Okay Markets back and forth Fed tapering China crackdowns, Afghanistan the Delta variant economic slowdowns, labor shortages, dogs running around without leashes, all the usual stuff. Today I want to cut to the chase: Tesla, a stock that went from 35 to 900 split adjusted within about 18 months during a global pandemic, a company that revolutionized and started the race into Evs, and a company that, as we just showed, was recognized for it. Now, if you are the average retail trader according to short sellers who is greedy, childish, and entitled, or if you're someone that just genuinely wants to make a return in the market, you may be looking at Tesla stock right now and saying to yourself, hey, I really do think that this company has a ton of staying power. Tesla and Elon Musk aren't going away, but at the same time you're like gosh, This price is so expensive though.

even after its sell-off the market cap is 667 billion dollars. It could practically eat all of the other mainstream car companies. Toyota, for example, is in second place and it's only at 214 billion Yet they sell many multiples of the cars that Tesla does, and you may be thinking, hey, Tesla had a huge edge in terms of jump starting the Ev movement and being a first mover, But now in the upcoming decades, they're gonna have a ton more competition and Tesla doesn't even have exclusive rights to Elon Musk's exquisite acting abilities, so it's very logical to ask. Has Tesla already factored in its best case bull scenario and is it just all risk from here on out? Well, in this video I want to give you a different perspective on one of the most watched but also one of the most misunderstood companies out there, and I want to give you my predictions on where this is heading, just so that you have a bigger picture here.

and the only thing that I ask of you in return is that you hit that ravishing like button and also don't forget to subscribe either. Okay, so to start, the biggest mistake that you can make when valuing Tesla is just looking at it as a car company. Tesla is a diabolic snowball that has set a path of wreckage across many different industries. They used their original roadster to bring in money and excite investors to fund their Model S Luxury sedan, which was their first entrance into high-end markets.

They used their Model S Luxury sedan as a way to work out kinks of mass production, raise money, build out factories and charging stations, and cement themselves as a mainstream, desirable luxury brand. It's at this stage that driving a Tesla started to become a status symbol, similar to driving a Bmw or a Mercedes although dare I say a little bit cooler. Then they introduced the Model X, which was a hit, but they would later use the funding, status and notoriety from these models to develop and market their first mass production vehicle, the Model Three, and this is what really changed the game for Tesla. Tesla really wasn't Tesla until they introduced the Model 3.

it transformed Tesla from a successful small-time Ev company that sold mainly to the wealthy and coastal cities to going mainstream around the globe. And what did analysts say? They said? Tesla? This is ridiculous. You're not going to be able to compete with all these other mass market companies that have been around for half a century or more. Analysts yell: Tesla needs to be sticking to the high end market because they don't have a future in lower priced cars.

Electric vehicles can't reach mass production, they can't be cheap, and there's not even going to be any demand for them. Because people are used to gas cars, they don't want electric cars. and even if they did, Tesla would never be able to scale up to massive production without going bankrupt. And for a little while it seemed like analysts actually had a point.

Tesla got very, very close to going bankrupt several times, but over the years with many different kinks and challenges worked out, they built out tons of factories and met massive demand, although not without some problems in terms of manufacturing quality. but we won't get into that. We don't need to talk about the infamous paint swirls and gaps between panels for the first time. It wasn't such a stretch to be able to afford an electric car, and people loved it.

It was a huge success around the globe. Meanwhile, Tesla used the flashiness of rolling off tons and tons of cars out of their lots to draw in billions and billions and billions of dollars from investors. And boy they did. And it's used those billions of dollars to build out factories, work through even more kinks, become one of the most competitive in terms of battery in terms of charging infrastructure in terms of features offered to the consumer.

