Quant X Tribe (Next Level)

This week is going to be an exciting week ahead, with tons of companies announcing earnings! Which one are you eyeing at? 😃

If you love to listen to podcasts like us, you are in for a treat! Here are the Top 9 Investing Podcasts for beginners that we personally love and they will definitely give you more insights on achieving success in creating wealth! https://www.nextlevelacademy.io/blog-posts/top-9-investing-podcasts-for-beginners What other podcasts do you listen to? Share it with us and the community!

The market has finally started to rally after a year long decline. Some stocks like Tesla and Meta even shot up close to 40% in just 1 month! What are the best stocks to invest in 2023? Keen to know the answer? Give me a 👍 if you wanna know!

Coming back to the video I shared, it was actually inspired by this article from the Business Times. It’s never too early to start investing. And if you teach your kids the importance of money management and investing since young, you’ll definitely give them a good head start and make them to be more responsible in their spending. Have you ever communicated with your children the concept of investing before? 😃😃

Last night, I visited my friend’s house for CNY celebration and I met 3 cute girls who are 10 years old. When I asked them how they are planning to spend their CNY Ang Pao 🧧 I’m so shocked by the answer! In fact the girl who came out with the shocking answer is only 7 years old. 🤯🤯 How would you want your kids to spend their CNY Ang Pao? 😊😊 TikTok https://vt.tiktok.com/ZS8DobyWL/ YouTube https://youtube.com/shorts/70ln8vUAjhk?feature=share

Since we started looking into Tesla this week, the share price has gone up 30% 🔝🤯 The current price doesn’t seem to be giving investors a lot of margin of safety for entry. Based on the current PE ratio of 50, the stock is still considered overvalued given the uncertainty nature of the EV future. However, investors have spent more money on Tesla shares in the past six months than in the five years prior. And according to Vanda Research, on Jan.10 this year, one-day net purchases of Tesla shares hit a record high of $316 million. Are you a shareholder of Tesla? Give me a 👍 if you are!

Last but not least, just like many of you have pointed out! Dependence on key personnel Elon Musk 🚨🚨 Elon has been a highly controversial leader. Its extreme publicity is a double-edged sword for Tesla. His recent purchase of Twitter also caused him to sell off over $22 billion of Tesla shares, which further dampened investors’ confidence in the company. Just in about two years, Elon has off-loaded about $40 billion of Tesla shares. Investors are also concerned about Elon’s ability to juggle between so many businesses, from Tesla, SpaceX, the Boring Company, and Neuralink to now Twitter. The loss of this key personnel could also have a material adverse effect on Tesla. Due to the risks involved, Tesla’s stock price has been extremely volatile in the past and may continue to be so in the future, which could lead to significant losses for investors. So what should be the right valuation for Tesla in order to invest safely? Give me a 👍 if you wanna know a good price to buy Tesla 😊😊

In our previous posts, we talked about Tesla facing Production and delivery risks, Regulatory and policy risks, as well as Competition risks. Here are more risks you need to consider before investing in Tesla. Financial Risks: Tesla operates in a capital-intensive industry and in order to maintain its technological advantage, it needs to invest heavily in R&D. Tesla has consistently been investing around 6-8% of its revenue in research and development. In 2020, the company reported spending $1.1 billion on R&D, which represented 6.5% of its revenue. In 2019, the company reported spending $1.2 billion on R&D, which represented 8.2% of its revenue. However, all these investments may not bear fruits, which could dilute the value of existing shares or increase the company's debt. Fortunately, with a healthy balance sheet and cash exceeding total debt, Tesla should be able to easily meet its financial obligations. ☺️☺️

Tesla latest earnings 🔔🔔 Tesla reported latest earnings, beating on both earnings and revenue. CEO Elon Musk said the company might be able to produce 2 million cars this year. * Earnings (adjusted): $1.19 vs $1.13 per share expected * Revenue: $24.32 billion vs $24.16 billion expected Among the total revenue, $21.3 billion was contributed by Automative Revenue in the fourth quarter. Although slowing, it’s a still a healthy 33% growth year-on-year. However, total gross margins came in at 23.8%, the lowest figure in the last five quarters. This could be due to the recent aggressive price cutting to increase vehicle sales. Operating cash flow was down 29% from last year, and down 36% from last quarter, coming in at $3.28 billion. Nevertheless, Tesla shares rose more than 5% with the overall positive performance of the company. Are you happy with the latest earnings of Tesla? Give me 😁if you do and 🔥 if you don’t

