Hey everyone kevin here: let's talk about what elon musk just said and boy, oh boy, he said a lot. Uh still don't have my studio complete, but oh well, let's just get right into it and i kind of flowed everything so we'll just go through the flow chart together. Uh do keep in mind that the coupon code, cyberkevin and anna of the cyber rodeo does expire today on lifetime access of those programs. I'm building your wealth lifetime access to kevin on those morning live streams and updates, as they come out in the future to those programs at no extra charge.

All right, let's get into it so uh in the introduction they talked about. Regulatory credits would have declined. Had it not been for a change in in this tax law that came out uh this not too much of a surprise, i'm more focused on margin going to 30 without the tax credits and the fact that margin went up. Another 800 basis points on gross automotive margin, despite tax credits really really incredible.

Uh, they do notice that individuals are starting to have a preference for the model y over the over the model 3, which leads to a higher average selling price. I personally take complete credit for this after my tesla review video suggesting that people should totally buy the model y over any of the other cars kidding. Obviously, but i i actually totally agree with that. I think the y is a phenomenal car uh.

They talk about how they basically have zero debt other than product financing uh. You know, i, i think that's a nice pitch and i don't think they're wrong about that, but like when i look at their balance sheet, i'm like okay. Well, if i you know, add up inventory and cash and accounts receivable, assuming you'll actually receive those adds up to about 24 bill right. We've got about 30.6 bill in current liabilities.

Uh, i'm sorry! Current liabilities are around 21.4, so more than cover that, but about 30.6. In long-term liabilities, but hey you know what they're being creative about that remember: earnings calls are usually an opportunity for them to sort of sell the future as well. So always remember that uh, so 50 growth rate remains achievable, but what elon musk talks about is even better than that so elon gets on and he talks about how shanghai has been leading to significant challenges. But we're already back up and running in shanghai and we have a reasonable shot at a 60 year-over-year increase this year.

Elon musk is targeting one and a half million units of vehicles or produced this year produced and delivered. Last year. In 2021, we delivered 936 000.. 1.5 million would represent an increase of about 60.2 percent.

Absolutely incredible! If we can hit this, he talks about how uh, basically, what you want to expect is that uh quarter two for tesla the quarter. We're in right now that we've already been in for uh about three weeks here is uh, is, is going to be pretty much on par in terms of expectations and deliveries, but really q3 and q4 are where things are going to get explosive for tesla. So, in other words, now's the time to be in tesla stuck to prepare for q3, queen 4. uh.

So then, we've got uh expect the to ramp initially for giga, berlin and giga, texas and uh, and then that exponential towards the end of the year, he is very excited about uh, announcing formally at a robo taxi event, the robo taxi, which will have no steering Wheel no pedals and will be fully optimized for robo taxi. He suggests that this would be the lowest cost per mile vehicle ever that has existed and potentially even cheaper than buses and subways. That was pretty incredible that he mentioned that, given how subways are so inexpensive, though in new york, people are now complaining about the fact that uh you, you have uh uh, there's the pizza cost index, where basically, the cost of a subway ticket has always been less Uh than or or par with, the cost of, a slice of pizza but uh now subway costs are being limited and pizza costs have gotten more expensive due to inflation and the government's artificially keeping subway costs low, and so, if elon can compete with even subsidized low Subway costs man, that's pretty juicy uh anyway, uh also, he believes the robo taxi will be a very powerful product and quote aspires to reach volume production by 2024. That's insane! That's way sooner than i thought volume production on robo taxi by 2024.

Worth noting, we didn't hear anything about twitter in this earnings call. I mean it makes sense. This is not a twitter earnings call, but i thought people might take the opportunity to ambush elon. Maybe they tried and they purposefully just didn't answer those questions or ask those.

You know let those people ask the questions, cyber truck on a track for 2023 and then optimus for 2025, confident about exceeding 50 growth per year over the next several years. Netflix can't say that they're trying to hit 10 percent per year over the next five years. I mean what a difference there. People make fun of tesla's multiple uh, but but it's because there's so much freaking growth at tesla and, more importantly, they're hitting it.

