In this video, I document how I went from being a Tesla bear to a Tesla bull. I previously believed that Tesla would never survive a recession-- which has recently been proven untrue. Tesla has generated most of its cash flows over the years by selling debt and stock, rather than by selling cars. In an era of unlimited quantitative easing (central bank money printing), I am no longer worried about Tesla's debt load. The Fed has committed to buying junk bonds to prop up the debt markets, and part of its purchases include Tesla bonds, which are included in the high-yield bond ETFs JNK and HYG. Tesla is far ahead of its traditional rivals among car makers: its brand and brilliant CEO give it the ability to recruit the best and brightest engineers and developers who want to work in this space. Companies like Ford and General Motors are too old and slow-moving and bureaucratic to be able to compete effectively. Tesla has been trading for some time much more like a tech company (at a multiple of revenues), rather than like an auto manufacturer (at a fraction of revenues). I think that the market is correct in its assessment of Tesla's business model. Through various network effects, Tesla will be able to have much higher margins and ROE than traditional car makers, especially if it is able to enter the robotaxi, freight, and other new autonomous driving markets. Elon Musk is like a Thomas Edison who has been given unlimited money by the Fed (and soon by index funds). If he is able to stay alive and in good health, he will be able to use this money to accomplish amazing things at Tesla and at his other companies. Tesla's stock right now is like a call option on this future. Not investment advice! Consult a financial adviser. Tesla loses another potential rival: https://www.teslarati.com/tesla-roadster-plaid-model-s-loses-rival-bmw-cancels-vision-m-next/ Tesla may join S&P 500 soon: https://www.wsj.com/articles/teslas-production-restart-could-ease-path-to-inclusion-in-s-p-500-index-11589794202 Fed buying junk bond ETFs: https://www.marketwatch.com/story/these-stocks-may-bounce-as-the-federal-reserve-buys-junk-bond-etfs-according-to-jefferies-2020-04-13 Tesla bonds are in HYG junk bond ETF: https://www.ishares.com/us/products/239565/ishares-iboxx-high-yield-corporate-bond-etf Tesla's charging network: https://www.tesla.com/destination-charging Network effect: https://www.investopedia.com/terms/n/network-effect.asp Tesla cash flow statement and balance sheet: https://finance.yahoo.com/quote/TSLA/cash-flow?p=TSLA https://finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA Matthew Kratter is the author of the Amazon best-seller "A Beginner's Guide to the Stock Market": https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5 If you like my teaching style and would like to learn more about investing and trading stocks, options, and futures, be sure to check out my online courses here: https://www.trader.university/join Use this secret coupon code to get a discount: YT99 #Tesla #Tesla2020 Disclaimer Neither Trader University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisers, registered investment advisers, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.