Unstoppable Tesla: A Deep Dive into Investing with James InvestAnswers

Investing early in Tesla can lead to exponential returns due to its disruptive technology, innovative approach, and potential for significant growth in various business lines, making it a great opportunity for retail investors

Questions to inspire discussion

• Why should I invest early in Tesla?

  —Investing early in Tesla can lead to exponential returns due to its disruptive technology, innovative approach, and potential for significant growth in various business lines, making it a great opportunity for retail investors.

• What are the different investing philosophies for Tesla?

  —Different investing philosophies exist for Tesla, and the speaker shares insights on financial models and seasonality of Tesla's stock.

• How does Tesla's disruptive technology create opportunities for retail investors?

  —Wall Street analysts struggle to understand Tesla's disruptive technology, creating an opportunity for retail investors, and the speaker, a financial analyst, has created numerous financial models for Tesla that have evolved over time.

• What are the potential future revenue streams for Tesla?

  —Tesla's potential revenue streams from fleet AI inference, robot taxi services, licensing, and advertising could be significant, with the possibility of generating billions in revenue.

• What is the potential future stock price of Tesla?

  —The potential future stock price of Tesla, the impact of robo taxi and FSD, and the design and automation of the Cybertruck and semi-truck production are discussed in the video.

Key Insights

Tesla's Business Advantages and Disruption

• 🌍 The pace of disruption is accelerating, leading to more exponential returns happening faster and faster.
• 📈 An asymmetric Equity BET next decade - "Things that are so one-sided that you know literally it almost can't go wrong and it's very rare."
• 📊 Using data is vital for a business: "If you can mine data, you find gold and it's that simple, that's how you find assets, that's how you find disruption."
• 📈 The scalability and efficiency of Tesla's production process, along with their utilization of technology, gives them a significant advantage over traditional manufacturers.
• 🚗 Tesla is not just a car company, but an innovation engine that happens to be making cars right now.
• 📈 "I believe there are certain key assets when you know that something like Tesla is the asymmetric bet of the next 10 years."
• 📈 Tesla has outperformed the S&P 500 by a significant margin over the past 12-13 years, with the stock up thousands of percent while the S&P is only up 100% or so.

Tesla's Impact on Future Innovations

• 🌍 The range of groundbreaking products and innovations from Tesla, such as the semi, van, mega pack, auto bidder, superchargers, Optimus, Bots, Dojo compute, and solar pump, will have a significant impact on the future.
• 🚗 Model 3 is a game changer, 100 times better than the Toyota Corolla, and the majority of cars are sold through fleet to corporations, especially in Europe.
• 🤖 Tesla will have the fifth largest supercomputer on Earth, built from the ground up for AI learning and synergies with other businesses.
• 🔌 The charging itself will be as big as the revenue that Tesla makes now in cars by 2030.
• 🌌 The potential of semi and semi FSD technology is groundbreaking.
• 🤖 Elon Musk hinted at the potential for the Optimus bot to have advanced dexterity, being able to thread a needle and perform complex tasks.

Potential Synergies and Future Possibilities for Tesla

• 🚀 The potential synergy between Tesla's entities like Neuralink, OpenAI, and SpaceX is mind-blowing, with possibilities like global internet access and AI-powered Bots.

