Elon's Meltdown | The Death of Tesla Stock.

well if there's anything to make you

want to diversify from Tesla stock and

invest in house hack it was Elon the

bear on this earnings call this was the

least controlled and most disastrous

earnings call I think I've ever heard

from Tesla maybe because Zach isn't

there to hold the reins in and actually

monitor how this earnings call should go

uh the amount of nonsense and

unnecessary commentary was fascinating

but also painful at one Point Elon Musk

almost breaking into tears about

complaining about how work from home

owners are like Marie and tet's let them

eat cake and he's sleeping on the floor

of the factory to make his company

succeed it's very weird how that belongs

in an earning SK but a lot of this I

think has to do with something that Elon

implied but didn't say so let's start

with the implication first and I'll tell

you what he said in a moment but

first I want to ask you when did this

quarter

end it ended the end of September okay

now what I want you to do is look at the

10year treasury and I want you to go to

September 30th well there's no 30th

because the month ended on 29th uh for

for like the business week the 10-year

treasury was

4.58% it is currently 44 basis points

higher I think there's a chance and this

is not good but I think there's a chance

interest rates going up another nearly

half a percent or almost the straw that

broke elon's back like this is it we how

many more times do we have to drop

prices L now rates go up even more this

is like Peak fear Elon if there's ever

Peak fear Elon now he complains that hey

maybe he's just excessively parano Anno

because of 08 but and 09 but if you look

at the 10year treasury chart he's had

Peak pain on interest rates in literally

the last 3 weeks leading up to this

earnings call and here we go you've got

Elon basically crying on the earnings

call but at least Lauren made me milk

and cookies come say hi no come on say

well at least say hi hi yeah she she

exists this is amazing oh that makes up

for a R day on test any day all right so

what we got

well obviously the house act that's

really good house act deadline on

November 1st so uh what do we have for

uh Tesla though so a lot of people

talking about how Elon seemed like he

was intentionally complaining here I

think it's just a Prelude to a really

bad kind of potentially a Q4 if rates

stay this High and the end of the year

is supposed to be the good delivery now

they did reaffirm deliveries at 1.8

million but they'll just cut prices even

more if they have to to make that happen

so uh Elon did uh you know talk up about

how hey we're at half a billion miles on

FSD wanted to lower the price of FSD to

make uh uh to make it more affordable

for people no people weren't

buying it people weren't buying it

people aren't buying it then then you

lower the price okay it's simple uh

talking about significant FSD progress

but uh unwinding some of his prior

optimism talking about how hey it was

easy to make gains in the past it was

great we were able to really crank gain

in the past on uh FSD but now it's

slowing down it's kind of that log curve

where we're like Yay big progress

progress progress prog oh now progress

is going really slow and that is true

you know they get to 95% 0 to 95% is

easier than getting from 95% to 100% so

I think that's creating some concern

Elon blatantly dodged how many cyber

trucks will be delivered this year I

think we'll be in like the tens or the

dozens of cyber trucks this year some

people people think it'll be hundreds I

think there's no way in hell the event

will be held on November 30th I'm

probably banned but whatever I I

probably shouldn't have tweeted a

picture of Elon as a bear uh I did do

that okay this just this is what he

sounded like he just sounded like a

crying bear so I wrote Breaking leaked

photo of Elon Musk on today's Tesla

earnings call don't worry everything is

fine right yeah

right super bearish today purposefully

dodged the question just didn't answer

the question about how many cyber trucks

they expect to be delivered this year

and I understand they probably don't

know because they probably don't know

that they're going to deliver more than

like 10 and they don't want to say that

in the earnest call CU they've already

said enough now a lot of optimism

obviously about artificial intelligence

about how eventually The Optimist can

build the Optimus 10,000 gpus in

production probably the fastest company

to ever ever do this this is still great

for artificial intelligence for NVIDIA I

think companies especially as rates come

down are going to keep flooding money

into Tesla I or into artificial

