YIKES! What Elon Musk JUST Said [Summary - $TSLA Call].

hey everyone me Kevin here let's talk

about what Elon Musk just said and boy

oh boy he said a lot I still don't have

my studio complete but oh well let's

just get right into it and I kind of

float everything so we'll just go

through the flowchart together uh do

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into it so uh in the introduction they

talked about regulatory credits would

have declined had it not been for a

change in in this tax law that came out

uh this not too much of a surprise I'm

more focused on margin going to 30

without the tax credits and the fact

that margin went up another 800 basis

points on Gross Automotive margin

despite tax credits really really

incredible uh they do notice that

individuals are starting to have a

preference for the model y over the over

the model 3 which leads to a higher

average selling price I personally take

complete credit for this after my Tesla

review video suggesting that people

should totally buy the model y over any

of the other cars kidding obviously but

I I actually totally agree with that I

think the Y is a phenomenal car they

talk about how they basically have zero

debt other than product financing uh you

know I I think that's a nice pitch and I

don't think they're wrong about that but

like when I look at their balance sheet

I'm like okay well if I you know add up

inventory and cash uh and uh and

accounts receivable assuming you'll

actually receive those adds up to about

24 bill right we've got about 30.6

billion current liabilities uh I'm sorry

current liabilities are around 21.4 so

more than cover that but about 30.6 in

long-term liabilities but hey you know

what they're being creative about that

remember earnings calls are usually an

opportunity for them to sort of sell the

future as well so always remember that

uh so 50 growth rate remains achievable

but what Elon Musk talks about is even

better than that so Elon gets on and he

talks about how Shanghai has been

leading to significant challenges but

we're already back up and running in

Shanghai and we have a reasonable shot

at a 60 year-over-year increase this

year Elon Musk is targeting one and a

half million units of vehicles or

produced this year produced and

delivered last year in 2021 we delivered

936 000 1.5 million would represent an

increase of about 60.2 percent

absolutely incredible if we can hit this

he talks about how uh basically what you

want to expect is that uh quarter two

for Tesla the quarter we're in right now

that we've already been in for uh about

three weeks here is uh is is going to be

pretty much on par in terms of

expectations and deliveries but really

Q3 and Q4 are where things are going to

get explosive for Tesla so in other

words Now's the Time to be in Tesla

stuff to prepare for Q3 Q4

uh so then we've got uh expect the world

to ramp initially for Giga Berlin and

Giga Texas and uh and then that

exponential towards the end of the year

he is very excited about announcing

formally at a robo taxi event the robo

taxi which will have no steering wheel

no pedals and will be it fully optimized

for robo taxi He suggests that this

should be the lowest cost per mile

vehicle ever that has existed and

potentially even cheaper than buses and

Subways that was pretty incredible that

he mentioned that given how Subways are

so inexpensive though in New York people

are now complaining about the fact that

uh you you have uh

there's the pizza cost index where

basically the cost of a Subway ticket

has always been less than or or par with

the cost of a slice of pizza but now

Subway costs are being limited and pizza

costs have gotten more expensive due to

inflation and the government's

artificially keeping Subway costs low

and so if Elon can compete with even

subsidized low Subway costs man that's

pretty juicy

uh anyway uh also he believes the robo

taxi will be a very powerful product and

quote aspires to reach volume production

by 2024. that's insane that's way sooner

than I thought volume production on Robo

Taxi by 2024 worth noting we didn't hear

anything about Twitter in this earnings

call I mean it makes sense this is not a

Twitter earnings call but I thought

people might take the opportunity to

Ambush Elon maybe they tried and they

purposefully just didn't answer those

questions or ask those you know let

those people ask the questions cyber

truck on a track for 2023 and then

Optimus for 2025 confident about

exceeding 50 growth per year over the

next several years Netflix can't say

that they're trying to hit 10 per year

over the next five years I mean what a

difference there people make fun of

Tesla's multiple uh but but it's because

there's so much freaking growth at Tesla

and more importantly they're hitting it

that's so important they're actually

hitting those growth numbers and so

