March 27th 2023 Free Analysis - Tesla

Hey MPA Investors!

I've been sick most of the month of March 😩. But I'm finally starting to feel better after this last cold I caught. You just don't appreciate how awesome it is to not have a cold until you have one for 2 weeks! I feel reinvigorated, but I have a lot to catch up on. So let's jump right in:

THIS WEEKS' MOVERS SNAPSHOT

Tesla (Stock Ticker: TSLA) - Love them or hate them, you've definitely seen them on the road  It helps that the companies founder seems to always be in the news for one thing or another. If it's not about his self driving cars, it's a little blue bird. Either way the company isn't ignorable and neither is the stock. So let's take a seat in the drivers seat. 

Why TSLA?

Tesla delivered a record-breaking 405,278 vehicles in Q4 (Oct-Dec) of 2022. That's an increase of 17.87% from Q3 (July-Sept) 2022 and up 31.32% from Q4 of the previous year (2021). It's expected that Tesla increase the number of vehicles sold in 2023 by 37%-44%. This is largely due to two factors. The first is the Chinese market increasing sales and the second are price cuts of their EV models over the past few weeks. 

Why we feel there’s a buying opportunity:

1. Moodys increased Tesla's credit rating to Baa3. Moodys is a credit rating agency. Which means that they consider Tesla to be in a good position to repay debts. S&P  Global (another credit rating agency) gave Tesla a similar upgrade on their rating scale. 

2. Tesla started delivering their electric trucks. Pepsi agreed to purchase 100 trucks. As of the end of 2022 Tesla delivered 15 trucks with more coming this year. 

3. Tesla is completing a deal with Indonesia to build another "Giga Factory". This factory in addition to their other existing factories would significantly increase Tesla's ability to manufacture cars. The would be able to product 3.4 million cars annually. 

CURRENT PRICE (as of this email): $194.85

MPA Expects Tesla to hit $250 within the year.

TERMS YOU NEED TO KNOW

Credit Rating Agency -  Credit rating agencies are an important service for investors.  They do a lot of research into a company's financials, leadership and general management to determine how likely the company is to pay back their debt. If a company has a poor credit rating from one of the major agencies, it could mean that the company is not a good investment long term. It's similar to your credit rating as an individual. If you wouldn't lend money to someone with a bad credit rating, you probably shouldn't invest in a company with a poor credit rating either. 

See you on Thursday!Thibaud & PhilipInteresting Investment Facts:  Since 1999 the majority of US adults invest in the stock market. Around 58% of US adults hold some stock market investments. This is why we do what we do. We want all of those people to have the same tools as the billion dollar investors. 

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk.  Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation.  So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis.  We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.