Dave Lee on Investing

Tesla Stock Breaks $700! What the heck is going on?!?


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Comment on when do you think TSLA will close over $800?
Follow me on Twitter: https://twitter.com/heydave7
Follow me on Instagram: https://www.instagram.com/heydave7
Watch my previous videos on TSLA:
My TSLA Exit Plan, https://www.youtube.com/watch?v=r9HtG-jJSTY
TSLA Breaks 600, https://youtu.be/f32-qNH11u0
Tesla Crushes 500, https://www.youtube.com/watch?v=w_VAoVj-ZxI
Tesla Breaks 400, https://www.youtube.com/watch?v=HwvXHRXH8hs
Tesla Stock has been on rampage over past 8 months:
June 3 - closed at $178.97
Oct 25 - closed at $328.13
Dec 19 - closed at $404.04
Jan 13 - closed at $524.86
Jan 30 - closed at $640.81
Feb 3 - closed at $780
4x !!! in just 8 months
Even Elon Musk tweeted today about the stock price.
In this video I introduce the concept of “Dispersion of Beliefs” to explain Tesla’s stock rise.
High growth companies will have dispersion of beliefs. Some though have extremely large dispersion of beliefs
Tesla one of the most controversial companies in past decade with extremely large dispersion of beliefs.
Much of Tesla’s valuation is based on their ability to execute in the future.
When investors are down on Tesla’s execution and demand, then they give a low multiple for future cash flow.
When investors are high on Tesla’s execution and demand, then they will give a high multiple for future cash flows.
The dispersion of beliefs around Tesla has remained strong until perhaps very recently. And it’s starting to converge somewhat.
People are agreeing on Tesla as having a great future. And the credibility of the shorts is now at all-time lows.
Market agreeing on future is huge and Tesla has good chance to capture large market
Tesla’s Model 3 is receiving rave reviews from owners. Tesla Model Y is ahead of schedule. And Tesla is likely planning on manufacturing their own battery cells.
Please share this video with others on Reddit, Facebook groups, and forums.
Check out my archived articles/posts on Tesla: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768
Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel.
@Tesla @Teslanomics with Ben Sullins @Third Row Tesla @Like Tesla
Here's a video from @Wall Street Journal, https://www.youtube.com/watch?v=mCkmZHFXOng, but I think it only covers shallow reasons behind TSLA's rise.
Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

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