Tesla Looks Bad.

check out coupon code jet for the

programs on building your wealth pricing

will be changing soon so some minor

setbacks for Tesla we have to talk about

uh first gig at Shanghai was expecting a

massive phase three expansion in 2023

that phase three expansion was expected

to start mid this year so they're still

in theory time for that expansion to

actually start mid this year but now

we've got some problems and it's not

great because we were pretty excited

about this expansion for Giga Shanghai

because it would have taken Giga

Shanghai from 1 million units a year of

production to 2 million years or 2

million units a year of production so

we're going to talk Giga Shanghai we'll

talk about the implications of that sort

of my thoughts on that we gotta talk a

little bit about Indonesia okay we get a

little bit of an issue over here and

then we'll talk a little bit about

what's happening globally with EVS in

2023 which is also quite interesting so

regarding Shanghai the government the

Chinese Communist party is now

expressing concerns about yes starlink

having a large presence in China now

that's frustrating to government

officials because there's for years been

something known as the Chinese great

firewall instead of like the Great Wall

of fire it's the censorship that the

Chinese government is able to implement

through their control of internet

service providers and what you're able

to access on the internet in China well

starlink allows people to bypass China's

great firewall because they don't have

control of the starlink ISP internet

service provider right and China is

really worried about data security and

they've been worried about data security

whether it's rightfully so or not for a

while probably because they steal our

data through apps like Tick Tock and

they say they don't store our data in

America outside of a America or from

Americans outside of Americans and yet

troves of American Tick Tock data was

found on Chinese servers in Singapore

this is why governments and politicians

are starting to ban people from even

having tick tock on their phone okay so

this is kind of like back and forth

nonsense that goes on between the two

countries part of it is in truth each

country is probably trying to mine data

out of the other one but China in 2021

and we don't actually think that Tesla

is explicitly involved in this but China

believes it could be possible that

Tesla's

cameras are farming data for the US

government when they go drive around

military complexes and housing compounds

and that's why China banned Teslas from

military complexes and housing compounds

in 2021 over data concerns right well

now similar concerns are potentially

stalling expansion plans of Giga

Shanghai keeping it at the 1 million

production a year taking Tesla from sort

of a Chinese favorite where China was

rolling out the red carpet for Elon Musk

to kind of making Tesla a little bit of

a target for the Chinese Communist Party

potentially because Elon Musk is also

the CEO of SpaceX and therefore starlink

and starlink is potentially that Great

China bypasser that Great China firewall

bypasser and I believe this okay a lot

of other people think I'm nuts but I

think the 4D chess move that in the

future is coming which I think China is

starting to sniff out

I think that Tesla is going to enable

starlink

as a subscription service software as a

service anyone on Tesla vehicles that

guess what allows Teslas to potentially

and this is my speculation to

potentially in the future get a real

time feed of neural net information now

I don't even know if we could process

all this information in real time but

usually what happens now is you park

your car at home where there's Wi-Fi and

then data uploads to the Tesla servers

about your your driving history and your

camera footage or whatever right

well if that could be done live through

starlink or you could stream information

like stream YouTube videos well maybe I

should say YouTube audio or whatever on

your Tesla you could or your family can

stream YouTube videos in 4k or play

video games through the starlink network

without crazy disruptions then that's

pretty dang cool right that's another

selling feature for Teslas and it seems

like it would be a relatively simple

thing to do to add some kind of radio uh

adapter for the satellite signals to the

vehicles and we've actually seen patents

to this effect now uh whether or not

that actually means starlink is coming

to uh to cars total speculation but the

point is

this thesis is enough for China to say

yeah we're not so sure we want to let

you double the size of Giga Shanghai now

implication wise

this might actually not be as bad as it

seems it seems bad because Shanghai is

one of the most efficient factories it's

probably the most efficient Factory that

Tesla has right lower cost of Labor

higher margins great

but it would take a lot of capital

expenditure that double the facility

what if it took five billion dollars

let's just say to double the cost of

Gage or double the size of Giga Shanghai

we'll take 5 billion as an example it

might be closer to 10 but let's just

roll with 5 bill right well what if we

could take that five Bill and instead of

either building a gigafactory in

Northeast Mexico or Indonesia we just go

okay fine we'll take the five bill from

China screw you China and we'll go build

it in Indonesia and Mexico right put

five here put five there so in my

opinion it doesn't it would be

convenient obviously if we could double

the factory production over at Giga

Shanghai because you have Supply chains

around Giga Shanghai it would be a lot

easier to move more Vehicles out of Giga

Shanghai because all the infrastructure

is already there right

but eventually I think China will come

to its senses and go all right all right

we'll put some parameters on we'll

negotiate something whatever we'll let

you continue expanding because the

reality is we need people working and

