The Tesla Model Q & MAJOR Game Changer | Daddy's Back!

This is remarkably bullish for Tesla and

it's the first institutional piece that

I've seen talk about the Model Q. Now,

there have been rumors about the Model 2

for a very long period of time, but I

have to say this piece along with what

it says about robo taxis and future

models is really bullish and as as like

an OG original day Tesla bull from the

mid2010s, which I know there were people

who beat me to it, but this is finally

actually really exciting again if it's

right. This is a Deutsche Bank piece. We

don't know that it's right, but let's

look at it. 2025 earnings preview. Hey,

okay, this part a little boring. China

slightly weaker than expectation. Yeah.

All right, we got some more Chinese

competition, but let's be real in

America when you know that's our big

market. Don't really have a lot of

competition. The more tariffs there are,

the more we incentivize domestic

production. And guess who a domestic

production company is? Tesla. So Tesla

did also deploy less energy storage than

expectations, and the stock is probably

already pricing in the expiration of the

$7,500 tax credit at the end of

September, the expiration of the

purchased battery and solar credit

systems for homes at the end of the

year, which is different from the

expiration of the lease and power

purchase expirations, which happen in a

few years to the benefit of companies

like Sunun and the detriment of a

company like Tesla. Uh but Deutsche Bank

once they get this sort of negativity

out of the way, they get into some

really interesting stuff. They actually

see average selling prices quarter over

quarter going up to 41.6K, which is

great. So we're about to fall into the

30s. They also see upside in automotive

gross margin absent credits hopefully

coming in at 16.9 when we have earnings

on Wednesday. I'll be covering those

earnings, so I hope you're there with

me. That said, I want you to take a

specific look at this. Looking at the

rest of the year, we maintain a cautious

stance on volume, just 1.58 million,

which is another 12% decline, which also

doesn't sound great. But wait a minute,

what is this? With the timing of Model Q

roll out as the key swing factor, we now

assume only 25,000 units of production

in Q4. Wait a minute. Could this

potentially finally be that smaller,

lowerc cost $25,000 car we've all been

waiting for? Could this finally be that

smaller, lowerc cost car that the board

of directors wanted, but Elon rejected

because he wanted to go allin on

autonomy? Could this finally be a

capitulation by Elon or maybe an

alignment with the board that all right

I'll do the robo taxis you guys put that

lowerc cost car out and we'll see who

makes more money hint in the future it's

obviously going to be autonomy FSD AI

Optimus but for now this will keep a lot

of shareholders really happy and could

expand Tesla's total addressable market

again which is frankly really exciting

because for now sort of at the moment

where we are with Tesla LA. We We know

we're really excited about self-driving

cars and robo taxi, but what we're most

excited about, frankly, is being that

ambitious Tesla customer who's going to

go buy more Tesla vehicles. It's one of

the reasons when I retweeted this, many

of you agreed with me. I mean, like I I

personally I I think I'm maybe slightly

on the more critical side and therefore

I kind of get uh if you will uh

downgraded in terms of how much

engagement I'm eligible to get on X,

which which is fine. I get it, Elon. But

this has 69 retweets and 1.3,000 likes

and it's me quote tweeting this, hey,

this is exactly what we want. Tesla make

great cars and many of them. And I think

that's just because there are many

enthusiasts like you and I and and

frankly all of our kids. I mean, I got

the Cybert truck, you know, and our

kids, they love Teslas. We just we want

to be able to spend more money on

Teslas, smaller Teslas, bigger Teslas.

Just give me more Teslas that I can add

to the Tesla family for now, at least

while we work on robo taxis and the

other thing. Okay. So, with that out of

the way, and and forgive me, I I'm also

kind of like I feel like I'm talking a

mile a minute because I've I've got to

get head to the airport. uh prep the

plane. Got to take off. Got to do some

work. Uh but that's all right. I'll

handle it. But anyway, take a look at

this. Uh they already include this Model

Y long the extended version, the 6-in

longer wheelbase in uh China. They

already include that as of potentially

generating 50,000 units in Q4. Uh, and

they also expect a Model 3 Plus to come

out in September with cells that could

potentially deliver 500 miles of range.