hopefully Tesla continues to but we'll

talk about some limiting factors in a

moment Elon said that literally he said

those who carefully listen will

understand that the Optimus will be

worth more than the car business that's

my firm belief that's the robot right

the robot that could potentially in the

future be essentially this humanoid that

that could do whatever you want for you

a collapse boxes Amazon boxes work in a

factory for you push a button for you uh

do the laundry for you the dishes for

you clean your house I don't know maybe

even other things that you can imagine

that's what Elon tells us that it'll do

anything we can imagine

all right so maybe we'll get Robo

uteruses for those who can't carry

children anyway Elon FSD uh so uh this

is something that's come up a lot about

in the past we've heard Elon talk about

this how it's all about solving real

world intelligence he's really excited

about this though and does believe that

there'll be wider access for everybody

in 2024. He suggests that everybody join

the beta program which I was really

annoyed by because I'm like dude I've

had a hundred safety score for like four

months now and I'm sitting here

twiddling my thumbs waiting for my

invite and I still don't have it and

he's like oh yeah just join the beta

program and try try it out and you'll

see how great FSD is becoming and it's

like been trying to thanks Elon anyway I

got about a hundred thousand individuals

on on the uh FSD now which is up from

the 60 000 we previously had Q2

production on pars well we talked about

q34 substantially higher uh 10 to 15

exposure to increases in raw material

costs they don't I'm not going to read

all of this here but they basically talk

a bit about how they have uh contracts

with commodities companies some of them

that are long-term contracts so they

don't immediately get hit by these price

increases like when nickel gets more

expensive they don't necessarily

experience the increases of those costs

right away but sometimes they have

contracts that actually are tied to spot

and so what they're trying to do is

raise the price of their cars so that

when they get hit with the burden of

higher costs they're already selling the

cars at higher prices so for Tesla some

of the costs haven't gone up today but

will in six to 12 months well the cars

they're selling right now are cars that

are going to be delivered in six to 12

months and so they're raising them price

of cars now and they're hoping they

don't have to raise prices again so they

say though they've said that before and

then they've raised prices they were

asked about going to a hundred volt a

platform for electric vehicles and they

basically said look for the model 3 and

S uh model 3 and Y rather not worth it

maybe over the life of the car it's a

hundred dollar difference in in

efficiency not really worth it it's kind

of like Europe uses 240 volt uh

electrical systems in our homes and and

here in America we use 120. there are

differences when you get to higher

amperage requirements which would be

because obviously the more voltage you

have the uh the easier it is to run

higher amperage devices with less heat

and smaller cabling but uh higher

voltages allow you to do that but uh

otherwise for for nominal things like

even in our homes or in our cars not

necessary maybe a higher voltage system

will make sense for the Cyber truck in

semi but not something they're looking

at right now for the robo taxi they say

there's literally zero benefit on this

4680 exportation versus reality now they

didn't actually answer the expectation

versus reality question I thought it

would be great if they did but they

basically talked about how it's so much

cheaper for them to manufacture the

4680s that it's actually five times less

expensive in capital expenses to build

the Factory and then Personnel is five

times less expensive to make the 4680

structural battery pack because it's so

freaking efficient how they've made this

Factory compared to the old 2170 cell

that's crazy because that means you

actually have a a better battery at a

substantially lower cost that's really

really exciting Berlin starting with the

2170s and we're going to transition over

to the 4680s later this year

sorry all right so then uh raw material

sourcing they think a lot about this

they think the issues are really going

to come in and to play starting in 2023

uh and certainly once we get to 5 10 20

million vehicles of production that's

when you really have issues with the

macro of uh raw materials now Elon uh

says that we're thinking about these and

have been and have some exciting

announcements coming in the next few

months there was a lot of alluding to

them basically getting into the business

where they think that other people are

not getting into the business quickly

enough something that I thought was

really cool too was Elon says we're

