Holy Sh*t Tesla Stock.

you're saying the margin is going to be

bigger

70 of Tesla owners don't even know about

your shows thank you so much

hey everyone here wow I have to say

going to the shareholder meeting was a

whole lot better than I expected now I

expected to meet people and have a great

time and I was blown away by the amount

of people were coming up shaking my

hands saying I'm a course member you've

helped me so much thank you so much you

and your course helped me get a job love

your shows thank you so much so many

nice and friendly people it didn't have

to be that nice didn't have to come up

seriously the Tesla Community is

absolutely amazing so first and foremost

shout out to the Tesla community and

well all the people who work for Tesla

now when it comes to the groundbreaking

Shockers that we got out of the

shareholder meeting well there were

quite a few and I think first and

foremost and it's an honor to be able to

say that Elon Musk is not stepping down

a CEO and even though I think the

company will be just fine without Elon

musk's CEO we did just get JV from

Redwood materials battery recycling

company back on Tesla board which is

great I think that Tesla still needs

Elon at this point mostly because even

though it feels like the car company is

mature and it could really continue

going on the product development much

like the iPad the lineup is already

built as Steve Jobs said as he was in

this final months we've got four or five

years of products lined up I think

that's true of the next few models of

vehicles for Teslas whether that's cyber

truck and then maybe Robo taxi

potentially that model too that was

teased I think that second vehicle

because they mentioned they're working

on two vehicles one I think is the model

two the second I think looks a little

bit more like a box fan I think that'll

be the robo taxi uh but anyway whether

it's those or it's uh the Roadster or

maybe even something else after that not

even considering the semi which is

already up I think that road map is

already set 4680 is already set all of

that so all that is already said Elon

though is Mission critical for not only

making this artificial intelligence as

solid as possible not just for FSD but

for

the robot the Optimus robot I want to

play some clips here of what happened

with the Optimus robot because we saw

footage of the Optimus that we actually

haven't seen before because as Elon said

it was well filmed yesterday but let's

just say at least for the footage which

wasn't a live demonstration so who knows

it could have taken 20 takes to get

these shots

the robots actually look like they're

able to start doing functional things

like opening every single finger

individually or manipulating something

into a narrow box and moving their wrist

to take their hand back out suppress it

and while there's a long way to go

that's the part of the vision that I

think Elon is actually going to be

really critical of it's a next level of

visionary or visionariness or

envisioning whatever uh and the next

level of integrating artificial

intelligence with well things we need

like robots which what was really

remarkable was this idea that

we might have 10 to 20 billion humanoid

robots in the future Elon suggested

potentially one two two robots per

person and I thought that was really

incredible because initially I thought

to myself okay yeah you know we'll count

robots in tens of millions like we'll

count cars you know we manufacture as a

globe somewhere around 80 and sell

around 80 million Vehicles a year well

it's possible that I mean if you're if

you're looking at 10 billion humanoid

robots over a 10-year period That's 1

billion humanoid robots per year which

means if Tesla wants to have say a 25

market share of cars or 20 market share

cars a 20 market share of robots would

be 200 million robots and that's just 20

now those are obviously extremely

optimistic bullish hoping big you cannot

invest in the stock because of that kind

of opium

but I think that is why you still want

Elon at Tesla it's because you want the

growth to continue at Tesla when you do

projections fundamental analysis on a

company you want to project out what is

the earnings per share growth going to

be over the next five years and then

beyond because you don't want to get to

the end of five years and then drop off

to five percent growth and be a nominal

Growth Company you want the next s-curve

to be there and this is what Elon is

providing the max S curve so really

great to hear that he's not stepping

down next thing that obviously we have

to talk about is advertising let's go

ahead and play the clip on

Advertising I'm going to make one little

cut for compliance reasons because I

cannot mention the name of a certain

products that I have of course you can

learn everything about me on the

internet just Google it but before we

talk about my opinions on Advertising I

gotta insert off course an ad and yeah

it's from the financial times here you

go any of you like to know where does

Kevin read his news and I personally

love the financial times I get the paper

edition of the financial times I read

them online and on my iPad but not only

that check this out this is the

financial times ft edit app and they

have paid to promote this app in my

video today so thank you to the

award-winning journalists at the

financial times and the team at the

financial times I think this app is a

phenomenal product you can get 30 days

totally for free by using the link down

below and here's how it works they

basically give you eight of the day's

top stories and they sort them by date

so if I want to know about Tesla's

resale values on Tuesday March 28th I

can do that and the story stays there

which is great because one of the

reasons I like the paper is because the

stories don't change on that day whereas

on the regular website it feels like the

stories are always changing and I'm

missing stuff right the cool thing

though is let's say I missed yesterday's

fan Financial Times edit watch this I

could just go to Monday March 27th boom

click on the 27th and what happens I can

read about big Tech facing a reckoning

over a Teen Health crisis or who's this

Alvin Brad guy or maybe I want to learn

about Jay and Janet and how even though

Jerome Powell is supposed to be

politically independent from politics

and the Biden Administration he has to

align with Janet Yellen via pressure but

she has to align with Joe Biden now

that's just an example of information

that I learned directly from the Ft edit

app that even though drum Powell is

supposed to be independent he has to

politically align with the political

party that's in control to send the same

message on financial stability so in my

opinion the Ft edit app is a fantastic

way to simplify the way that you get

news and if you don't have enough time

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bookmark the story so click the link in

