Tesla tesla tesla, it's a stock that makes you laugh. It makes you cry, but most recently it makes you wonder what in the hell is going on what is going on moon gang, i hope you're having an amazing day. My name is matt, and in this video i will be discussing the three big announcements: developments that have caused tesla to lose more than 175 billion dollars since the start of september. I will also be sharing what event you should be paying attention to in the near future and my overall opinion on the company and its stock.

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In just over a week, tesla has lost more than the value of ford and gm combined. This recent decline marks tesla's second bear market of the year and its biggest ever drop since going public. I know that this sounds pretty daunting and scary, but i don't want you to lose sight of the fact that since the start of this year, tesla is up an incredible 355 percent. Nonetheless, though, i'm sure you're still curious about why tesla lost a third of its value in such a short time frame.

The first reason is that tesla was snubbed from joining the s p. 500. This index tracks 500 large companies that generally represent the overall u.s stock market being excluded from this index had a negative effect because it came as a surprise to many traders and investors. Tesla was widely considered to be a shoe-in for the s.

P 500 after tesla had reported a profitable quarter in july. Inclusion into the s p 500 was considered to be a done deal, but when it wasn't included, many people were shocked, confused and left scratching their head, and it was even predicted that the stock would be down because of indexing implications. To explain this last part. Simply many funds were expected to buy tesla just so they could hew closely to the index benchmark, but obviously that didn't happen.

The second reason is that on september, 1st tesla announced that it had plans to dilute its stock by selling up to 5 billion worth of shares. Share dilution commonly has a negative impact on a stock's price, and it was reported on september 8th that the deal had gone through. However, the amount of shares and the price at which they were sold was not disclosed. The third reason is a classic increase in competition.

Don't get me wrong. Tesla is definitely still the big dog in the ev sector, but there are some smaller companies that are starting to build up some hype. For example, the hylion merger is expected to be finalized on september 28th. Everyone is patiently waiting to see if workhorse is awarded the six billion dollar usps contract lordstown motors is slated to merge with diamond peak holdings in the fourth quarter of 2020.

Neo appears to be growing rapidly in the massive chinese market and has announced plans to expand globally, and it was literally just announced that gm will be partnering with nikola to work on an electric pickup truck called the badger. Once again, i want to be perfectly clear whether it's direct or indirect competition tesla is currently leading this industry, but that doesn't mean that there aren't some shiny new companies that are prompting excitement and stealing some hype. Speaking of hype mark your calendars for september 22nd, because tesla will be having its battery day. Among many other things, elon musk is a showman.

At this event, he is expected to announce a million mile battery and an increased driving range per battery charge and i'm sure he'll do it with some flair. Clearly, tesla stock has proven its ability to run so if the news at this event is well received, i would expect its stock to run straight to the moon in terms of a longer time frame, i'm personally bullish on tesla and i would be happy to hold My shares for years to come, i mean check out this price prediction from arc. Invest when you take the 5 for 1 stock split into account by the year 2024. Their expected value is 1400, their bear case is 300 and their bull case is 3 000..

The way that they calculated this and the metrics that they're looking for are pretty interesting, so i would highly recommend checking this article out. It can easily be found with a google search. The fact that arkhamvest sees so much upside with tesla explains why it's the number one holding in their autonomous technology and robotics etf, which can be found under rq at the time i'm making this video tesla represents 8.5 percent of the entire etf and keep in mind. That's after they sold off a chunk to get below 10 for proper money management and as a quick side note arc, invest, is continually buying more and more shares of workhorse, which has me very excited about the company's future.

In general, i'm expecting tesla to have volatile moves, both upward and downward in the short term, but for the long term i'm bullish on the company. So i'm not going to let the recent decline bother me too much thanks for making it to this point. In the video, the support you guys have been showing me has been absolutely amazing. I would love to know your opinion on tesla, so feel free to leave a comment below if you enjoyed this video or found value in it.

Let me know by hitting the like button and if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, thanks for watching and until next time best of luck in the markets.