So today we're going to be talking about two of the most speculated on electric car companies within the stock market. Now of course, since the focus of this channel is around growing our accounts, we will be taking an objective look at the price action as well as the underlying fundamentals that might lead to changes in the underlying price action. And at the end of the video, we will be comparing the two apples to apples to see where they're at right now. But I should say that this isn't really much of a competition.

If you know anything about the fundamentals of these two companies, you will know that it's not really a fair comparison in any way, shape or form. But because I enjoy stomping on the dreams of the innocent, we will be comparing them anyways. But before we get into this, the only thing I ask of you in return is that you hit that beautiful and ravishing like button. And also don't forget to subscribe if you see value on the following video.

Now, we spoke it a lot about Tesla on this channel. A lot. And it's usually in regards to its price action patterns that allow us to buy in when it's oversold and then sell out when it's overbought. But fundamentally speaking, there's no way that I could talk about this stock without isolating one half of my audience or the other.

So let's just go ahead and isolate all of you. This is a stock with a cult-like following on both sides where people feel like it's either worth absolutely nothing at $0 or it's worth absolutely everything. In rivals the likes of Amazon and Apple and both of these groups are of course very emotional about their opinion and the first group is now feeling of course that they were the ones that were right. and they of course feel like it's going to keep dropping until hit zero dollars because hey, it's worth noting.

And the folks on the other side the Bulls are yelling and reminding folks that last time it took a plunge like this, it rallied 90% Now obviously both members on both sides have some logical points, but the problem is when you bring too much emotion and too much bias into the market, it's almost never a good thing. It's almost never a good thing. You just make yourself one of the Sheep. We know that when it comes to the stock market, everything is either really good or it's really bad.

That is just this extremist sheep mentality that follows throughout the market. and as honestly, while there's so many opportunities to make money, there's this idea called the efficient market hypothesis that a lot of people preach and they say oh well, the markets so efficient because everybody within the market that's trading has all the same information and will have the same interpretation. Obviously that's not the case. Everyone fights and fights and fights those variable.

But in the long run these short-term fluctuations give way and we see the long-term value of the company. But anyways, we can use this extremists sheep mentality to use these emotional mood swings within the market to our advantage. And the analyst / monkey price targets also very differently. Just like the two major groups do, we have the upper end at around $500 and the lower end at $54 This really shows the polarization and opinions on the stock, and really, it's because Wall Street simply doesn't know how to value it.

This is a story company led by Aim and largely seen as either a genius pioneer or an unstable maniac, operating in an electric car niche that is facing increasingly tough competition. And when it comes to individual investors, there's a lot of anecdotal evidence that tends to point them towards one opinion or the other. If you live in one of the major cities like I do where every other car is a Tesla you are more likely to feel that Tesla will only get bigger even though this is not an objective viewpoint. Likewise, if you're somewhere where you've never seen a Tesla you're not going to have a subjective of a feeling for the company.

But honestly, what the result of this is is that it leads people to fallen in love with stocks or in sub cases, fallen in love with hating stocks. That could be because of the actual car. That can because of the man. It can be because of a bunch of different factors.

They believe in the mission of the company. Whatever. but it makes people cling to it emotionally either because they love it or because they hate it. And as you can see right now, those who hate the stock, they're winning.

But Tesla has always been one of these emotionally driven stock and this is the very reason that we've made so many videos and I've spent so much time talking about it. It has so many opportunities when it is oversold and overbought again and again. and until recently, no matter what happened, it wouldn't dip below through your support. So this historically gave us discounted positions and let us ride the price action back up like a magical pony.

So while this stock may be beaten down, I wouldn't overlook opportunities when we start seeing early warning signs of an uptrend. I would just make sure that they are technically confirmed and not just based on your fundamental thoughts regarding Musk and his company. I Know a lot of people started shorting Tesla even as late as it broke the 195 line and this is just sort of the bubble mentality in the opposite direction. Just like everyone likes to buy in.

when a stock is rising exponentially, folks like to short the stock when it appears to be decreased exponentially and usually the late comers are the ones that end up paying for most of the bubble. But Charlie you are so wrong. He said it himself. they are going to be running out of money within the next ten months.

Well, that's nothing we couldn't see even months ago by looking at the balance sheets ourselves. This is all public knowledge and it's also not surprising in any way. shape or form. Tesla is a growth company that has always operated on the edge, spending nearly everything they have to boost production and innovation.

and we know Tesla has a cycle of really good news propping up the share price and then really bad news beating down the share price. And we've seen it all with Tesla Elon Musk saying the company will go private at four-twenty a share same name, we'll go bankrupt jokingly on April Fool's Day Elon Musk tweeting against the SEC several times, blah blah blah, almost all resulting in massive fluctuations with the price action. But these things don't change the fundamentals behind the company. They do have longer-term value, whether you see that as lower or further.

