Frankly, I watch the price movements in Tesla with a smile. The stock goes up and down as if brand new news is flowing. Incredibly many people make ridiculous comments. However, these are things that those who follow Tesla closely like me already know. However, the stock market understands these a little late. Large institutional investors, especially in America, understand these things too late. Poor individual investors are already slaves to those big institutions. Those who follow me closely, who know what the risk is and what the return can be, continue to collect Teslas during this period without getting caught up in these panics. Of course, Tesla is still a very risky stock and price movements may occur again in the form of wild fluctuations in the coming periods. But what is important is where the company is going, rather than the price movement of the stock, and what I have explained many times here is happening step by step. So now let's take a look at the price movements in the last week. What is the reason for these? What does it mean for Elon Musk to go to China and meet with the prime minister there? Why has the stock been exuberant in the last 2 to 3 days? But more importantly, let's learn some lessons for ourselves.
Let's look at price movements first. Tesla started the year at $249. It fell incredibly hard from there and hit the bottom on April 22nd, pushing $138. While the stock is making this sharp downward journey, what I always advocate is that yes, the stock is falling. Because there is a decline in profit margins. But Tesla is about to solve autonomous driving. There are a lot of clues about this. Users have shares. Elon Musk has posts. That's why I said I continue to be long on Tesla and continue to collect. Because, amidst all the noise, I was watching the progress in autonomous driving step by step, and I saw that Elon Musk was focusing heavily on Tesla again, especially from his tweets, meetings and communications.
On the one hand, when I look at the developments in artificial intelligence in the world in general, especially with the abundance of Nvidia H100 chips, Elon also said this and said that we have finally solved our processor power capacity. I was seeing that many artificial intelligence problems, which were previously considered impossible, were being solved faster and exponentially than we thought. In this whole situation, we have come to the balance sheet period. The day before the balance sheet, Tesla literally hit the bottom and reached $138 - $139. Before the balance sheet, I stated that a disastrous balance sheet awaited us. It was a very bad balance sheet indeed. But I mentioned that there might be some positive surprises in the balance sheet. For example, I stated that maybe the gross profit will protect itself.
Because I thought that Tesla could save on costs and that some revenues related to autonomous driving would gradually start to reflect there. There was a real positive surprise in gross margins. Gross profit almost did not decrease compared to the previous quarter. In the bottom line, there is a decrease in sales. But gross profit didn't drop, the stock market loved it. I also stated that in the end, this is not what is important, what is important is what Elon Musk will say. Because there was a flow of fake news at that time. Reuters was saying that Tesla gave up on its affordable car plan. I didn't fully trust the news at that time either. Now we understand that the news was a complete lie. In fact, Elon Musk actually denied this news, but the market did not believe him.
But in the speech after the balance sheet, Elon Musk said, no, we continue to produce that car. We will also do autonomous driving. "We will make announcements about the fully autonomous robot taxi fleet on August 8," he said. The stock started to move upwards. More importantly, Elon Musk went to China this weekend. He talked to executives in China. These were talks about adapting autonomous driving to China. China is already very prone to this type of new technologies, not like Europe or America, but much more prone. Many second-level autonomous driving software are already operating in China. Elon Musk received an appointment directly from the Chinese prime minister. He met with him and at this meeting they reached an agreement to bring fully autonomous drivers to China.
The obstacle before them is where the collected road data will go. China doesn't want that data to go to America. Because he thinks that data is very critical. They found a solution for it. We don't know exactly what the solution is. On the other hand, Tesla needs critical detailed high-resolution maps and data about the roads. He was also given permission. Baidu has been collaborating with Tesla for 4 years already. It was using low resolution maps from Baidu. Now hopefully soon Tesla fully autonomous driving will enter China. So, by the way, there was news about this before. Elon Musk also said in a tweet he sent a week ago, or rather in a tweet he replied to, that autonomous driving could soon come into play in China.
Negotiations with Europe are currently continuing. I wouldn't be surprised if such news came from Europe. Europe may take a little longer though. But it will get there eventually. These were predictable things. So there is nothing too difficult. Because we knew that Elon Musk had very good relations with China. Look, they talked to the prime minister on the phone. Tesla is the only company that has been discriminated against in obtaining ownership rights of the factory it previously established in China. Smart Chinese managers know that thanks to Tesla, Chinese electric cars have improved a lot and that there is a lot of technology transfer. That's why the future was already open, we knew that. Well, the test benefit of opening fully autonomous driving in China may generate some turnover. Of course, these fully autonomous driving packages may start to be sold there.
More importantly, it was a confirmation that relations with China are strong. When the Chinese administrators came to the conclusion that yes, you can use it on our roads, the retarded Wall Streeters started to take autonomous driving seriously, and on the other hand, while China allowed fully autonomous driving, how could America not allow it? While China supports a technology originating from its own country, I think America will of course not lag behind. With all these developments, the stock reached up to 194 dollars. I have no idea what the stock will do in the coming days. I'm sure there will be new news, good or bad, etc. But the fully autonomous driving project continues to accelerate step by step, and the importance of this, when we simplify it very much, is this; When Tesla produces and sells a car, for example, when it sells a car it produces for 17000 - 18000 dollars for 25000 dollars, it can earn 7000 - 8000 dollars per car.
However, if he can turn this into a taxi fleet business, it is possible to earn 30 - 40000 dollars a year from that car. In other words, the value he will receive from what he produces increases much more. Elon Musk will have his own taxis. How will he be a model there? Will it cooperate with Uber? A lot of things will be determined in the coming days. Regarding these, Wall Street will rise and fall again 10 times. Again, a lot of nonsense, some lies, some stupid broadcasts will be made. But the project will continue to progress and I will continue to collect Teslas during this period, if I have the chance. Don't get this wrong, are there any risks? Tesla can get worse or worse. This is not investment advice.
I'm trying to give more perspective advice. You may not know Tesla as well as I do, or you may not like Tesla. If you are investing in an asset, you need to know it as well as I do. Look, this week Sofi's balance sheet arrived from my investments. Sofi fell 10% after the balance sheet. However, they delivered a great balance sheet, just as I predicted, but the stock fell. Such things happen, I may be wrong in my opinions, I may be wrong in my opinions, but the information is real. You need to be intensely knowledge-oriented. However, I see that some memorizer said two weeks ago that he sees no reason for Tesla to recover again. He says the trend is downwards, he makes another video on Sunday this week and says Tesla will go even lower.
Combined from both videos, Tesla is up 45%-50%, and what upsets me is not the stock price forecast, we can all be wrong about that. You can make such a broadcast without knowing anything about the developments in the company, and unfortunately, social media is full of people who comment on the developments in the companies without knowing anything about them, and unfortunately, many of you invest in this way. For example, if you intend to invest in Intel before its price drops, do it before, otherwise don't do it again. You can't invest just because the price has fallen, and you can't invest just because the price has risen. Investments are made because the company is good.
This is my belief, the FED has an interest rate decision. On the other hand, there is the issue of how American Treasury Secretary Yellen will use some money after receiving it. Balance sheets of important companies such as PayPal are coming. Know the asset you are investing in, turn a deaf ear to the noise, know the real developments in the company and never forget to invest in improving yourself in this regard.
The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.
