TSLA Earnings + 2022 Price Target
If Tesla ONLY focused on its EVs (electric vehicles), it would still have incredible growth ahead.
But you know Tesla is not just an auto company.
The solar energy, battery and Powerwall sectors of Tesla are just the cherries on top of an America 2.0 powerhouse.
We recorded before earnings came out, but you can see if we hit the nail on the head with our TSLA forecast. Amber is going to tweet out snippets from her “earnings express.” And you can check our TSLA calls here.
There are still naysayers counting on Tesla to fall.
But, I say no way!
Paul said it best in one of his latest tweets:
people will look back at this time and say "can you believe this was trading so low." in hindsight it'll be so obvious, so clear that the right thing to do was to be #stronghands 💪however in the moment, each day, each week can feel endless. stay strong be #BOP our time cometh 🚀
— 🇺🇸Paul Mampilly (@MampillyGuru) July 14, 2021
I’m so #BOP (bullish, optimistic and positive) on TSLA, I’m putting out a 2022 price target for the stock.
Catch up on all the action for Tesla, cannabis and bitcoin (new highs!) now:
Paul Mampilly: Good afternoon, Ian.
Ian Dyer: Hey Paul. How are you?
Paul: I’m doing good. How are you?
Ian: Doing pretty well. I can’t complain.
Paul: So it’s an early recorded edition of the IanCast on Wednesday because each of us has various commitments and this is the time we can commit to recording it. Because we know there are big fans of the IanCast out there, we thought we should get this out there.
There are some big events going on and there will be a big event that’s going to come post us recording this, which is Tesla is going to be reporting tonight.
New Things in Tesla, Can Other EVs Catch Up?
Let’s get right into it and start with Tesla. I have told you I am waiting for my new Model X. My old Model X lease expired in April.
Between the Model X being refreshed, the pandemic, shutdowns to production, chip shortages, they have pushed it out. But they have started to make deliveries again. My personal view from tracking forums and all these things is that it’s going to be a super strong quarter. What are you seeing?
Ian: I think so too. There is a huge list of backlog for the Model 3, Model Y and Model X. I think they stopped counting orders for the Cybertruck at one million and they haven’t even started production on that. If they didn’t do anything now and just focused on cars they would have years of revenue and growth ahead.
Then you can add on the solar roof, their battery projects and the Powerwall. I think this quarter is going to blow people away once again. I think people are starting to finally set the bar high for Tesla because there were a lot of skeptics out there the past two years.
But now they are completely dominating not only the EV industry, but also the solar industry and possibly how utilities are used with their Autobidder system where people can buy and sell electricity and transact on the grid.
The point is, they are doing great and I think this quarter is going to be amazing.
Paul: One of the things I retweeted from Cathie Wood was when GM and the legacy ICE makers were talking about the chip shortage. She said, wait a second here, fact check moment. EVs take 10 times or 20 times more chips than these unsmart — can we call them dumb? — ICE cars.
I don’t mean that in a pejorative way. Tesla is smart because it can self drive. Anyway, she said it made no sense because Tesla has gone up 30%. I have gone back and researched this. It turns out in a speech Elon gave to Volkswagen when he was inaugurating the gigafactory in Berlin, he said they were able to reprogram their cars to accept new chips in six weeks.
Then he proceeded to stun the Volkswagen executives by saying they expect to put together a car at giga Berlin in 10 hours. Volkswagen’s optimistic estimate is 30 hours. It sounds like it’s in the same planet, but when you are manufacturing something with thousands of units, 10 and 30 is like Pluto and Earth.
They are never going to compete with Tesla. The last thing that came out from my research is that the reason legacy automakers are experiencing a chip shortage is because they use ancient chips that the chipmakers say, “Why would we expand capacity for something that we know is going away?”
It makes no sense at all. A lot of this stuff when you dig levels deep is a different story than what you are reading at face value out there.
Ian: That’s something we have talked about many times: their advantage over older carmakers who have to reformat their entire business model to adjust for EVs.
While they can put out all this shiny stuff about having these new EVs and how far they can go and the benefits, the real picture is that they don’t have the money or time to adjust their factories to compete with a company like Tesla.
It’s crazy how much of an advantage Tesla has. That 10 and 30 hour difference pretty much sums that up.
Paul: 10 and 30 hours. Really? Just for context, Volkswagen through its Audi division is actually one of the more prepared legacy automakers. They actually have a battery factory they started two or three years ago. So the most leading one is that far behind in making an EV.