#Tesla #Investment

Clips

• 00:00 🚀 Invest early in Tesla for exponential returns, as it's a disruptive technology with mind-blowing innovation and potential for once in a decade opportunities.
  • Invest early in Tesla, different investing philosophies exist, James from InvestAnswers shares insights on financial models and seasonality of Tesla's stock.
  • The speaker discusses the importance of investing in disruptive technologies and the potential for exponential returns in a rapidly changing world, using Tesla as an example.
  • Investing in Tesla is an asymmetric equity bet with once in a decade opportunities, and the company's innovation and impact are mind-blowing.
  • Wall Street analysts struggle to understand Tesla's disruptive technology, creating an opportunity for retail investors, and the speaker, a financial analyst, has created numerous financial models for Tesla that have evolved over time.
  • The speaker discusses the development of a customizable Tesla evaluation model and the growth of Tesla insurance.
  • Tesla has a wide range of new products and innovations that have the potential to be extremely disruptive and groundbreaking.
• 09:04 🚀 Tesla's innovative approach, visionary leadership, and cross-company synergy make it an unstoppable force in multiple business lines.
  • The model aims to incorporate various business lines and data inputs, such as fleet size, annual growth rate, price variations, and stock price multiplier, to predict Tesla's future performance.
  • The model shows the profit margin per line of business and the potential stock price per line of business, with the possibility of creating a personalized version with assumptions for future products and services.
  • The speaker discusses the importance of using data to evaluate and appraise investments, citing the example of underestimating Bitcoin's growth, and highlights Tesla's use of data to build cars and the inefficiency of designing cars for extreme edge cases.
  • Tesla's disruptive nature, innovation focus, long-term vision, network effects, scalability, and technology utilization make it a powerful and unique company.
  • Elon Musk's visionary leadership and Tesla's innovative approach make them an unstoppable force in multiple business lines.
  • Tesla's cross-company synergy is crucial, with their different businesses achieving a 1+8 equals 100 effect, exemplified by the Cyber truck alloy originating from SpaceX.
• 21:03 🚀 Tesla's potential synergy with various entities could revolutionize the global internet, with a four-year stock cycle and potential for significant growth in 2024, making it a great opportunity for retail investors.
  • Tesla's various entities and their potential synergy, including Solar City, Neuralink, Open AI, SpaceX, and Starlink, could revolutionize the global internet and disrupt the Telco industry.
  • Elon Musk's companies work together to support Tesla, and the speaker discusses a strategy of buying and holding Tesla stock while hedging it at opportune times.
  • Tesla stock has a four-year cycle of quietness followed by a year of rampage, with potential for significant growth in 2024 due to various factors such as fsd2, cybertruck scaling, and model 2 leak.
  • The speaker, a product manager and long-term investor in Tesla, focuses on the company's milestones and product innovation, highlighting the launch of new models and Giga factories as evidence of the company's progress despite stock fluctuations.
  • Retail investors who understand Tesla have a great opportunity for growth, especially in Q4, with the potential for increased sales in Europe and the launch of the Model 3 in the US.
  • Tesla's performance is analyzed by comparing its best and worst months, showing its volatility and potential for high gains.
• 34:19 🚗 Tesla's stock outperforms S&P 500, AI capabilities and focus on safety will drive growth, charging infrastructure and partnerships with oil companies will impact future revenue.
  • Asymmetric assets in the stock market are not stable, but Tesla has consistently outperformed the S&P 500, especially in Q4, and asset managers are expected to fill the gap before the end of the year.
  • Tesla's AI capabilities and synergies with other businesses will lead to significant growth in the next 12-13 months.
  • Tesla focuses on the big things that matter, such as safety and collision avoidance, and believes it is the leading AI company on Earth, while consumers in China value technology over leather and seats in premium cars.
  • Cut losers fast, don't cap how much you own of a certain asset, and have better timing in investing to improve performance.
  • Tesla's charging infrastructure and potential revenue from it, as well as potential licensing and partnership opportunities with oil and gas companies, could significantly impact the company's future revenue.
  • Elon Musk's vision for Tesla is to transform the world with high margins and the ability to control access to charging stations.
