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**THIS** is BULLISH for Tesla Stock [$TSLA].

13m 43s2,503 words381 segmentsEnglish

FULL TRANSCRIPT

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this video is brought to you by extra go

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to metcalf.com extra to learn more hey

0:05

everyone we kevin here in this video

0:06

we're going to talk about a bullish

0:08

inflection point for what's happening

0:10

inside of tesla and facebook but most of

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this video is going to be about a tesla

0:16

however the insight affects both of

0:18

these companies we'll talk about that

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we'll also talk about cops buying tesla

0:22

some hertz updates among others so let's

0:24

get into some of these updates and then

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talk about that bullish inflection point

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so first

0:28

bloomberg just reported that new york

0:30

city police department nypd

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is considering the purchase of up to 250

0:35

model threes uh this is helping tesla go

0:38

trending right now on twitter they pay

0:40

about fifty one thousand nine hundred

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forty dollars for each vehicle making

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the deal valued at 12.4 million dollars

0:45

if the contract ends up going through

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for context nypd is the largest police

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department in the united states has a

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fleet of about 9

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000 vehicles so this tesla purchase

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would just account for less than 3

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percent of their fleet

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i imagine these have to get retrofitted

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uh obviously they're going to have to

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get retrofitted and then uh

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i expect that the police department

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would evaluate which of the cars are

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more reliable is it possible to

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operate these uh model threes on enough

1:12

of a charge is it possible to

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uh charge and and uh you know either

1:17

have charging stations at the police

1:18

station or elsewhere throughout the city

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that officers could now use and would

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that uh at any point hinder them from

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being able to respond

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to situations i expect not i expect it

1:29

would be okay there's plenty of downtime

1:31

and report writing time as an officer

1:32

but this is an interesting inflection

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point for tesla it's not the big one

1:36

that we want to talk about we're getting

1:37

the stock but very very cool now one of

1:39

the reasons

1:40

police departments have been looking at

1:42

uh teslas uh is that uh they they have

1:45

such high reliability and little

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maintenance

1:49

and that's one of the big aspects of law

1:51

enforcement companies starting to look

1:53

at these because then if you don't have

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to bring a car in for maintenance or

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repair uh as frequently well then you

1:59

have less overall downtime for the

2:00

vehicle you also have a lot lower brake

2:03

wear which is also important in law

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enforcement there's a lot of driving

2:06

around

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compared to other electric or other

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non-electric vehicles

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so these are some things that could

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really help

2:14

police departments now the way so far

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these police departments are

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retrofitting them is they take them to a

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third party that make all of the police

2:22

accessories the light bars the laptop

2:24

stands and that

2:25

and then what the police departments are

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doing is they're keeping track of their

2:28

per mile savings once they factor in the

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additional costs of modifications per

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vehicle but also the lifetime savings

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that they're experiencing compared to

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other cars that they're buying so

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great test for law enforcement i could

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only imagine if a police department

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started saying that's it our savings

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conclusions have come out and the evs

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are just as effective we can charge them

2:50

in down times and there are plenty of

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those uh and uh and and we never run out

2:54

of electricity or rarely do and we have

2:56

lower maintenance let's go all in

2:59

be a big moment for uh for tesla

3:01

mostly because it's such a such an

3:03

endorsement for the consumer the law

3:06

enforcement companies are buying them

3:07

for their reliability and rental car

3:09

companies are buying them for their

3:10

reliability i mean that that is this is

3:12

a huge signal to consumers but we're not

3:14

expecting any lack of demand for teslas

3:16

at the moment you look at the model x

3:18

plaid you're waiting until 2023 for one

3:21

of these the s and y

3:23

well you could get the model s plaid

3:26

actually in about a month but most of

3:28

the vehicles you're going to be waiting

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for an average of about three to six

3:31

months right now if you bought a tesla

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whether that's a model 3 or model y

3:35

now tesla has also been filing some

3:37

lawsuits in china which is interesting

3:39

within the last six months tesla has

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filed at least two defamation claims

3:43

against chinese citizens who spoke

3:45

negatively about a tesla and the quality

3:48

of teslas but before we hit on that

3:50

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ability to build wealth and that's where

