Hi guys, it's Mark.
So I've got a confession to make.
Earlier this week I broke one of my most important
investing rules and sold all of my Tesla stock
and it's about time I explained myself.
I honestly feel a bit sad now I'm out of the Tesla club.
I've always followed the theory
that you should never try and time the market
and instead just stay invested as it's all about time
in the market.
After all, if you think about it,
you have to be right twice, once when you sell
and once when you bought back in.
However what's currently happening with Tesla
is a very unique situation.
I'm really concerned that it'll start to implode.
So let's talk about the things that made me decide to sell,
how much I sold for, what this means for you,
and most importantly, your money.
All that's coming up right after you Elon Musk
that like button for the L-tube Yugorithm.
Let me start off by saying this video
shouldn't be taken as financial advice
and before you make any decisions yourself
it's important to do your own research.
Remember that no one truly knows
what the stock market will do next.
We just have to try and make educated decisions
with our money.
I'm also not a hater.
I love my Tesla.
It's one of the best cars I've ever owned.
They are without a doubt such an interesting company.
I mean, in just a couple of short months,
Tesla has grown by over 55%.
This has made Tesla more valuable
than every other car company combined,
which is incredible when you think about it.
If I'm honest, though, it's not really fair to call Tesla
a car company, it's so much more than that.
They're already involved in solar power,
battery technology and the future could even include
a fleet of self-driving taxis.
Just imagine how cool it would be
if my car could go make me money as a Robotaxi
while I relaxed at home.
When you combine this with a huge influence
of their charismatic leader, Elon Musk,
it makes sense why the company is booming
and is the go-to stock for beginner investors.
I personally started investing during early 2020
at a $100 per share and until this point I've never sold,
but when the price hit a certain point
I had to reconsider my position and liquidate my stocks.
But Mark, that's just FUD, and you're a paper handed pansy.
We're going to the moon.
I get how it looks.
I'm all about buying and holding
but sometimes taking profit isn't a bad thing.
Let me explain first, let's talk about the fundamentals.
This is kind of like buying a used car.
You wouldn't just hand over all your money
without looking under the hood and inspecting
the engine to see if everything was in order.
That would be just asking for trouble.
Although with a Tesla I don't think
that example works very well.
Not a lot to see in there.
When you dig deeper into the numbers
you'll find that Tesla currently
has a price to earnings ratio of 353,
which means investors are prepared to pay $353
for every $1 that Tesla makes.
If that sounds a bit expensive to you,
then you'll be correct.
My traditional approach of carrying out fundamental
analysis, which includes looking at balance sheets
and cashflow statements to determine
if a company is a good long-term investment
doesn't really work that well for Tesla
as it's all about the future of the company
and not the numbers they're currently doing.
But you're just a boomer and these old methods
don't work anymore.
I'm young and I can take the risk.
Well, I do agree.
It's important to take some risks when you're younger,
however, it is best when it's calculated and in moderation.
I'm not saying I don't like Tesla or you shouldn't invest.
It's just important to remember that Tesla
is highly dependent on future innovation
and it's already valued higher
than every car company without actually selling
the most cars so it has a lot to live up to.
It's also important to note that Tesla previously
had an 80% market share when it comes to electric vehicles.
However, as of late, the market share
has slipped to around 66%.
I really do have high hopes for this company
but saying this it's important to look
into the numbers before investing
so you're aware of how much risk you're taking.
One thing you don't have to think a lot about
is getting your free stock from Public
worth up to a $1,000 if you're in the USA
or your free stock worth up to £200
from Freetrade if you live in the UK.
These are just no brainers so I'll leave
the links in the description.
I can't make this video without mentioning
the wild card that is Elon Musk
and he's an unrivaled influence over Tesla stock price.
Who else has the power to make overnight millionaires
or cost people fortunes with a single tweet?
I mean, when someone gets a new dog,
it doesn't usually end up in the creation
of two new dog themed crypto coins
that make multiple people into billionaires.
But that's just the norm for Elon.
On November the sixth, Elon tweeted a simple poll
asking if he should sell 10% of his Tesla shares.
He also promised that he would abide by the results
of the poll, whichever way it went.
As you can imagine, Twitter said, yes.
This was an extremely smart move
as I honestly think he knew exactly what Twitter
wanted him to do.
What do you mean, it seems like a 50/50 vote to me.
It could have gone either way.
Well, as you're probably aware investing in the stock market
is such a great way to build your wealth
because you don't pay any tax on the stock
until you sell it and realize your gains.
Therefore, many billionaire CEOs hold the majority
of their wealth in company stock.
This means they're paying practically nothing
in tax because they technically never made anything
until they sell it of course,
that's why mark Zuckerberg only takes a yearly salary of $1.
If they need money, they just borrow against their stocks
and still pay no tax as well as getting stock options,
travel and other forms of compensation.
It's an extremely exploited loophole.
But many people don't like this,
which I can sort of understand
as I do believe billionaires should pay
their fair share of tax.
But coming back to Elon, he knew this was a hot topic
on Twitter so it's pretty clear which way the poll
was going to go.
This allowed him to take advantage of Tesla's extremely
high stock price and not look like he had paper hands
for selling 10% of his shares.
Even his brother Kimbal Musk took the opportunity
to liquidate some of his shares for millions.
This might be great for the Musks,
but as an investor this does worry me is it could cause
many everyday investors to panic and follow suit,
which then could spark the start of a crash.
