Keep in mind though that this article is already one year old. The bull thesis played out well. If they successfully develop new products they have more upside. However, they were struggling with their Terra robots & overall I am not that satisfied with their execution.

I exited my position a while ago to use my money for some of my other long positions. Back then the risk-reward ratio was very different from today.

Getting in between $40 & $60 per share was a steal.

https://youtu.be/FtPyREb2J0U

There are some disadvantages to online education. However, there are also a few advantages to it that I didn't mention in this article.

I published my first youtube video today. In which you will be able to find a few more details ;)

Here is the video providing more insights, interesting charts & a scenario analysis:

www.youtube.com/watch

2U is in the pole position. It takes a lot of time to build up a relationship with the Ivy League universities. Moreover, they have partnered with many hospitals to offer placements. This is hard to replicate for Universities.

The market is also big enough for several players. I like the stock so much because you can get it for a reasonable price & they are working on a better future.

Yes, I partly agree. However, $DOYUs operating margin was only 1% in Q3. That is pretty weak in comparison with past results. Moreover, I think it is also just a bad look to revise guidance and then miss it. I also want to show that not everything is rosy for $DOYU and $HUYA. And that it is essential to keep an eye on specific numbers and their development. Maybe my recap came off a bit too negative. However, as I also mentioned in this article, the company is still highly undervalued, and I think it is a good buy.

Thank you very much for your feedback. I am glad you liked the article and very thankful that you keep reading my content.

Yes, I agree. Production cost will continue to be low for $DOYU & $HUYA because the streamers provide the content. The merger could even lower the relative production cost to revenue. It is astounding to me that these companies get next to zero coverage. I am also excited about the fact that both companies will report earnings on the eleventh of November. It will be interesting to see and the amount of MAUs and paying users. I will give a short update after the earnings.

Hello William,

You are right. I am mostly a buy & hold investor. Hence, I will add to my position on potential dips and keep it in my portfolio for the long-run. If this growth-story plays out, the upside is pretty attractive.

However, the firm also inherits a significantly higher risk than more mature companies.

Thank you very much for your detailed answer Moon Kil Woong.

Due to COVID, the ramp-up process of Gigafactory Shanghai was interrupted. Hence, there is some room for error during the ramp-up process.

Regarding the financial resources to support growth:

Tesla generated $907M of FCF during the last four quarters while ramping up Gigafactory 3. As of July, the cash position was $8615M, with the secondary offering, it will be around $13615M. This amount should be sufficient to start the groundbreaking of five new factories (during the next five years).

Therefore, at least for the upcoming five years, it is, in my opinion, probable. From year six to ten, I also consider it unlikely, given the effect of large numbers.

What is for you THE limiting factor why Tesla will not be able to grow so fast according to your thesis?

I agree. Tesla always starts delivering most of its vehicles at the end of the quarter. This article is a typical example of flawed research combined with a bias towards the company.