We’re not even talking about Autopilot. Forget that. There’s no hope for these. Sandy Munro who I am a big fan of was talking about layering on the lead with Autopilot and the old automakers should go hat in hand to Elon. He probably would give it to them.
They have too much pride and arrogance to do it.
Ian: Agreed. It’s not looking good for the old carmakers at all.
Paul: There are lots of people who are still saying, “Wait until the competition comes.” How long have we heard that?
Ian: I think the big time I heard that was when the Model 3 hadn’t scaled yet. Everybody said it was going to be a flop and Ford and GM have EVs in the works and they already have a huge customer base. Well that didn’t turn out very good. They still don’t have anything going for them.
Paul: Now the tune has slightly changed to, “Wait till Rivian. Wait till Lucid.” Sandy Munro does say the Chinese carmakers are legit. However, the one thing they are lacking is going to be full self driving. He says their stuff is really good, high quality and it’s coming.
There’s no way the GMs, Fords and Chryslers are prepared for the onslaught of Chinese makers. He particularly mentions Volvo because they are already here.
Ian: Volvo and Volkswagen, based on what I have seen, are probably the two most adapted to EVs. But still, they are not going to compete with Tesla any time soon. With Chinese EV makers, Tesla already has a solid share of the Chinese market.
It was really smart of them to build that gigafactory there. That allowed them to not let the Chinese automakers dominate completely. Then Tesla has Europe and North America where they are completely dominating. Their market share is the best in the world by far.
Paul: The last story about Elon and Tesla and then we will move on from this fan fest. Elon was on a panel and was asked why he has all his patents open source. I am bringing this up with context to China. He is in China where they have no patent protection and anybody can copy them.
I’m sure they are, but because of the rapid system they have it’s not something that’s very copyable. Tesla is changing their cars week to week and month to month. That’s not something most people can do unless you have an entire company that is set up to operate in this way.
Ian: They do things differently. It’s a huge advantage for Tesla.
Paul: We have been in Tesla for a while. I think the gains in the Profits Unlimited portfolio have once again passed 1,000%. I think we are at 1,100%. I forget, I think we threw out a price target for Tesla. I forget what we put out recently.
Ian: I want to say that I said $2,000 by the end of next year. I’m not 100% sure, but I think $2,000 by the end of next year is possible.
Paul: It’s already back to somewhere near its old high of $900. When you consider that Model Y and Model 3, if you order today, you will get it in April of next year. It really makes a joke of some of these short theses that there’s no demand and the nonsense that was put out for so long.
When full self driving is operative and robotaxis come, this is a whole layer. We are absolutely bullish, optimistic, positive — BOP — on Tesla.
Let’s move on from Tesla and talk about the general stock market.
Are You Bullish On Cannabis Stocks? We Are!
You and I have been super bullish on cannabis stocks.
You said they went nuts yesterday. What triggered that?
Ian: It wasn’t any specific piece of news I could find, but the craziest one was Hexo. A couple days ago their CEO and CFO resigned. They are restructuring because they ran into some trouble with some things. I think investors were happy about that. It’s an activist investor who was leading the change.
Yesterday, the number of call options that were bought on Hexo was 16,000% above the average number that’s normally bought in a day for Hexo. That was crazy. Then some of the other ones like Tilray was a 600% increase in call volume. The stock volumes were high too.
A bunch of pot stocks had well into the hundreds of percent increase in their volume and they were all up anywhere from 7% to 15%. It was sort of random, but this is the kind of move I have been waiting for for a while. This is a big signal that the bottom is in for these stocks.
People are starting to buy. People have been waiting to buy. The fact they can move up that much in such a short period of time means the selling pressure is still low. In fact, it probably means there were some big short squeezes in there where short sellers were wiped out.
I have seen selling pressure in these stocks has been nothing for a while. All it takes is one day like yesterday where a big buyer can come in and push up these stocks easily. It’s a very good thing to see. I think it’s finally here. We are finally going to see pot stocks move up in the short term.
Paul: And the deal Canopy did is a very solid deal. It gets them into the U.S. in a genuinely expansive way.
Ian: They bought the number one edibles company in the U.S. We’ve talked about it many times in our private chats. What these big companies need to do is expand into the U.S. as much as possible. Canopy was already building a solid presence in the U.S., but that acquisition was the biggest I had seen in a long time for any marijuana company.
It was amazing news and it didn’t go up much after that news, which really surprised me. I think yesterday people were starting to realize there were big moves being made and these stocks were way undervalued.
