I'm SHOCKED.. Tesla Stock Short Sellers are CAPITULATING.

Tesla stock continues higher for the third trading day in a row breaking above a critical level of resistance around that 271 Mark what does this mean for Tesla's stock we'll discuss throughout this video we do have a lot of Tesla stock breaking news as we pretty much always do we also have some news overnight that is sending markets higher in aggregate the RSP which is the equal weight SNP is up0 . 6% the headline S&P is up a third of 1% so equal weight is outperforming today first and foremost let's start with your Tesla stock breaking news Kor genuity has raised their Tesla price Target to $298 per share from $278 per share their second price Target increase in the past 5 days they maintain a buy rating so that's pretty rare to see two price Target increases from the same firm within a one week period it's kind of like they did some research published a price Target and then they realized oh wait we could be unders shooting this and rais their price Target again kacor genuity says quote we see Tesla's stock as poised to outperform given one the accelerating Trends in its p&l two potential for growth outperformance relative to its Max 7even Piers starting in 2025 and three favorable technical Outlook without upcoming new products in the first half of 2025 Tesla is a near to medium-term product cycle story longer term Tesla also has a generational set of growth opportunities ahead including EVS autonomy and AI energy storage and Robotics and that pretty well sums it up in the near term it's all about Tesla's new models coming out cheaper pric Teslas and what that'll do for Tesla's growth story next year but at some point within the next 6 to 12 months it's going to change from that cycle growth to AI to robotics to some of these other things that especially the retail Community has paid a lot of attention to that Wall Street has not it's being reported that Volkswagen is exploring a series of cost cutting measure measures for its core brand including a 10% wage cut and a 2-year wage freeze as it seeks to save $4. 3 billion it's also reported now that Volkswagen plans to close at least three manufacturing plants in Germany and lay off tens of thousands of workers as per Reuters which I think that really just highlights Tesla's exceptionalism Tesla yes they've seen deliveries decline in Europe because of their financial situation people are doing worse in Europe than in China or us at least that's what it seems like in certain countries that are already in a recession Tesla though is in a place of building new factories in a place of thinking about further Innovation and that's just not where Volkswagen is at that's not where a lot of Tesla's competition including even stellantis is at they're they're both struggling Tesla has announced a new standardization to reduce the cost and complexity of electronics in the automotive industry and is inviting all dep device suppliers and vehicle manufacturers to join them in this initiative today EVS typically use over 200 connections to simplify this Tesla has simplified the connectors in its cars so that they use just six connectors the Cyber cab is now positioned in the front main entry at Giga Texas and just in sha now owns three Tesla cyber trucks the third one is a glossy maroon it has a 26in ferigato wheels and the first Wu widebody kit put on a cyber truck Kaho Finance asked this question to Bank of America analyst John Murphy they say you ever seen a company like Tesla before John Murphy Bank of America analyst says quote I've been doing this for over 25 years I've never seen a company like this before it's pretty impressive you have Elon a real innovator he's shocking the world and bringing a lot to the table he's really pushing the envelope which I think is going to be great for Humanity over time oppenheimer's Colin Rush said said quote Tesla doesn't need a low-end vehicle to continue to grow take a listen to this clip or on Tesla Colin Rush Oppenheimer senior research analyst I thought it uh it was somewhat um disappointing some of the stuff that we heard from Tesla why' the stock perform so well I I guess it it's in the eye of the beholder yeah there's a couple things one the gross margins on the auto side were were um better than expected and it's pretty clear that the company is self- sustaining from a cash flow perspective and as they continue to grow as an EV maker and we continue to be very bullish about their or on their EV technology it it extends the runway on their ability to deliver on the autonomy opportunity uh and well we have some caution around that autonomous technology I I think folks started giving them a lot more credit for that Runway and their ability to deliver on that promise Colin if you were just looking at the the prospects for um selling cars selling Teslas around the world uh for premium prices I mean that part of it is uh is is is it would that cause you to buy the stock here I mean and and even some of the profit being so profitable but a lot of it had to do with that pure profit the company gets from selling those environmental credits to to other automakers yeah I mean when we look at it it was um you know about a little less than $800 million in in credit uh Revenue that they had in the quarter and so there's a a meaningful contribution to their their net income uh from those credits and and that comes from multiple geographies but at the end of the day you know we we look at at least half if not more of the value being ascribed to their AI opportunity and particularly autonomy as the first application within that AI uh AI bucket and so for us you know the the EV opportunity is is Meaningful uh they're executing on it well they continue to drive costs lower and have great products but the AI um you know bucket of of profit pool that they're trying to dip into here is really what's driving the value on the stock and and we think they're further off from actually being able to deliver on that than what the the stock is saying at this point if it does go Colin too and and I think that you know we were um we weren't a little bit surprised maybe that 30 trillion that someone would even mention that number for what the company could be worth and then Anders said well why stop at 30 right I don't know you figure it's like uh Austin terminal terminal value why talk about trillions when you can talk about billions uh but how much uh how what would that in how much would be the car business to get to anywhere let's say a multiple of what the the market cap is right now how much of that will still be electric uh cars and how much of it is going to be everything else that gets under the Tesla umbrella you know we're really looking at the potential for them to grow into you know five to6 dollars of earnings by 2027 2028 uh and and so if you put a a multiple on that in the The High Teens uh you can get yourself into the $100 maybe $120 range for the stock we're looking at the energy storage business that worth 20 to $30 and then the balance of the the stock price here is really uh being driven by the AI uh potential and and they certainly have a very capable engineering team that's working on these opportunities uh but it really uh comes down to when and what the competitive environment looks like and right now uh from a regulatory perspective they're certainly behind from a cars on the road uh perspective they have more vehicles on the road but not vehicles that are actually uh you know driving themselves uh and so the testing process is going to take a fair amount of time before they can actually start monetizing that in a real way what about uh China competition from China how's that going to play out does it matter who's elected uh you know at this point uh you know you look back at history and and look at what happened with Chinese Auto or sorry Japanese automakers Korean automakers you know you really end up having to to make vehicles uh locally uh in in domestic markets and so the the question is uh you know what's the technology underline that and and we're seeing the oems in both Europe and the US make significant Investments on on driving cost reduction and I think limiting some of the competition U you know I think the European market is is a real uh example of what may happen where we see byd starting to to penetrate that market in a little bit bigger way but starting to uh actually manufacture Eastern Europe and turkey uh in the US I think it's going to be hard you know in this political environment to to really see uh you know Chinese automakers start to penetrate this Market uh in a timely fashion that would start to take share from some of the existing manufacturers that are already here did did you know he was going to say no $25,000 we're just going to go straight to the to to the I think we we already understood that at the point that they uh said we're going to go to you know you know the version V2 .

