Elon Returns to Tesla with $1b Purchase | TSLA Stock Valuation Impact.

Well, everyone, Elon Musk just bought

roughly $1 billion of Tesla stock and

it's leading the stock to skyrocket on

Thursday and Friday. We're all looking

at the technicals because we're breaking

out over our 347 line. We're like, we

don't actually have a real like physical

catalyst, like an actual catalyst right

now for Tesla to be breaking out above

this line. But that's the thing about

technical analysis. With technical

analysis, you can spot these

consolidations where we're bobbing

between 318 to 347. For how long? Very

long. I mean, we were bobbing for for

months between these levels. And you can

zoom out as much as you want. 318 to 347

over and over and over again. And so

last week, Thursday, Friday, we're like,

what's the catalyst? It can't solely be

that Robin at Tesla is talking about how

great Elon Musk is. And think about the

psychology of this for a moment. Robin

talks about how great Elon is. Then

Elon's just sitting there buying his own

stock, pumping his own stock to

basically reiterate how great he is.

Because it basically amplifies what the

board member is saying. And then people

look and they're like, well, it must be

markets reacting to believing how great

Elon is based on the board saying he's

so great. And it's like this perfect

brilliant strategy. So like

congratulations Elon. This was really

well played. So very very nice breakout

out of 347. We mentioned on the channel

multiple times last week and in the

alpha report that if we break 347 and we

can confirm a 347 breakout which we did

last week 414's in store. Now right now

we're trading for 424. And now why is

this? Well because there's a lot of

enthusiasm right now and the shorts are

getting burned which is great. Nobody

likes short sellers. But here's the

thing. There's a lot of talk right now

that uh this this is going to lead to

potentially more uh you know more voting

rights for Elon. Remember Elon is trying

to get to 25% of a shareholder vote. And

even with his trillion dollar pay

package, he'll end up slightly short of

that 25 uh um uh% vote. And so this is

where a lot of people are starting to

speculate. Is this just the beginning of

multiple buys by Elon or is this some

kind of fundamental signal that Elon is

selling? Uh, for example, there are a

lot of people that are now wondering,

"Oh my gosh, we now see it." Elon last

week wrote a post and said, "You'll

thank me later." This was right when we

were at 3:47. Now, this is quite

fascinating because look at this. You

go, "Here it is. you'll thank me later.

At 5:14 in the morning on September 8th,

the morning of September 8th, he goes,

"You'll thank me later." Nobody really

knows what he's talking about, but

here's your your uh your setup. Uh the

8th was the beginning of the week, so he

knows what's coming in the week. He

knows the board's going to talk. The

stock's coming down a little bit. It's a

bit of a red day. You're you're uh you

know, you had a little some enthusiasm

in pre-market. You you lost 347 again.

This was a very very common trajectory.