It built one of the most technologically advanced and efficient manufacturing plants in the world, and it's built up a strong cult following because of how bold they are in terms of introducing features that nobody had thought of before like sentry mode which monitors your car when you're walking away, self summon that allows your car to pick you up, key card and phone access, pet mode, the online internet buying process you can buy the whole car from their website, and of course all the while having massive performance. Unfortunately, amongst all this innovation, they didn't think to update the look of the Model S, but hey, maybe they'll get to that eventually. When you look at everything as a whole, it's clear that Wall Street has endorsed this a lot more than it ever has in the past because it's so clear that there is massive value here. But similar to the early days analysts once again are misunderstanding Tesla.

They may recognize the continued global, massive opportunity for Tesla to expand. With this massive booming Ev market and the fact that they're pretty much the leader in it. But they aren't recognizing once again, that this process, even here today is just a means to an end. And why, exactly? Tesla, while it is a car company at its core, isn't really even a car company.

And we can go into the obvious things such as how Tesla offers its own insurance financing, We could talk about its massively successful solar business that's growing, we could talk about its energy storage business, its mobile servicing business, and of course its supercharging and personal home charging business, And all of these things on their own are impressive. But when you're talking this level of evaluation, there's really just one possible explanation. And it's not the Eevee car market. No, it's automation.

Tesla is one of the most advanced technologies in terms of autonomous driving right now, But it almost doesn't even matter. And the reason it doesn't matter is because the most important part is that Tesla has so many cars on the road already with this technology that no competitor can come even close to the amount of feedback and data sets that Tesla's getting. Every single day, each Tesla vehicle that uses self-driving is driving around and submitting feedback every single day and improving Tesla's autonomous capacity. And despite some constant bad headlines as Tesla works out the kinks, it's the first time that tons of passenger vehicles get self-driving technology.

Yeah, they are being probed, but they're really one of the only ones worth probing. No one else is as big of a deal as Tesla when it comes to this. How can they be again? Tesla has a massive head start because they already have over 500 000 Teslas on the road, many of which are every single day feeding data back to Tesla's massive artificial intelligence cloud, which then makes them all smarter and makes them all safer and more efficient and more competitive. If you're a company that doesn't have a massive fleet of vehicles already with your technology in it, how do you get that data set? It's much, much, much, much harder to do it by selling self-driving Teslas.

Tesla has basically found a way to be paid for beta testing their autonomous technology around the world. And while I know that is a little bit controversial from the regulation standpoint, how can a new company compete with a company that sucks in millions and millions of data points per day from its current product line? quite frankly, you can't. It's exponentially improving. and hey, while the technology isn't perfect right now, it certainly is far more advanced than anybody else that thought it would be at this stage.

And every single year more and more people use it, which cements it as more and more powerful. But the fact of the matter is, we're still in the early stages and probably the baby stages, but over the long run, the question will shift from is it safe for self-driving cars to be on the roads with human drivers to is it safe for human drivers to be on the road at all? Logic dictates that eventually, totally computerized driving will be the safest, most efficient, and most convenient featured cars out there. The computer can calculate the best routes, direct traffic flow, predict safety hazards, and much, much more. And while bears argue that investigations are disasters for Tesla, I'd argue that Tesla working out the kinks now puts them incredibly ahead of the competition that arises down the road.

Obviously, you're not going to have any sort of autonomous technology that isn't going to have kinks and hiccups. So whoever is the person that's going in revolutionizing into that industry is going to have these problems. It's just logical. but what happens when this is such a bulletproof system that regulators are forced to endorse it as a full self-driving vehicle? Well, that's the next stage, and that would lead to reinventing the entire need for a personal vehicle in the first place.

On an earnings call earlier this year, Musk said that the evaluation of Tesla makes sense. If you assume that billions of dollars worth of cars become robo taxis. Robo Taxis would, of course, not only revolutionize transportation as we know it, but it would also provide reoccurring revenue for Tesla. Because it's basically a software, Robo Taxis would provide the ability for cheap, unmanned, and convenient Tesla taxis all around major metropolitan areas.

and again, similar to the earlier business model of Tesla where you start with the roadster and build up. The current information being gathered by today's Teslas is paving the way for the self-driving vehicles of the future. And the taxis. The Robo taxis of the future.

