Well, if there's anything to make you want to diversify from Tesla stock and invest in house hack, it was Elon The bear on this earnings call. This was the least controlled and most disastrous earnings call I think I've ever heard from Tesla Maybe because Zach isn't there to hold the reins in and actually monitor how this earnings call should go. Uh, the amount of nonsense and unnecessary commentary was fascinating, but also painful at one. Point Elon Musk Almost breaking into tears about complaining about how work from home owners are like Marie and Tet's let them eat cake and he's sleeping on the floor of the factory to make his company succeed.

It's very weird how that belongs in an earning SK but a lot of this I think has to do with something that Elon implied but didn't say so. Let's start with the implication first and I'll tell you what he said in a moment. But first I want to ask you when did this quarter end? It ended the end of September Okay, now what I want you to do is look at the 10year treasury and I want you to go to September 30th. Well, there's no 30th because the month ended on 29th.

Uh, for for like the business week, the 10-year treasury was 4.58% It is currently 44 basis points higher I Think there's a chance and this is not good. but I think there's a chance interest rates going up another nearly half a percent or almost the straw that broke Elon's back like this, is it We? How many more times do we have to drop prices L Now rates go up even more. This is like Peak fear Elon if there's ever Peak fear Elon Now he complains that hey, maybe he's just excessively parano Anno because of 08 but and 09. But if you look at the 10year treasury chart, he's had Peak pain on interest rates in literally the last 3 weeks leading up to this earnings call.

and here we go. You've got Elon basically crying on the earnings call but at least Lauren made me milk and cookies. Come say hi, no come on, say well at least say hi Hi Yeah she she exists. This is amazing.

Oh that makes up for a R day on test any day. All right. So what we got? Well obviously the house act. that's really good.

House act deadline on November 1st. So uh, what do we have for uh Tesla though? So a lot of people talking about how Elon seemed like he was intentionally complaining here I think it's just a Prelude to a really bad kind of potentially a Q4 if rates stay this High and the end of the year is supposed to be the good delivery. now. they did reaffirm deliveries at 1.8 million, but they'll just cut prices even more if they have to to make that happen.

So uh Elon did uh, you know, talk up about how hey, we're at half a billion miles on FSD Wanted to lower the price of FSD to make Uh uh, to make it more affordable for people. No people weren't buying it, People weren't buying it, People aren't buying it. Then then you lower the price. Okay, it's simple.

uh, talking about significant FSD progress. but uh, unwinding some of his prior optimism talking about how hey, it was easy to make gains in the past, it was great. We were able to really crank gain in the past on uh FSD but now it's slowing down. It's kind of that log curve where we're like Yay Big Progress Progress progress.

prog. Oh, now progress is going really slow and that is true. You know they get to 95% 0 to 95% is easier than getting from 95% to 100%. So I think that's creating some concern Elon blatantly dodged how many cyber trucks will be delivered this year.

I Think we'll be in like the Tens or the dozens of cyber trucks this year. Some people people think it'll be hundreds. I Think there's no way in hell the event will be held on November 30th. I'm probably banned, but whatever.

I I probably shouldn't have tweeted a picture of Elon as a bear. Uh, I did do that. Okay, this just this is what he sounded like. He just sounded like a crying bear.

So I wrote Breaking leaked photo of Elon Musk on today's Tesla earnings call. Don't worry, everything is fine, right? Yeah, right. Super bearish today. Purposefully dodged the question, just didn't answer the question, about how many cyber trucks they expect to be delivered this year.

and I Understand, they probably don't know because they probably don't know that they're going to deliver more than like 10 and they don't want to say that in the earnest call. CU They've already said enough now. A lot of optimism obviously about artificial intelligence about how eventually The Optimist can build the Optimus 10,000 Gpus in production. Probably the fastest company to ever, ever do this.