Paul: They are crazy undervalued even relative to the amount of cash they hold on their balance sheet. And then consider that the growth is going to be massive. The biggest market for almost anything in the world is the United States for the most part, especially in terms of anything consumer driven.
They also bought a vape company a few weeks ago. They are starting to stack a lot of things I felt they were best placed for. In other words, make a brand and consumerize this thing. Make it into a version of alcohol or anything else where you consume it and it’s no big deal.
Ian: That’s what they are doing and it’s super important. It’s such a new market and there are no distinguishable brands out there. It’s good to see them doing that.
Paul: Another thing most people don’t think about is the market for these stocks. Who is going to be buying these stocks? I doubt people who are past the age of 60 are really all in on cannabis. I think it’s going to be a younger crowd who wants to buy Canopy or Hexo or any of these stocks.
Ian: For sure. People I know who aren’t big into the stock market have asked me about these stocks without me prompting them. I know it’s probably a lot of millennials and Gen Z who are prime buyers for these stocks.
Paul: It does look like the bottom is in. Now it’s just a matter of that demand and supply imbalance, which is definitively there. One of the things I have noticed from my time on Wall Street is that when you see 52-week lows being made and the options don’t respond.
The options price is just sitting there even though the stock is making new lows. In other words, the option market prices on volatility and they are not going to discount that price into the option price because they are expecting a rebound. That’s often a good sign of a bottom.
Ian: That’s what we’ve been seeing. It’s looking good, better than it has in a long time.
Paul: Transitioning from pot stocks to our overall stocks which are innovation, growth stocks, some people call them ARK stocks because of ARK Invest. We’re definitely in that category. You showed me a chart on Slack showing me option volumes rising? Or was it prices?
How Are The ARK Stocks Doing?
Ian: It was the options volume on the watch list. I have this watch list of 200 America 2.0 growth stocks. Yesterday more than half of them had above average volume for their call options, which is people betting mostly on the short term that these stocks are going to go up.
That hasn’t happened since January or maybe even last year. It’s been a long time since more than half the stocks had higher than average option volume. That’s a good sign. We’ve seen a bunch of fakeout rallies in growth stocks for the past six to eight months.
But this one has the backing of the option market and we are heading into earnings season. I think the tides are starting to change here. The selling pressure has just gotten smaller and smaller. In that first earnings season for April and May it was heavy selling for everything.
Last earnings season it was still selling, but it was very light. In between these two earnings seasons we have seen light selling and it’s turning into buying and in the option market for calls. I definitely believe a reversal is going to happen here with these stocks.
Paul: Also we have seen stocks like Coinbase starting to rip. There are others that have bottomed out. Stocks like Zoom are starting to see a heavy bid either between short covering and/or people who say they’ve waited long enough and are going to pull the trigger and buy.
Ian: Yes, those big ARK holdings. Tesla has been on a run for a while. That’s a leader. The ones that have bottomed out recently like Zoom, Teladoc and Roku is another one. They are all very similar. They are all dominate in their industries. They are all growth oriented.
They all got crushed in this correction in growth stocks. From what I see, they are very undervalued and have a lot of room to grow from here.
Paul: Before we go on I have to confess to you that I actually own some ARK Innovation ETF. You asked me what strike. I told you it was for $240, which is about a 100% move from here. I have given myself 14 months. Hey, disclaimer, I am not telling you to copy me.
I’m not telling anyone to make this trade. If you copy me, you are on your own. I am not going to be updating on this trade. I am just making this part of the conversation. Remember, this channel is not investment advice. For lack of a better word, it’s engagement or entertainment.
Nonetheless, I am super bullish because so many of those stocks — Tesla, Bitcoin, Square, Palantir, Zoom — the overlap between us and ARK is significant.
Ian: Like you said, we are the only other ones in that game. There is no other fund manager or a big institution that is focused only on growth stocks. The demand from here when these other institutions buy in is going to become obvious that we were early.
From there, these stocks are going to go way up, even past their highs that we set earlier this year.
Paul: One of the other areas we are super bullish on and on one else is — I’ve looked and no one else is as bullish on 3D printing as us and ARK. Cathie has an entire ETF dedicated to it. The same thing is true for space. That one she is still building. But 3D printing, I have seen no one else.
Ian: You can tell just by looking at their market caps. No one is putting money in these companies. A few billion dollars is the highest market cap. It blows my mind. 3D printing is the future of manufacturing. It’s how things are going to be made. The technology has grown rapidly over the years. The stocks have just not reflected that.
Paul: Our amazing colleague Amber put up an article from one of the trade journals on engineering talking about how 70% of people are planning to reshore capacity to the United States. To me, it’s obvious. What are they going to do? Put up old smoke stacks?