the description link down below receive

a 30-day trial via the Apple app store

iOS and iPad terms and conditions apply

hey Elon meet Kevin here hey how's it

going good thanks so uh Tesla is the

largest position I'm curious I really

think that some of the features that you

highlighted here like the uh

over-the-air airbag deployments of

improving the features the safety

features are great things that we could

be advertising for I know you've heard

this many before I know you have but no

no no sorry go ahead go ahead yeah 525

bucks off every car this year is half a

Netflix's advertising budget thousand

bucks is the entire Netflix advertising

budget and I see their ads everywhere

why not advertise these things that you

told us here I feel like nobody else

knows about this I just talked to Gordo

the Tesla bear and he's still talking

about 2016 New York Times pieces these

people are in the past man that's like

seven years ago at this point yeah

that's what I'm saying yeah it's

actually I talk to a lot of people and

they still think that like Teslas are

like super expensive and like no

actually the starting price for a Tesla

is below the average auto price in the

US

that's like

and that's a good thing

I mean I think it's it's it's good that

it's that way you know like which our

goal was always to make cars that are

affordable to the general public

um so

so I I hear you I mean I think

um and it's indeed ironic that you know

what Twitter is like highly dependent on

Advertising so um you know here I am

it's like uh you know not never use

advertising really before and uh now uh

have a company that's highly dependent

on Advertising so

um I I guess I should say advertising is

awesome and everyone should do it

but but I I I think I I hear your your

uh sort of logical point which is that

um there are amazing features and

functionality about Teslas that people

just don't know about and and although

there's there's obviously a lot of

people that follow like say the Tesla

account and and the uh you know my

account whatever on Twitter

um uh to some degree it is preaching to

the choir and the choir is already

convinced

um so I think what you're saying

um does does have some merits I I

believe in taking taking suggestions so

um we'll we'll try a little advertising

and see how it goes

okay okay

foreign

I wasn't expecting that level of

enthusiasm

but uh okay it sounds like our

shareholders

if I read between the lines

subtle as it is are saying we should

probably do some advertising okay very

well all right so obviously it is a

total honor to have Elon be excited

about the potential of trying

advertising and I'm very excited that a

I had the opportunity to ask the

question but B I'm also very excited for

the Tesla community and really everybody

a part of it because I think everybody

wins uh in fact I'll give you an example

of what I think

a good Tesla ad would look like yeah

I'll give you a framework for it in this

video and then maybe in a future video

we'll try to simulate one but I'll give

you some ideas that we talked about but

first I think it's useful to get my

reaction briefly after the questions

ended by giving you part of a clip uh

with uh with an interview with Ellie in

space check out her Channel on YouTube

she does interviews covers a lot of

things Tesla well I'm super happy

because uh really it's it's the owners

it's the shareholders it's everyone

because the better the company does all

of those existing car owners hey more

updates for them because here's the

thing Tesla will see we're advertising

about all we're doing for our existing

owners that's going to encourage more

people to buy right so it helps in both

directions you know and then of course

it helps existing shareholders

everything so now I want to respond to

some other arguments that people have

made about advertising that oh well you

know advertising doesn't matter it's

just you know short term shareholders

that care about advertising I actually

think that it's completely wrong I

believe that the more Tesla can convince

the World by simply informing them

earlier that Tesla is safer and Tesla is

better in the features that it has and

the value that it provides to Consumer

the consumer then what you're actually

doing is you're multiplying the Tesla

end game so if you're at 1.9 million

vehicles of production now and you say

oh well it doesn't matter we're selling

every car we make anyway oh oh just

short-term you know stock speculators

want Elon to advertise that's wrong

because the longer it takes for Tesla to

share their message the more time there

is for other companies in the longer

term to compete right now we as Tesla

shareholders obviously I'm a Tesla

shareholder we know that Tesla has a

massive moat the people who are familiar

with full self-driving know that Tesla

has a massive moat that will deteriorate

over time in other words it will be a

lot easier for other companies now to

get from zero percent to ninety percent

FSD while we're at 95 percent slowly

getting to 96 and 97 but we want to brag

about that lead now because it actually

gets more people into the network sooner

which in the end game could potentially

