Elon Musk just confirmed our big call on Tesla… Why its share price could double over the next 18 months… In the mailbag: The Renaissance spirit is dead in today’s America…
If you’ve been reading the Cut over the past few weeks, you know our tech investing expert at Legacy Research, Jeff Brown, is bullish on Tesla (TSLA)… but not just as a carmaker.
You see, last December, Jeff made what seemed like an “out there” prediction.
He told Near Future Report readers that Teslas would start making their owners money while they were asleep.
In short, they’d be able to choose to add their Tesla to a ridesharing network of self-driving cars. Think Uber or Lyft… but with self-driving Teslas coming to pick you up, instead of human drivers in Fords, Hondas, or Toyotas.
As Jeff put it in the February 4 Daily Cut…
Imagine this… You arrive at work in your Tesla, get out of the car, then press a button on a smartphone application that instructs your Tesla to “join the fleet.” While you’re at work, your Tesla is out driving itself… giving rides, earning money… and returns back to your office at the end of your workday.
This turns your car into an income-producing asset. It will be out there generating extra cash for you every day.
That would be a big bonus for Tesla owners. But if Tesla could take market share away from Lyft and Uber, it would also be a huge boon for its investors.
It’s why we put Jeff’s call on Tesla on your radar back in February. And as you’ll learn today, it’s still not too late to profit.
A Tesla owner on Twitter asked why there was a driver-facing camera built above the rearview mirror of his new Tesla Model 3.
Here’s what the Tesla CEO tweeted back last Thursday…
It’s hard to wrap your head around a future where your car earns you money while you’re not driving it.
But Teslas made today will be able to do that for you. It’s just a matter, says Musk, of “finishing the software and going through regulatory approval.”
Once that’s done he can switch on the ridesharing capability via an over-the-air update to the entire Tesla fleet.
Wall Street values Tesla as just another car company. But as Jeff told us back in February, it’s a lot more than that… thanks in part to its future network of self-driving vehicles.
And when he talks, we listen.
Jeff’s been a tech insider for over 25 years. He’s built early-stage startups. He’s run tech companies generating hundreds of millions of dollars in annual revenues. And as a private investor in early-stage tech startups… he has access to information the public never sees.
That’s why, when he joined Bill Bonner’s team as an analyst in 2015, we knew he wouldn’t disappoint. But at every turn, Jeff has beaten expectations.
For instance, at an exclusive investor retreat hosted by Legacy Research cofounder Bill Bonner in 2016, Jeff told the audience about why chipmaker Nvidia (NVDA) was the best buy in tech. As he put it, its chipsets were key to so many of the big tech trends Jeff had identified, including autonomous driving technology and, most importantly, artificial intelligence and machine learning.
Nvidia went on to soar more than 1,000%… and became the best-performing stock on the S&P 500 in 2016.
Then, in 2017, Jeff recommended another chipmaker, Advanced Micro Devices (AMD), to readers of our Near Future Report advisory. AMD went on to become the best-performing stock on the S&P 500 in 2018.
And so far, the win rate for the stocks he’s recommended to paid-up Near Future Report subscribers is 71%. Most top professional investors would kill for a win rate of even 60%.
There’s plenty of negative commentary about Tesla in the mainstream press. Even some of the analysts here at Legacy Research are self-described Tesla bears.
But that doesn’t bother Jeff. He knows the industry inside and out. And he’s sticking to his guns on Tesla.
As he’s been telling his readers, you just have to look at Tesla’s free cash flow to know the bears have gotten it wrong.
Free cash flow is the cash a company has left over after it pays for its operating expenses and capital expenditures. It’s a difficult metric to fiddle using clever accounting tricks. That makes it a great barometer of a company’s financials. Jeff again…
Tesla isn’t struggling, as some have suggested. The company is now gushing free cash flow.
In fact, Tesla will generate more than $800 million in free cash flow this year. And it will eclipse $2 billion in free cash flow in 2020. When that happens, the stock will be trading at levels that make today’s share price look dirt cheap.
That’s why we invested in Tesla in The Near Future Report back in December. There’s so much more to this company than the analysts on Wall Street and the talking heads on TV understand.