This is still great for artificial intelligence for NVIDIA I Think companies, especially as rates come down, are going to keep flooding money into Tesla I or into artificial intelligence. Uh, including Tesla I Actually didn't think the earnings were that bad. Just to give you a high level overview of the actual earnings report and the spreadsheet in terms of a summary: Really? Uh, free cash flow of $848 million? Better than I expected reducing the costs of the vehicle. Lot of talk about slashing pennies.

I mean they got down to talking about how the QR codes are too expensive to put on cuz sometimes they wrinkle up and then they you can't You can't basically laser scan them and it's like okay. But the tangents we went down were a little extreme, but they did provide color that hey, look, they're trying to do everything to save every penny, right? There is good to see past this. Elon is not wrong to say that there is massive price elasticity in cars. That is correct And remember I've said this for a very long time.

Tesla only has pricing power to the extent that it is a car. I Believe Tesla has the most pricing power in cars, but cars in general are just a cyclical business. Interest rates up as Elon said says affordability down and he's not wrong people. it's harder for people to get financing.

These interest rates going up are a problem. They just went up even more. Q4 is probably going to be wrecked. that's not great and Elon is so concerned about the state of the economy that they're like, you know what? we're going to kind of like put on hold Giga Mexico and we'll do some of the long-term planning like you know, the uh, the landscaping or this that or or like not the Landscaping the the the Land Development right? Uh, but uh, what do we end up getting? Uh, well, we'll probably just wait a little bit.

In fact, we've got plenty of room at Giga Texas Yeah, that's how the earnings call went today. Don't mind the new announcement in Texas In Mexico we got plenty of room in Texas I That should tell you a lot of how this call went. Okay, so yes, we had energy beats on uh uh, revenues here for energy. but guess what? CFO comes in the new CFO and says hey, you know that was mostly Mega packs and that's going to be lumpy.

So what does that tell you for n phase? Oh no, not more pain, no I Maybe in terms of numbers, but remember here's the thing. and I Believe this. I Think the stock market is going to say as soon as we hit Peak rates that's an inflection point and then Cuts that's an inflection point in the stock market. And the question is, did we botom last year before all of this, you know, are we now in? Sort of like a a lull and and do we? You know, are we volatile until we actually get into rates where we hit some more lows Entirely possible.

Who knows. Crystal Ball? Nobody knows. but so far the economy's really been holding up and you look at it, it's like sure, we've had some banking crises, but nothing the FED couldn't print its way out of. But anyway, we've talked about that plenty of other times before.

So let's focus here on Tesla Tesla Spe specifically suggesting that, uh, regarding the uh, uh, tax credit Some folks are actually, you know it. It'll be a benefit if some people can actually get the credit up front and that'll help because people are looking at their cash outlay. How much money am I taking out of my pocket to actually get into a car? Supercharging stations up 24% annualized? Uh, slowing down from 30% You also have a production vehicle production annualized based on September's figures sitting at about 56,000 But if we miss on Q4 deliveries, we'll have an even wider gap of inventory after. Q4 Probably will sit there.

Uh, until inventories. Actually? Well, until rates come down. Cyber Truck Production: Elon Musk Thinks we can get to about 250,000 units of cyber trucks produced sometime in 2025. That would be somewhere about 18 months to 30 months out, 2 and a halfish years out.

He thinks anything slower than about 18 months out after the delivery event would be, uh, disappointing. but uh, it is possible they do talk a lot about cost savings. They're really, really worried about the cost. probably because costs are not coming down anywhere near as fast as prices for the cars are coming down.

That's compressing margin. That's not good margin compression which again feels like shrinking peee. but relative to all cars. That's true.

That is true on all cars. The question is of all the cars which still has the best pricing power? Well, of course. Tesla uh. The question then is okay.