intelligence uh including Tesla I

actually didn't think the earnings were

that bad just to give you a high level

overview of the actual earnings report

and the spreadsheet in terms of a

summary really uh free cash flow of $848

million better than I expected reducing

the costs of the vehicle lot of talk

about slashing pennies I mean they got

down to talking about how the QR codes

are too expensive to put on cuz

sometimes they wrinkle up and then they

you can't you can't basically laser scan

them and it's like okay but the tangents

we went down were a little extreme but

they did provide color that hey look

they're trying to do everything to save

every penny right there is good to see

past this Elon is not wrong to say that

there is massive price elasticity in

cars that is correct and remember I've

said this for a very long time Tesla

only has pricing power to the extent

that it is a car I believe Tesla has the

most pricing power in cars but cars in

general are just a cyclical business

interest rates up as Elon said says

affordability down and he's not wrong

people it's harder for people to get

financing these interest rates going up

are a problem they just went up even

more Q4 is probably going to be wrecked

that's not great and Elon is so

concerned about the state of the economy

that they're like you know what we're

going to kind of like put on hold Giga

Mexico and we'll do some of the

long-term planning like you know the uh

the landscaping or this that or or like

not the Landscaping the the the Land

Development right uh but uh what do we

end up getting uh well we'll probably

just wait a little bit in fact we've got

plenty of room at Giga Texas yeah that's

how the earnings call went today don't

mind the new announcement in Texas in

Mexico we got plenty of room in

Texas I that should tell you a lot of

how this call went okay so yes we had

energy beats on uh uh revenues here for

energy but guess what CFO comes in the

new CFO and says hey you know that was

mostly Mega packs and that's going to be

lumpy so what does that tell you for n

phase oh no not more pain no I maybe in

terms of numbers but remember here's the

thing and I believe this I think the

stock market is going to say as soon as

we hit Peak rates that's an inflection

point and then Cuts that's an inflection

point in the stock market and the

question is did we botom last year

before all of this you know are we now

in sort of like a a lull and and do we

you know are we volatile until we

actually get into rates where we hit

some more lows entirely possible who

knows crystal ball nobody knows but so

far the economy's really been holding up

and you look at it it's like sure we've

had some banking crises but nothing the

FED couldn't print its way out of but

anyway we've talked about that plenty of

other times before so let's focus here

on Tesla Tesla spe specifically

suggesting that uh regarding the uh uh

tax credit some folks are actually you

know it it'll be a benefit if some

people can actually get the credit up

front and that'll help because people

are looking at their cash outlay how

much money am I taking out of my pocket

to actually get into a car supercharging

stations up 24% annualized uh slowing

down from 30% you also have a production

vehicle production annualized based on

September's figures sitting at about

56,000 but if we miss on Q4 deliveries

we'll have an even wider gap of

inventory after Q4 probably will sit

there uh until inventories actually well

until rates come down cyber truck

production Elon Musk thinks we can get

to about

250,000 units of cyber trucks produced

sometime in 2025 that would be somewhere

about 18 months to 30 months out 2 and a

halfish years out he thinks anything

slower than about 18 months out after

the delivery event would be uh

disappointing but uh it is possible they

do talk a lot about cost savings they're

really really worried about the cost

probably because costs are not coming

down anywhere near as fast as prices for

the cars are coming down that's

compressing margin that's not good

margin compression which again feels

like shrinking peee but relative to all

cars that's true that is true on all

cars the question is of all the cars

which still has the best pricing power

well of course Tesla uh the question

then is okay well when do you buy do you

do you just wait for a new low

which I don't think will happen or do

you buy and know you're going to be

sitting in it not sure when to time the

bottom until uh until we actually get

rates coming down that's that's the big

thing here so as far as some of the

other commentary we got uh talked about

the Optimus uh being you know having a

