TSLA Continues Rising, Morgan Stanley Upgrade, Buffett Investing in TSLA? (11.18.20)


Everybody robbed our here to discuss another exciting day for tesla's stock finishing up pretty strong today. We'll talk about that in a second. We also have news from morgan stanley. They've upgraded their rating on tesla's. I'm not just the price target increase. Those rating upgrades are a little bit more significant. So we'll go through some details from the latest adam. Jonas note for morgan stanley. There we have a couple of other stories on to cover some news from panasonic and then there will be a second additional bonus episode. Today there is a topic that i want to isolate on. And that is some rumors going around that warren buffett's berkshire hathaway may have taken up position in tesla. So i wanna go through some of that speculation and my thoughts on that. So keep an eye out for that episode later to debt aright so anybody disappointed with the introduction in tesla yesterday after the s. and p. five hundred announcement. I think she'd be pretty happy. With the trading today tesla up ten point two percent to four hundred eighty six dollars sixty four cents and that was what the nasdaq being down. Zero point eight percent. Yesterday we talked a little bit about trading volume. So i do want to revisit that today. We'll probably keep a closer eye on this as we head towards p five hundred inclusion in mid december so volume did continue to increase today about seventy six and a half million shares traded. That's about twenty five percent more than we saw traded on tuesday and that's well above the one month average three month average and finally breaking above that twelve month average recording the highest volume day sense fleet september so the spike in volume year related to the s. and p. five hundred inclusion. But as we've talked about in the past. I don't think any of those tracking funds would be buying yet may be some of the benchmark funds would be but i have seen a few questions today on youtube comments and on twitter. I've already analyzed that extensively in a pass video. So i will link that here and in the show notes it starts at about seven minutes into that second s and p five hundred analysis video that i put out a few months ago so if you want more information on that process it's right there that was pre split. Everything still applies but the numbers that i use just mentally. Adjust those five. Extra sure counts that. I'm working with their and divide the stock prices that i have there by five. The last quick thing that i'll add here on s and p five hundred inclusion yahu finance yesterday actually did an interview with howard silver bullet who is a senior industry. Analyst for index investment strategy for sap dow jones indices. So he did a five minute interview with them. Just you kind of discuss the rationale behind adding tesla at this point in time thought it was really informative. All linked to it in the show notes. Basically he was talking about how with test market cap increase the exposure to the automotive sector for the s. and p. five hundred significantly underweight to reality so tesla helps get that back in line. He did confirm that tesla will be the largest company to ever be added to the s. and p. five hundred in terms of market cap. And then i think we all are clear on this but he also confirmed the need that these index funds half to by tesla really no matter what the prices those shares are going to be worth fifty billion dollars or so depending on where the price goes from here and to buy those shares looking to sell off other stocks in their portfolio. So that's why. Smp is adding tesla on the quarterly rebalancing date because the addition of tesla is going to affect the weighting of every other company significantly more significantly than a normal edition. What so he shared a little bit more detail on that process and their decision to seek back from investors on how to handle the edition so definitely. Check that video out if you are interested in that topic. And let's move on here to the updated. Note from morgan stanley. I do think this had a pretty significant impact on tesla today. Morgan stanley always seems to get an outsized amount of attention when they released updated notes and not all notes are created equal even from the same banks. So this is a sixty. Three page note is significant price target increase previously from three hundred and sixty dollars per share now to five hundred and forty dollars per share and then also a rating upgrade from equal weight to overweight. The reason for this

Coming up next