Well, when do you buy? do you? Do you just wait for a new low which I don't think will happen? Or do you buy and know you're going to be sitting in it? Not sure when to time the bottom until, uh, until we actually get rates coming down. That's that's the big thing here. So as far as some of the other commentary we got, uh, talked about the Optimus uh being you know, having a kill switch. Uh, you know we've always talked about this as well.

something that's hard programmed in. Uh, talk about how. uh FSD and the neural Nets that the Optimus robots are being trained in is basically baby AGI which for those CPAs here that's not adjusted gross income that stands for artificial general intelligence. That's basically what they're teaching a lot of long run bullishness from Elon on artificial intelligence.

but boy, the amount of bearishness that we got out of him this is like Peak Elon bear I You know what? I think honestly, all right this is going to sound mean, but you ready for this be like Kevin you're an for saying that. Yeah, cool, ready for it Elon needs to get his ass off of Twitter and Diablo I start it. he's turning into a bear cuz of Twitter and Diablo just saying I don't know. uh think they could have ran that earnings call a lot better and I think Twitter is is making him extremely bearish.

The fact that Elon is sitting there basically quoting the bear arguments. oh you know, credit card debts at alltime highs? Well, no, it is. Did you try inflation adjusting it? No, of course not. Oh National debts going up I know, do we need more bear arguments? We already know we're here at the Tesla earnings call.

Not a lesson in macroeconomics. It's interesting. he's not wrong. Things get a lot more expensive when interest rates are higher, but you know I'm a big fan of just calling it like it is.

And if I'm coming to the Tesla earnings call, you know you could talk your macro stuff and your woke stuff or anti-woke stuff wherever you want. But I don't think the Tesla earnings calls the place as a if I were a Tesla board member I'd be like what the hell are you doing dude, why are you dodging the SEC and basically crying on the earnings call like put some pants on and run it as a professional call and I know some people like Kevin you're the one who makes peee jokes all the time you what's wrong with that? I like big peeee Okay, I I really like big juicy pricing power stocks I I like that. Okay, okay I don't think there's anything wrong with that. but I'm also not in a professional earnings call with Wall Street analysts which a different setting.

it's a YouTube channel. If you don't like it, don't watch it. but this is like a slap in the face to the investors. The way these earnings calls are managed.

like Zach at least had his together. Uh anyway. uh Elon talks about uh, large price elasticity. Again, that's true for all cars.

We'll give him some defense here that is true for all cars. Obviously compared himself to like a Rav 4 and it's like why would anybody buy a RAV four if you could buy a Tesla Well, maybe because of your tweeting, people will buy the Rav four which is exactly what somebody who shall remain unnamed in my family did. They're like I will pay more for a Rav 4 not to support that guy. Sorry bro.

Maybe if you had somebody actually telling you the truth, you'd stop up. Anyway, then he's complaining about oh my God I Can't believe credit s went away and the credit situation is getting worse. Commercial real estate's doomed and I think there are quite a few more shoes to drop. Those were quotes from him.

his words not mine and I get it. I Get it. It went through 2009 and it was an sh9t storm I Get it. But bro, this is we're here for the Tesla earnings call, not the what you what you read on Twitter theory of what's going on in macro JP speaks tomorrow.

Maybe uh, maybe he could wipe Elon's body or or change Elon's diaper or something I don't know. Talks about enormous challenges and reaching volume. Really tempering expectations for the cybertruck. Really? Uh, making sure that people realize the cybertruck is a brand new system for designing a car, creating a whole new car with an exoskeleton that's a lot harder to manufacture.

probably not going to be cash flow positive for about 18 months. He warns, which in Elon time probably means like two and a half years. He does think it'll be the best product ever and I don't disagree like don't get me wrong, I can about Elon all day long and I do uh but I love Tesla I love the people at Tesla as interest rates rotate down and markets start recognizing that treasuries have bottomed I think Tesla's going to do exceptionally well I put my money where my mouth is I'm invested in Tesla and Phas Nvidia I Strongly believe it. That doesn't mean I can guarantee it.

