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Check out my related videos to recent TSLA price action:

TSLA Breaks 400... Why I don't care, https://youtu.be/HwvXHRXH8hs

5 Things Every TSLA Investor Should Know for 2020, https://youtu.be/02lcsQ_X5v8

5 Reasons Why TSLA Will Join the S&P 500 in 2020, https://youtu.be/jTrGiDgSJEk

This video was recording in the morning of Jan 13 during market hours while TSLA stock price was around $515 and had jumped $35+ for the day.

In this video, I share why most people miss the bigger stories because they focus too much on short-term news.

Don't focus on an analyst upgrade as the reason for today's huge stock price jump. Rather, look at the bigger story of what's going on with Tesla and TSLA stock.

People are getting caught up in the short-term news that Oppenheimer analyst Colin Rusch raised his price target for Tesla to $612 from $385 and keeps an Outperform rating on the name, https://thefly.com/landingPageNews.php?id=3016596. His notes says “While Tesla "has stumbled through growing pains," the company has reached "critical scale" sufficient to support sustainable positive free cash flow, Rusch tells investors in a research note titled "What to Do Now with TSLA Shares?" Further, the analyst believes the company's "risk tolerance, ability to implement learnings from past errors, and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace." Tesla has key advantages in powertrain design, battery technology, advanced driver-assistance systems fleet size, roadmap to energy independence offerings, and consumer enthusiasm that can translate into material operating leverage, share gains, and market disruption as renewables and autonomy trends accelerate, contends Rusch.”

But what’s really going on?

Tesla dug itself into a big hole in early 2019 by promising to have a profitable Q1 (and later quarters) but failing to deliver on that promise. Instead they showed a huge and unexpected loss that damaged credibility. Also, Tesla removed the standard range option for Model S/X in early 2019 that also hurt Model S/X orders significantly.

Q3 however was the turning point where Tesla finally realized cost-cutting measures, saw increase in Model 3 production and deliveries, and saw a recovery of Model S/X demand.

As a result, Tesla demonstrated that they are sustainably profitable with just the sales of Model S/X and Model 3.

This turning point has changed investor sentiment toward Tesla and now the focus turns to the incremental income that China-made Model 3, Model Y, and future lines will bring to Tesla.

Enjoy! And 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.

Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts

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