4:17

fortunately extra and now back to those

4:19

chinese tesla lawsuits and that

4:21

defamation from chinese citizens tesla

4:24

says these claims are groundless one

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lawsuit against a model s owner who has

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been claiming for the last two years

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that tesla committed fraud by selling

4:32

him a used but heavily repaired vehicle

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and pretended it was new

4:38

in this particular lawsuit

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tesla has been called by this person a

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hooligan company and now tesla is

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countering with a lawsuit for unverified

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ungrounded and defamatory remarks tesla

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is looking for 785 000 u.s dollars in a

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reasonable expenses

4:56

another defendant is somebody who jumped

4:59

on top of a model 3 at the shanghai auto

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show earlier this year she was the one

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complaining about the faulty breaks of

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her tesla that allegedly killed her

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family that is the breaks allegedly led

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to the death of her family she uh did

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not allow tesla to inspect the

5:17

tesla after it crashed

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leading tesla to suspect that it wasn't

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necessarily the breaks that actually

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killed her family now she is also

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getting sued for the same amount about

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785 000

5:30

back in september a chinese court did

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order the model a three owner by the way

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to apologize for blaming the accident on

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faulty tesla breaks and then she was

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required to pay about 7 850

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now tesla is suing for even more

5:45

now uh bloomberg also reports that

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in-house lawyers over a tesla have been

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threatening social media influencers in

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china to take down bad publicity and

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apologize publicly

5:55

tesla's also been in the news for

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replacing some front-facing autopilot uh

5:59

cameras and some camera and some cars

6:00

for free they haven't issued a recall

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here but apparently there are some

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faulty repeater cameras that are getting

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replaced at no cost to owners uh this is

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uh

6:10

this news helped microvision pop a

6:12

little bit though microvision is still

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substantially down uh when this news

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came out and uh yeah microvision is a

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lidar play and there's a lot of talk

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that maybe tesla should just end up

6:22

buying microvision but anyway they're

6:25

still down from this news they're at six

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dollars and five cents

6:28

kathy wood is instead of buying the dip

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on tesla she has reduced her position or

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exposure to tesla to about seven point

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seven percent she's now been buying the

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dip on xsping yesterday

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uh arc bought uh or sorry this is uh

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yeah on tuesday arc bought

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six hundred 97

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seven shares of x bing worth somewhere

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between four to four and a half million

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dollars this was done in ark q that's

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the autonomous and robo tax era robotics

6:57

etf obviously robo taxi would be part of

7:00

this as well uh rq now holds about 24

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million dollars of x-ping motors x-ping

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has been on a substantial downtrend

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it uh has not been doing as poorly as a

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neo uh although then again neo

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substantially outperformed x-bang

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leading into the latest uh x-ping

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excitement that we've seen but we have

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seen some of that euphoria die down we

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saw a lot of this in the ev run here we

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saw x being moved from about 35

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to a high of about 56

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it is down to about 43 right now but if

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you compare this to neo neo's been uh

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did not really participate much in that

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october rally went from about 35 to

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about 41

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only to come falling back down to where

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we sit now about 29 yesterday and right

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now we're trading for about 30 dollars

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even on neo

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xping did deliver more monthly units

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than neo or lee auto in november both

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delivered more than 10 000 units but

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x-paying had 15

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613 at deliveries

8:04

rivian's also expected to announce that

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it's building a 5 billion battery and

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assembly plant near atlanta today the

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plan is projected to employ 7 500

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workers with the possibility of scaling

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up to 10 000 workers that's about the

8:16

same size as gigafactory nevada

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this would also make it one of the

8:20

largest auto assembly

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complexes in the united states

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the associated press is reporting that

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this will be the largest industrial

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announcement in georgia's history

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previously the largest was 4 400

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a 400 worker facility about a decade ago

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now we know that uh biden's also not

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well i mean biden's probably not very

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happy about this but we know that elon

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musk has been suggesting that uh

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the entire buildback better plan just be

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canned obviously a lot of frustration

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there has been built around the fact

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that evs will get a 7 500 federal tax

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credit but evs made with union labor

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will get an additional

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credit of up to 12 500

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but it's only via unionized work which

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tesla is unfortunately not so a lot of

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frustration here now in one additional

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update it's worth noting that a goldman

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sachs analyst mentions that hertz

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customers have been paying more than a

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hundred dollars a day for tesla rentals