This is incredible. This would be a

whole revision to the long range Tesla

Model 3. Really, really exciting. They

also say that prior releases of cars

like the Xiaomi uh YU7, which is the

current release, which they compared to

the SU7, uh, don't usually cause an

impact or drop in sales of the Tesla

vehicles. and current lead times for the

new YU7 are over 50 weeks. So, even

though it dropped with a lot of

enthusiasm, we're not really worried

about it. What's also interesting is

they actually say that the Model Q was

supposed to launch in the first half of

2025 and most of the ramp is now going

to occur in 2026.

Unfortunately though, mainly in China,

which I'm bummed about this part because

originally, you know, everybody's hoping

for this $25,000 car in the United

States, but there's the question that

will that be cannibalic or will that

cannibalize sales in the United States?

Maybe. Do Americans want a twodoor car?

Probably not. And in China, you've got

an extremely competitive market where a

lowerc cost Tesla in the face of all

this competition in that, you know, 30

to $40,000 range could be really good

for receding that market traction in a

really important market. Shanghai, this

is this has for years been what led

Tesla to be Tesla. the inexpensive

Chinese manufacturing and the support of

of uh the Chinese government has been

really useful uh for for Tesla. Not to

discredit the usefulness of some of the

EV credits and that over here. Obviously

losing our ZEV credits. You know, a lot

of these pain points are probably

already built into the stock. And don't

get me wrong, I'm not here to tell you

that I think the stock is cheap today.

Uh I I think we're still trading at a

little bit of a premium to where

typically I like, but it's probably

frankly because you're in an environment

that says, "Hey, we're not just looking

at earnings from cars." Now, I don't

think Wall Street is either, but I have

to say the expansion that they're about

to talk about on robo taxi here is

incredible. Uh by the way, if you missed

out on coupon code Mr. too late. Uh

there were a few of you that uh hit us

up uh as far as I'm aware that that said

that you basically just missed the

coupon code. Uh if you have any

questions or if it's not working for you

or whatever, just email us at

staff@meke.com.

I'm not trying to, you know, cut people

out here. Uh but we are going to be

raising the price uh very soon. Uh okay,

so uh look at the earnings per share. Uh

it, uh earnings per share growth is

expected at 49.6 31.2 2 31.3

and 50.6. By the way, uh probably one of

the uh better months uh right now with

um people joining the alpha report. I'm

not sure it's because you're resonating

with sort of the alerts or the

fundamental analysis we're doing or the

Trumponomics lectures we've got coming

out on the big beautiful bill or it's an

indicator of of like consumers, right?

You know, it's maybe more confidence in

markets in that right now, which is kind

of exciting to consider. But uh we're at

an average over the next four years of

40.67

EPS growth. And if I take the current

share price, let's call it 330 divided

by 1.84 divided by 40ish. Yeah, you're

trading for like a 4.4 peg. So the

market's definitely pricing in a bit of

euphoria. Although then again, it is

across the entire market right now. Like

every stock, right? So, you know, it's

like, do you want to be on the ride or

not? All right. recall Tesla launched

with a Okay, this is about robo taxi.

This is wild. So, he launched with a 20

to 10 to 20 car fleet. They actually

think Tesla, and this was really, really

bullish, is going to expand to a 1,000

vehicles within the next 6 to9 months,

expanding coverage in Austin, and

entering San Francisco by early

September, Phoenix underway, and

potentially a few cities in Miami. Whimo

currently only has 1500 vehicles on the

road, and it's targeting 3,500 by 2026.

we might have more Teslas on the road

than Whimo does. Elon also suggested

that we'll have uh better um supervision

or like tea operator support. We saw

that Ellie video where she kind of got

stuck a little bit. Some people say she

was out of the range, although maybe it

was like out of the old range and in the

new sort of like geo fence space,

whatever. Uh they also say that one of

the benefits is that they can leverage

their endto-end AI to sort of lead this

expansion which is very similar to what

I think it was Morgan Stanley said.