Still, Tesla is no doubt Jeff’s most controversial recommendation to date.
He often raises eyebrows with off-the-mark tweets.
And right now, he’s embroiled in a battle with the main U.S. stock market regulator, the Securities and Exchange Commission (“SEC”).
You may remember that, last year, he made an unsubstantiated claim on Twitter that he had secured funding to take Tesla private.
The SEC says he must have his tweets pre-approved by an in-house lawyer from now on… a request Musk is merrily ignoring.
Tesla is already one of the best reviewed cars out there. It also has the highest owner satisfaction rating of any car brand. And last year, it outsold three of the top six luxury car brands in the U.S.
And as Jeff says, demand is going to shoot even higher when your Tesla can earn you more per month than your car loan payout.
At writing, Tesla trades at about $274. That’s below Jeff’s buy-up-to price of $300. And he says the stock will be trading between $450 and $600 over the next 18 months.
If Jeff’s track record is anything to go by, Tesla is a strong buy at today’s prices.
Last Wednesday, keeping up with the mailbag debate on the rise of socialism in America, reader Rory O. wrote in…
It is just a shame that left-leaning professors fill students with so much misinformation and make it very difficult for most to understand how and why the U.S. became so powerful in the first place. The economy of today is already hampered by too many regulations, too many laws that protect inefficient or outdated businesses (think taxis vs. Uber), and “well-meaning” programs that are actually dis-incentives to produce.
What most socialists don’t understand is how the dole robs individuals of their self-worth, which is one of the requisite attitudes for human happiness.
This got your fellow readers thinking about the state of education across North America…
I think this is a coordinated problem in all “academic” institutions. I was so disenchanted when I got to university and saw it for what it really was – I thought it would be smart people actually thinking about important issues… little did I know that would be reserved for The Daily Cut!
It’s a shame people are too scared and ideologically polarized to operate with a renaissance spirit. So-called “academic” institutions are really like pageants or popularity contests, where whoever sings back what their indoctrinating overlords want to hear the loudest gets a gold-star sticker (aka degree). It’s also the moral overtone of being a “good Canadian,” much like a “good Chinese citizen” under Xi.
I should also mention… The attitude of self-glorification and superiority is like a bad odor in the air of most Canadian institutions, academic or not. When you lie to people, stick a silver spoon in their mouth, and tell them “they are the best,” it usually leads to terrible problems revolving around interest group politics and collectivism.
– Brendan V.
I already encounter misinformation from my college-educated children, to the point they think I’m nuts. Politics and the rewriting of American history have distorted their view with no perspective of the past trials of this great country.
– Richard D.
The problem is not the millennials. They are one of the symptoms of our wacky capitalism. For far too long, our capitalism rewards those who are already rich and powerful. The rest of America survives on scraps. Luckily, America is a rich country. If it were a poor country, we would not be debating capitalism; we would be heading for the hills because the revolutionary fervor would be scaring us to death.
Americans are not dumb, they cannot be scared by the commie boogeyman anymore. They look at the Scandinavian countries and most of Western Europe, Canada, and Australia and they know that some form of socialism works.
Socialism makes sure that everybody benefits from the country’s wealth. That is why it is attractive to the young people who look at the horizon and see only a future that will not make them more progressive than their parents, but less. A future that promises the best part of the American dream – owning your own home – will be out of reach for them until well into middle age. Or perhaps, never.
– Cesar L.
Has capitalism put the American dream out of reach? Is more socialism a good solution, as Cesar L. suggests? Write us at [email protected].
April 8, 2019
IN CASE YOU MISSED IT…
Jeff Brown has an unmatched knack for picking winning technology investments…
He successfully identified the best-performing S&P 500 stocks of 2016 and 2018. And his 2018 track record beat billionaire investors like David Einhorn, Nelson Peltz, and even Bill Ackman by as much as twentyfold.
Now, Jeff believes he’s uncovered what will be the No.1 tech stock of 2019… And he’s giving the details in a new video presentation tomorrow. You can be among the first to watch it by signing up with one click right here.