**THIS** is BULLISH for Tesla Stock [$TSLA].
FULL TRANSCRIPT
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everyone we kevin here in this video
we're going to talk about a bullish
inflection point for what's happening
inside of tesla and facebook but most of
this video is going to be about a tesla
however the insight affects both of
these companies we'll talk about that
we'll also talk about cops buying tesla
some hertz updates among others so let's
get into some of these updates and then
talk about that bullish inflection point
so first
bloomberg just reported that new york
city police department nypd
is considering the purchase of up to 250
model threes uh this is helping tesla go
trending right now on twitter they pay
about fifty one thousand nine hundred
forty dollars for each vehicle making
the deal valued at 12.4 million dollars
if the contract ends up going through
for context nypd is the largest police
department in the united states has a
fleet of about 9
000 vehicles so this tesla purchase
would just account for less than 3
percent of their fleet
i imagine these have to get retrofitted
uh obviously they're going to have to
get retrofitted and then uh
i expect that the police department
would evaluate which of the cars are
more reliable is it possible to
operate these uh model threes on enough
of a charge is it possible to
uh charge and and uh you know either
have charging stations at the police
station or elsewhere throughout the city
that officers could now use and would
that uh at any point hinder them from
being able to respond
to situations i expect not i expect it
would be okay there's plenty of downtime
and report writing time as an officer
but this is an interesting inflection
point for tesla it's not the big one
that we want to talk about we're getting
the stock but very very cool now one of
the reasons
police departments have been looking at
uh teslas uh is that uh they they have
such high reliability and little
maintenance
and that's one of the big aspects of law
enforcement companies starting to look
at these because then if you don't have
to bring a car in for maintenance or
repair uh as frequently well then you
have less overall downtime for the
vehicle you also have a lot lower brake
wear which is also important in law
enforcement there's a lot of driving
around
compared to other electric or other
non-electric vehicles
so these are some things that could
really help
police departments now the way so far
these police departments are
retrofitting them is they take them to a
third party that make all of the police
accessories the light bars the laptop
stands and that
and then what the police departments are
doing is they're keeping track of their
per mile savings once they factor in the
additional costs of modifications per
vehicle but also the lifetime savings
that they're experiencing compared to
other cars that they're buying so
great test for law enforcement i could
only imagine if a police department
started saying that's it our savings
conclusions have come out and the evs
are just as effective we can charge them
in down times and there are plenty of
those uh and uh and and we never run out
of electricity or rarely do and we have
lower maintenance let's go all in
be a big moment for uh for tesla
mostly because it's such a such an
endorsement for the consumer the law
enforcement companies are buying them
for their reliability and rental car
companies are buying them for their
reliability i mean that that is this is
a huge signal to consumers but we're not
expecting any lack of demand for teslas
at the moment you look at the model x
plaid you're waiting until 2023 for one
of these the s and y
well you could get the model s plaid
actually in about a month but most of
the vehicles you're going to be waiting
for an average of about three to six
months right now if you bought a tesla
whether that's a model 3 or model y
now tesla has also been filing some
lawsuits in china which is interesting
within the last six months tesla has
filed at least two defamation claims
against chinese citizens who spoke
negatively about a tesla and the quality
of teslas but before we hit on that
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chinese tesla lawsuits and that
defamation from chinese citizens tesla
says these claims are groundless one
lawsuit against a model s owner who has
been claiming for the last two years
that tesla committed fraud by selling
him a used but heavily repaired vehicle
and pretended it was new
in this particular lawsuit
tesla has been called by this person a
hooligan company and now tesla is
countering with a lawsuit for unverified
ungrounded and defamatory remarks tesla
is looking for 785 000 u.s dollars in a
reasonable expenses
another defendant is somebody who jumped
on top of a model 3 at the shanghai auto
show earlier this year she was the one
complaining about the faulty breaks of
her tesla that allegedly killed her
family that is the breaks allegedly led
to the death of her family she uh did
not allow tesla to inspect the
tesla after it crashed
leading tesla to suspect that it wasn't
necessarily the breaks that actually
killed her family now she is also
getting sued for the same amount about
785 000
back in september a chinese court did
order the model a three owner by the way
to apologize for blaming the accident on
faulty tesla breaks and then she was
required to pay about 7 850
now tesla is suing for even more
now uh bloomberg also reports that
in-house lawyers over a tesla have been
threatening social media influencers in
china to take down bad publicity and
apologize publicly
tesla's also been in the news for
replacing some front-facing autopilot uh
cameras and some camera and some cars
for free they haven't issued a recall
here but apparently there are some
faulty repeater cameras that are getting
replaced at no cost to owners uh this is
uh
this news helped microvision pop a
little bit though microvision is still
substantially down uh when this news
came out and uh yeah microvision is a
lidar play and there's a lot of talk
that maybe tesla should just end up
buying microvision but anyway they're
still down from this news they're at six
dollars and five cents
kathy wood is instead of buying the dip
on tesla she has reduced her position or
exposure to tesla to about seven point
seven percent she's now been buying the
dip on xsping yesterday
uh arc bought uh or sorry this is uh
yeah on tuesday arc bought
six hundred 97
seven shares of x bing worth somewhere
between four to four and a half million
