Okay, so this was a mini disaster as Dan I put it yesterday from bed Bush Capital I'm going to put it as a strange day for Tesla shareholders and I'll explain. so Tesla missed on everything EPs and revenues every single metric and the share price dve off a cliff as we saw and in this video I'm going to explain what was good about the call, what was bad about the call and the numbers what's the meaning for Tesla going forward and what my thesis is as far as an investor Am I buying Am I selling am I holding what this whole thing means and we're going to do it objectively without. you know, oh my God the sky is falling or on the other hand, okay, this is the best thing that could have happened and spin this into really, really great earnings because I don't want to play that game and I don't want to play that game I want to give you the objective numbers I Think this is why you come to my channel. So let's start with the first thing I Think the main thing that I was looking forward in this call is FSD full set driving Update: I Wanted to see a clear schedule.

when is the finish line of this thing? We didn't get it so this was number one. The second thing that I think freaked out some of investors was that the margin compression was worse than what we anticipated in my video yesterday. I Said this is the second thing I'm going looking at is the margin compression and this was worse. worse Than all of us thought.

And again, that was the second white investors freaked out and the other thing is beyond the margins. and you know, no. FSD we did get Cyber TR schedule which was great November That's perfect and but El also mentioned the fact that the macroeconomic outlook for the auto market isn't great and with higher interest, the price of an automobile or at least the lease of an automobile becomes so expensive that demand is going to be you know, a little bit. Troublesome So with macro outlooks and high interest not being the greatest, you're looking at more price pressure for Tesla And that's important to note because from what I understand from the call, this isn't going to get resolved anytime soon.

at least not for a few quarters. So in the short term, this is what we expect from Tesla and I got to be real with you here. Number one: Further margin erosion. For sure.

that's going to continue. The second thing is further growth slowdown. That's also going to continue. if going to Less sell cars for less price per vehicle, you're going to suffer on growth and margins.

So for the short term, we're going to see a slow down of growth to 20 to 30% That's just natural now. Ultimately, I Think what drove the share price to a knee-jerk over reaction was that was absolutely self-sabotaging the call I Don't know why he was such in a shitty mood, but he really didn't come in um with a great mood for this call. and I think everybody just Dove off a cliff because of Elon having a bad day. It is what it is.

Look, I'm not going to buy or sell stock because Elan sabotaged his on call. This isn't the first time he did something like that. He's not the most, um, rational guy when it comes to these things. You know you have to take the good with the bad when you deal with.

Elon Musk Now let's talk about the meaning of this. Uh, number One, it means means that from this point on for the next 12 to 18 months Tesla has to be way more strategic and surgical. With its price cutting in the manufacturing, it has to because the margins will depend on it. Number two: the Cyber truck cramp is now more important than ever because that's the next kind of S curve they have because that demand isn't slowing down anytime soon.

Lots of pre-orders lots of demand, lots of excitement. This is the biggest category in the North America Auto Auto Market, right? The Subit truck is in the pickup trucks. That's the best category to sell in. They're going to sell a lot of cyber truck so the ramp up there is going to be very, very critical.

Number three, You have to focus on FSD We're talking about 80% gross margin licensing, lots of time, Lots of money, lots of margin is hidden in FSD So to close that is going to be very, very critical for Tesla. And now on the financial side, look Tesla is sitting on $26 billion of cash which is the mountain of cash with very little debt and they really don't have any interest exposure like other companies do. Ford and GM have lots of Interest exposure which is good. The cash flow is great.

they're going to invest a lot of money in R&D to make the cars better to cut the cost with the manufacturing process which is always good and in bad times you're going to see slowdown in the industry. But ask yourself this question right: How will it impact four and GM and all of the others? I Think Tesla out of them all will do the better. but it's still going to be a very, um, iffy kind of 12 months if you know what I mean. So the next 6 to 18 months are going to be very, very bumpy probably closer to a year now then has actually lowered his price target for Tesla to $310 which is still significantly higher than what we are right now 220 as of the making of this video.

I Don't think that you know the sky are falling and everybody just needs to chill. This wasn't the best earnings we've seen and it definitely had a lot of issues. But the sky are not falling and you know Tesla is still a great investment in my opinion. Now one of the things that impressed me the most and got really not a lot of coverage is the fact that the cost of goods per vehicle cogs per vehicle went down quite significantly over the past few quarters and you've seen that they went from $40,000 per vehicle just in Q4 2022 to 37,000 A5 right now in this quarter.

So they're cutting costs and they already have the best margins in the industry and that's actually very encouraging sign. So the fact of the matter is that Tesla is actually delivering on the promise of getting into the cost cutting of the manufacturing process way way faster than the other guys. I Just want to remind you all the other guys, they can't make electric vehicle that actually is profitable. All of them are losing money on every single EV they're selling except Tesla and they're cutting cost.

So in this whole I guess meat Grinder that will be the next year and a half of bad macro and high interest. Tesla is probably one of the only ones who will come out of this sparkly clean again. Not as good as everybody anticipated three or four years ago, but definitely better than the rest. Now look I think El is overplaying the macro a little bit.

That's I think I got him figured out He wants to over deliver and under promise. or rather, under promise and overd deliver. So I think if gas prices remain high which it seems like they will with everything is going on with OPEC right now and the global geopolitical nonsense and all this. Insanity So if gas prices remain high, I mean Tesla is going to sell more cars than you know internal combustion Vehicles They already have a leading position and EVS nobody comes close to them.

they have the leading position. FSD They will be the first one to come out with an actual full step driving. The charging stations is a huge huge Monopoly which they kind of conquered. Now look, just go back in history.

In 2015. just8 years ago, this company was making $940 million $940 million per quarter. Right now we're talking about 23.3 billion. So we're talking about a 23x 23x That's absolutely insane.

So Within 8 years, they 23x the revenues. We're still having a debate if this is a good investment or not. Look at the end of the day: EVS Are going to sell a lot. Who comes in second I Don't know in this market there isn't a single Tesla killer in the Horizon not on the as far as the specific model that is a Tesla killer, not a specific company that is a Tesla killer.

And don't give me all this Byd nonsense. So looking in the Horizon I'm looking at the best company in the best industry which is going to go through some hard macro environments, but they'll come out on top I Think so at 220 plenty of cash, a mountain of cash in a PO position I'm buying my to sense about it. Obviously this is not Financial Advice you have to do in research. You have to decide for yourself based on your parameters and your strategic decisions and to help you with that.

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