Name: Tesla's New Insane Stock Price - $3 Trillion!
Uploaded: 2021-03-30T17:45:05.000Z
Duration: 9 min 18 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

What are the two most volatile investments ever? Tesla and bitcoin. Out of all the investments you  

Adverbs of manner

could ever make, there are literally no other  investments that are as volatile as these 2.

Adverbs of degree

Bitcoin just a year ago used to cost less than 10K  and now worth over 50K. And since the beginning of  

the year, the price has doubled. But what happens if these two  

super volatile assets merge? That sounds like a recipe for disaster, but  

that's exactly what happened in the last few days. Elon Musk announced that you can now buy a Tesla  

with bitcoins. You don't have to  convert your bitcoins to US Dollars  

to buy a Tesla. Just send your bitcoins to  Elon Musk's pocket directly and get your Tesla. 

This is insane!  An asset that you use to worth  

4K less two years ago now can get you a brand new  Tesla. I can't believe that something like this  

is actually happening. These are the times when  you feel like you should have spent every penny  

you had to buy bitcoins. But I think we are late  to the party unless you believe that bitcoin is  

going to cross $100K or a million-dollar like some  people claim. But you know what's more important  

than that? Is hitting that like button. That's the  best way to let me know that you enjoy our videos. 

Imagine the people who use to mine bitcoins  every day back when bitcoin wasn't a thing.  

Back when you could mine multiple bitcoins a  day. One hour of mining bitcoin in 2012 now  

can get you a brand new Tesla in 2021. if 2020 was  hilarious, then 2021 is going to be much more fun.  

Crypto guys are having their best year ever, but  that doesn't mean that the next year isn't going  

to be better. Only time will tell. For those who  are interested in bitcoins, we made an entire  

video bout how to buy bitcoins, how to store  bitcoins, how to make sure your bitcoins are safe.  

The link will be in the description. But what's more insane than that is,  

Tesla's bitcoin investment reportedly made  more profit this year than car sales in the  

whole of 2020. tesla is an auto manufacturer.  You assume that their primary source of income  

is probably selling cars, but apparently, it's  not. Even if you argue that it's a tech company,  

you still wouldn't think that its  major source of income is bitcoin. 

I am not trying to downplay Tesla or be negative  about it, but I find that pretty hilarious. 

Tesla disclosed in an SEC filing on Feb 8  that it purchased $1.5 billion of bitcoin. 

If its holding has remained the same size, it  will reportedly have made a $930 million profit. 

That's almost 30% more than the  company made from car sales in 2020, 

bitcoin keeps growing at this rate, then  Tesla will soon become a Crypto company.  

He is giving bitcoin a lot of legitimacy because  if such a huge company is investing in bitcoin  

and accepting it as a form of currency, that  could push a lot of other companies to follow  

in teslas footsteps. It's still early to make any  predictions because the market is still unstable,  

and we will have to wait and see what happens  when the economy stabilizes, what will happen  

to bitcoin and Tesla when the fed will raise  interest rates to at least one or even 2 percent.  

But that's not what I want to talk about in this  video, but rather about Cathie Woods's new Tesla  

She thinks that Tesla is going to cross  3000 Dollars by 2025. just a little context,  

last year, before Tesla's stock split,  ARK investment estimated that in 2024  

Tesla's share price would hit $7,000 per share or  $1,400 adjusted for its five for one stock split. 

If you treat Tesla as an auto manufacturer, then  this valuation will never make sense. However, ark  

invest is looking at Tesla as a future tech giant  that's taking a completely different approach,  

and it has the potential to change the  world. We are still a fossil fuel society,  

so if Tesla would become the major player to  transition the world into sustainable energy,  

it will be worth far more than 3 trillion dollars,  which will justify its 3K dollar stock price. 

Last year Tesla produced around half a million  cars. By 2025, Cathie woods believe that number  

will grow to 10 million cars at best case  scenario to finally match industries leader  

Toyota, which sold almost 10 million cars globally  despite the pandemic. In the worst-case scenario,  

it will produce 5 million. That sounds realistic.  But we can't compare Tesla to traditional  

automakers because they are in a comply different  business, and I am going to explain why. 

Tesla's main business isn't cars but batteries  and data. Think of Tesla as an energy company  

because eventually, what they are doing is  creating a pretty similar product with a  

giant battery that you can recharge at any  of its superchargers across the country. 

Today's energy giants are Exxon Mobile, Shell,  Chevron, and they are valued at over 200 billion  

dollars each, although they don't have much  future. First of all, oil is a finite resource.  

Secondly, as the world moves to renewable energy,  these companies are going to shrink, of course,  

oil isn't going to go anywhere anytime soon, but  its usage will diminish greatly. Theoretically,  

Tesla has the potential to take over their  entire market in the next two decades,  

but that's just a small part of it because if you  take a look at the world's largest oil company  

Saudi Aramco. It's valued at 2 trillion  dollars which tells you how big this market is,  

and every oil country has its own local company  that controls a certain chunk of the market and  

is valued at dozens of billions of dollars, if not  hundreds. The problem with teslas competitors is  

that they got into the game too late, and Tesla is  so far ahead in this game that it's impossible for  

any company to catch it any time soon. When Tesla announced that it's going  

to build a Gigafactory, it was unclear  whether it was the right decision or not,  

but it seems like Gigafactory is Tesla's strategy  to transition the world to sustainable energy.  

Instead of reinventing the wheel every single  time, they just built a factory that efficiently  

builds cars, battery packs, energy storage  products, Powerwall, and all that is left for it  

is to build as many Gigafactories as possible.  The company has become so efficient that they  

built their china Gigafactory in around a year,  then in the middle of a pandemic, Tesla announced  

that it's going to build its next Gigafactory in  Berlin, which is set to open in July this year.  

At this speed, it's pretty easy to imagine that  within the next 5 or 7 years, the company will  

build a dozen Gigafactories and will meet Cathie  Woods's prediction of 10 million cars a year. 

Ark Invest also bets on Tesla's autonomous  technology. Remember when Elon Musk said,  

your Tesla could be earning you money when  you are not using it because it will drive  

people around like an uber. It sounds  a bit futuristic, but theoretically,  

it's possible, and eventually, that's where  the industry is headed to. So by 2025,  

the company should have reached level 5 autonomy  which sounds reasonable but not practical since  

the industry is over-regulated and since Cathie  Woods predicts that ride-hail would account for  

the majority of Tesla's enterprise value in 2025,  it makes her prediction a little over optimistic.  

I don't doubt Elon Musk, but I think  that's going to take a little longer.  

Nevertheless, if you are playing it  long-term, then you shouldn't care. 

If you want to learn more about Tesla, then  check out my video on our second channel,  

which link I will leave in the description.  There are a few other things I wanted to talk  

about, such as how the price of your coffee  could skyrocket because, unfortunately, a ship,  

a containership, is stuck in the Suez Canal and  is stopping the rest of the ships from crossing  

the route which could cut the supply chain  and cause a shortage of coffee in the market. 

We complain about a 5 dollar coffee. Now we might  start having 20 or 30 dollar coffees, who knows!  

Well, we might talk about that in a future video.  Meanwhile, if you want to know where the stock  

market is headed to, I made an entire video about  that a few days ago, so make sure to check it out  

but most importantly, give this video a thumbs up  as usual and subscribe if you are new around here. 

Thanks for watching and I  will see you in the next one. 