dollars this was done in ark q that's
the autonomous and robo tax era robotics
etf obviously robo taxi would be part of
this as well uh rq now holds about 24
million dollars of x-ping motors x-ping
has been on a substantial downtrend
it uh has not been doing as poorly as a
neo uh although then again neo
substantially outperformed x-bang
leading into the latest uh x-ping
excitement that we've seen but we have
seen some of that euphoria die down we
saw a lot of this in the ev run here we
saw x being moved from about 35
to a high of about 56
it is down to about 43 right now but if
you compare this to neo neo's been uh
did not really participate much in that
october rally went from about 35 to
about 41
only to come falling back down to where
we sit now about 29 yesterday and right
now we're trading for about 30 dollars
even on neo
xping did deliver more monthly units
than neo or lee auto in november both
delivered more than 10 000 units but
x-paying had 15
613 at deliveries
rivian's also expected to announce that
it's building a 5 billion battery and
assembly plant near atlanta today the
plan is projected to employ 7 500
workers with the possibility of scaling
up to 10 000 workers that's about the
same size as gigafactory nevada
this would also make it one of the
largest auto assembly
complexes in the united states
the associated press is reporting that
this will be the largest industrial
announcement in georgia's history
previously the largest was 4 400
a 400 worker facility about a decade ago
now we know that uh biden's also not
well i mean biden's probably not very
happy about this but we know that elon
musk has been suggesting that uh
the entire buildback better plan just be
canned obviously a lot of frustration
there has been built around the fact
that evs will get a 7 500 federal tax
credit but evs made with union labor
will get an additional
credit of up to 12 500
but it's only via unionized work which
tesla is unfortunately not so a lot of
frustration here now in one additional
update it's worth noting that a goldman
sachs analyst mentions that hertz
customers have been paying more than a
hundred dollars a day for tesla rentals
that's much more than the average of
sixty dollars a day for the rest of the
fleet so people are willing to pay a
forty dollar premium per day
for tesla remember hertz plans to have
tesla be about one-fifth of their entire
fleet next year and the goldman sachs
analyst figures that hertz will pay
about forty two thousand dollars a per
tesla vehicle and then sell them four
years later for about twenty three
thousand five hundred dollars each
that's the expected depreciation
that means the monthly depreciation is
about 458
for the vehicle per month this is higher
than the average of about 357 in
depreciation on a monthly basis however
teslas tend to have a longer life and
significant and require significantly
less maintenance so who knows maybe
hertz will keep these vehicles longer
since who knows maybe they'll they'll
come across as newer longer we'll see
though usually car rental companies
don't want cars to be older than three
to four years
now the inflection point in something
that we're noticing it comes also from
another bloomberg report shout out to
bloomberg.com
bloomberg is reporting that elon musk
and mark zuckerberg have been selling
shares of their company
substantially over the last month here
we know that with elon musk potentially
because of taxes he sold about 70 of his
shares uh that he promised to sell which
means he's got another 30 to go it's
possible we not might not see the rest
of these sales anymore this year it's
possible we might have to wait for
january so we'll still have some selling
pressure from elon next month but it is
worth noting that
insiders that's company executives and
officers have been buying both facebook
and tesla at record amounts and the
highest amount since march of 2020
according to the washington service that
is 1300 executives and officers between
facebook and tesla have been buying the
companies and this type of buying
correctly signaled a bottom
in march of 2020 per bloomberg now this
is some indicator of a bullish
inflection point for tesla brought to us
by company insiders now we still uh well
i personally still am aiming at uh 1700
vehicle deliveries for tesla in 2022
uh i'm not sure if we're going to quite
get to a million here in 2021 we know
that that's a big goal i will see how
december goes this is usually when we
get the biggest rush for deliveries
right at the end of the year where
people are trying to get their ev tax
credits
so in my opinion that is also bullish
and we're probably seeing that same
bullishness coming from company
executives and officers and that's why
they're buying the dip whereas elon is
is uh selling to pay taxes for his uh
option gains which he could have just
borrowed but obviously he decided to
sell shares instead
uh if we uh do get if we do stay along
this course of eventually getting to
about 4.8 million vehicles by 2025
we're hoping with an average revenue
about 40k per vehicle which this might
end up being higher honestly
in the 30 margin we're we're seeing at
least i'm seeing a future price target a
reasonable price target in my opinion of
around 1987. that is a double
which a given tesla's current price at
about 960 dollars that would give you a
four year since the end of 2025 is
actually only four years away that would
give you almost a 20 compounded annual
rate of return investing in tesla
at this point if these projections hold
obviously some of these numbers can
change like for example if we go to 45
000 in revenue per vehicle but maybe we
only do
four million vehicles so about 800 000
less than expected we'd be at about a
future value about 1862 which is roughly
the same if we just terribly miss and we
come in at 3 million in 2025 which would
be pretty low still looking at about a
1400 target here which from 960 dollars
still works out to about a 10 compounded
annual rate of return every year for the
next four years hashtag no guarantees
hashtag not financial advice but uh yeah
tesla tesla's definitely one i've been
uh i've been adding a little bit on the
dip on so i've been excited about that
anyway these are some updates and an
inflection point for tesla let me know
your thoughts about tesla in the
comments down below remember to check
out extra and the link to extra in the
description down below as well as my
programs on building your wealth thanks
so much for watching and we'll see in
the next one thanks
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