And we haven't even said a word about the fact that Tesla's still guiding for a 50 growth kegger. We haven't said the word about the Bombshells that Elon dropped on the call that probably got him chewed out to the compliance department, but he still said that that's Ilan for you. Hey, this is style mash and yesterday Tesla came out with the second quarter financials. Now the qualities were amazing.

They broke a lot of Records they beat on Revenue they beat an earnings per share. but somehow I still need these three apples to Simply explain to the Wall Street analyst that Tesla had a good quarter. Now look I know you guys get it by the analysts. Well, they need this little example.

That's fine Now One of the gripes of the Wall Street analyst with Tesla following their record-breaking financials that we saw yesterday was that Tesla has a declining margin. The operating margin went down to 9.6 percent and that means bad news for Tesla and that basically sent the stock price down in aftermarket. Now look, I'm going to use this example to show them not you, because you guys get it. Why? It's absolutely moronic.

Now we have three apples here. Now let's take apple number one. So Team: Apple One slice Big Slice Two slices, three slices, four slices. Anyways, So now we have four slices of Team Apple Now you would all agree with me: we have one apple sliced into big slices.

four big slices. Cool. Now on the other hand, we have two apples. Let's slice them into little slices little slices.

Every Apple gets small slices. Put it to the side. more small slices, small tiny slices, but it's the same amount of Apple In fact, now we're going double the amount of apples. Okay, anyways.

so now on the one hand we have one apple with huge huge pieces like this. big margins one apple. On the other hand, we have here small margins like this but lots of Apple double the Apple smaller pieces, double the Apple big pieces, half the size of the apples which pile is bigger. obviously this pile.

despite the pieces being smaller, right? this piece is Big This piece is small so how does it make sense? Well, if you have a smaller piece but more Apple quantity then this pile is bigger. They're analysts and this is exactly what's going on with Tesla Tesla indeed had smaller margins, but it had more revenue and it had more net income which means more apples. The Smite the Smite despite the smaller piece. The Smart: what am I doing today I Can't talk this fight this smaller piece and that ladies and gentlemen means that despite having smaller pieces, that's that.

way more apples in this quarter. But somehow this schematic failed to get through the washing. Alice and hopefully this example helps them understand. Now let's move on to talking about the actual financials.

So first of all, we have to talk about a huge bombshell that we got in these financials and somehow Dimension Media and the analysts completely missed it. The model Y is now the best selling vehicle in the world, not an AV the best-selling vehicle in the world. They sold 270 000 units in Q1 more than the Toyota Corolla by 10 000 Vehicles. Now if Tesla's already beating out the Queen of Vehicles, which is the dirt of Corolla and it's bidding it with a significantly more expensive vehicle, what's gonna happen when Tesla actually rolls out the Next Gen platform the 25 000 car? It's going to annihilate whatever's left of Toyota And that's not gonna be a good look for anybody that has a four-door sedan model out there.

So Tesla is already dominating and it doesn't even have the big weapon out. Imagine the potential. This is nothing yet. Now talking about things that are in potential in development.

The Cyber truck is way more advanced. the Next Gen platform I mean we already know the test has started tooling actually is stated in the financials and that means if tooling started, we're about a year away from the beginning of ramp up. That's huge because you have to understand that you know North America The best market for auto manufacturers is the pickup trucks. It's different in Europe, but in North America pickup trucks is the thing.

Best margins: Lots of units. The Silverado sold 500 000 units last year, the F-150 sold about 650 000 units last year. So we're talking about a million units in North America of pickup trucks just from Ford and GM and Tesla's not even playing in that market yet. So now Tesla is also joining into the best Market in America with this cyber truck.

Now, it's going to take about a year for it to start ramping up and probably two to three years until we see that 50 100, 150, 000 units place. It's not gonna happen 2023. I'm sorry if you want to ramp up, you have to wait a little bit, but luckily Tesla has plenty of pre-orders They're not going to be listed and going to be stuck with inventory that they can't move. The Cyber truck is going to take a huge chunk out of whatever's left of Ford and GM in the place that it most hurts them.

The pickup trucks massive, massive potential for Tesla And now boys and girls, let's talk about the operating margin argument. So all the analysts, all the mainstream media Talking Heads Running around telling you that Tesla is finished, the operating margin of Tesla dropped to 9.6 It's over Tesla is losing margin. It used to be 14. It's finished.

