Okay folks, so happy New Year and we've got a lot to talk about today. Number one: We got to give a violent update on the market and plays number two. I want to point out something big that you're going to want to watch out for this first week of 2022. And then for the main entree.

This lovely evening, I want to talk about why Ev stocks are going parabolic and what you can expect. next. I also finally joined the Tesla Club myself. As a consumer, we'll talk about how that changed my perspective on the company and the only thing that I ask in return for all of this is that you hit that ravishing like button and also don't forget to subscribe either.

Okay, pretty nice start to the year. Dow up S P of Nasdaq leading 2x rowsky small caps not far behind. You have lots of risk on trading, and the Dow in the S P hit record highs in the first trading day of 2022. But in many ways this was a tale of two markets You look at the broader market.

It wasn't an all-out green day across sectors, in fact, quite the opposite. You had weakness in healthcare, consumer defensive, lots of consumer cyclical weakness, real estate, industrials doing bad. You did see a hardware push into Apple as well as some semiconductor stocks. stocks like Nvidia, Qualcomm, and Amd will be presenting at Ces this week, so you will see a lot of analysts highlighting them and their upcoming technologies.

You also had a lot of sectors that did bad the last couple of quarters of 2021, especially towards the end of the year. and you saw them see inflows today, most notably the financial sector Your Visa, Mastercard, Paypal, Jp Morgan, Bank of America, Wells Fargo. certainly, in my view, an undervalued sector when you consider the interest rate increases that we're going to see over the upcoming years and how that's going to correspond with higher profit margins for lenders as well as of course, the consumer price increases that lead to higher fees for credit card companies and whatnot and a higher need to take out credit. Mara Lovely Morrow reported 484.5 Bitcoin mined in December, which is a record.

Remember, they mined only 196 in November, so substantial jump and new investments and scaling deployment this year should make more very, very effective at mining than Bitcoin. Of course, we aren't exactly in a hot market for crypto as a whole and excitement won't return from our lovely Mara until we are. But during times like these, it's time to look at what the company itself is actually doing and how effective it is at producing, Because when the price inevitably goes back all of a sudden, you're in the situation where, hey, Mars producing a ton of value. And in terms of what we were looking this week for Catalyst, I'm specifically watching Fda actions.

The beginning of the year can often be the time where the Fda starts sending out a ton of approvals or at least special designations that can lead to faster approvals Those decisions can make. Attached stocks go parabolic. What work? Today was Gnpx. We briefed on Gnpx 30 minutes prior to market open at about 153 ish a share because the Fda had granted them a fast track designation for one of their leading candidates and onset news that ended up being quite juicy.

It ran from 153 to 387 in the after hours and later on, if I'm checking the chart right now, where did it go To 413? It ran all the way up to 413, which was insane. I didn't see that last after hours push coming, but in any case, pretty insane. This is actually the second Fda Fast Track designation that Gen Prax has received, which shows that the Fda has some positive sentiment at the very minimum towards this company. And it comes in the very, very strong backdrop of investors literally losing their patience month after month.

For the last 12 months, it dwindled down to such an extreme extent that any positive news would have caused a massive rebound in the stock price, which is why we were so excited when we saw this catalyst this morning. But at the same time, remember, Capital Markets want to have fast returns and when you get Fda stocks a lot of the times they'll just bleed until you get a positive headwind. And with an Fda fast Track approval, it wakes people up to say hey, wait a second. This is actually a company that's doing something and then they pour back in.

They play the catalyst and then they take profits. And the idea is that if you could find these setups early enough, you can get in, get out, and then go on to the next. But you don't always get these opportunities. it just depends on the market condition.

Today was a very, very solid day, and considering that Gnpx is planning on launching a highly anticipated clinical trial this quarter, I'm guessing that this isn't going to be the last that we'll see of this stock. But I would still say if you're going to mess with these, play the catalyst. But don't let the catalyst play you again. We will be watching very, very closely this week and of course this quarter as a whole for more Fda catalysts just like this and we'll keep you updated in the daily morning bravings if we find any.

Hopefully we do. Okay, but moving on to the main entree, I want to talk about Tesla. Tesla pretty much drove and electrified the entire market today, leading most of the Nasdaq's growth up over 13 on the day, reaching a few licks within all-time highs. Why? Well, because Tesla massively beat on delivery numbers, This is leading a lot of institutional money to say hey, let's go ahead and buy Tesla before all these waves of analysts go and try to upgrade the price target.

A big criticism of analysts on Wall Street is that many analysts don't like stocks until they finally start showing proof of concept in their actual numbers and at which case they're inducing people to buy in at much higher prices once the market has already all realized how valuable the company is. And it's frustrating because a lot of the analysts that thought Tesla stock was a trash company at 1 20th of the share price are now jumping to upgraded to insanely new and new and new and higher and higher price Targets specifically because it joined Proof of Concept. The market knows that when Tesla beats on expectations all of a sudden, all of these analysts are going to go and rally up the price. Target and a lot of people are going to Fomo and after them and you're going to have another euphoria wave before you get another down cycle.