For those who are coming to our free 2-hr Next Level Options Masterclass class tonight, enjoy the learning! The webinar link will be sent to your email 📧 If you haven’t registered, you can do so here ↘️😊 Rebrand.ly/optionsmasterclasst

For those who are coming to our free 2-hr Next Level Options Masterclass class tonight, enjoy the learning! The webinar link will be sent to your email 📧 If you haven’t registered, you can do so here ↘️😊 Rebrand.ly/learnoptions

Investing in Tesla does involve a lot of risks due to the uncertain nature. One industry in comparison could be much safer as the status quo is very much engrained in the society. Do you think so? 😃😃 TikTok https://vt.tiktok.com/ZS8Aq4vey/ YouTube https://youtube.com/shorts/n5TCm7eH5Q4?feature=share

3. Competition risks The EV market is becoming increasingly competitive, with established automakers and new entrants alike investing in the development of electric vehicles. This could pose a threat to Tesla's market share and profitability. Tesla’s market share in the EV market has gradually decreased to about 60% in the past two years. Apart from these 3 risks, what other risks do you think Tesla has? ⚠️⚠️ Comment below before I reveal more risks of Tesla!

Investing in Tesla is not a bed of roses. It involves more risks than most investors think. So let’s take a look! 😃😃 1. Production and delivery risks Tesla's production and delivery of its vehicles could be negatively impacted by any number of factors, such as supply chain disruptions, quality control issues, or production delays. In Q4 last year, Tesla produced over 439,000 vehicles and delivered over 405,000 vehicles. In 2022, vehicle deliveries grew 40% YoY to 1.31 million while production grew 47% YoY to 1.37 million. Though the sales growth is slowing, the growth rate is still pretty impressive. 2. Regulatory and policy risks Changes in government regulations and policies, such as changes in EV incentives, tariffs, or emission standards, could also have an impact on Tesla's business. Electric vehicles could remain a niche segment if mass-market consumers don't adopt the new powertrain technology due to higher costs and worse function (range, recharge time, and availability of charging).

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While waiting for more people to give your 👍 Let’s have more fun this CNY! What type of player/investor are you? 😃🤭 https://vt.tiktok.com/ZS8AUbqJ2/

With a much thicker margin compared to its competitors, Tesla is likely to be able to afford price cutting without a huge impact on its bottom line, while directly squeezing its competitors’ profitability. Cutting prices is also the move that Elon Musk has been advocating so that Tesla can help to increase market share, make the company's product more accessible to a broader range of customers and increase sales volume. However, it’s not always a bed of roses for Tesla. Give me a 👍 if you want me to share some of the risks of investing in Tesla, so we can make more informed investment decisions. 😃

Let’s compare! 😃😃 Tesla enjoys a supreme Gross Margin of 25% and a Net Margin of close to 15%. This is way higher compared to its competitors like Ford or GM with a Gross Margin of 12-15% and a Net Margin of a low single digit. The reason why Tesla is able to enjoy a much more lucrative margin is because of its economies of scale and its vertical integration of production. Tesla designs and produces its own battery cells and electric motors, which allows it to control costs and improve efficiency. 📈 Additionally, Tesla has invested in automation and robotics in its Gigafactories, which has increased productivity and reduced labor costs. Finally, Tesla's sales and distribution model, which relies mostly on online sales and company-owned stores, also helps to keep costs low.

Many of you voted on your view on Tesla’s move to cut prices! It’s good to think it through so we can understand the business more together! 🥰🥰 For those who are unaware, Tesla announced to cut prices for U.S. buyers by as much as 20%. The Model Y starting price now is around $53,000, down from about $66,000. 🤯🤯 This is at least the fourth time the automaker has discounted its vehicles. The price reduction trend kicked off in October when Tesla announced price cuts in China up to 9% on the Model 3 and Model Y. Earlier this month, Tesla reduced prices for Chinese buyers again, this time by nearly 14%. With such aggressive price cutting due to the competitive EV industry, many investors worry its direct impact on Tesla’s profitability and margin. Currently, Tesla has a Gross Margin of 25% and Net Margin of close to 15%. But the story is not over yet! Let’s compare its margin with its competitors!