In fact, I Have a little laminated disclaimer here. Keep in mind that even though I'm a licensed financial adviser, licensed real estate broker uh, and becoming a licensed stock broker, this video is not personalized Financial or real Estate advice for you This video is generalized perspective. This video is not and shall never be deemed reasonably sufficient information for the purpose of evaluating a security or investment decision. And if you want to invest in house Haack you go to House Hack.com cu the deadline is November 1st by far.

When we survey people, there are two big reasons they're like. if anybody could do it, they're like I I want to bet on Kevin for the real estate startup? uh or the second reason is they want to diversify. Those are the two big reasons we're getting for people. Uh, for for House Hack.

Those are just some things that we're hearing in surveys. you know, no guarantees. Obviously, investing in startups is risky. Read about it, uh, at House.com and read the circular there.

This is not a solicitation anyway. talks about tempering cyber Tru expectations. It's difficult to, uh, make cars like this. dodge the question on how many deliveries uh, they would have.

He literally says we basically dug our own grave on the Cyber truck and nobody digs their own grave better than themselves. Uh, the Next Generation vehicle will be a lot easier to produce like the smaller twodo version of a Tesla the model 2. Because there won't be large, hot stamping, new high voltage architectures, it'll be much simpler and easier to ramp faster. 4680 is working on increasing it I Really think the 10-year treasury Spike just killed orders in October Like I think orders hit a wall in October I'm not sure about that, but to me, orders hit a freaking wall.

That's what he's implying. It's not good. uh-uh not good. Then he also walked back on the 50% kager.

Target Even though in their earnings presentation they literally have written, we're still targeting 50% year-over-year growth. Elon's like, well, you know, law of large numbers. Uh, that's going to get harder. Well, duh, I mean I've been targeting for about the last year and a half like 30% growth for Tesla but it still kind of is interesting to see Elon walk that one back.

He does say there is something to be gained from advertising. Thank you Elon Thank thank you thank you very much. Uh, he says that. uh.

The problem though is if you're showing people things they can't afford, it doesn't help that much. So once again, he's complaining about interest rates I Don't know if I fully agree with that because I don't think people realize how inexpensive the Tesla has gotten. but then again, nobody's telling it like it is to Elon and I know Elon You know he'd probably be like whoa, whoa, what do you know you got YouTuber or whatever. It's fine, man.

whatever. Dude, there are millions of people who have no fracking clue that the damn car can basically drive itself 95% of the time. They don't know how safe it is, they don't know how good it is. They don't know how what the range is, They don't know anything about it.

There are millions of people like that who are perfectly capable of affording the Tesla I mean I don't know where you're advertising Elon maybe you're advertising in, you know, somewhere where the demographics aren't that ideal I don't know. he needs a man manager? poor guy. anyway. uh, too too too stressful I Don't know man.

Optimus Okay, we talked about that. Significant cost declines R&D will keep going up. Yeah R&D blew up like 24% quarter over quarter. That's like doubling on an annualized rate.

Lot of neg negativity from this earnings call. Uh Tesla Currently trading at about a 2.5 PEG ratio with 28% growth projected by the street I'm at about 30% Lot of negativity. Uh. all I can say is I hope hope Jpow is watching and uh I don't know but um I'm going to keep eating this cookie now and uh, we'll keep the dragon dagger poison tip away from Elon because I don't know he's not.

he's not stable right now. Poor guy I Really feel bad for him but he probably hates me and that's okay. like I'm just I'm just going to give my opinion I'm I'm tired of people like actually affecting my mood like I used to care. people would be like I can't believe you said this Now people say that I go oh maybe they have a point.

you know? Okay, maybe they have a point but most of the time it's like yeah I don't care. it's like I'll I'll read the comments as I'm curious about the perspective but somebody's like I disagree with you. you're a douchebag. It's like okay, but at least the perspective is out there cuz if you just say what everybody loves, what's the point of watching, you know you got to have some realism.

Got to have the balls to say what you think? Be a little I 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. Go Congratulations man, you have done so much. People love you people look up to you Kevin P there financial analyst and YouTuber meet Kevin Always wait to get your take.