Tom Lee Reveals Why You Should BUY Tesla Now

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Tom Lee Reveals Why You Should BUY Tesla Now

Tom Lee advocates for buying Tesla stock now due to its strong growth potential, upcoming product announcements, and Elon Musk's strategic focus on AI and autonomous vehicles, despite current market challenges

 

Questions to inspire discussion

Tesla Stock Analysis

🚀 Q: What does Tom Lee mean by Tesla's stock being "sold out"?
A: A: "Sold out" stock means there are fewer willing sellers left in the market, which is considered bullish even with China tariff pressure, as opposed to an "oversold" market where there's still stock left to sell.

💹 Q: Why does Tom Lee believe Tesla stock has upside potential?
A: A: Despite 30% exposure to China, Lee expects upside ahead due to Tesla's strong relationship with China, pricing power, and the stock having bottomed out with a higher low on April 8th compared to March 10th.

Investment Strategy

📊 Q: What are Tom Lee's "Granny Shots" in stock investing?
A: A: "Granny Shots" are stocks considered easy layups or free throws with a high chance of success, with Lee preferring "sold-out stocks" over oversold ones as they've washed out weak hands and are more likely to bounce back.

🔍 Q: How does Tom Lee differentiate between "sold-out" and "oversold" markets?
A: A: A "sold-out market" has declined significantly but has no more stock left to sell, while an "oversold market" has also declined but still has stock available for selling.

Risk Assessment

🇨🇳 Q: How does Tom Lee view Tesla's exposure to China?
A: A: Despite concerns over Tesla's 30% supplier exposure to China, Lee believes the stock won't go much lower and is actually headed higher, citing Tesla's strong relationship and pricing power as mitigating factors.

📅 Q: What potential risk does Tom Lee identify for Tesla's stock?
A: A: While the stock is currently "sold out," there's always a risk of another wave of selling if earnings next week bring bad news, potentially causing a group of shareholders to bail out.

 

Key Insights

Market Dynamics

🔍 Tesla stock is "sold out" according to Tom Lee, indicating fewer willing sellers and a bullish outlook despite China tariff pressures.

📊 A "sold-out market" differs from an "oversold market" in that the former has no more stock left to sell, while the latter still has available stock.

Investment Strategy

💼 Lee's "Granny Shots" list includes high-probability stocks, with a preference for sold-out stocks over oversold ones due to reduced selling pressure.

Tesla's Position in China

🇨🇳 Despite 30% supplier exposure to China, Tesla's strong relationship and pricing power in the country mitigate concerns.

🚗 Model S/NX sales in China are considered "washed out" or "sold out", with Tesla suspending orders on their Chinese website.

Future Prospects

🤖 Tesla's robo taxi is projected to be a slow buildup over 1-2 years, potentially becoming 5+ times larger than the car business.

 

 

#Tesla

XMentions: @Tesla @HabitatsDigital @HerbertOng @Fundstrat

Clips

  • 00:00 🚀 Tom Lee sees Tesla as a strong buy due to its sold-out stock status and potential for growth, despite challenges in China.
    • Tom Lee believes Tesla's stock is sold out and poised for growth despite challenges in China, making it a strong investment opportunity.
    • Stocks, particularly MAG 7 and high beta stocks, may be approaching a sold-out condition, indicating limited selling pressure despite a bleak outlook.
  • 01:59 🚀 Tesla's strong ties with China and market trends indicate its stock is set for recovery, despite uncertain shareholder sentiment ahead of earnings and product announcements.
    • Tesla's strong relationship with China and recent market trends suggest that its stock has bottomed out and is poised for recovery.
    • Current shareholder sentiment towards Tesla is uncertain, hinging on upcoming earnings and potential product announcements that could either trigger selling or renewed buying interest.
  • 05:07 🚀 Tesla's stock is stabilizing, suggesting strong long-term gains for remaining investors after weak hands have sold.
    • Tesla's stock has stabilized after a decline, indicating that weak investors have exited the market.
    • Tesla's long-term investors are likely to see significant gains as those who couldn't endure the volatility have already sold their shares.
  • 06:55 🚗 Tesla is shifting to an AI focus with expected breakthroughs, while growing institutional support and plans for a compact Model 2 car signal major market expansion.
    • Tesla is transforming from a car company to an AI-focused company, and a significant breakthrough is expected soon.
    • Tesla's shareholder base is growing, with increasing institutional support, as discussions about developing a compact Model 2 car highlight the potential for significant market expansion.
  • 09:16 🚗 Elon Musk's dedication to the robo taxi initiative suggests Tesla stock may take longer to grow, requiring investor patience.
    • Elon Musk is committed to pursuing the robo taxi initiative despite concerns about revenue generation and regulatory approvals.
    • Tesla's stock may face delays in growth as the rollout of robo taxis is expected to take longer than anticipated, requiring patience from investors.
  • 10:58 🚗 Tom Lee suggests buying Tesla now due to potential new car announcements and Elon Musk's strategic advancements making it a strong investment.
    • Tesla may announce a new, less expensive car soon, but uncertainty remains about the details and timing.
    • Elon Musk's bold risk-taking and strategic decisions have led to significant advancements in Tesla's technology and regulatory approvals, making it a compelling investment opportunity.
  • 13:47 🚗 Tesla should prioritize autonomous vehicles and battery supply management for future success.
    • Tesla should focus on developing autonomous vehicles like robo taxis instead of traditional cars, as the market for lower-priced models is significantly larger and the transition will take several years.
    • Tesla's future success hinges on battery supply management, especially with the upcoming semi truck production.
  • 16:17 🚀 Elon's remarkable track record of product success makes Tesla a compelling buy right now.

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    Duration: 0:16:53

    Publication Date: 2025-04-23T08:39:14Z

    WatchUrl: https://www.youtube.com/watch?v=UdckPtaJW-U

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