They're like, "Oh my gosh, Elon can

scale so much faster without LAR." Well,

duh. That's always been the point. Oh,

it was actually JP Morgan. We don't

think investors fully appreciate the

potential of the sensor parsimony as

practiced by Tesla's current robo taxi

fleet. purposely depriving vehicles of

LAR to force the vehicles to achieve a

different pace of learning. So

basically, he's making this rough

argument that maybe the AI can expand

faster, but you could also expand the

fleet faster. So when you put all of

this together, it's really no surprise

that there's enthusiasm and bullishness

around uh Tesla stock because, you know,

a lot of people don't recognize how

incredible artificial intelligence is. I

I mean really uh when we look at

artificial intelligence for example at

house hack which we've got a big AI

announcement coming up probably not

going to be today because we've got

travel now so it it might end up getting

delayed until next Saturday but in Q4 we

plan to start licensing real estate uh

AI software. We'll probably end our fund

raise before then because we think the

valuation of the company will be

substantially different when we're

actually licensing software. Think about

like FSD for real estate, right? Uh but

but we're really excited about that. Uh

and so I mean obviously we're really

excited about that but we're in a place

where we look at this and go wow you

know there like this AI revolution.

Remember the two OG AI plays we talked

about this for years on the channel

Palunteer and Tesla. And now Tesla is

actually

very close to helping take over what

Whimo has been doing for how many years

now? I get it. You know, people like

Whimos are more expensive. That's

probably what's limiting their

expansion. They're partnering with

Toyota. So, in fairness, that's that,

you know, that is something where like

they're starting to wake up and I think

it's partially because Elon's about to

eat their lunch. And so, they're like,

"Oh, we need a manufacturing partner

ASAP because we're getting screwed

here." Um, so really this and and it's

kind of the same thing that you're

seeing with like the the Lucid Robo taxi

partnership. Remember Lucid is

partnering with a company called Neuro

uh Nuru AI which is basically just a

wrapper for Nvidia's uh drive platform.

It's not like its own proprietary LLM

like what Tesla's I shouldn't say LLM.

It own proprietary neural net would be

the better way to put it. Uh which is

amazing. So, uh, it shows you that

people are almost like desperate to

catch up. Uh, which is exciting. Again,

I'm not a fan of the valuation where it

is now. And I also still have

recessionary concerns for the market.

Uh, which I've had, you know, for about

a year now. Uh, I, you know, I don't

really let those recessionary concerns

change how I'm investing because I'm

just I'm throwing a lot into house hack.

Uh, and have thrown a lot into house

hack just because of my excitement for

artificial intelligence, uh, and what

we're doing. Um, but then again, you

know, I'm biased, right? If you wanted

to invest in house hack, read the

disclaimers and disclosures and

everything, right? Like I'm the CEO. I'm

a little biased.

That said, I mean, I'm wearing the house

hack shirt, okay? Like that's my like

vacation uh and and work shirt. It's

just house hack stuff. So, um, you know,

to me, I just look at it as what do we

do with house hack in in the sort of

like how do you reconcile that with

sessionary concerns? Well, we reconcile

it by having cash to buy homes in the

event there's an oopsy-doopsies in in

the market. I generally like the third

and fourth quarter anyway. So, we'll be

going shopping between September,

November is usually a big shopping

environment for us. You know, around

Black Friday sales. Uh and uh you know,

then we also develop our pet project of

AI at what I think is a low investment

but high ROI. And the beauty of that is

we're really in a place that says, "Hey,

there's lots of upside, very little

downside with artificial intelligence

licensing." So, we're really excited.

But, uh, the more more we work with AI,

the more we study it, the more we're

like, "Yeah, Tesla might zoom past Whimo

here pretty quickly." So, it's pretty

impressive. Uh, anyway, thanks so much

for watching. We'll see you in the next

one. Really appreciate y'all. Uh, check

out the courses if you want over at

me.com. Any issues, email us at

staffmek.com. We'll take care of you.

Thanks. Bye.

>> Why 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 goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Praath there, financial analyst

and YouTuber. Meet Kevin. Always great

to get your take.