No. They are going to fill rooms with 3D printers. That’s what’s going to happen.
Ian: It makes total sense. That’s another thing, throughout our portfolios we have a ton of 3D printing stocks. Those are going to be big winners through the next couple years for sure.
Paul: In hindsight, everybody is going to look back at 2021 and even the early part of 2022 and say, “It was so obvious. If I knew the upside was so huge I would not have been a trader, I would have been a holder. I would have stayed in and bought at cheap prices.”
That’s the benefit of hindsight and that’s the reward for being willing to stick it out.
Ian: Exactly. The highest reward, you have to pay for in the short term. You have to stick it out through the volatility because that’s where the highest returns come from eventually. We always give reasons about why we invest in these things.
It seems clear we are invested in the technologies that are disrupting every industry out there. It’s just a matter of time until the stocks reflect that.
Paul: All these wise guy traders who sometimes come and troll us on YouTube and come at me on Twitter, they always come somewhere near the bottom to give you a hard time. They never end up making the big money. There are no day-trading billionaires out there.
Renaissance is not a day trader. They do statistical arbitrage. It’s completely different. Ian, I think we have covered that. We are BOP on America 2.0 and Fourth Industrial Revolution stocks. We kept the best for last: Bitcoin (BTC). Should I say more? All-time highs.
Bitcoin Still Going Big!
Ian: That pretty much says it all. It’s been amazing. What’s even more amazing is the silence we have seen on social media. There’s zero excitement about this.
Paul: Stunned disbelief is what I said in our Slack chat. Then you put up a chart. I didn’t know they measured by the minute talking about the positioning of futures exchanges. I guess this morning it was sort of 50/50 and then as the all-time high hit people’s instinctual reaction was to go short it.
Ian: Right. There’s a website — bybt.com — that tracks the futures exchanges. You can look at a bunch of different timeframes. What I sent you was what had been done in the past five minutes. It was a sudden move. That’s what I was trying to get across.
They were all 60-70% long right before it made the all0time high. Then right after it was the total opposite. Everyone sold and then went short. There’s going to be a big short squeeze here. Then it went from $65,000 to $67,000 in not much time at all.
It’s crazy that people want to fight the trend that much when BTC makes an all-time high. It’s never been a good idea.
Paul: We should explain to people who are unfamiliar with the way we see the world. For us, all-time highs are a positive. We know there is an entire universe of people out there who think the opposite. We are not for you. Please turn off this immediately and find someone else to watch.
For us, all-time highs are positive because it shows there are people with conviction willing to pay a brand new price no one has paid before. It shows their desire, conviction and belief to want to own the asset.
The second thing is, when you see a crowd instinctually go the other way of the trend it’s also a bullish contrarian sign for us. There’s no need to troll us in the comments about this. The other thing I saw happen right as BTC was making new highs was on Twitter #altcoinseason started trending.
We have slightly different views on what this means. Tells folks what it means and what it might mean for Crypto Flash Trader which you are running where we are doing short-term trades on crypto.
Ian, what are people talking about?
What Is #altcoinseason?
Ian: I consider everything other than BTC and Ethereum (ETH) and alt coin. Alt coin season is something people say when these smaller coins and more obscure stuff goes up. That’s what people have in mind when they say alt coin season. I think a lot of people are going to be disappointed if they buy what has gone up a lot recently.
Unless it’s BTC or ETH, there is constant demand for those. A lot of people bought into stuff while BTC and ETH were down. Things like Solana, Cardano and some of these other supposed ETH killers. A lot of people still have a lot of those coins. It’s making up most of their portfolio.
In the meantime, everybody was sleeping on BTC and saying it was dead. That’s the usual message people say when they are making money in other coins. Now BTC is making a new all-time high and a bunch of those other coins are well below their all-time highs.
I think people are talking about those coins doing what they have done in the recent past. When it comes to trading and investing, everybody has a recency bias. They project what happened over the past couple of months onto what is going to happen now. It probably explains why people were shorting BTC at the all-time high.
I think a big wave is going to come into ETH DeFi. People are sleeping on that just like they were sleeping on BTC in July and June. I think an alt coin season is on the way, but it might not be exactly what people think.
Paul: I think we’re more on the same page. When I saw that trending I thought these are the — what so the Cardano folks call themselves?
Ian: I don’t know. It has ADA in it right?