And if Tesla has a bad quarter, they'll go and downgrade it again and then they'll be proven wrong over the long run. But it's just funny because Wall Street likes to churn out money and it likes to get people vomiting into stocks and that happens over and over again. If I had to describe my take on Tesla stock, it would be agnostic of Tesla's performance in the short run, but a very, very big believer in the long-term performance of it. The reason I say agnostic is because companies always have periods where you get very, very big checks and balances.

You get these huge euphoria periods that can last quite a while and then they get checked and everybody gets panic sold out and then the cycle repeats. I think the Tesla is very, very widely misunderstood, which means that a lot of people that bought at all-time highs will be the first to panic sell when they go back down. We saw that earlier in 2021, and I think we'll see it again in different cycles in 2022.. But in the long run, it would be really, really stupid to be a bear.

Just look at the overall trend trajectory in the actual company and its growth and all the markets that it's dominating. Just take these latest delivery numbers. They were insane. Worldwide deliveries totaled 308 600 in total deliveries in Q4 of 2021.

That was beating the analyst estimate at 263 000 on average. The week before that, there were no shortage of bears attacking Tesla and attacking Elon Musk for selling shares for recently recalling a lot of vehicles. Lots of press releases acting like Tesla's been a big massive scam and a lot of people are going to get their rear ends handed to them. And again, as somebody who's agnostic on the short-term performance of Tesla, but very, very bullish on the long-term performance, I gotta say, I was a bit squeamish on the delivery situation with global supply chain issues fairly weak in 2021 and some month-over-month problems that we saw across the industry.

I was thinking, hey, we're going to have a healthy quarter in terms of deliveries, but I don't know if it's going to be a massive blowout. And then we see this and it's like, damn, Never bet against the Muskenator If these are the numbers that Tesla can do. Despite the worst supply chain issue for the industry that we've seen in decades, imagine what it can do once it fully starts easy. Elon Musk has said many times that Tesla has a supply problem, but not a demand problem.

And when you're starting to see Tesla fix its supply issue all of a sudden, you're getting into this area where Tesla could be bringing in the big bucks in 2022.. this is the first quarter where the entire market has to look at this and say, wait a second, they're actually doing what they set out to do and beating it. I also got to talk about my own experience as a consumer. I got a delivery of my first Tesla a few weeks ago and it was a pretty damn good carbine experience.

Probably one of the best yet. I ordered it online. This little hedgehog meme thing congratulated me which is actually real. You can google that.

That's actually what Tesla shows when you buy one of their vehicles. I don't know if there's a hidden message there of squashing short sellers from hedge funds that were betting against Tesla for the last five, ten years, but I ordered it online and they dropped it off in front of my house a few months later like a doordash order without ever having to go to a dealership or talk to anyone. Which is great because I'm anti-social and I like to stay in the house. just kidding.

But you just unlock it with the Tesla app on your phone and you take delivery. You don't have to talk to anybody. I think that some people have to go to an actual Tesla dealership, but they just brought it to the house. Just depends on the locality you're in and how easy it is to deliver it.

And the car itself is fantastic. I drove it on a long road trip over New Year's and I'm totally in love. I even named her Tessa Tesla. The Tesla acceleration is super clean and streamlined.

Autopilot is somewhat useful on long road trips, especially wall-to-wall traffic where you're not even moving very quickly. but it also works pretty well. When you have to go fast, it just follows the lanes. But you do want to make sure that you're monitoring it because if something changes really quickly, it might not react exactly how you'd want it to react.

That said, my perspective on being a new consumer is that Tesla's certainly more of a cult brand than I ever imagined. I knew that it was a cult stock, but when you actually pull up the charging stations, everyone is trying to chat you up like you're in some sort of secret club. It's just missing the candle and chanting rituals and the Elon Musk picture. Definitely like a cult, except the cult is huge and growing fast.

I would have to argue that their cars are overpriced for what you get, but but they are really selling the experience, aren't they? The experience is super unique, and Apple pulls off a similar shtick. Apple's products, their iphones, their Ipads, their Macbooks, their Imacs aren't cheap. You can get alternatives that are very, very similarly spec'd for much cheaper prices, but many people are willing to fork over the extra dough because they like the experience better and the presentation and in a similar way. Buying my first Tesla felt like buying my first iphone or my first Macbook.

I felt like a sucker, but a happy and loyal sucker who would definitely do it again, which is really the key of good marketing. if you can get consumers that know they're paying a premium but also are happy to do so, That's how you build a good company with high margins in the long run, and I feel like that's the average Tesla consumer experience. They like the brand, they like the leadership, They like the willingness to go above and beyond and innovate, like the smooth interface and the smooth overall experience. They like what the brand represents and what people think of.