On the 8th, he mentions this and you get

this explosion over here on the 11th and

then you get that board meeting on the

12th likely as Elon starts fulfilling

those purchases really absorbing any

negative selling pressure and driving

the price vertical which is really

exciting obviously for team Tesla. Now

something to keep in mind is again a lot

of folks are now going to look at this

and say is this the beginning of a trend

from Elon to keep buying uh or what's

next? Uh here's my take. My take is that

Elon is trying to signal to the world

his commitment that he is back. This is

what I talked about in my video last

week on Tesla. I said something very

bullish is happening right now with

Tesla and this was last week we said

this on the channel. Elon is back. And

we gave examples of how things move when

Elon is back, how the cars are updated,

how we are in in an environment where

the CEO, our our boy is in the studio,

so to speak, making sure everything the

ship is running right. I don't know, I

need a better analogy, right? Uh here,

I'll use a real analogy. I'll give you

an example. Uh so with house hack for

example I got I had this this vend this

new handyman we were working with uh

just had to do some really basic stuff

and uh and you know we're expecting all

right uh like we're going to build this

relationship with them they've bid out

some other stuff for us prices are

coming in good perfect hey uh they do

some work looks good hey you know what

asks us hey can we skip the bidding

process can we just be really reasonable

we'll keep rates going like this fine

okay do a project comes back with an

invoice of six grand for, you know, a

certain amount of time of work for a

house hack property and and I'm looking

at it and I go, "This does not match the

output." Like I know construction, this

is absolutely like at least twice what

it should be. This is ridiculous for the

work that's done. So I, you know,

confront the vendor. I'm like, "Hey man,

like I can I can call a licensed plumber

to do this. I could call a licensed so-

and so to do this. I could call a

licensed person to do this. And this is

how much the market rates for those

items are going to be. like whatever

happened on your end with operational

inefficiencies is is on you. That's not

my problem. That's on you. But I'm not

going to pay you 2x market rates for

output that didn't happen. Uh and so how

get $3,000 off on the bid, right? Why do

I bring that up? Because other people

generally aren't going to care as much

about your own company as you. And this

is why Elon being back and Robin telling

us that Elon for now appears to be done

with politics. what he does is on his

own, but he fulfilled his mission. He's

done. Same day, you get Lutnick going,

"Elon misunderstood the mission for

Doge. Whatever, Slutnick. Nobody cares

about you." Elon's back. And the CEO

mentality is what matters. Because Tesla

right now is not just a copy and paste

manufacturer, even though that's what I

dreamed Tesla would be back in 2022,

that we would build more of these

gigafactories, that we would uh expand

manufacturing and get to 20 million

vehicles. That's not what Tesla is right

now. Tesla is a a 1.36

trillion almost the 1337

million

uh startup. That's really what this is.

So, that's going to set up now for two

directions for Tesla. In the short term,

we've got excellent momentum. So, you

need to stack this up. Here's what the

short-term momentum is for you. Interest

rate reductions. Okay, interest rate

reductions are one of the reasons one of

our top 10 stocks to buy over the next

10 years right now is up 10% alone

today. Okay, it's it's under this this

like it's I think it's starting to

momentum. Uh it's going to be like

probably the next open door and I think

it'll make even more money than than

what happened with that even though we

were calling open door on the way up. Uh

and and oh wow a second one of ours is

up 7% right now in the morning or top 10

stocks to buy. That's all in the me

Kevin Alpha report. But anyway here's

here's what the setup is for Tesla.

Lower rates. Tesla's always been seen as

an interest rate sensitive. Fantastic.

The end of the quarter. This is the most

critical quarter for Tesla. you are

literally buying people's interest rates

down to 0% on Cybert trucks and you're

giving incentives to buy for second cars

for for Tesla buyers. Uh what you're

also finding is the tax credits are

going away at the end of September,

right? This is huge. So the $7,500 tax

credit goes away unless you take a

possession of this vehicle by September

30th, which means you need to hop on it

now. Uh so you know this this is like a

a really big federal uh inspired

expiring coupon code right here right

now. Is it likely that these Teslas are

going to come down in price once that

credit goes away? Yeah, probably. But

not right away. It's not like October

1st those prices are going to come down.

So this is a huge quarter end catalyst

for Tesla. Probably one of the biggest

ever. So this creates multiple positive

catalyst for for Tesla. So you have

interest rate reduction momentum. You

have end of the quartarter reduction

momentum. That's going to potentially

lead to some of the largest deliveries

that we have in a quarterly report for

Tesla. But you also have Elon being back

baby, right? So that's three big

shortterm momentum catalyst you have for

Tesla right now. Rates the quarter and

Elon back baby. That's huge. Now all of

that short-term momentum does not

obviously justify the stock trading for

six or seven peg. The fundamentals are

out of whack right now. That's fine. We

are going to have to move from that

momentum into fundamentals. Now, what's

going to drive those fundamentals? Robo

taxi. That is the next leg. You have to

believe that robo taxi is going to be

your money maker uh over the next couple

years at at least the next two to three

years. you want to at least start seeing

some revenues uh like revenues that you

could actually meaningfully show up that

could meaningfully show up in earnings.

