Latest / Elon Musk Podcast / Investment in Tesla for 2024 Looks Promising

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Investment in Tesla for 2024 Looks Promising · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk podcast this.
• 0:05
  Is a show where we discuss the critical crossroads, the shape
• 0:09
  SpaceX. Tesla X, The Boring Company and
• 0:12
  Neuralink and I'm your host Will Walden.
• 0:15
  If you want uninterrupted episodes of the Elon Musk
• 0:18
  podcast, please go to Club. Elon dot.
• 0:21
  Supercast.com to find out how, there's a link in the show
• 0:26
  notes. Anything you hear in this
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  podcast is not financial advice, so please invest your money
• 0:32
  wisely. Now, Tesla recently reported its
• 0:36
  quarterly earnings missing both sales and earnings forecast.
• 0:40
  This miss was attributed primarily to lower average
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  selling prices, or ASP's for its popular Model 3 and Model Y
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  vehicles. Now Tesla reduced its prices
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  more than expected to maintain its market share in the electric
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  vehicle sector as high interest rates in a slow economic
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  climate. Now this strategy while
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  affecting short term financials, might not be a long term
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  concern. As the economic situation
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  improves and interest rates potentially decrease, Tesla has
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  plans to introduce a new more affordable mass market vehicle.
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  By 2025 it's going to be about $25,000 according to Elon Musk,
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  which could temporarily affect current sales due to the Osborne
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  effect. Now this phenomenon occurs when
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  consumers delay purchasing in anticipation of a newer model.
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  And despite this, Tesla's long term outlook remains positive
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  with lowered future estimates potentially underestimating the
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  company's growth potential. Now, following the year earnings
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  report, Tesla's stock price fell to around $180.
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  This is a significant drop from its high and this decrease
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  reflects broader market sentiments but contrast with
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  Tesla's increasing revenue and net income, highlighting the
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  company's growing financial strength despite stock market
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  volatility. Now Tesla stock has shown signs
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  of reaching A generational low during the tech sell off with
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  technical indicators like the RSI and stochastic oscillators
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  suggesting potential momentum shifts.
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  And long term prospects for Tesla stock remain pretty strong
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  with potential for considering growth and market conditions
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  evolve. Now let's take a look at some of
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  the financials here. Looking ahead to 2024, the rest
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  of 2024, Tesla's revenue projections paint kind of a
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  promising picture of its growth trajectory.
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  The company is expected to generate $80 billion from the
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  sale of 2,000,000 Model 3 Model Y vehicles, assuming an average
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  selling price of $40,000 each. The introduction of 75,000 cyber
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  trucks with an ASP of 90,000 is anticipated to contribute an
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  additional $6.75 billion. Now.
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  Sales from 75,000 Model S s and XS with a higher ASP of 110,000
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  are projected to add 8.25 billion to the revenue pool now.
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  Furthermore, the emerging Tesla Semi with an estimated 25,000
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  units sold at about $175,000 each, is expected to bring in
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  $4.4 billion. There's additional revenue
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  streams too, which are regulatory credit revenues of $2
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  billion. Automotive leasing revenue is
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  also at about 2 billion, and energy generation and storage
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  sales projected at around 7 billion.
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  Also, services and other revenue estimates of about $8.5 billion,
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  culminating in a total revenue of about $118 billion for 2024.
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  Now, the financial outlook for 2024 also highlights Tesla's
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  profitability metrics. With a gross margin of 19.7%,
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  Tesla's poised to achieve a gross profit of $23.44 billion.
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  And after accounting for estimated operational cost of
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  $8.8 billion and additional taxes and other expenses
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  estimated at 1.2 bill, Tesla's net income is projected to reach
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  about $13.45 billion. This financial performance
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  translates to an earnings per share estimate of $4.20 for
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  2024. Now these projections show that
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  Tesla's potential for sustained profitability and growth despite
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  the dynamic challenges in the EV market.
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  Right now, Tesla's ASPs for the Model 3 and Y segment dropped
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  more than anticipated, impacting overall automotive sales.
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  However, this trend might reverse as economic conditions
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  change, potentially increasing ASPs and revenue from these core
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  models. Now, despite the challenges that
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  Tesla's facing, it's shown margin improvements in the
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  recent quarter, indicating potential for enhanced
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  profitability as it adjusts pricing strategies and
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  operational efficiencies. Now, Tesla's profitability
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  metrics, though currently lower than previous highs, are on an
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  upward trajectory, though with new vehicle models on the
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  horizon and an expected improvement in economic
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  conditions, Tesla's profit margins are likely to expand,
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  positively impacting its stock price.
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  Now the. Announcement of Tesla's new mass
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  market vehicle could lead to a temporary slowdown in Model 3
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  and Model Y sales as consumers await the new model, the $25,000
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  model. We don't know what it's called
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  yet, however, this effect is expected to be a strategic shift
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  rather than a long term detriment to Tesla's growth.
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  Now projections for Tesla's 2024 revenues remain optimistic, with
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  significant contributions expected from Model 3 and Y
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  lineup and the introduction of the Cyber Truck and the Semi and
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  the expansion of other business segments.
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  Estimates suggest a strong revenue growth trajectory for
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  Tesla in 2024 and early 2025. Now, current market sentiment
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  around Tesla may be overly pessimistic though, with
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  consensus EPS estimates potentially undervaluing the
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  company's earnings potential. And as Tesla continues to
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  innovate and expand its product line, its financial performance
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  is likely to exceed market expectations.
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  Given the current market dynamics and Tesla's growth
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  prospects, the stock presents a potentially lucrative investment
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  opportunity. Analysts suggest that the
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  current valuation might be an opportune entry point for long
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  term investors. Tesla faces significant
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  competition for both established automakers and emerging EV
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  companies too. These competitive pressures,
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  along with other market and operational risks, could impact
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  Tesla's growth trajectory and necessitate careful investment
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  consideration. Now Tesla's an innovator.
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  They challenge the markets, and they're also kind of financially
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  volatile in a sort of bleak way right now.
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  But it's looking good. And as the EV market continues
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  to evolve, Tesla's strategic decisions from pricing to do
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  model introductions will play a crucial role in shaping its
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  future success. Investors and market watchers
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  will monitor Tesla's progress, particularly in light of its
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  ambitious plans for expansion and market dominance even more
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  than they already have right now.
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  With the $25,000 EV coming out sometime or being announced, I
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  should say sometime in the coming year or two now, Tesla's
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  fundamentals, their strategic initiatives and market
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  positioning suggest a promising outlook and the company's
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  ability to navigate market dynamics, innovate on the
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  vehicles that they already have and come out with a new line and
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  they also capitalize on emerging opportunities.
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  It's a key to the long term success and also investor
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  returns. Hey, thank you so much for
• 7:45
  listening today. I really do appreciate your
• 7:48
  support. If you could take a second and
• 7:49
  hit the subscribe or the follow button on whatever podcast
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  platform that you're listening on right now, I'd greatly
• 7:55
  appreciate it. It helps out the show
• 7:57
  tremendously and you'll never miss an episode.
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  And each episode is about 10 minutes or less to get you
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  caught up quickly. Please, if you want to support
• 8:06
  the show even more, go to Atreoncom, Stage Zero, and
• 8:12
  please take care of yourselves and each other and I'll see you
• 8:14
  tomorrow.