increase your terminal expected value

Vehicles produced per year so Elon has a

goal of producing 20 million vehicles

per year as a terminal value now this is

important for anybody doing financial

analysis in terms of a discounted cash

flow obviously but even just practically

the jargon aside think about it

if you get more people into the iPhone

in 2007 you sell more iPhones in 2013 14

15 16. so in other words if you had 20

extra people who adopted the iPhone in

07 when it first came out your Tam would

likely be substantially larger in 13 and

14 because you'd be so far ahead of the

game you'd have more money for more r d

you'd have larger margin you'd have

larger pricing power you'd essentially

reach almost this a point at this point

of an escape velocity lead and I don't

think that Tesla should assume that

everybody knows what Tesla is doing

here's a discussion I briefly had but

I'll give you a few examples and then

I'll come up with an ad example too

here's the discussion I had with soft as

I was leaving the Tesla event and I

argued that people don't even know about

this new caller Tesla has the maroon

take a look at that discussion even in

the Tesla Community people do not know

about that color yeah guaranteed I

guarantee 70 of Tesla owners don't even

know about that color

yeah so I mean or someone was tweeting

at me today I posted a picture of this

like is that from Berlin yeah yeah yeah

it's here it's available here's another

one take a look at this clip where I was

standing in front of the Cyber truck and

I asked huh what did Elon mean when he

says this is an exoskeleton car and cars

are generally built with an endoskeleton

I understand from a human point of view

the difference of that or or you know

human endoskeleton or think of maybe

some kind of reptile or whatever which

is more exoskeleton uh so now

from a car point of view does that mean

there's no frame on the inside I mean

obviously there have to be axles so what

we decided to do was get somebody on the

phone who actually tears these vehicles

apart and ask them the question and so

here's what Sandy Monroe had to say

specifically about that Elon said that

the Cyber truck is an exoskeleton build

whereas most cars are endoskeleton

doesn't this thing have a frame on the

inside like what's the scoopier

money inside it's an exoskeleton

there's there's no frame inside

means that

that he owns there's no bones inside

it's only the outside skin that's an

exoskeleton so you're saying the margin

is going to be bigger

that's all I talk about

ah okay and yes the margin is bigger

it's bigger because you only have to

form one one chunk of Steel

um whereas uh the other guys have to

have an inner and outer uh structure the

inner structure is uh what would they

call black metal any outer structure is

called

um body and white so there you go so now

when you walk all of this back you

realize huh that's interesting Kevin I

didn't know about the maroon color I

didn't know about that exoskeleton I

didn't know XYZ about the capabilities

of full self-driving I didn't I

personally this is I'm making those as

examples because I knew some of these

things but what I didn't know was that

my dad who drives my black ax uh

you like my black X

good

what I didn't know is that Elon and the

team at Tesla are continuously improving

airbag deployment and emergency braking

with software by analyzing accidents and

then over the air updating the safety

features of that vehicle there is not a

single car manufacturer that I'm aware

of that does that you have to buy the

next model to get the next safety

features I mean how many times do you

look for a new car and then you think oh

what safety features does it have well

what if it was just safety yes and

whatever new features came out they just

sort of opted in that's fantastic even

if the features are you know potentially

seemingly nominal if it means you're in

capacity well obviously dead or not dead

that's a big deal but out of work for

six weeks after an accident or walking

away from an accident

those are huge and the economic value of

that is also very important you know

sometimes people are like oh Evan well

when a hurricane comes through that's

good for the economy right because it

means people are rebuilding homes that's

actually raw because what you're doing

is you're robbing that potential

spending power on something else so

you're robbing the economy yes money is

being spent but money is essentially

being lost to be spent that is problem

because now people are being more

productive with their money so anyway

they're going on an economic tangent

here we can debate that in the comments

so let's think about an example of an ad

now before we talk about what kind of

examples of ads Tesla should operate we

need I'm sorry another ad but this one's

for me it's just to remind you that I've

got amazing programs on building your

wealth link down below as you've seen

many people came up and said thank you

for the value you provide that's my goal

long time supporter course members thank

you so much for being a member if I

could provide more value we all win and

I really believe that course members get