5 and and kind of get halfway there on the existing platform it just doesn't uh just doesn't make sense for them to go to that low-end vehicle especially when you can start monetizing um you know some of the the ads functionality at a little bit higher rate I don't think they really need to uh drop down to those price levels to to continue to grow and we actually had units growing ahead of our peers on the street here in 25 and 26 uh and and I think they'll continue to grow into that opportunity they do have better TVs than most of their their competitors on the road at this point I don't think they need to drop down to that low end to really uh drive volume into the 3 to four million vehicle a year range so according to Oppenheimer Tesla doesn't even need a low price vehicle to to drive the kind of growth that Elon is projecting next year 20 to 30% volume growth now really it just depends what the margin is on those lower pric Vehicles hopefully that margin's really good if it is in that new lower PRC Tesla coming by the second first half by a midpoint next year is margin ACC creative then that's going to be a big positive for Tesla stock Bank of America says Tesla is charging up for the next wave of growth they also reiterate their buy rating it's also being reported that Gary black has raised his Tesla price Target to $300 per share this is what Bank of America's analyst just said about Tesla's next growth wave take a listen on Tesla you've covered Tesla for a while and what com me amongst many things in your notes we'll pick apart your analysis and your cover to the company Tessa is about to enter its second wave of growth what does that look like to you so I mean I think um you know it's the new core to Future uh company and it sounds kind of weird because we in our comments we have this framework of quarter future and basically leveraging the ice business and the truck business to fund the future which is Av and EVS uh Tesla is obviously at that next level uh with their EVs and their AVS to some degree um and what you're seeing is this this this real wave of core being sort of new products that are coming next year as well as some beyond that that are funding the future and what we just saw was um you know gross an improvement gross margin that's helping fund this future so I think what we're seeing is the evidence uh of funding of that that future and the future um is cyber cab nextg nextg models um potentially uh full self full self-driving sooner than people uh are are thinking uh as well as potentially the the robotics um you know that they they've shown at the at the at the robo taxi day um as well as uh energy storage so you think about that there's kind of a you know a you know soup of things there um and when you think about a stock like this there's this huge opportunity curve out there um or Frontier of all these things that can go right potentially for the company and then you have this very strong core that's developing right now that's funding that so um The Wave is going to look like many many different things um it may take many different shapes as as we progress through the next few years' been doing this for a hotman you ever seen a company like Tesla before i' I've been doing this for over 25 years I've never seen a company like this before um no it's it's pretty uh it's pretty impressive and I think when you look at um what this you know what's going on at Tesla you know you have I mean it's not Tesla but you have Elon um with SpaceX and everything that's going on Tesla and xai and um I think we have a real innovator whether you like him or not um that is really kind of shocking the world and bringing a lot to the table and you know we've had a lucky run here with Tesla with almost free capital for you know the better part of of a decade so he's been given tens of billions of dollars but the reality is he's done something really uh amazing with it and is really uh pushing the envelope um which I think is going to be great for Humanity over time hopefully hopefully Americans as someone has covered this company literally I I guess da from ground what is it about Elon how is he able to to surprise Wall Street and deliver I I would say very surprising third quar but I would say a surprising year and then come out with things that most people thought wouldn't even exist well I think the answer no doesn't exist fre if it's uh possible at all he pushes forward and I think there's a very important thing that the other companies uh face and it's a constraint on on Capital and that really um that really is important I mean when you're focused on profits and returns in the short run you can off often lose focus on sort of the one to 20 year vision and what you really need to do to drive those earnings going forward and and new products new products going forward so I think with the the luxury um of his uh I mean his his celebrity to some degree um as well as his intelligence um as far as getting things done and and and dreaming about them it really provides U you know an opportunity that other companies don't have the answer note doesn't exist and the idea that uh you have to hit certain profit return hurdles in the short run um they're unconstrained from in a in a significant way which is very important for you know long-term value creation are you a big believer that this country is going to be filled with cyber cabs so I think autonomy is something that is uh far more important than people are are are realizing um there's the simple side of this which is the robo taxi fleets that I think the Cyber cab will Pro probably play an important role in but to be a a a selfish uh New York Centric New Yorker uh which I've been for my entire life um you know we've done a lot of analysis this on New York City and there's a little over 13,000 yellow caps here uh in New York City they drive about a billion miles a year right so if you think that you can get your cost per mile lower than them or a human driver that's you know less than a buck a mile I think you and I would be happy to pay two bucks a mile uh $25 yeah yeah I know I mean you know the C the cost of moving around New York City is incredibly high and you're going very slow um but you know but if you could take that down and undercut um you know taxes and ERS and lifts dramatically you could have a huge business model I mean whether you pick two three four five bucks each dollar above a dollar $1 so if you do $2 you're doing a billion dollar year a year an eBid there's actually room in New York City it's hard to believe um around 4:00 in the afternoon late in the evening and the in the outer Burrows right being a you know kid from the outer Burrows um you know there is a need for transportation there so if you could go out and you could say listen I'm going to help you with your underserved community that is a hard time getting to work and getting their kids to school and I'm going to charge them two bucks a mile which is a very efficient way and lowcost way to get people uh around there's a huge opportunity in major cities Tesla monetizing humanoid robots listen I you know I travel a lot from work and if I could have a clone back here and you're taking care of my kids and running around and doing a lot of the work for me I I I would love it so and I might pay a lot of money for that option activity today in Tesla stock from hedge funds and institutions is coming in at 106 different trades totaling $655 million with a positive order value of 70% so very positive again today Tesla short interest of free float has recently jumped up from 2. 66% up to 2. 86% you have currently $21.