That's so important, they're actually hitting those growth numbers, and so hopefully, tesla continues to, but we'll talk about some limiting factors in a moment. Elon said that literally he said those who carefully listen will understand that the optimus will be worth more than the car business. That's my firm belief. That's the robot right, the robot that could potentially in the future, be essentially this humanoid that they could do whatever you want for you collapse boxes, amazon boxes, work in a factory for you push a button for you.

Do the laundry for you! The dishes for you clean your house - i don't know - maybe even other things that you can imagine that's what elon tells us that it'll do anything. We can imagine all right, so maybe we'll get robo uteruses for those who can't carry children anyway, elon fsd uh, so uh. This is something that's come up a lot about uh in the past we've we've heard elon talk about this, how it's all about solving real world intelligence he's really excited about this, though, and does believe that uh there'll be wider access for everybody in he suggests that Everybody joined the beta program, which i was really annoyed by because i'm like dude i've had a hundred safety score for like four months now, and i'm sitting here twiddling my thumbs waiting for my invite and i still don't have it and he's like. Oh yeah just join the beta program and try it out and you'll see how great fsd is becoming, and it's like been trying to thanks elon.

Anyway, i got about a 100 000 individuals on on the uh fsd now, which is up from the 60 000. We previously had q2 production on par. That's what we talked about: q34, substantially higher uh 10 to 15 percent exposure to increases in raw material costs. I'm not going to read all of this here, but they basically talk a bit about how they have contracts with commodities.

Companies, some of them that are long-term contracts, so they don't immediately get hit by these price increases like when nickel gets more expensive. They don't necessarily experience the increases of those costs right away, but sometimes they have contracts that actually are tied to spot, and so what they're trying to do is raise the price of their cars so that when they get hit with the burden of higher costs, they're Already selling the cars at higher prices, so for tesla, some of the costs haven't gone up today, but will in six to 12 months. Well, the cars they're selling right now are cars that are going to be delivered in six to 12 months and so they're. Raising the price of cars now and they're, hoping they don't have to raise prices again.

So they say, though, they've said that before and then they've raised prices uh, they were asked about going to a 100 volt, a platform for electric vehicles and they basically said look for the model 3 and s uh, model 3 and y, rather not worth it. Maybe over the life of the car, it's a 100 difference in in efficiency, not really worth it. It's kind of, like europe, uses 240 volt uh electrical systems in our homes and and uh. Here in america, we use 120.

uh. There are differences when you get to higher amperage requirements, which would be because, obviously, the more voltage you have, the uh the easier it is to run higher amperage devices with less heat and uh smaller cabling, but uh higher voltages. Allow you to do that, but uh otherwise, for for nominal things like even in our homes or in our cars, not necessary. Maybe a higher voltage system will make sense for the cyber truck and semi, but not something they're.

Looking at right now for the robo taxi, they say: there's literally zero benefit on this 4680 expectation versus reality. Now they didn't actually answer the expectation versus reality question. I thought it would be great if they did, but they basically talked about how it's so much cheaper. For them to manufacture the 4680s that it's actually five times less expensive in capital expenses to build the factory, and then personnel is five times less expensive to make the 4680 structural battery pack, because it's so freaking efficient.

How they've made this factory compared to the old 2170 cell? That's crazy, because that means you actually have a a better battery at a substantially lower cost. That's really really exciting berlin's starting with the 2170s and we're going to transition over to the 4680s later this year. Sorry all right so then uh raw material sourcing. They think a lot about this.

They think the issues are really going to come in into play, starting in 2023 uh and certainly once we get to 5 10 20 million vehicles of production. That's when you really have issues with the macro of uh raw materials, now elon says that we're thinking about these and have been and have some exciting announcements coming in the next few months. There was a lot of alluding to them, basically getting into the business where they think that other people are not getting into the business quickly enough. Something that i thought was really cool too is elon, says we're going to need to help the industry in this field and raw materials, especially in lithium, and he actually encourages entrepreneurs to get into the lithium business.

