Tesla "Buy" Signal?

By Matthew Milner, on Wednesday, November 3, 2021

In the last 30 days, Tesla shares (TSLA) have shot up nearly 50%.

But what happens next?

Will shares keep soaring? Or are they about to fall back to earth?

Today, I’ll give you our perspective on this situation…

Then I’ll reveal how to position yourself for the biggest potential profits.

Where’s the Money? Self-Driving Cars!

To set the stage here, check out what Tesla founder Elon Musk said on a 2019 investor call:

“Self-driving technology will make Tesla a $500 billion company.”

At the time, Tesla was worth just $40 billion, so Musk’s forecast seemed insane.

But as The Wall Street Journal recently reported, self-driving cars are soon expected to become a $7 trillion industry.

So perhaps it shouldn’t be surprising that Musk’s forecast turned out to be spot-on:

Just one year later, thanks in large part to a tidal wave of interest in self-driving technologies, Tesla’s market cap hit $500 billion!

Tesla Reaches $1 Trillion

But then Tesla just kept growing…

From $500 billion… to $600 billion… to $700 billion.

And last week, after car rental company Hertz ordered 100,000 Teslas, Tesla’s market cap finally hit $1 trillion.

This makes Tesla the second-fastest company in history to hit the trillion-dollar milestone.

But given how fast and furious the gains have been, what happens next?

The Biggest Gains Have Already Been Made

Well, one possible scenario is that Tesla shares keep going up.

After all, consumers love the product, Musk is a genius marketer, and don’t forget this market is potentially worth $7 trillion.

But even if shares do keep going up — which is far from a sure thing— we’d point out that the biggest gains have been made already.

After all, Tesla is already worth more than the next 10 automakers combined. To see what I mean, check out this chart from Tesla data authority, Brandon Knoblauch: 

Meanwhile, research analysts at Bank of America just noted that Tesla’s sky-high valuation is a potential hurdle for further gains.

And as analysts at Morgan Stanley explained, Tesla’s $1 trillion market cap reflects a huge premium as compared to Apple and Amazon back when they reached the same valuation:

  • At the moment, Tesla trades at about 90x next year’s earnings estimate.
  • As a comparison, when Amazon hit a $1 trillion market cap, its stock traded for just 27x. And when Apple hit the one-trillion milestone, it traded at only 13.5x.

Bottom line: by most basic measures, Tesla is vastly overvalued.

So, sure, its shares might still go higher. But the biggest gains have already been made.

So if you’re looking to maximize your profit potential from the $7 trillion self-driving sector, what can you do?

A Better Way to Play This Trend

Well, we recently identified a self-driving startup that’s pioneering a new technology.

This technology can turn ANY car into a safe, fully-functioning self-driving vehicle — including the car that’s currently sitting in your driveway.

That’s why, in the near future, we believe this pre-IPO company could become one of the most valuable players in this market. In fact, we’re predicting it could potentially command a valuation of anywhere from $1 billion to as much as $30 billion.

Given that this company is still on the ground floor, that could hand early investors a profit of 4,616% — and possibly far more.

That’s how you play a major new trend for the biggest potential profits.

I just compiled an in-depth research report on this quickly developing situation.

To learn more, just click here »

Happy Investing

Best Regards,
Matthew Milner
Matthew Milner


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