3 Reasons Why Tesla's Stock Is Painfully Overvalued (Elon Musk won't be the richest man for long)

*Do you want to get mentored?*

Elon Musk is now the richest person in the world, officially surpassing Jeff Bezos. But I think it is only a matter of time until Tesla’s overvalued share price starts plummeting and so I think it is highly likely that Musk's status as the richest person in the world will be of short duration.

In this video, I will explain why one of the hottest stocks on the market today, Tesla, is overpriced, too expensive, and nothing more than a gamble. I will compare the Tesla narrative and the development of Tesla's stock price to Tesla's fundamentals and I will point out why Tesla is overvalued. I think even a non-investing person will understand the eye-opening numbers that I include in the video.

I talk about the EV bubble and the collapse of some EV stocks that seems inevitable. What we’re witnessing right now is clearly a bubble. And when the bubble pops, we’re all going to wonder why these stocks ever went as high as they did.

WATCH NEXT:

Music – PPB: High [NCS Music Without Limitations]

Chapters:
0:00 Intro
1:50 Stock Market Warning Signs
4:19 EV Bubble
5:57 Tesla Intro
8:01 Tesla Stock Performance
9:13 Tesla Fundamentals
11:23 More Facts
14:16 Conclusion

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Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.

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I hope you enjoyed the content!

Do you think Tesla's stock is significantly overvalued at current levels? Why / why not?

[holmesstanley]

Trading Stock effectively entails a greater deal of skill and perseverance. Ultimately, the best and only productive option I choose was to invest through the experience of a professional trader. With his market skills I’ve been on a long profit run and steady cash inflow

[douglashagan]

When a person scared me and part of the Innovation cycle he was used in Chinese products

[LunnarisLP]

Just here to tell you that this video didn't age too well. Apparently they somehow managed to grow these gross margins from those 21.1% to 30.5%, operating margins to 14, 6% which even if you consider them as only a car company is an industry high. Revenue was 36.104 in the first 3 quarters. Your comments on revenue were completely off anyway, it was obv. their revenue wouldn't grow too much in 2019 because of the ramp up phase for shanghai and in 2020 we obviously had that pandemic. even if their Q4 is completely horrible thats another year of ~50% growth and their 2 new factories and that's with both new factories having massive delays.
But then again you can't be right with every comment you make, but with Tesla it was kinda blissfully obvious that their growth story actually wasn't crumbling. And it's pretty normal to see a lot of price increase for a stock when the company becomes profitable even while being a growth title that is investing a lot of money in research and new products (new cells, Cybertruck, Tesla Semi) and new Factories (Giga Berlin, Giga Texas, likely an expansion in China, Factory in India). Growth titles aren't expected to make profit actually, you would rather expect them to lose a lot of money while growing. Tesla would still be a good stock even if they took another 2-3 years to be profitable as long as their growth story wouldn't be interrupted.
900.000+ in 2021, ~1.5 Million in 2022 and more than 2 Million cars in 2023, mark my words :) The stock might still be overvalued then, they will need to keep growing at 50% a year at least until they produce 5 million cars a year, maybe if it slows down to 20-30% afterwards that wouldn't be a big deal. So much for Tesla left to prove, but already a lot was achieved and I really don't see how anything currently stands in the way of Tesla achieving their goals. They have the demand and they keep improving a product that is already leading the industry in pretty much every aspect. Quality has massively increased in 2021 too, and new factories will have top quality like the Shanghai factory has.
As I said Tesla has to match the story that they tell about themself in the next 10 years, but I just don't see where it would fail. I honestly think Elon could die today and Tesla would do fine, they have all that amassed talent already.

[nsshing]

I am very long Tesla, but I dun think it's worth the price now or anytime soon. We can wait. It took 40 years for Apple to become #1 market cap. Think about how many market crashes in between.

Even for Amazon, it took 2 years to fall 90% in ~1999-2001, and rest is history.

[jamesanderson]

I agree, if you evaluate Tesla as only a car company, it’s grossly overvalued. Evaluate Tesla as a tech company… and your evaluation falls short.

[marbles]

Get him Tesla bulls. How dare he say a bear opinion about our god Elon musk. Oh I’m a Tesla bull, but not blind like all the comments below this one. Thanks for the info man!

[TimothyParker]

I'm from the future... A Tesla investor and a bull. You were exactly right. The stock has finally surpassed the 900.4 high, set in your timeline for a second time. However, we have far more visibility in the future value of the company and it's market position. With current GM = 30.5 (3Q2021) - 3x-5x the industry - and rising I think it's time for another run. I'd love for you to revisit this Tesla on your channel

[GeographyStuff]

Just a question, what do you have against 12-year-olds? I am currently 13 years old. I just want you to respond to this fact: Toyota is more expensive than Tesla on a PEG ratio basis

[Fummy]

Worth 10 times more than Toyota that sells like 20x more cares per year? yeah thats overvalued as it gets.

[dr.briaro]

its like the toilet papper effect during first phase of covid, thats how I see the Tesla bulls. just subscribed you and liked the vid

[lourdest]

I very much enjoyed the video, as well as the spirited debate on this thread. I’m a hospice RN who really needs to learn how to invest for retirement, specifically ROTH Ira. Everyone’s input is appreciated.

And Rene, I love the background lighting, gives the video an elegant touch.

[GeographyStuff]

Why did you hide the comments? Just curious,

[jasonc]

I like it, just sell as many shares as possible and take the cash, use it to bail yourself out when the stock crashes.

[MannedSoldier]

Totally agree, the FOMO is incredibly strong with this stock, I also felt at one point that I should consider purchasing a bit. But that's one of the most important virtues of a true value investor, not giving into the hype of the market and knowing how to control your emotions, as told by the father of value investing himself, Benjamin Graham. Some reading and investing into yourself can save you a lot of money, unfortunately it's time consuming.

[paulhwu]

tesla has high probability of getting to 598 to 619 before next earning report because of lower est earning of 0.71 - does anyone know why est earning dropped from 1.02 last qtr to 0.71 this coming qtr when 50% increase in delivery projection?

[florenciovela]

i can't wait for my cybertruck tri motor fsd to be here.. may order the S dual or tri? got solar system battery backup too.

[Drippinonyou]

i will personally DCA tsla. Its may retrace for the short term but i can see massive returns even more than PLTR. Btw what do u think of cathy woods?

[debashishjena]

what do u think about Tesla now? Over valued or fairly valued?

[mpgirl]

Good luck betting against a man who makes rockets that even a nation can't make.