And once that does happen, what does that mean for transportation? Well, imagine if you wanted to go somewhere and all you have to do is take out your phone, push the Tesla app, and then type where you want to go. Kind of sounds like Uber or Lyft, right? but then imagine that an unmanned or Un woman. I like to be inclusive here. Model 3 comes around and picks you up and takes you to your location.

That would be cheaper, more efficient, and easier. And if you're going to use a robo taxi like that, why even have a personal vehicle? What's the point of having your own personal vehicle? If you can just summon a vehicle whenever you want, You don't have to worry about parking. It's cheaper. You don't have to worry about maintenance.

You don't have to buy the damn vehicle or charge it at all or give it gas depending on if those are still around at the time. Literally, the whole idea of having a personal vehicle would be destroyed if you had this level of efficiency with Robo Taxis. And this is where Tesla's heading. But here's the kicker.

Obviously, when you start having this level of automation success, it's obvious where the industry is heading. It's not hard to predict all these things. They sound bold, but is it really that bold when you consider that we already have cars that can almost drive themselves, It's just that they don't drive themselves because of regulatory worries and some of the glitches that are still being worked out. Glitches that probably will be long gone within five to ten years.

But I think the big kicker here is the end game. In order for autonomous technology to work perfectly, almost all of the human error needs to be removed in order to remove all the human error. Well, you gotta get rid of most of the human cars. So when you're talking, how can Tesla compete in the future with more competition? I would argue, how can the other competitors even be competitive without offering this level of technology? Will Tesla even have competitors to compete with? Hey, I'm not completely a Tesla fanboy where I think the Tesla's just gonna conquer the world.

but at the end of the day, so many companies right now aren't even touching autonomous technology. And if they are, they have, maybe self-park it most. So when you consider that Tesla's going to have decades of experience over a lot of personal passenger vehicle cars and is probably going to lead the disruption in terms of the need to no longer have personal cars. Well, it's like, hey yeah, Tesla's at a high valuation.

Yeah, the Fed can destroy its valuation over a short to medium run, but in the next five years, it's going to be pretty damn apparent how powerful Tesla is. But exciting future aside, what is the reality today on the ground in 2021? Well, chip shortages, delivery delays because of chip shortages, investigations into autonomous technology, and Elon Musk not living up to his promises in terms of when it's going to be delivered. He said that a million robot taxes would be out by now. They're not.

Elon Musk has a huge history of making bold promises and then saying they're going to be done at a certain time and them not being delivered on for maybe a year or two afterwards. But you think bigger picture. Not much more than a decade ago, Tesla was just a small diabolical snowball. And look at that snowball.

Now you look at the momentum of that snowball, and how effective it's been at rolling over pretty much every piece of obstacle, and it's like, hey, it's not hard to predict the winner of this autonomous driving race. It's not hard at all. Meanwhile, analysts are still twiddling their thumbs over whether we should go back to horse-drawn carriages. Hey, Evs are fed.

not just Evs, but also gasoline cars. Why don't we go back to steam-powered engines? Why don't we go back to Horse-drawn carriages. Hey, horses, those are too growth oriented. Let's go back to just walking.

That's a revolutionary concept. Pour money into walking stocks. I guess. Shoe stocks? maybe? I don't know.

Anyways, folks that caps off the video. if you have any questions, feel free to reach out to us below or join us on Ziptrader Circle. Also, this video is sponsored by the charming gentleman over at Ziptraderu. If you'd like to learn how to trade with our step-by-step lessons, our private chat, and of course our daily morning briefings where we brief on all the latest catalysts that we see each and every market open morning, Well, I'll go ahead and put the link below with a coupon code that'll get you 50 off.

That being said, when I go and buy something, I make sure that I get my money's worth out of it. So make sure to take some time to look over the program and identify whether this is something that you're willing to put a lot of work into because we want to make sure that you're getting your money's worth out of it. and part of that is really on you. How much you get out of it is really based on how much effort you put into it.

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