It's just that these events cause massive fluctuations as short-term investors freak out. And of course it is important to note that last time Tesla got be down this far it did rally 90% But as traders, it is our job to look at the price action and take an objective approach. The objective approach is that we are now at a three-year low and there's a lot of upside to 3:20 issues share. but we are also in a long-term downtrend and much like we don't like to buy sick dogs on the side of the road I Wouldn't recommend behind Tesla until we start seeing both early warning signs of an uptrend as well as longer-term confirmation of a reversal.

So now it's time for Knio. Knio is widely seen as the Chinese Tesla competitor, and much like with Tesla, its performance resembles that of a loaf of rotting bread. Now, in terms of monkey expectations, the monkeys are raking this at an average of 7 dollars and 97 cents. So we'll set the Monkey Line of support at 7.9 T 7 cents.

Now that's a bit more than double the current trading price. But as we know, monkeys will be monkeys now as they reminder, the reason that we set the Monkey line of support is again to get a feel of what other investors and big analyst firms are thinking. We know that the monkey line of support is always over emotional in one way or the other. It's just their opinion.

There's nothing objective really to it. But since it's over emotional and we know that other investors are going to be looking at this line, that means that when taking position, we're going to want to be aware of that. So we understand that hey, if we're trading above it on a stock that we think is going to go up, we're going to have a lot more risk because most people think it's going to go down and that impacts individual investors as well. But technically speaking, we are at an all-time low with nothing but upward potential.

If we do start seeing signs of a reversal, this stock has the spiked ability factor where it's prone to massive runs and then run downs, which is perfect and quite beautiful for us as traders. This run up earlier in the year was largely caused by a monkey proclaimed increase in demand, as well as heightened media coverage on the company. Unlike Tesla, Neo doesn't have the same amount of investor name recognition and thus an increase in name recognition alone can create volatility in a stock and in this case resulted in a rally and subsequent drop. And Neo has this pattern of running down quickly and then bouncing them and running down.

and then bouncing. And if history repeats itself, we could be due for another bounce quite soon, as we just saw several periods of selling and are now oversold once again. and this is also something that the folks over at Investor Place picked up on as well. Nonetheless, diving into the fundamentals, Neo is an electric car company in the increasingly isolationist and government-sponsored electric car market of China.

There's tons of competition for Neo just within China alone, but the luxury the luxury electric car segment within China remains pretty unsaturated. Ironically, their biggest competitor on mainland China is Tesla, but with Eevee sales growing in China which already accounts for one third of global passenger vehicle sales globally, it's reasonable to assume that Neo has a lot of fundamental expansion potential if the company execute correctly. So there's that. But how does Neo stack up when compared to Tesla in the moment? Well, how are they doing right now? Well, I give a lot of comments and messages asking me this question, and a lot of people think that it's like comparing Apples to Apples when that's not really the case.

Both of these companies are on different chapters within their growth potential. But let's start by comparing them in terms of sales. So Tesla has sold a total of five hundred and thirty two thousand units since 2012. Neo, on the other hand, has sold about fifteen thousand since it started five years ago, most of which are still in the process of being delivered.

And in terms of countries that they sell in, Tesla has an estimated fifteen main international markets that they're selling in, with actually being the second most popular behind only in the United. States. Neo has headquarters in both China and the US, but currently only sells in China. But obviously these two companies are operating in completely different markets, and Neo isn't as far along in its development.

So again, it's not really like comparing Apples to apples. Neo is also government-sponsored but hey, what? Chinese business isn't government-sponsored and in a way, the U.s. did back Tesla by allowing a tax credit for those who purchased the car. Still keep in mind when you hear someone say that Neo is comparable to Tesla in terms of strictly fundamentals.

you should make sure to remind them of these numbers. But anyways, both of these electric car companies will be facing more and more competition from larger and more established car companies that increasingly add electric cars to their lineups Every day there seems to be a new car company that comes out with electric car. Anyways, let us know which car company you prefer in the comment section below. but in any case, I Hope this video was useful for you.

If you have any questions, feel free to comment below or reach out to us on the Zipp trade or circle Facebook group. We also have a training tutorials playlist if you're having a hard time figuring out how to approach the market, how to turn a consistent profit, and just general risk management. Anyways, have a great day folks and I'll see you in the next video.