5 billion sold short in Tesla totaling about 80 million shares you do have today borrowed shares of 57. 2 th000 return shares of 4. 44 million so you actually have almost 4 million shares today 3.

93 million shares that are being covered on and I do think that is helping to drive some of the upside today for Tesla stock but worth mentioning today you really do have bonds dying yet again seemingly out of nowhere once you hit the low today bonds started to reverse and bonds started to die okay now bonds dying literally refers to the the the price of bonds falling so the price of bonds is falling today down almost 1% that is leading to yields Rising when bonds fall yields rise this line here this up and down line is on September 18th the day the FED cut rates 50 basis points ever since then yields have been falling or or Rising bond prices have been falling I do think today you are seeing some of the election getting priced into markets 10year treasury yields are up 6 and a half basis points up to 4. 29% if we're rounding here we would round to 4. 3% that is crazy considering today what's happening in oil markets oil just straight up oil is down 52% that is what really gave the markets a boost because over the weekend Israel attacked Iran it was a very limited attack and it looks like this is going to be a oneandone kind of situation it does not look like Iran is going to retaliate Israel did not strike oil production facilities they did not strike nuclear production facilities that's why oil is dropping so much but why in the world is oil down 5 and a half percent and bond yields are skyrocketing that to me looks like election risk getting priced into markets the question I will pose to you does election risk get priced into equities in the coming days as I explained in the last video if we are going to see this is a big if but if we are going to see the election get priced into markets at all it's likely going to start this week we've already seen election risk get priced into bonds and that's another big if does it get priced into equities or does it stay contained in bonds it's hard to say but the higher 10year treasury yields do go the more pressure it puts on stocks and today the pressure is definitely being put on but again markets are generally just blowing this off just shrugging off this Carnage in bond yields today but I think it could get a little bit more aggressive over the coming days and really above 4.

3% that should start to pressure equities in a larger way and I do think the rise in treasury yields today directly coincides with Tesla selling off from the high of the day today when you hit $273 54 currently Tesla stock at 27 $2 per share it's it's very volatile but you have sold off a bit from the high of the day when those bond yields started to rocket out of pretty much nowhere and bond yields again disproportionately hurt Tesla more than other companies so that's a big pressure on Tesla stock on the day today the percent of stocks trading above their 50-day moving average is up to 57.