Elon Musk's NEW Massive Bombshell about Tesla Stock.

big news from Elon Musk expansion plans

when he's gonna sell stock again or is

he we also learn potentially about a

cheaper car what does he think about the

FED boy we've got so much to cover I'm

just gonna get right into it I spent

over an hour on a Twitter space is

called Ross came in he talked to Elon

directly it was great uh let's go

through everything that we learned keep

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there Elon Musk believes we are going

for a hard Landing he would Express his

openness to talking to Jerome Powell and

suggested that Tesla would be open uh to

a stock buyback that Tesla board

currently is open to a stock buyback but

Elon believes we need to see how bad

this recessionary environment that's

being forced by the FED is going to be

he believes that we're all in an ocean

together and even though he thinks that

Tesla has recession resilience which I

believe as well he believes that we

don't know how big the waves are going

to be and we need to be prepared for

potentially 2009 style waves and and be

prepared for those and then we hope for

smaller waves right so hope for the best

plan for the worst and he doesn't want

to be in a situation where they spend a

bunch of money doing stock buyback and

then all of a sudden you get a 2009

style wave of recession and you're not

prepared I actually think this is really

wise He also mentioned that it's not a

should we invest in Tesla more uh for

like Capital expansion or should we do a

buyback he kind of implied it's not an

either or he basically said look we're

expanding as fast as we can when it

comes to Capital invest assessments into

the company if we spend any more he said

he believes it would be Capital

inefficient they'd basically be wasting

money and so they're okay doing a

buyback but they just want to see how

the Market's going to play out first so

maybe if the FED u-turns you could

potentially see Tesla do a stock buyback

if Elon Musk and the board deemed the

stockist quote absurdly low so if you

see Tesla do a buyback that means they

think the stock is absurdly low so what

did Elon say about his stock sales well

he said that he doesn't plan to sell any

stocks under any circumstances in 2023

and he potentially won't sell stocks for

18 to 24 months so he potentially won't

sell in 2024 which means he might not

sell any stocks again until 2025. now

you have to remember some people hear

that and they think Kevin it doesn't

matter if he sells it's a small portion

of the daily volume in the stock but

this is wrong because your take taking

shares that were hodler shares and

you're selling them which means in order

for the stock price not to plummet to

the two to three and a half billion

dollars every time he sells you need to

have that many more hodlers come in to

take his place and unfortunately retail

just doesn't have that much money

vandetrack said that two weeks ago

retail spent 650 million dollars buying

the Tesla dip it would take over five

weeks of retail buying just to offset

one of Elon sales and that just brings

you back to par with hodlers this is so

you don't want to look at volume because

that's trading volume right so Elon

saying he's not going to sell is

actually a bullish Catalyst for Tesla's

talk and trust me we need bullish

Catalyst right now because the stock is

so far removed from fundamentals here on

the you in the meantime or or in the

short term personally I think that

actually creates and I I added to an

active ETF I can't mention the name here

but I add it to an e-active ETF today

that has about 24K 25 exposure to Tesla

uh and you know it's a pricing power

thematic ETF and I did that because I

think look if Tesla shares double or

triple that active ETF can rebalance

without passing on capital gains to me

ETFs are really capital gains efficient

because they can do that they can trade

stocks without passing on capital gains

and that's huge so Elon Musk gave us

this update about selling shares he did

say when it comes to new products he

can't announce any new products here but

one of the things that he was kind of

saying is that

let me put it this way the question he

was asked was Hey when's that less than

thirty thousand dollar car going to come

out and he's kind of like I can't really

announce anything but let's just say

that's our goal so it's still a plan of

theirs and he talked about how soon

they're going to hopefully be announcing

the next gigafactory location they kind

of left the door open to the idea that

you know is it Northeastern Mexico or is

it somewhere else he didn't mention a

specific area but he thinks he says they

think they have a location picked it's

probably the northeastern Mexico

gigafactory and that is one that's

rumored to either do cargo vehicles in

the future after starting with

components or doing a cheaper uh like a

model to Tesla and that's potentially

because the labor costs in Mexico are on

average about three dollars and thirty

cents an hour compare that to the

minimum wage in California at about

fifteen dollars and fifty cents an hour

is about five times less expensive

something interesting to think about and

that's actually good for the economy

there because it could drive up minimum

wages for everyone in that area which is

kind of neat now regarding Commodities

Elon Musk did say there is going to be

some lag time for margin costs so input

costs to come down so you could actually

unfortunately see Tesla prices have to

come down and costs stay high because

there's about a six-month lag thanks to

signed contracts for commodity costs to

actually start coming down to that

margin to expand again so that's

something you have to pay attention to

in the short term as a Tesla investor he

also mentions that they are building a

lithium refining facility that's because

they don't believe that mining lithium

is hard it's abundant it's everywhere

it's not like oil where it's rare but

the hard part is refining it and they

think they can get their own lithium

refining up for probably their 4680

cells within the next two years which is

really really exciting uh one of the

individuals in the chat talked about how

in the 2009 recession there was a two a

36 drawdown in Auto Sales and I think

that's uh that's you know something to

be kind of nervous about I personally

think we can offset that a little bit

though with the idea that hopefully

hopefully wealthier buyers are still

willing to buy a Tesla especially if

they can get instant gratification even

during a recession remember Tesla has a

median income uh for somebody buying a

Tesla of over 120 000 120 to 140 000 so

you could potentially see some

resilience given that they're not

appealing to lower end uh buyers yet at

least at this point

additionally Elon Musk uh talked about

how Tesla's kicking but uh he's a

kicking ass they're firing on all

cylinders he says the execution is

outstanding he stands by

the prediction that Tesla will be the

most valuable company in the world and

he's pretty confident that will be the

case he seemed open to the idea about

having a Twitter app on Tesla's

and uh when he spoke with

um with Ross Ross actually we have to

give Ross Credit Ross got out of Elon

that Elon won't be selling anytime soon

so that was great

uh Elon made it clear that he doesn't

hate anybody but he doesn't want people

to subject pronouns onto him or other

people he doesn't think that's right so

he gave a little bit more clarity there

and uh he does say that margin gives us

room to cut prices if necessary keep in

mind they did just uh increase their

credit to 7 500 for if you buy between

now and the end of the year and a lot of

people are saying the available

inventory in their area is literally

flying off the shelves across the

country uh so uh just take a look go to

tesla.com see the available inventory

yourself put your ZIP code in and see if

that's true see what you think anyway uh

this was some pretty insightful stuff

honestly I I mean I think you know I'm

pretty bullish on Tesla I think one of

the best things you can do uh you know

look I am a financial advisor but this

is not personalized Financial advice for

you I think something you can can

consider is investing in an active

manage actively managed ETF that has

high exposure to Tesla so that way if

Tesla doubles triples quadruples or

10xes in the future it could be

rebalanced

and you're not paying capital gains on

it because you're just holding the

ticker the ETF so you basically get the

benefit without paying taxes it's just

like I'm so excited about that I just

learned about that within the last like

18 months and ever since then I've been

like all in on this idea and and like

sharing this idea because I just think

it's the greatest thing ever it's like

it's like having an unlimited retirement

account uh because you get the tax

benefits and like a retirement account

right so anyway thank you so much for

watching folks we'll see in the next one