To be honest, in hindsight this hasn't actually
impacted Tesla stock as much as I thought it would,
which I'm happy about.
But my worries are justified.
I mean, just look at the effect Elon had on Bitcoin's price
when Tesla stopped accepting it as payment.
On that note, Coinbase are giving away $10
worth of free Bitcoin.
This is gonna be ending soon.
So if you're interested in picking that up
then I'll leave a link in the description.
Now we need to talk about the Hertz deal
as was the main reason Tesla stock pumped
past the $1,000 mark and it could be a huge weakness.
This caused Tesla to reach a $1.2 trillion market cap,
which is absolutely insane.
That's not far off Amazon's market cap of $1.8 trillion.
Well, I say not far, but you know what I mean?
When Hertz announced they were placing an order
for a 100,000 Tesla Model 3s,
in an order totalling $4.2 billion,
this caused Tesla stock to surge.
However, Elon Musk being the troll that he is
mentioned on Twitter that if the recent growth
was down to the Hertz deal, then this wasn't actually
signed yet.
So all this hype over something that might not even happen.
Oh my God, man, I can't believe it.
I think the point he was trying to make
was that Tesla doesn't need this deal to sell cars
as they will be sold whether Hertz buy them or not.
Demand has never been an issue for Tesla.
It's supply that they're struggling with.
To my surprise this didn't have a huge impact
on the stock price.
However, if a deal like this has the power
to pump Tesla's stock to the moon
then I'm worried it could have the opposite effect
if it doesn't go through.
Since the pandemic new investors are on the rise
and the trendy thing seems to be investing in Tesla stock.
This could cause big problems in the future.
Let me start by saying I think it's great
that new investors are getting into the market,
after all that's the entire reason
I decided to start this YouTube channel.
By the way, make sure to subscribe
if you wanna grow your wealth.
The problem comes when new investors
are just looking to make a quick return
and therefore can't stomach a huge loss in their money.
A recent study actually showed that 46% of people
that received stimulus money invested at least some of it.
And 70% of the 46% invested at least half of it.
This created the perfect storm for new investors
with more than 10 million new brokerage accounts
being opened by people in 2020.
And that's more than any other year before.
The point I'm making is when Elon tweets something silly
or Tesla misses earnings targets once
or twice, which is very possible,
these new investors can very easily begin to panic
and start selling, further sinking the stock price.
It's a massive snowball effect,
fueling the fire and driving the price down and down.
I don't like to time the market,
but I made a pretty staggering profit from Tesla
and I think my next entry point will be
when something like this happens
and the stock is selling for bargain prices.
In all honesty, I'm all about holding longterm
as I typically only throw large amounts of money
into stocks I believe in.
However, sometimes when you make a level of profit
so mind blowing, it might be time to sell.
Having a large percentage of your money in one stock
could be extremely risky and that's why
I've been diversifying.
I see huge potential in electric vehicles
and I drive a Tesla myself which I absolutely love.
Despite the lack of noise, the power is instant
and it's quite a thrill to drive.
With that said, Tesla has competition rising.
I'm not saying the new kids on the block
are going to overtake Tesla, but the motor world
is evolving and there are so many companies out there
with potential as well as Tesla.
So you're probably interested in where I've put
all my Tesla profits so let me break it down.
First we have Rivian.
They recently went public and let me tell you
it's been great for me so far,
despite Curtis telling me not to buy on IPO day.
Rivian hasn't sold that many vehicles yet
however, I do really like the company
and figured it was worth a shot.
I also think it's really cool that they're backed
by Ford and Amazon, which makes this company
all the more interesting and I do think
their fleet looks really great.
They have electric pickup trucks, electric SUV's,
and even electric delivery vans,
which could be the perfect fit for Amazon Prime.
Just imagine if the Hertz order can have
such a huge effect on Tesla, what would an order
from Amazon do for Rivian stock price?
I'm really excited about this stock
and I can't wait to see how it performs.
I've also thrown some money into Gores Guggenheim,
which is also doing fantastically well for me
over this short-term period.
Gorse Guggenheim is basically Polestar.
They've done a SPAC merger.
Polestar is a relatively small company,
but I really liked the cars and I think
they have a lot of room for growth.
The truth is many of these EVs stocks are overvalued,
but Polestar already has strong sales
and infrastructure in place, as well as being developed
under the major auto automaker Volvo.
It sounds like I'm auditioning for "Top Gear,"
but when it comes to renewable energy and going green,
it's not all about electric vehicles.
That's why I'm also loading the boat with Enphase energy,
which is performing very well for me.
I mentioned in my top 10 stock video
that I was buying Enphase, but lately
I've really been piling in.
Enphase are focused on innovation and growth
and their revenue is climbing year on year.
They are paving the way throughout this emerging market
as more and more customers are turning green,
Enphase are just scooping them up.
I really feel diversified portfolio
are the safest and best ways to go, especially at my age.
No, but seriously.
Tesla future most likely is very bright
and I'm planning to buy back my stocks when the price dips,
I just can't justify its current value
and at the same time ignore other stocks
with have such huge potential.
And the moment you've all been waiting for.
I sold half my stock at $1,100 and the other half,
a $1,200.
However, I do still believe in Tesla long-term
and if you're huddling, good on ya.
So I'm gonna leave the next video right up there,
but don't click on it just yet.
Make sure to subscribe if you wanna grow your wealth
and don't forget to pick up your free stocks
and Bitcoin with the links below.
Okay, I'll see you on.