That means you need to get rid of the

safety driver. That's the challenge for

Tesla right now. So again, short-term,

we've broken down the short-term

catalyst. Fantastic. The next huge

physical catalyst because we're not at

robots yet, right? We're not at the

Optimus grime yet. I love that post, by

the way. Tesla, I think Tesla Optimus

Twitter, they had a post this weekend.

Uh, these are just like dad jokes almost

at this point, but they're like, you

know, Optimus, if this is as if Optimus

is saying it. Uh, when I clean your

house, I'll be Optimus Grime.

And I'm like, oh, these are these are

like the perfect like nerdy dad joke

style jokes that I I actually love. Like

this. I'm I'm a dad of seven, okay? I

can't help myself. And I like nerd out

over technology anyway. I think this is

so exciting. Uh but seriously, you need

to go from so shortterm. All right, we

got rates uh tax credit uh and Elon is

back. You know, buying obviously is like

fuel to the fire. It's like

deliciousness, right? Okay. Medium-term,

we need an actual catalyst, right?

Actual catalyst of uh robo taxi driver

uh leaving the car. That's huge because

Optimus is too far out to actually show

up.

So, this is where you get margin. This

is where margins uh come in. A margins

come in when that driver leaves the car

and we don't have to pay all these

people because basically what Tesla is

doing right now is they're paying

somebody to be an Uber driver inside of

the car and the consumer is not paying

for that driver, right? They're paying a

substantially discounted rate. So,

that's where we sit with Tesla. Now,

what does that mean price target-wise?

Well, in my opinion, for Tesla, we have

to hit we have to confirm 414. Okay,

that's the key. And it's not a surprise

that we're bleeding a little bit to 414

right now because the pre-market, you

have to know this. I I warned about this

in the course member live stream

literally 20 minutes ago. I go, "Look,

when you're sitting at 428 totally

disregarding a line or 430 in the

pre-market, you've got to retest first.

This is how it works." That's because

look at volumes. I mean, volumes trading

in the pre-market were between 30 to

60,000 shares. Volumes right now per

minute are literally 1 and a half

million shares plus or minus, right? So,

this is extremely normal. But this also

leads to enthusiasm for the cues because

it gets you set up for a nice head start

on the day. Uh and uh and and this is

exciting short term. You know, we're

expecting really nothing bad until the

first week of October. Uh this is

something also to keep in mind. You

know, we've been talking about this as

well. So, you know, broadly this is a

good good moment in time. Now, October,

Q4, is is this going to be the moment

where all of a sudden we catalyst break

into recession? I mean, there's nothing

really indicating that we're going to

like fall off a cliff right away. We

certainly have weakness. Uh, but um, but

I think right now we're we're we're in a

pretty decent spot. So, this is a very

exciting moment for Tesla. And I do

think there's going to be this this uh

thesis by people that this is just the

beginning of Elon buying. I actually

don't think it is. I think Elon's

probably more like a one and done on the

spot. Maybe once more. I I I don't

really see this being a regular thing

for him. Uh I think that was more of a

signaling play than anything. And it's

brilliant. Like I say, it's like it's

like being the the stock salesman that

Karp is at Palante or Elon. He was the

OG carp. That's the way you have to

think about it. So, uh so anyway, yeah,

this this is very very exciting. Uh and

congrats to the Tesla community. Uh,

also, wow, two two of our top uh 10

stocks to buy and we've only released

five of them uh over the next 10 years

are now up uh nine and 10% on the day.

That's great. Uh anyway, all right,

cool. Very well. So, uh that gives us a

little bit on Tesla.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Pra there, financial analyst and

YouTuber. Meet Kevin. Always great to

get your take.