gonna need to help the industry in this

field and raw materials especially in

lithium and he actually encourages

entrepreneurs to get into the lithium

business he says the lithium margins are

basically like software margins right

now and then Elon says quote do you like

minting money well if so the lithium

business is for you which was pretty

pretty crazy uh now later on in the

earnings call though the they did

mention that they expect a lot of

lithium production to come online within

the next one to two years so I thought

that was quite interesting

so uh going back sort of in order of the

call here that was raw materials the raw

materials section they talked a little

bit about casting what I thought was

really funny is they talked about how

they might be able to recycle cast

aluminum wheels from Legacy cars that

are are basically junked throw that into

a big Melting Pot and then use that cast

aluminum scrap basically and cast their

vehicles with it like the model 3 is

made from uh two well two-thirds of the

model three shell basically is made from

two big casts

put together which is really really neat

in fact in the Tesla earnings call we

went through this here's an example of

how they took 171 different pieces and

turned it into just two pieces really

really cool so uh then we've got a

production in Shanghai cheaper than the

US probably because of Labor usually

they have short notice when they have

part shortages but they're doing their

best they call it a Herculean effort

they say the current numbers of

inflation understate the inflation

that's actually happening

throughout the world so they think

inflation is a lot higher than it really

is and I think everybody kind of agrees

with them like the numbers that we get

from the government are like yeah okay

whatever

uh cyber truck will probably have 20 to

30 less Parts than the other cars that's

crazy I mean we know already it's not

gonna have door handles just as an

example

uh talk a little bit about how it takes

one to two years to bring a lithium mine

online and really in 2030 then sure

there'll be a moment in 2023 where it's

like okay yeah we really got to step it

up but really 2030 is when they're

thinking that's when you're really going

to hit those limiting factors for

lithium production for that cathode in

those batteries they were asked about

bringing Chargers to people outside the

network and they said it's tough in the

US right now because we have different

connectors in the US than we do in

Europe uh but it's a consideration but

they also don't want to increase wait

times for existing Tesla customers even

though it could be a good opportunity to

bring sort of people into the Tesla

Network they touch also on insurance

they're trying to get insurance to about

80 Insurance availability by the end of

the year a nice quote they had is they

want to turn the insurance process from

a nightmare into a dream and the reason

they say that is they think it's

terrible you get into an accident you

talk to a claims adjuster and you get

assigned to one then you have to go get

an estimate from like random body repair

shops and and like then there's all this

negotiating with the claims adjuster in

terms of what they'll pay and what they

won't pay and the process is basically a

nightmare and they're like well if if

people are at Tesla they like we

underwrite the policy we take the risk

of the policy we can literally see what

happened in the accident because while

they have the cameras which is also kind

of creepy like big brother but uh I

think that's what you sign up for with

Tesla insurance and uh and then they

could basically directly just Loop you

into their uh network of collision

repair companies that either Tesla owns

or contracts to and trains and this

makes the process a lot simpler now I

don't want to come across as suggesting

that Tesla like deny your insurance

claim if let's say you're texting

driving and you you drive into a poll or

something uh who knows that could be a

possibility in the future but I don't

believe that's the case uh right now but

but it is kind of interesting how they

were alluding to like yeah we could see

what caused the accident I'm like okay

yeah

so anyway oh look bottom line out of all

this I'm very very excited uh I agree

that not only copy and pasting the

gigafactory model to getting to maybe

100 gigafactories at some point in the

long future you know 20 30 years out uh

probably 10 within the next uh you know

a few years I I would hope we'll be able

to copy and paste the 10 gigafactory

soon the robo taxi event coming up the

Optimus scaling the Optimus I could not

be more excited with Tesla uh honestly

like every time I study more about Tesla

versus other companies I'm like why do I

bother with other companies like Tesla

Tesla

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