The quote below was my takeaway from Tesla's 2nd qtr earnings call on Wednesday. Not the 10% share price haircut post-earnings, not the record quarterly revenues despite massive price cuts, not the close to 2 million pre-orders for the coming-at-us-like-a-freight train Cybertruck.
This was all the takeaway we needed to hear:
"I have very high confidence in the long-term value of Tesla, I see it, I really see a path to a 10x, maybe call it a 5x increase in the value of the company," Musk said."Maybe a 10x. Where things go along the way, the trials and tribulations and the mood of the markets, one cannot predict."
To refresh everyone's memory, it was the infamous broken windows Cybertruck demonstration in late 2019 that ignited TSLA from a split-adjusted $22 in November, 2019 to its all time high of $414,50 just two years later. It's about that time again, when company is about to experience a growth spurt. It may start tomorrow, or in a week or a month and from a share price 20% lower, or worse, or maybe TSLA printed its low for the rest of the year at the close on Friday: It doesn't matter. These reservations for just one vehicle that has not yet even hit the streets is worth $150 billion in revenues, minimum.
Yet, there is so much more to Tesla than Cybertruck and the one person who knows the true potential more than anyone else, has told us straight out, without the typical mincing of words, obfuscations, or lawyer-like disclaimers and dancing jello words. No, this was straight out, from the horses mouth, 5X to 10X, and knowing Elon, what he's really thinking is 10X to 20X, but that would carry the risk of setting off a spate of class action lawsuits should shares appreciate anything less than 10X in the years ahead.
Referencing once again my Game Changer white paper of Dec 7, 2019, Cybertruck is to Tesla what the iPhone was to Apple in June, 2007. This chart display's the implication of that comparison:
TSLA/AAPL Analogue
The path ahead (from the horse's mouth).