The only problem is that they don't understand how this thing works. Remember our example from the beginning about the apples? Let's put that to the side. Let's look at other stuff. Let's compare to the operating margin of other great companies like Toyota.

Toyota has an operating margin of eight percent lower than Tesla Even though they make 10 million Vehicles a year, Tesla with about 2 million a year has better margins in Toyota even at 9.6 Or what about VW Also, eight percent eight million Vehicles a year I Don't even talk about Ford GM with four to six percent operating margin and way more Vehicles than Tesla. So if you look at the competition, this is already beating them with 9.6 So even after the decline in operating margin, Tesla still has the best margins in the industry And that's without the Cyber truck which is going to push margins up without the FSD which is going to roll out an 80 gross margin because it's a SAS service is a software model. Even before all these things, Tesla is already annihilating data companies even with the decline margin. So before you go ahead and tell the world that Tesla is finished and the growth story is busted, look at the competition.

get some help, get some context. And now let's talk about the second part of this argument. Remember the Apple example. Well, it's actually right in front of you.

Tesla Just had a record beating quarter as far as revenues. 25 billion dollars in revenues in a single quarter Tesla is currently on pays for a hundred billion dollars in revenues per year. Absolutely mind-blowing. But that's not the point.

The point is. looking at the bottom line, look at net income. The net income is up 20 from last year at 2.7 billion dollars. So if I'm looking at this like a normal person Layman and I'm saying well look the operating margin went down to 9.6 That is true.

But if Tesla made more Revenue by 46 and more net income which is the bottom line by 20 and they've generated 2.7 billion dollars in net income I Mean this is what happens when you can increase sales by 46 by dropping prices a little bit and still contain your costs only raising it 21. So when your revenues go up 47 and costs only go up 21, you still make lots of money. Even though the offer bring margin went down a little bit, it's just a percentage. At the end of the day, you've made way more money.

Tesla is probably the most efficient company I've seen, not the most efficient auto company that we knew a long time ago. At this point, it's mind-boggling to me how they're doing this and more on that later. But you have to understand: Look at the financial stability of this company. One billion dollars of free cash flow.

This year the cash is up 22 from 19 to 23 billion. Virtually no debt. I mean Tesla's logo need to be in the dictionary next to the definition of a bulletproof company at this point? Who is going to destroy this tank? And we haven't even said a word about the supercharger Network Growing like crazy up 33 tens of thousands of charges? Who has that? Network We haven't said a word about Tesla being the fastest growing EV brand in Europe. We haven't even said a word about 222 increase in storage deployment.

What are we talking about here? We haven't said a word about the amount of Miles this is getting. Talk about AI race. This does the most amount of miles in the industry and it's actually exponentially growing. Nobody's going to catch them as far as Ai and real world data.

If anything, we're talking about a massive AI company completely under the radar. Look at: Nvidia Nvidia is trading at 44 price to sales Tesla's at 11. Nvidia is you know, 240pe? this is 80. If anything, test this country way cheaper than it should be.

Because when you understand that this is actually not just the car company which they seem to struggle with still in 2023, you realize that this company is not trading expensive at all. And we haven't even said a word about the fact that Tesla's still guiding for a 50 growth kager. We haven't said the word about the Bombshells that Elon dropped on the call, one being the Tesla's gonna 5x or 10x from here. That probably got him chilled out by the compliance department, but he still said that that's Inland for you.

We haven't even said a word about them being in talks with other Oems about licensing Out full self-driving software I Mean this is like massive stuff and yet they're getting ignored. For 9.6 operating margin, which is still the best in the business. Is this for real? Look, we're talking about a company that has the smallest volume of all the biggest Oems. they have the best margins.

They're investing in massive amount of copics, massive amount of R D, working on multiple expensive projects building factories, building robots, building AI building cars. Somehow they're not only profitable, but they're still the most profitable in the business. 25 billion dollars in Revenue 2.7 billion dollars in net income this quarter and actually the Cyber truck would improved margins FSD the 25 000 car. All these things, and the fact is, we haven't even mentioned the most important stuff.

The fact is, they already have the best selling vehicle in the world, and the fact that we had a record-breaking quarter in almost every single category in the world. and still, somehow we are here talking about 9.6 operating margin. We're talking about margin margin. We're talking about margin.

These guys had record-breaking numbers. Record-breaking Revenue record-breaking net income Best-selling car in the world. Massive amount of upside. And we're talking about margins.

Really?.