our GDP is suffering and you're right

Tesla you're just going to end up going

to a different country so we may as well

have you here my thesis although China

could have a bias towards their own

manufacturers like byd or Neo especially

after these angry protests following

Tesla price cuts that we covered the

other day

Chinese aren't that very happy but then

again I I'm also shocked that people are

actually like really buying new cars

going into a recession but but then

again not everybody in the world watches

my videos and and that's why I'm I'm not

so surprised that people are still

buying Teslas uh at this time or any

vehicles I don't think you should be

buying any car right now I think you

should try to minimize their expenses

and maximize your Investments but again

I know that might sound counterintuitive

because it's like Kevin but you invest

in Tesla why would you tell people not

to buy Teslas well because I want you to

build wealth a I'm not your financial

advisor right I am a financial advisor

but I want you to build wealth and I

don't think the entire world watches my

videos that would be very flattering if

I could have an impact like that on the

whole world but I don't think I do okay

anyway so

that's a China situation in my opinion

it's it's slightly negative news right

it opens up the doors to other things

but but this China tension

is frustrating it's it's frustrating

because I I actually do see a really

good opportunity for Star Lincoln Teslas

in the future and I'd like Shanghai to

be able to be expanded but we again

still have six months before this

project was expected to break ground so

there's still time for things to be

negotiated and I would guess they'll end

up figuring it out so I'm cautiously

optimistic here

unfortunately though

in a weird twist Elon is now casting

doubt although there could be a reason

for this on the Indonesia deal so you've

got a tweet here Tesla's close to

reaching a preliminary deal to build a

factory in Indonesia we actually covered

the story yesterday and what did Elon

Musk reply please be cautious about

writing articles citing unnamed sources

as they are frequently false now I find

this very interesting because Elon Musk

in his latest Twitter spaces call

suggested that they were getting close

to announcing the location of the next

gigafactory he he specifically said

Factory not factories so in my opinion

what Elon Musk is potentially doing is

negotiating the build out obviously his

team's probably doing this whatever with

Indonesia and Northeast Mexico

and if somebody writes an article saying

oh Tesla's close to signing the deal

with Indonesia maybe the Mexican

authorities or whomever's negotiating

with Elon Musk might get discouraged and

you could actually have these articles

screw up negotiations I mean that's just

the nature of the press you can't blame

the press for putting this information

out there because

it could be true that Tesla is close to

signing but maybe Elon Musk is

countering here because he doesn't want

sort of negotiating clout to be uh

hampered because at the same time you

could also have Indonesia throw you know

kind of in the towel of more concessions

by suggesting oh deals close to done all

right sounds good guess we don't have to

give you any more Elon right it could

actually piss off his notification or

his negotiations now

Reuters actually interviewed a senior

Indonesian Ministry official who said

that talks are still ongoing so kind of

countering the Elon Claim about being

careful about this when Indonesia is

like yep we're definitely still in talks

Deal's not done yet but we're definitely

in talks interesting so kind of

confirming it from the Indonesian side

right where elon's kind of throwing cold

water on this uh but the individual

declined further details citing their

non-disclosure agreement how interesting

okay another thing that's worth noting

is uh EV demand and I this is really

incredible because we we are in a

recessionary time there's no doubt about

that uh it's very difficult to suggest

that we're not in a recession because as

soon as you suggest we're not in a

recession really I think you're we're

kidding ourselves because you're just

waiting for the Bureau of uh the

National Bureau of economic statistics

to actually come out and say we're in a

recession uh but then again by the time

they actually declare when a recession

it's too late right but what's

remarkable is in this recessionary time

what do we have here look at this

estimated and projected EV growth found

this on Twitter somewhere but this is a

Bloomberg uh nef that's like their

economics Department uh and their

environment Department economic

environment Department I like to call it

but anyway they generally do incredible

research and Bloomberg nef is suggesting

that electric vehicles uh throughout the

rest throughout the world will grow from

a 10.3 million unit Market in 2022 to

13.6 in 2023 that's 32 growth with what

looks like uh and I'm just kind of

ballparking this here with about 20

percent of that growth in North America

maybe about 25 in Europe probably closer

to about 50 percent of that entire

bundle there in China which oftentimes

are less expensive or lower priced

vehicles

and you get the rest of the world up

there pretty small but anyway generally

North America Europe China being the big

consumers here but it's remarkable that

in this sort of recessionary time we

could see this sort of EV growth it's

actually very encouraging in my opinion

for the EV sector and I think soon EVS

will start behaving much like the chips

where the chips are coming in like

Taiwan semiconductors this morning with

uh with you know bad numbers not that

great numbers and the stocks are

actually rallying on not so great

numbers because it's not as bad as

thought it's kind of remarkable

anyway there you have it on Tesla thank

you so very much for watching and we'll

see you in the next one thanks so much

goodbye