some remarkable value you want to learn

5 mental analysis come on in you want to

learn about real estate fundamentals

come on in you want to learn about AI

productivity come on in we'd love to

have you so go to the link down below

thanks so much I personally think and

it's a discussion we had that Elon

should be thinking and he said himself

he wants an ad that's informative well

an ad that's informative something like

what Ryan Reynolds used to do with mint

mobile before he sold it to T-Mobile

which the irony of that is mint mobile

was really just a way to sell people

T-Mobile at a cheaper price because they

use the same network technically

T-Mobile folks got prioritization but it

was the same network if at 15 bucks a

month versus 70 bucks a month it's

brilliant but anyway picture of Ryan

Reynolds style ad and it's just Ryan

Reynolds and hey did you know full

self-driving could do this

yeah that's a Tesla the car doesn't care

about your politics it cares about your

safety and it's watching from X number

cameras this that whatever something

super simple short and sweet like that

15 seconds 30 seconds from different

actors or just use Ryan Reynolds

exclusively I mean if he's done with mid

mobile maybe you can now move on to

Tesla and help them out there's some

massive opportunities to now go from

this to safety stats to FSD stats how

FSD is 2.4 times safer than a regular

driver in a certain circumstance or

night driving or rain driving whatever

the various different stats or this

airbag stat that we talked about or hey

did you know the price of a Tesla now

was actually only 39 900 or whatever

right A lot of people as Elon himself

said aren't even aware the cars have

become this affordable or how about this

screenshot which was literally me taking

a picture of the slide at the event

which showed that the total cost of

ownership of a Tesla is comparable to

that of a Toyota

Corolla was it Corolla or Camry does

anybody remember I think it was Corolla

anyway Corolla is the entry-level

version of the Camry another really

phenomenal thing that I saw which is

unique to being an event in person

listen to what I say about Robin and the

head of the board of directors the

director of the board of directors this

was actually something you just can't

experience when you're not somewhere in

person and it's really magical it's it's

pretty powerful listen to this clip from

the alien space interview when somebody

had the shareholder proposal on Cobalt

and he's like

you know what we'll do it yeah and we'll

do an audit and what was remarkable was

I looked at the director of the board

Robin and I saw her reaction was kind of

like here goes Elon again and I'm like

this is so cool I'm seeing in real time

the sort of dissension between like

there's Elon saying stuff and now we

gotta clean it up you know right that

was awesome you know something else that

was remarkable about the event was this

idea then

the more people apply for a company

the more desirable the company is

potentially to work for and the idea is

that the more people apply the more

competitive it is to get into the

company and the more Talent actually

ends up at the company and if the best

talent regularly goes to the best

companies that it will always be the

best companies that end up innovating

the most and the best the most cost

effectively

and ultimately provide the best

shareholder value

the fact that they received 3.6 million

job applications is phenomenal because

think about it even if they wanted and

that was in 2022 even if they wanted to

hire their entire staff again they have

about 126

000 employees think about that 3.6

million applications divided by their

entire staff of 126 000 they received

28.5 times as many applications as they

actually have jobs now imagine available

jobs it's remarkable really interesting

argument one I haven't thought of before

this uh 48 volt architecture part about

saving and spending you know one-fourth

of the uh money on Copper for wiring for

cars probably I would say here on the

relatively insignificant side from a

margin point of view we're not really

going to see that end up in margin but

it's not wrong copper is a form of a

precious metal uh and this is good I

mean this is why European countries

generally well one of the reasons use a

240 volt architecture as opposed to the

120 or some people say 110 that we use

in our homes because you could use

thinner wiring so less copper so it's

not wrong interesting love the idea

about FSD beta growing exponentially

that the curve of adoption was going to

look like a wall I think Dave Faber from

his CNBC interview with Elon Musk

afterwards did hit on something that I

was skeptical about myself and we'll

play that clip but this idea that the

value of the car would 5x overnight

after essentially becoming a robo taxi

and elon's using this rough math of oh

well if you use your car seven hours a

week typically and we can now use it you

know 35 hours a week because of Robo

taxi okay now it's worth five times as

much or whatever the the value of a

fully autonomous fully autonomous car is

we think perhaps uh five times more

valuable than a non-autonomous car why