• 44:36 🚗 Tesla's Full Self-Driving capabilities, production of semi trucks and robot, concerns about risks, leasing model for humanoid bots, changes in pricing, growth of Tesla insurance, potential disruption of car insurance industry, safety features of Cybertruck, growth rate, potential production delays, and share dilution were discussed.
  • The speaker was impressed by Tesla's Full Self-Driving capabilities during a nighttime drive, highlighting its ability to navigate roads with no lines.
  • Tesla is ramping up production of semi trucks and developing a versatile robot, but Elon Musk is concerned about the potential risks and plans to heavily control and monitor their use.
  • The CEO of figure discussed the leasing model for humanoid bots, the importance of dexterity in bot hands, and the changes in pricing for Tesla's mega pack, as well as the significant growth of Tesla insurance.
  • People are paying high car insurance rates, but Tesla's insurance plus FSD could disrupt the industry with lower rates and better risk profiling.
  • The safety features of the Tesla Cybertruck make it a more attractive and cost-effective option, potentially leading to a higher uptake of Full Self-Driving (FSD) for lower insurance fees.
  • The discussion covers Tesla's growth rate, potential delays in production, and the calculation of shares outstanding and share dilution.
• 56:45 🚗 Tesla's projected annual unit sales for 2023 are estimated to be 1.83 million, with potential for even higher growth rates in the following years, based on growth projections, FSD technology, and market expansion.
  • Tesla's projected annual unit sales for 2023 are estimated to be 1.83 million, with a potential for even higher growth rates in the following years.
  • Tesla's growth projections are based on the belief that they will hit 30 million units by 2030, with the potential for different car models and the impact of the robot taxi, while considering the average sales price per unit and the multiple stock price.
  • Tesla's car business is predicted to grow by 18% this year, with the stock price potentially increasing three to five times its current value in the next 10 years.
  • FSD pricing and market growth for Tesla is discussed, with predictions of a 10-15% annual growth rate and potential for rapid expansion in China and Europe.
  • Tesla's Full Self-Driving (FSD) technology has the potential to significantly increase revenue and adoption, with the possibility of automatic insurance and a global insurance expansion.
  • Tesla's growth rate is expected to be 122% due to the increase in states and insurance revenue, which will also get cheaper as FSD improves.
• 01:10:40 🚗 Tesla's potential revenue streams from fleet AI inference and robot taxi services could be significant, with the possibility of generating billions in revenue, and the company's growth rate may be throttled by 20%.
  • Tesla's growth rate may be throttled by 20% and the average revenue per car for Tesla could be about $150 a year from fleet AI inference.
  • Tesla's potential revenue streams from fleet AI inference and robot taxi services could be significant, with the possibility of generating billions in revenue.
  • Tesla's bot and robo taxi are projected to have significant value, with the bot potentially being tested next year and the robo taxi starting in 2025 with a 1% fleet size.
  • Tesla's fleet of robot taxis could reach 105,000 by 2025 and 26 million by 2032, with potential for licensing arrangements with other manufacturers.
  • Tesla's potential for revenue from licensing, fleet media entertainment, and robot taxi advertising could be significant.
  • The speaker discusses the potential exponential growth of Tesla's business model, particularly in relation to the App Store and commercial vehicles, and emphasizes the need for accurate modeling and scalability.
• 01:22:50 🚀 Tesla's potential growth in semi trucks, mega packs, and bots could lead to a trillion dollars in revenue, with expansion into solar and heat pump business, impacting future stock price and business growth.
  • The speaker discusses the potential growth of Tesla's semi trucks and mega packs, with projections of units and revenue based on growth rates and market expansion.
  • Tesla's revenue is projected to reach a trillion dollars, with potential growth in superchargers and hardware, and the possibility of Bots building Bots leading to exponential growth.
  • Tesla is projected to produce and lease a large number of bots with a low annual cost, leading to a potential $2 trillion in revenue and a 40-50% profit margin, as well as the potential for leasing out FSD and compute services, which could lead to significant business growth.
  • Tesla is considering entering the solar and heat pump business, with potential for significant growth and impact on share price in the future.
  • The speaker discusses the potential future stock price of Tesla, the impact of robo taxi and FSD, and the design and automation of the Cybertruck and semi-truck production.
  • The speaker discusses their websites and YouTube channel, and encourages viewers to check them out for comprehensive resources on investing in Tesla and other stocks.

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