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that's much more than the average of

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sixty dollars a day for the rest of the

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fleet so people are willing to pay a

9:25

forty dollar premium per day

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for tesla remember hertz plans to have

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tesla be about one-fifth of their entire

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fleet next year and the goldman sachs

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analyst figures that hertz will pay

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about forty two thousand dollars a per

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tesla vehicle and then sell them four

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years later for about twenty three

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thousand five hundred dollars each

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that's the expected depreciation

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that means the monthly depreciation is

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about 458

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for the vehicle per month this is higher

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than the average of about 357 in

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depreciation on a monthly basis however

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teslas tend to have a longer life and

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significant and require significantly

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less maintenance so who knows maybe

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hertz will keep these vehicles longer

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since who knows maybe they'll they'll

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come across as newer longer we'll see

10:09

though usually car rental companies

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don't want cars to be older than three

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to four years

10:14

now the inflection point in something

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that we're noticing it comes also from

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another bloomberg report shout out to

10:20

bloomberg.com

10:21

bloomberg is reporting that elon musk

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and mark zuckerberg have been selling

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shares of their company

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substantially over the last month here

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we know that with elon musk potentially

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because of taxes he sold about 70 of his

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shares uh that he promised to sell which

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means he's got another 30 to go it's

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possible we not might not see the rest

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of these sales anymore this year it's

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possible we might have to wait for

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january so we'll still have some selling

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pressure from elon next month but it is

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worth noting that

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insiders that's company executives and

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officers have been buying both facebook

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and tesla at record amounts and the

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highest amount since march of 2020

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according to the washington service that

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is 1300 executives and officers between

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facebook and tesla have been buying the

11:09

companies and this type of buying

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correctly signaled a bottom

11:15

in march of 2020 per bloomberg now this

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is some indicator of a bullish

11:21

inflection point for tesla brought to us

11:24

by company insiders now we still uh well

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i personally still am aiming at uh 1700

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vehicle deliveries for tesla in 2022

11:34

uh i'm not sure if we're going to quite

11:36

get to a million here in 2021 we know

11:39

that that's a big goal i will see how

11:41

december goes this is usually when we

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get the biggest rush for deliveries

11:44

right at the end of the year where

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people are trying to get their ev tax

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credits

11:48

so in my opinion that is also bullish

11:50

and we're probably seeing that same

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bullishness coming from company

11:52

executives and officers and that's why

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they're buying the dip whereas elon is

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is uh selling to pay taxes for his uh

11:59

option gains which he could have just

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borrowed but obviously he decided to

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sell shares instead

12:05

uh if we uh do get if we do stay along

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this course of eventually getting to

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about 4.8 million vehicles by 2025

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we're hoping with an average revenue

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about 40k per vehicle which this might

12:17

end up being higher honestly

12:19

in the 30 margin we're we're seeing at

12:22

least i'm seeing a future price target a

12:24

reasonable price target in my opinion of

12:25

around 1987. that is a double

12:28

which a given tesla's current price at

12:31

about 960 dollars that would give you a

12:34

four year since the end of 2025 is

12:36

actually only four years away that would

12:38

give you almost a 20 compounded annual

12:40

rate of return investing in tesla

12:42

at this point if these projections hold

12:44

obviously some of these numbers can

12:46

change like for example if we go to 45

12:48

000 in revenue per vehicle but maybe we

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only do

12:52

four million vehicles so about 800 000

12:55

less than expected we'd be at about a

12:57

future value about 1862 which is roughly

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the same if we just terribly miss and we

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come in at 3 million in 2025 which would

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be pretty low still looking at about a

13:07

1400 target here which from 960 dollars

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still works out to about a 10 compounded

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annual rate of return every year for the

13:15

next four years hashtag no guarantees

13:17

hashtag not financial advice but uh yeah

13:20

tesla tesla's definitely one i've been

13:22

uh i've been adding a little bit on the

13:23

dip on so i've been excited about that

13:25

anyway these are some updates and an

13:26

inflection point for tesla let me know

13:29

your thoughts about tesla in the

13:30

comments down below remember to check

13:32

out extra and the link to extra in the

13:35

description down below as well as my

13:37

programs on building your wealth thanks

13:38

so much for watching and we'll see in

13:39

the next one thanks

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