Tesla Bear’s Bizarre Rant

Despite potential vulnerabilities in Tesla's supply chain and concerns about competition, the stock has continued to soar, challenging the idea of waiting for a dip in the stock price

Questions to inspire discussion

• What challenges is Tesla facing in its supply chain and competition?

  —Tesla is facing structural headwinds and increasing competition, causing problems for their vertically integrated supply chain.

• What are the criticisms of someone being bearish on Tesla due to recalls?

  —The speaker criticizes someone for being bearish on Tesla due to recalls, without acknowledging that the recalls are actually software updates, which is a bullish demonstration of technological prowess.

• How has competition affected other electric vehicle companies?

  —Competition is increasing rapidly, putting pressure on Tesla's margins, but the cost of producing electric vehicles, particularly Teslas, is decreasing over time.

• Is waiting for a dip in Tesla's stock price a reliable strategy?

  —Waiting for Tesla stock to dip over the years has not been a winning strategy, as the stock has consistently surged in value. 

Key Insights

• 🔫 The vertical integration of Tesla's supply chain is a potential vulnerability in the face of increasing competition.
• 🚗 The Ford F-150 Lightning EV pickup faced serious issues during a road trip, raising concerns about its reliability.
• 💰 Ford is losing around 75% per electric vehicle sold, and other companies are facing production halts and safety issues with their EVs.
• 🤔 "They're doing something significantly different than what they've done in the past."
• 📉 The stock share price of Tesla does not reflect the company's significant advancements and potential for growth.
• 💰 "I'd rather take on board the risk of having bought the stock and then it coming back which is what I'm currently doing keep buying with every spare scent as opposed to waiting on the sidelines hope hoping that the stock goes lower."
• 📈 Tesla stock saw a significant increase of about 400% in its first 3 years following the IPO, challenging the idea of waiting for a dip in the stock price.
• 📉 Despite media predictions of bankruptcy, Tesla stock has continued to soar, proving the naysayers wrong.

#Tesla #Investment

Clips 

• 00:00 🐻 Tesla is facing competition and supply chain issues, but the recalls are actually software updates showcasing their technological prowess.
  • Tesla is facing structural headwinds and is unlikely to catch up to its Mega cap peers anytime soon.
  • Increasing competition is causing problems for Tesla, as their supply chain is vertically integrated and their first shot at the competition was a complete failure.
  • Tesla is facing issues due to competition, vertical integration, and potential recalls of the Cyber truck.
  • The speaker criticizes someone for being bearish on Tesla due to recalls, without acknowledging that the recalls are actually software updates, which is a bullish demonstration of technological prowess.
• 03:51 🐻 Tesla bear rants about Tesla's recent software update causing issues, advises to sell and buy on a significant pull down, and argues that Tesla's financials are not as compelling as buying a stable tech company.
  • Chevy is facing issues with their electric vehicles' software updates, while Ford's F-150 Lightning won truck of the year, and the Chevrolet Blazer EV won SUV of the year.
  • Tesla's recent software update caused a Mustang Mar from Ford to become undrivable, leading to a rant about being bearish on Tesla and advising to sell and buy on a significant pull down.
  • Tesla's financials are not as compelling as buying a stable tech company, and the idea that competition is coming in 2023 is not credible.
• 06:31 🐻 Tesla's competition is increasing rapidly, putting pressure on their margins, but their production costs are decreasing over time, leading to questions about their future plans.
  • JM and Ford are slowing down their EV production, with Ford losing 75% per vehicle sold, and many companies in China selling EVs are struggling financially.
  • Competition is increasing rapidly, putting pressure on Tesla's margins, but the cost of producing electric vehicles, particularly Teslas, is decreasing over time.
  • Tesla's costs are coming down, but the speaker questions if they are doing anything different in the near future.
• 08:47 🐻 Tesla's stock isn't rising, but the company is advancing in tech and attracting interest, facing competition from Chinese EV companies and needing to produce a $25,000 car in the US to expand further.
  • Tesla's stock price is not increasing, but the company is making significant advancements in technology and attracting interest from other companies.
  • Tesla's biggest competition is likely to come from Chinese companies in the EV market, but they will need to produce a $25,000 car in the US to expand further.
  • The speaker questions whether Tesla will be able to scale to the next level and maintain margins, despite detailed manufacturing plans for a more affordable vehicle.
• 11:43 🐻 Tesla Bear believes Tesla stock may be overvalued, but waiting to buy is not a good strategy, as it has consistently increased in value and is still the best risk-adjusted opportunity in the stock market.
  • Tesla Bear believes that while Tesla is a great company, it may not be a good investment at the current share price.
  • Tesla stock may be overvalued, but waiting to buy is not a strategy the speaker would personally choose, as they believe it is still the best risk-adjusted opportunity in the stock market.
  • Tesla stock IPO'd at $28 in 2010, and despite fluctuations, it has consistently increased in value, making waiting for a dip in the stock price a risky strategy.
  • The speaker is using the same date each year to track Tesla stock and is waiting for it to dip.
• 15:01 📈 Timing the market to buy and sell stocks for maximum profit is not reliable, as demonstrated by Tesla's consistent surge in value and the downfall of those who tried to wait for it to dip.
  • Tesla stock has increased 10x since IPO, waiting for it to come back down has not worked out.
  • Waiting for Tesla stock to dip over the years has not been a winning strategy, as the stock has consistently surged in value.
  • Timing the market to buy and sell stocks at the perfect moments for maximum profit is not a reliable strategy, as demonstrated by examples of Tesla, Amazon, and Apple stock.
  • Someone who thinks they're an intelligent investor may double down on their actions, vaporizing their capital and reputation, as seen with Tesla stock near $100 per share in 2023.

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