How Tesla Went From Doom to Boom
It’s a busy week in the financial world, as many of the stock market’s most important companies — including Amazon, Apple, Microsoft, Tesla and others — are set to report earnings.
On the other hand, new reports of the deadly coronavirus spreading continue to come out every day.
The crisis has placed the entire city of Wuhan, China, under quarantine. And so far, infections have been confirmed in Illinois and Washington, as well as in Arizona and California.
That’s a major concern around the world right now … as well as on Wall Street.
Today, my colleague Ian King and I begin our discussion with our analysis on how this contagious virus could further affect the markets. Then, we talk Tesla’s future and more.
Simply click on the image below to watch our 23-minute video now:
On Thursday, Tesla is expected to report earnings of $0.57 per share.
The self-driving car company has been on a tremendous run since its October earnings report. After smashing analysts’ expectations, its stock price surged more than 125% in just a few months.
Today, Tesla is a battleground stock. Many critics argue that the company’s $100 billion market cap — a higher valuation than Ford and General Motors combined — is unwarranted.
In this week’s edition of Market Insights, Ian suggests otherwise.
He says: “Tesla had kind of an existential crisis in early 2019. [But] this stock has an enormous opportunity in the future. We’re going to see 50 to 100 times growth in electric vehicles in the next 10 years.”
Ian adds: “If you’ve ever test-driven a Tesla, and test-driven another company’s electric cars … there’s just no comparison.”
The coronavirus outbreak is the worst pandemic since the Ebola virus in 2014.
According to The Washington Post, more than 2,800 infections have been confirmed across Asia, Europe and the U.S. And so far, at least 80 people have died from the virus.
It’s certainly scary news, both as a potential health crisis and from a financial perspective. My experience as a journalist makes me optimistic, however.
In today’s video, I note: “I’ve seen this sort of thing happen in local communities. And if the people in charge — the Centers for Disease Control and Prevention, and all that — are well trained (and they are), they’re generally able to limit these sorts of things.”
Apple’s price-to-earnings ratio is at a historic extreme.
The tech giant is set to report earnings on Tuesday. And if the results are disappointing, it will be hard to justify Apple’s whopping $1.4 trillion valuation.
If you’re a fan of Apple and its products, there will be better opportunities down the road to buy shares. Ian and I discuss what’s ahead for the maker of iPhones, MacBooks and AirPods.
We’ll be back next week with our next edition of Market Insights. See you then.
Best of Good Buys,
Editor, Total Wealth Insider
P.S. If you’re interested in investing in the biggest tech trends of the decade, look no further than Ian’s Automatic Fortunes service. He uses a unique strategy that can pinpoint tipping-point trends and the best time to buy them. For more information, click here.