Short Tesla or Buy Mining Stocks?

Looking towards 2024 we are contemplating to either short tesla or buy mining stocks.

 

But we are considering doing both.

 

Let me explain.

 

The topic of a new WSJ article this week highlighted that many EV companies are simply running out of cash.

 

The report noted that at least 18 EV and battery startups, including high-profile names like Nikola and Fisker, face the risk of depleting their cash reserves by the end of 2024.

 

And Tesla is certainly not immune to severe market swings.

 

Let’s look at a brief history of its stock.

 

 

When Not to Short Tesla

 

 

Since December 2019 Tesla’s stock (TSLA) rose from the mid-20’s to an astonishing $381 (November of 2021).

And has since backed down to its current $250 level.

 

So, even if you missed selling at the top, you still have a return of more than 10 times your original investment.  *

 

(* Note, industry jargon calls this a 10 bagger… READ More industry jargon and/or Annoying Acronyms HERE) 

 

Getting a 10 bagger in 4 years is rare.

 

And this is especially true for companies like TSLA who took over 17 years * to turn a profit.

 

(* Note:  Facebook (FB) turned a profit in 5 years;  Apple (AAPL) 3 years; Google (GOOG) 3 years; Amazon (AMZN) 20 years; and Microsoft (MSFT) 2 years)

 

And here is the dilemma TSLA is facing.

 

This is a Tesla battery.

 

To manufacture it a mining company must dig up:

 

1. 12 tons of rock for Lithium
2. 5 tons of Cobalt minerals
3. 3 tons of mineral for nickel
4. 12 tons of copper ore
5. 250 tons of soil to obtain: 12 kg of Lithium, 30 pounds of nickels, 22 kg of manganese, 15 pounds of Cobalt, 100 Kg of rams, 200 kg of aluminum, steel, and plastic.

 

 

And the Caterpillar 994A – used for earthmoving – consumes about 265 gallons of diesel in 12 hours.

 

This doesn’t consider all the other equipment needed in addition to the CAT.

 

And, allegedly, you get a “zero emissions” car.

 

But we know that’s not true.

 

Because the battery only stores the energy.

 

The energy must be created by a coal or nuclear source providing it with the charge to enable it to emit “zero emissions.”

 

Ironically (or NOT) tree huggers still believe a Tesla is capable to Zero Emissions.

 

LMAO!

 

That’s another reason why Tesla detractors say it is the biggest money-making scam in history.

 

For now, TSLA seems to be stable…for now.

 

Buy Dirty Mining Stocks

 

 

But with that in mind we suggest you start looking at dirty mining stocks including gold and silver miners.

 

READ:  Putin…the New Catalyst for Owning Gold  April 2, 2022(HERE).

 

And be sure to read more about the Commodity Super-Cycle Heats Up in 2024 (HERE).

 

Share this with a friend…especially if they’re thinking of buying Tesla stock.

They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

**************************************

 

 

 

Invest with confidence.

 

 

 

Sincerely,

 

James Vincent

The Reverend of Finance

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