Paul: I don’t know. I don’t know what the Solana folks call themselves either. They were like, “OK, another 1,000% pump is coming.” Generally speaking, the next bull market that BTC is now pointing toward is going to take a brand-new set of coins with it.
It’s not going to be the old leaders that were mooning when BTC was down.
Ian: The driver for a lot of those trades in the other chains like Cardano and Solano was the fact the ETH fees were so high. I don’t know too much about Cardano, but I do know it was the number three coin before it had any kind of usable app on it or anything.
That was weird to me. It suggests to me that there are not many buyers left but the people who are in have a ton of money in it and are ready to take profits. In that scenario, I don’t think there’s much upside left. It might make a new high, but it’s not going to do as well as stuff that’s still down 40%.
Like Aave, Uniswap and Compound, these apps have billions and billions of dollars. That’s a lot of money from a lot of people using these apps. Those are going to be the ones that I think will attract a lot of money. They are proven. A lot of people like them and a lot of people use them.
They make any aspect of finance easier and efficient. There’s usability there and there’s loyalty. I think these are going to be the ones that run in this next rally.
Paul: I can say that certainly the size of the move in Cardano, Solana were massive and very few people were expecting it. You can expect something similar. This is going to be something else that’s a surprise to everyone else.
Ian: There are some alt chains that I do like. Luna is one of them. Polkadot and Tezos are some other ones that I think are going to do well. They do seem to have real solid use cases. Some of the other ones there’s a crazy amount of hype. There is stuff we were talking about like Shiba Inu, which does nothing and doesn’t have anything going on with it.
Doge, which is the original Shiba Inu, does have things going on with it. I think that’s the stuff people are talking about, the stuff that went up 1,000%. They say, “It’s alt season. That means the coins I just made money on are going to make even more money.” Rarely is that how things turn out.
Paul: The Shiba Inu pump was driven by it listing on Coinbase. At least in my judgement that was one. Then apparently a rumor that it was going to be the next coin to be listed on Robinhood.
Ian: It was that. There was also some influencer who was pumping it a lot who has a lot of followers. Then Elon Musk got that breed of dog. I don’t know how much that has to do with it. It wouldn’t surprise me. Anything to get these coins going and people pile in.
Paul: There is no an entire genre of dog coins of which Doge is the leader. I guess Shiba is number two. There are probably at least 10 or 15 of them.
Ian: It’s crazy. Floki is an interesting one. I think that was the name Elon gave to his Shiba Inu. So everyone flooded into that one. It’s hilarious.
Paul: That’s the nature of meme-based investing. You said last week, and I agree with it, if you can make money in Shiba or Floki god bless you.
Ian: Money is money.
Paul: Money is money. If you can work yourself when to get in and get out, good for you. It’s all in the end something that you can still buy stuff with. Whether you want to buy a Lambo or a Cybertruck. What about where you are going to be taking Crypto Flash Trader?
Our Price Target for Bitcoin!
With BTC, we are in agreement that we think this is a real move and these all-time highs are going to be confirmed with more highs. We have crazy, insane price targets. Go ahead and give your insane price target.
Ian: My target for BTC is $350,000 by the end of next June.
Paul: In comparison, my gutless, cowardly one is $250,000. Where are you going to be taking Crypto Flash Trader with a new bull market in BTC?
Ian: Definitely we have a full portfolio right now. We are ready for the alt season that I don’t think everybody is ready for. Mostly focusing on DeFi coins. We have nine active trades right now. A lot of them are coins that are well below their highs and I think will blow by them before too long.
Just like last time, BTC made a new high in December and that rally started in October. All coins didn’t even start to rally until January. There might be a little time, but we are ready. I am confident in Crypto Flash Trader and I think we are going to make a lot of money in that.
Paul: I agree. I think everything is finally starting to push our way. Innovation, growth stocks, Fourth Industrial Revolution stocks, crypto, cannabis, Tesla — everything is moving in the right direction. It feels like a long seven months. Feels like a lot longer than seven months.
That’s the IanCast for this week. Ian, give them your fastest goodbye.
Ian: Everybody, thank you for watching. I will not be here next week, but I will see you the week after that.
Paul: Come back again. This is Paul saying bye.
Hey, Paul pounded the table to buy Tesla (Nasdaq: TSLA) at $50, predicting it would go to $1,000. It’s up 1,246% since he recommended it in 2018.
He’s kind of the expert when it comes to EVs.
Now, he found an incredible new EV buy.
It was discovered by “Employee No. 7…” You could call him the secret behind Tesla’s success … even one of the fathers of the electric vehicle revolution.
Editor, Crypto Flash Trader