A Cult-Free Tesla Q2 Earnings Review
Includes revised price targets, analysis of institutional positioning, and downside risk.
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The End Of The Innocents?
Time was you could genuinely YOLO TSLA on any kind of amped-up margin account you liked and it would work out for you. There are many 'Teslanaires' out there as a result. Whether they cashed in their chips, we know not, but the stock has been the gift that keeps on giving for some years now, and not just as a pandemic darling.
We don't subscribe to the cult of Musk but we do subscribe to wanting to own stocks whose underlying companies:
Are undisputed market leaders
Have strong and accelerating revenue growth
Have solid and improving cashflows
Have bombproof balance sheets
Right now you can say that TSLA ticks boxes 1 and 4, and ticks half of box 3. But you can also say that the automotive complex, so comprehensively outgunned by TSLA, is catching up, and it remains to be seen whether the huge wave of demand for EVs worldwide is enough to sustain TSLA's growth rates and margins, or whether competition will sap them permanently. You can find ideological debate on this most everywhere on the Internet, but the facts are yet to be known.
The fundamental analysis and stock price targets & downside protection levels below are for our paying members only. If you’ve yet to become a paying member, we keep our prices here super-low versus the quality of work you get. Rack rate is $149/yr but if you sign up in July you can join our member community for just $99/yr on the annual. That’s a 33% discount. (Probably we should have set this as a 38.2% discount by way of a Fibonacci joke but, in truth, it only just occurred to us). You can also join on the monthly for $14.99/mo if you prefer. The signup link follows for non-paying members; paying members you can scroll right through to the TSLA analysis.