When they think of the brand, they are willing to pay a premium for these things despite maybe the underlying specs eventually having a lot more competition. And when analysts compare rising competition in the Ev space, I feel like they really, really don't take this into consideration consumer behavior and how dedicated consumers are to certain brands that they like, and the underlying magnetic attraction that attracts consumers to brands. Without that, it leads a lot of analysts to thinking that Tesla will be bludgeoned by increasing competition, when in reality, you could try to replicate an iphone all you want. You can design it with much better specs.

You can create a much cheaper phone, but for a very, very large portion of Apple customers, you're not going to get them to switch because they're loyal to the brand, they like the phone, and the experience, and they're willing to pay more even though they might not be getting more. And with Apple similar to Tesla, they're able to create an ecosystem for their phones. Tesla has created an ecosystem for their cars, and they're increasingly building upon that. And when analysts compare rising competition in the Eevee space, what do they forget to do? They forget to really quantify that magnetic attraction that Tesla has two new consumers and loyal customers from the past.

But anyways, in terms of bigger picture, this report is really a testament to the management of Tesla and their relationship with suppliers. Navigating record after record despite huge supply chain issues across the industry is a huge accomplishment. Okay, lastly, I do want to talk a little bit about Chinese Ev companies, specifically Neo. So China overall saw a huge boom in Ev demand in Q4 because they have a massive subsidy that is expiring in 2022.

It's actually getting reduced. It's not completely expired, it's completely expiring in 2023. So anyways, a lot of people wanted to buy Evs before that credit expired and that created whirlwinds for Tesla honestly. But also Neo, Expev, and Lee and with Neo, Neo has had some recovery After getting bludgeoned last month as Chinese stocks got hit.

It's bounced a decent amount since Lowe's at 27 52 last week. But the big story with Neo stock is their deliveries. They just reported Neo delivered 91 429 vehicles in 2021 in total, which increased 109 year over year. We made a video talking about projected deliveries for Neo in 2021 and I was thinking around 89 895 in total.

Neo ended up doing almost a couple thousand more than our expectations. Even Neo, in my view, is a very, very unique situation. You have two different stories you have the story of. Well, the supply chain has hurt Neo quite a lot at fulfilling demand, but demand has stayed very, very hot.

That's something that Neo is going to benefit from dramatically once those supply chain issues start really loosening up, which they appear to already be. And then of course you have the other side of the story, which arguably is more of a cause for the beat down. And that is the Chinese flood part. The market doesn't want to touch it because of the Chinese regulatory flood environment.

Now I'll be the first to tell you that you never really know what's going to happen in China, and I wouldn't put a lot of money in China for that one reason. But if you're going to invest in developing markets, you have to look at the actual picture of what's going on here. The reason I think that China's regulatory fear on Neo is largely unfounded is because Chinese regulatory action that we've seen and rhetoric that we've seen hasn't been pointed at all at Ev companies. It's been directed towards a lot of really major companies that are encroaching power on entire industries and hitting monopoly status.

And the government's like, no, no, we want to control everything so we want to make sure that you're not getting in our way. In terms of bad headwinds from the government over in China, I would say the only thing you could really even point to is that of course Ev subsidies are going to be dwindling over the upcoming years. I believe they're all expiring in 2023.. However, with Neo introducing lower and lower priced vehicles, I believe that a lot of that negative effect is going to be mitigated.

Obviously, you do have the expensive Et7 coming out in March and then the lower priced lowest vehicle yet, Et5 coming out in September, but they are also expected to announce an even cheaper model in this upcoming year. So anyways, if you're looking at the Electric vehicle market and the top players in China in 2022, obviously Tesla is a big exposure play to that, but you also have Neo and you do have Xpang and Lee. The problem with Xpang and Li is they didn't have the same level of supply chain fud as Neo and so they had a lot more reasonable expectations for what the actual numbers were going to be. So when they actually beat today on expectations, they didn't go up much.

The market was more surprised how much Neo performed and less surprised at how much Xpang and Lee did. The more the shock factor and the more surprise the more it's going to go up when they beat. And that's why you saw Neo do very, very well. But anyways, folks that caps off this video.

If you have any questions, feel free to reach out to us below or join us on Ziptrader Circle if you'd like to lock in lifetime access to our daily morning briefings, our private chat, our full price target list, as well as our step-by-step lessons. Make sure that you go ahead and check out Zip Trader you below coupon code goodbye 2021 is still active and we'll get you a sizeable discount before checkout. Anyways, Happy New Years folks! I hope you had a good time with your families and everybody's healthy and safe and ready to do a fun year in the market. Have a good one and I'll see you in the next video.