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ANALYSIS: Why Saudi Arabia Could Take Tesla Off The Stock Market

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On Aug. 7, Elon Musk sent shockwaves through Wall Street when the billionaire tweeted his plans of taking Tesla [TSLA] private at $420 a share.

The tweet got Musk in some serious hot water with the SEC—subpoenas, investigations and all sorts of legal shit. Namely because a tweet like that moves the market.

The tweet caused an immediate takeoff on the company’s stock price, jumping 11% before trading was briefly halted. A Fox Business report says that the investigation is now “formal.”

All that aside, what is this “funding secured” Musk is talking about? Is he really taking it private? In his defense, Big E—an active, unfiltered Tweeter—is simply sharing his thoughts on his personal Twitter, right?

But looks like there could actually be some truth to it.

According to Forbes, Saudi Arabia’s sovereign fund (PIF) has approached Musk numerous times since early 2017 to acquire a stake in Tesla.

So why is Saudi Arabia interested in Tesla?

At first glance, the idea of an oil kingdom teaming up with a Silicon Valley entrepreneur who wants to build electric cars might seem strange, but a large part of this ties back to Saudi Arabia’s Vision 2030 program.

This plan aims to wean the oil-rich country from depending heavily on income from fossil fuels and instead diversify into infrastructure projects, tech, tourism and trade.

(Oh, the plot thickens!)

So naturally, an investment in Tesla looks like the perfect hedge for the Saudi endowment, considering it already owns 5% of Tesla. PIF might look at taking Tesla private once the company is cleared by the SEC of any wrongdoing.

Related: Why Going Private Is The ‘Best Path Forward’ For Tesla

Tesla’s struggling (with profitability)

Tesla’s losses have mounted over the last few years and some experts are predicting bankruptcy.

On the performance side, Tesla’s earnings per share (EPS) have declined from -$1.25 in 2015 to -$1.36 in 2016 and -$8.74 in 2017.

Although Tesla’s earnings are expected to “increase” to -$5.91 in 2018 and -$4.19 in 2019, the company is far from achieving profitability.

Tesla has faced multiple challenges to achieve production targets for the Model 3.

In June 2018, Elon Musk said Tesla was on track to produce 5,000 Model 3 units per week by the end of Q2. An ambitious goal they’d set and made. But only barely, due to hiccups in production.

“We were huge idiots and didn’t know what were doing,” Musk told Bloomberg in July 13 interview.

Investors are still hopeful

Musk has accepted that it’s difficult to be a manufacturer in the automobile segment. Despite the ongoing cash-flow problems, Tesla’s expected to hit 73% YOY revenue growth in fiscal 2018.

Estimated 2018 revenues could go as high as $20.36B.

Tesla’s latest earnings also cheered many investors. The automaker burned less cash than expected, with cash outflows coming in at $739M—significantly lower than the expected $889M.

‘Bullish on Tesla’

Analysts expect company revenue to surge to $28.2B (38% growth) in 2019 and $33.9B in 2020 (21%).

For investors, Tesla shares have performed over the years: They were up 45% in 2014, 9.6% in 2015, -10% in 2016, before rebounding 45% in 2017.

The stock is up just 3% in 2018, however. But the tale is far from over.

To be continued, WealthLABBERs…

Business

How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀

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I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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Business

How I run a $300M+ business from the beach…(and how you can TOO!)

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Yes, you read that right.

If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.

Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲

This is my office for the day…

I am actually running our business from the beach, typing this from here.

It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.

(And the team will continue to crush it while I’m asleep. That’s the 🗝)

So how did we get here? 

We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳

As a result, we shut down our main office and set EVERYTHING up to run remotely…

SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)

Here’s what we were able to do since then:

  • Gained 6M+ followers across all platforms 📈
  • Add 1500+ new apartments to the portfolio 🤑
  • Grow to $300M in real estate 🚀
  • 105% investor returns 🎉
  • 700K+ community members 🤝

And here’s the best part…

Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.

This means we get 3x the productivity of a similar company. 🔥

Let me repeat that…3x PRODUCTIVITY vs. our competitors.

Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.

There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.

All the while giving YOU GUYS wealth hacks and daily content. 🔥

OK, so how can you do it?!

Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.

MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝

(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)

One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)

Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.

I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎

From what software to use, how to build a team, how to keep.

In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…

Let’s get to work. 🙌

PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥

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Money

CHART: How Blockchain Powers Bitcoin

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Blockchain, Bitcoin. Bitcoin, blockchain.

The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.

But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.

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