He says the lithium margins are basically like software margins. Right now, and then elon says quote: do you like minting money? Well, if so, the lithium business is for you, which was pretty pretty crazy now later on in the earnings call, though they did mention uh, that they expect a lot of lithium production to come online within the next one to two years. So i thought that was quite interesting, so uh going back, uh sort of in order of the call here that was raw materials, the raw materials section. They talked a little bit about casting what i thought was really funny.

Is they talked about how they might be able to recycle cast aluminum wheels from legacy. Cars that are are basically junked, throw that into a big melting pot and then use that cast aluminum. Uh scrap basically and cast their vehicles with it. Like the model, three is made from uh two well, two-thirds of the model.

Three shell, basically is made from two big casts put together, which is really really neat. In fact, in the uh tesla earnings call, we went through this here's an example of how they took 171 different pieces and turned it into just two pieces, really really cool so uh. Then we've got a production in shanghai, cheaper than the us, probably because of labor. Usually they have short notice when they have part shortages but they're doing their best.

They call it a herculean effort, they say the current numbers of inflation understate the inflation. That's actually happening uh throughout the world, so they think inflation is a lot higher than it really is, and i think everybody kind of agrees with them, like the numbers that we get from the government are like yeah, okay, whatever uh cyber truck will probably have 20 To 30 percent less parts than the other cars - that's crazy, i mean we know already. It's not gon na have door handles, just as an example. Uh talk a little bit about how it takes one to two years to bring a lithium mine online and really in 2030.

Then sure there'll be a moment in 2023, where it's like: okay yeah. We really got to step it up, but really 20 30 is when they're thinking. That's when you're really going to hit those limiting factors for lithium production for that cathode in those batteries they were asked about bringing chargers to people outside the network, and they said it's tough in the u.s right now, because we have different connectors in the us than We do in europe uh, but it's a consideration, but they also don't want to increase wait times for existing tesla customers, even though it could be a good opportunity to bring sort of people into the tesla network. They touch also on insurance they're, trying to get insurance to about 80 insurance availability by the end of the year.

A nice quote they had is they want to turn the insurance process from a nightmare into a dream and the reason they say that is, i think it's terrible you get into an accident, you talk to a claims, adjuster and you get assigned to one. Then you have to go, get an estimate from like random body, repair, shops and and like then, there's all this negotiating with the claims adjuster in terms of what they'll pay and what they won't pay and the process is basically a nightmare and they're like well. If, if people are at tesla, they like, we underwrite the policy, we take the risk of the policy. We could literally see what happened in the accident because, while they have the cameras, which is also kind of creepy, like big brotherish but uh, i think that's what you sign up for with tesla insurance and uh, and then they can basically directly just loop.

You into their uh network of collision repair companies that either tesla owns or contracts to and trains, and this makes the process a lot simpler. Now i don't want to come across as suggesting that tesla, like deny your insurance claim, if let's say you're texting driving and you you drive into a pole or something uh who knows that could be a possibility in the future, but i don't believe that's the case. Uh right now, but but it is kind of interesting how they were alluding to like yeah. We could see what caused the accident i'm like.

Can you so anyway, look bottom line out of all this, i'm very very excited uh. I agree that not only copy and pasting the gigafactory model to getting to maybe 100 gigafactories at some point in the long future. You know 20, 30 years out, uh, probably 10 within the next uh. You know a few years.

I would hope, we'll be able to copy and paste a 10 gigafactory soon the robo taxi event coming up the optimus scaling the optimus. I could not be more excited with tesla uh honestly, like every time i study more about tesla versus other companies, i'm like. Why do i bother with other companies like tesla tesla, all right folks check out the programs link down below i'm building your long term wealth especially get prepared for the real estate market? Make sure you take advantage of that beautiful coupon code expiring today, 4 20 and folks we'll see in the next one thanks goodbye.