that even though battery speculation has been pricing in an insanely improved battery, this leak further fortifies these expectations and suggests a complete redesign that drastically improves and optimizes the battery. We spoke yesterday and last week about how Tesla's rumored million Mile battery has wide-ranging implications on the cost of batteries, their range, their lifetime usage, their durability, the speed at which they can be charged, and even the space that they take up in terms of how big these batteries are. And this Road Runner leak provides further indication of this goal having been achieved.

Okay, the next point, analysts are going crazy. So the renowned analysts at Ubs literally doubled Tesla's projected price target in anticipation of battery day. But why? Charlie? Well, they cited that September 22nd reveal of Tesla's new battery cell technology will fortify Tesla's cost and technology lead for several more years. They went on to speculate on the improvements of this battery and how that would lead to Tesla selling 2 million vehicles in 2025, which is about 15 of global battery Electric vehicle market share.

But again, even though they doubled their price target, this is again an analyst firm that's focusing on the car part of Tesla, but is completely leaving out one of the biggest sectors of Tesla moving forward. And that was Tesla Energy. And not considering that means you're leaving out a huge part of what's happening in the future for Tesla. Okay, and lastly, when I was making this video, Elon Musk tweeted out that he had an important note about the Tesla Battery Day unveiled tomorrow.

He says this affects long-term production, especially semi-truck cyber truck, and Roadster, but what we announced will not reach serious high volume production until 2022. So my read here is that Elon is essentially trying to downplay expectations as to how fast they can produce the new batteries. He's lowering expectations on the production side before we go even into Battery Day. Now, I don't know why he didn't just wait until Battery Day to tell us this, but whatever he says, we intend to increase, not reduced battery cell purchases from Panasonic, Lg and Cat L possibly other partners too.

However, even with our cell suppliers going at maximum speed, we still foresee significant shortages in 2022 and beyond unless we also take action ourselves. So what he is saying here is that Tesla will not be leaning less on other battery production partners, but rather more so. That means that speculation that Tesla will be taking all the battery production in-house is inaccurate according to Musk, but that they still will need to take on a lot of that production themselves in order to fix these significant shortages in 2022 and beyond. And after he tweeted this, the stock took a complete dive, but it's since recovered quite a bit.

But anyways, for my read and my understanding of the situation here, this isn't so shocking. This was fairly expected. This just highlights the very consistent theme of Tesla in regards to the struggle to produce batteries in the supply needed. Honestly, when you have a huge event coming up that has all this hype that's been built up for literally a year, it's easy to expect that everything's going to blow you away, But the truth is, there's still legitimate constraints when it comes to what Tesla can produce.

There's still legitimate constraints to where we're at right now in terms of the technology when it comes to battery. And I'd like to hear more tomorrow about how Tesla will fix this production issue, just how much it'll lean on its battery partners, and how much it is proposing to take in-house But most importantly, as an ever-increasing energy company, I'd like to see Tesla paint a picture of how all of its supply can be made in-house in the next decade. and that's something that perhaps we'll see tomorrow. Okay, so in conclusion, should you or should you Not buy Tesla? Well, here's the thing: as traders, we look at a chart and say, okay, how does this current trading price compare to say where it usually trades at and is it a good deal right now to buy Is it in the lower range or is it in the higher range of where it's usually at? if it's in the higher range or like, okay, well, this looks like it's a little bit more overbought and the Rsi can further affirm that if it's in the lower range, we could say okay, well, based on all else being equal, we could say okay, well, it is trading a little bit more on the cheaper side, but Tesla is up hundreds of percentage points this year.

so from a trading standpoint, there is a lot of downward potential. But as traders, we also have to analyze a stock from the perspective of previous patterns in previous behavior. And that means looking at how Tesla has reacted to previous catalyst to sort of determine how likely it is to react again to new catalysts coming up. And the last two times a big catalyst happened be that earnings or stock split hype or a new announcement, Tesla reacted massively and ran up.

And honestly folks, I think that too many people are focused on things making sense. When it comes to hype, nothing has to make sense. Does it make sense that Tesla would run up on a stock split announcement? Well, no, not really. But you can exploit the hype itself without actually having to believe in it.

And when it comes to battery day, there's a lot of hype that's actually deserved. but I'm sure that it's going to be overhyped nonetheless. So being a trader means that we are exploiting hype without actually believing in it. And when you don't actually believe in the hype and you're just trying to take the short-term runs, that means that you don't actually have to hold it as it crashes.

You don't have to get your butt handed to you as the stock price dives 20. I see so many people that are buying Tesla to make a short-term profit. but then when it starts dipping, they're like, oh, I'm just gonna keep holding it. Well, what are you doing? That's not how you trade for short-term profit.

You trade the fluctuations that are going in your favor and then you cut out as it starts losing. If you're investing, that's a totally different picture and I'll talk about that a little later on. But here is the game plan for traders. We as traders, have to acknowledge that yes, Tesla is trading really high on the year.

But also, we have to acknowledge that Tesla has such a fruitful history of running massively on news. that means that if we are given momentum to trade off of, it's totally fine and fair to trade. But we also don't want to get stuck holding as the momentum dies down. That means that we need to have a clear exit plan to sell added validation, but it also means accepting that when this momentum does cool off, Tesla is then entering a new period.

Post-battery day, Tesla will be in a new period where there isn't a huge catalyst coming up for quite some time. For the last six months we had literally catalyst after catalyst after catalyst. Even future earnings aren't going to be as big of a deal when compared to battery day, so that means you have to accept that any run may be short-lived and you have to be able to exploit it for what it is. Okay, and lastly, folks, I do believe in Tesla.

Long term People do like to criticize me and say you should just buy it and hold it. Don't trade it even though this is a trading channel, so I don't know why they even bother to comment that. But as traders, trust me, we can chew gum and walk at the same time. We can say something is a good long-term investment and then separately profit from it in individual fluctuations.

There is nobody stopping you from holding Tesla long term and also trading. Its insane fluctuations. There's nobody stopping you. I don't have this weird moral code that says hey, this is actually a good company.

That means I can't buy and sell it on the same day. So folks keep your trading and investing separately. They both have different goals, but just make sure that you're clearly defining what it is that you're doing when you're in that position. Okay folks, well that's it for this video.

I wish you all the best going into Battery Day. Let me know what you think below. Do you think Tesla is a buy? How do you think Battery Day is going to play off? Where is Tesla going to go In the long term comment below and let me know. And of course, if you like this video, make sure to hit that ravishing like button.

Make sure to subscribe. And of course, if you're broker curious, make sure to sign up for one free stock with that link in the description below. Weeble is a fantastic broker, so if you're wondering what broker to actually trade Tesla on, while Weeble is a very strong broker for you, and lastly, if you are looking to learn how to trade if you want to be forged into a trader, we are offering 50 off if you type in Stay Home 2020 before checkout and that link is in the description below. Anyways, folks, have a great day and I'll see you in the next video.