kill switch uh you know we've always

talked about this as well something

that's hard programmed in uh talk about

how uh FSD and the neural Nets that the

Optimus robots are being trained in is

basically baby AGI which for those CPAs

here that's not adjusted gross income

that stands for artificial general

intelligence that's basically what

they're teaching a lot of long run

bullishness from Elon on artificial

intelligence but boy the amount of

bearishness that we got out of him this

is like Peak Elon bear I you know what I

think honestly all right this is going

to sound mean but you ready for

this be like Kevin you're an for

saying that

yeah

cool ready for

it Elon needs to get his ass off of

Twitter and

Diablo I start

it he's turning into a bear cuz of

Twitter and Diablo just

saying I don't know uh think they could

have ran that earnings call a lot better

and I think Twitter is is making him

extremely bearish the fact that Elon is

sitting there basically quoting the bear

arguments oh you know credit card debts

at alltime highs well no it is did

you try inflation adjusting it no of

course

not oh National debts going up I know do

we need more bear arguments we already

know we're here at the Tesla earnings

call not a lesson in

macroeconomics it's interesting he's not

wrong things get a lot more expensive

when interest rates are higher but you

know I'm a big fan of just calling it

like it is and if I'm coming to the

Tesla earnings call you know you could

talk your macro stuff and your woke

stuff or anti-woke stuff wherever you

want but I don't think the Tesla

earnings calls the place as a if I were

a Tesla board member I'd be like what

the hell are you doing dude why are you

dodging the SEC and basically crying on

the earnings call like put some pants on

and run it as a professional call and I

know some people like Kevin you're the

one who makes peee jokes all the time

you what's wrong with that I like big

peeee okay I I really like big juicy

pricing power stocks I I like that okay

okay I don't think there's anything

wrong with that but I'm also not in a

professional earnings call with Wall

Street

analysts which a different setting it's

a YouTube channel if you don't like it

don't watch it but this is like a slap

in the face to the investors the way

these earnings calls are managed like

Zach at least had his together uh

anyway uh Elon talks about uh large

price elasticity again that's true for

all cars we'll give him some defense

here that is true for all cars obviously

compared himself to like a Rav 4 and

it's like why would anybody buy a RAV

four if you could buy a Tesla well maybe

because of your tweeting people will buy

the rav four which is exactly what

somebody who shall remain unnamed in my

family did they're like I will pay more

for a Rav 4 not to support that

guy sorry bro maybe if you had somebody

actually telling you the truth you'd

stop

up anyway then he's complaining about oh

my God I can't believe credit s went

away and the credit situation is getting

worse commercial real estate's doomed

and I think there are quite a few more

shoes to drop those were quotes from him

his words not mine and I get it I get it

it went through 2009 and it was an sh9t

storm I get it but bro this is we're

here for the Tesla earnings

call not the what you what you read on

Twitter theory of what's going on in

macro JP speaks tomorrow maybe uh maybe

he could wipe elon's body or or change

elon's diaper or something I don't

know talks about enormous challenges and

reaching volume really tempering

expectations for the cybertruck really

uh making sure that people realize the

cybertruck is a brand new system for

designing a car creating a whole new car

with an exoskeleton that's a lot harder

to manufacture probably not going to be

cash flow positive for about 18 months

he warns which in Elon time probably

means like two and a half years he does

think it'll be the best product ever and

I don't disagree like don't get me wrong

I can about Elon all day long and

I do uh but I love Tesla I love the

people at

Tesla as interest rates rotate down and

markets start recognizing that

treasuries have bottomed I think Tesla's

going to do exceptionally well I put my

money where my mouth is I'm invested in

Tesla and phas Nvidia I strongly believe

it that doesn't mean I can guarantee it

in fact I have a little laminated

disclaimer here keep in mind that even

though I'm a licensed financial adviser

licensed real estate broker uh and

becoming a licensed stock broker this

video is not personalized Financial or

real estate advice for you this video is

generalized perspective this video is

not and shall never be deemed reasonably