okay I I'm not convinced on that uh so

so we'll see uh because it makes you

wonder when are you ever going to

actually have to own a car and does that

then commoditize the value of a car does

that reduce what you could sell a car

for does it reduce your margin we're not

sure who the beneficiary is yet of Robo

taxi so I don't include it in any of my

formulas it's it's we're not even there

yet let's get through the next difficult

12 months which Elon Musk told us the

next 12 months would be difficult so

let's get through the next difficult 12

months and buy the dip as he says when

the opportunity comes and if you make it

out of this he's right Tesla will emerge

stronger that is the case of every

recession a recession is a weeding

opportunity you weed out the talent that

isn't actually Talent your company is

forced to become more efficient and less

complacent and then when you come out

you're uh more mature worked out

companies so to speak

so we heard about this idea potentially

of in the future the Roadster will have

a starling package I don't think we're

going anywhere on the Roadster anytime

soon sorry I won't want to it's not

coming anytime soon the model S plaid is

great but jetpack Roadster it's gonna be

a while I honestly don't think until

past 2030 it's just not going to be a

priority

the energy storage segment growing

faster than Automotive this is presently

true I would have loved a little bit of

a sort of a Elon a projection on what

kind of sustainable growth rate but we

could speculate on that whether it's 60

70 80 percent 50 however but it is more

than the automotive growth I think

there's also some potential to integrate

uh some form of artificial intelligence

chat bot at basically next to zero cost

for chat GPD or Bard or whatever into

the voice commands of a Tesla I think

that would be quite useful because I

think there's a lot of frustration

around the quality of uh voice chat but

generally that's always the case I feel

the same way about Siri

I would obviously love to see apple

carplay in the Tesla I don't think

that's ever going to happen GM is

actually they've got it in their cars

now they're taking it out of some of

their new cars kind of remarkable I

looked up

by a Bard actually uh what the cost is

for a manufacturer to include

Apple carplay in the car and as long as

you have the equipment there really

isn't an extra cost uh with the

exception of programming it and making

sure it operates and coordinates with

your system so I still think there's a

potential missed opportunity there just

because there's so much of an ease of

integration but I understand reading off

your calendar coordinating with FSD is

probably a lot more complicated than we

think but bottom line out of all of this

I think this was a phenomenal

presentation we know the next macro

cycle is going to be difficult when it

comes to interest rates somebody asked

oh why don't we do 10-year car loans

because cars generally don't keep their

value that long Elon said well you have

to resell these loans it's called

securitizing these loans which is you

bundle them up and you sell little bonds

of them nobody wants to hold a 30-year

Bond on cars because those cars are

gonna be worthless in 30 years that's

why it works on houses not on cars but

it's probably a good thing for

affordable ability anyway otherwise

people will stretch their payments

ridiculously and never build wealth

which is bad

not a big fan of buying cars

but I do think that when the Federal

Reserve begins cutting interest rates

margins will Skyrocket uh Tesla I mean

there's no question about that I mean

the entire Market should ride up but

think about it Tesla's subsidizing a lot

of their rates right now down to 3.9 and

you know what most people probably

weren't aware of that Hey where's Ryan

Reynolds on TV hey it's Ryan Reynolds

did you know that Tesla will let you

finance a car with full self-driving for

a 3.9 interest rate

for five six seven years whatever you

want

yeah I didn't either

and that's it just added little Clips

like that little 15 seconds but it's got

to be Riot it could be in this little in

front of his green screen background you

don't even have to do much work I think

there's so much phenomenal value you can

provide and see none of that is it's

none of it is clickbaity none of it is

is like trying to sell you on music or

cars rolling down the road it's just

valuable information which is obviously

what I try to provide every day on the

channel and hopefully you subscribe

share the video hopefully you uh enjoyed

the benefit to all of the Tesla

community of Elon

getting on the bandwagon or the train of

actually advertising

Tesla and the amazing value and the

incredibleness of this community uh so

uh this this is a win for everyone thank

you so much for watching thank you to

all those people again who came up and

shook my hand here's some more of you

shout out to all of you a big shout out

also uh to uh Jose and uh Sammy y'all

amazing thank you so much uh for the

plus ones yell Rock uh Christian I had a

great time and uh look forward to being

at Future meetings Martin at investor

relations you're amazing too we'll see

you all soon thanks