sufficient information for the purpose

of evaluating a security or investment

decision and if you want to invest in

house Haack you go to house hack.com cu

the deadline is November 1st by far when

we survey people there are two big

reasons they're like if anybody could do

it they're like I I want to bet on Kevin

for the real estate startup uh or the

second reason is they want to diversify

those are the two big reasons we're

getting for people uh for for house hack

those are just some things that we're

hearing in surveys you know no

guarantees obviously investing in

startups is risky read about it uh at

house.com and read the circular there

this is not a solicitation anyway talks

about tempering cyber Tru expectations

it's difficult to uh make cars like this

dodge the question on how many

deliveries uh they would have he

literally says we basically dug our own

grave on the Cyber truck and nobody digs

their own grave better than

themselves uh the Next Generation

vehicle will be a lot easier to produce

like the smaller twodo version of a

Tesla the model 2 because there won't be

large hot stamping new high voltage

architectures it'll be much simpler and

easier to ramp faster 4680 is working on

increasing it I really think the 10-year

treasury Spike just killed orders in

October like I think orders hit a wall

in October I'm not sure about that but

to me orders hit a freaking wall that's

what he's implying it's not good uh-uh

not good then he also walked back on the

50% kager Target even though in their

earnings presentation they literally

have written we're still targeting 50%

year-over-year growth elon's like well

you know law of large numbers uh that's

going to get harder well duh I mean I've

been targeting for about the last year

and a half like 30% growth for Tesla but

it still kind of is interesting to see

Elon walk that one back he does say

there is something to be gained from

advertising thank you Elon thank thank

you thank you very much uh he says that

uh the problem though is if you're

showing people things they can't afford

it doesn't help that much so once again

he's complaining about interest rates I

don't know if I fully agree with that

because I don't think people realize how

inexpensive the Tesla has gotten but

then again nobody's telling it like it

is to Elon and I know Elon you know he'd

probably be like whoa whoa what do you

know you got YouTuber or whatever it's

fine man whatever dude there are

millions of people who have no fracking

clue that the damn car can basically

drive itself 95% of the time they don't

know how safe it is they don't know how

good it is they don't know how what the

range is they don't know anything about

it there are millions of people like

that who are perfectly capable of

affording the Tesla I mean I don't know

where you're advertising Elon maybe

you're advertising in you know somewhere

where the demographics aren't that

ideal I don't know he needs a man

manager poor guy anyway uh too too too

stressful I don't know man Optimus okay

we talked about that significant cost

declines R&D will keep going up yeah R&D

blew up like 24% quarter over quarter

that's like doubling on an annualized

rate lot of neg negativity from this

earnings call uh Tesla currently trading

at about a 2.5 PEG ratio with 28% growth

projected by the street I'm at about

30% lot of negativity uh all I can say

is I hope hope jpow is

watching and uh I don't know but um I'm

going to keep eating this cookie now and

uh we'll keep the dragon dagger poison

tip away from Elon because I don't know

he's not he's not stable right now poor

guy I really feel bad for

him but he probably hates me and that's

okay like I'm just I'm just going to

give my opinion I'm I'm tired of people

like actually affecting my mood like I

used to care people would be like I

can't believe you said this now people

say that I go oh maybe they have a point

you know okay maybe they have a point

but most of the time it's like yeah I

don't care it's like I'll I'll read the

comments as I'm curious about the

perspective but somebody's like I

disagree with you you're a douchebag

it's like

okay but at least the perspective is out

there cuz if you just say what everybody

loves what's the point of watching you

know you got to have some realism got to

have the balls to say what you think be

a little I not advertise these

things that you told us here I feel like

nobody else knows about this we'll we'll

try a little advertising and see how it

Go congratulations man you have done so

much people love you people look up to

you Kevin P there financial analyst and

YouTuber meet Kevin always wait to get

your

take