Okay, enough with the excuses. Tesla sucks. Simple. at least that's what people who don't understand the stock and the company think.

Now what happened, why did Tesla drop 5% and is currently below $200 a share? Well, a few things kind of combined to The Perfect Storm Number one we had: Panasonic talk about reduced delay for model X and Model S Now for those of you who freaked out because of it, I Just want to let you know that in the past quarter, Tesla sold 16,000 Model S and X combined while Model Y and 3 sold about 420,000 So Tesla doesn't really sell X and S so that's really a nothing. Burger Now on the flip side of it, we had some non- Tesla related news that seem to have tank Tesla stock again. So again, something that completely misunderstood. Elon Musk Bought Twitter currently X for $45 billion or 44 in change.

Now they just did a stock-based compensation company valuation. That's something you do in order to kind of evaluate what's the worth of the stock stock based comp you're giving out and they basically value the company about $20 billion. Now there's a lot of reasons why they've done it, but mainly mainly it's macro. mainly it's the market has changed, the multiple exchange, etc, etc etc etc.

Now the thing is that El actually funded this with loans and a lot of these loans are collateralized by Tesla shares. So the fear is that if fan you know can't make the loans, the Tesla shares will have to be sold. In order to pay for these loans. it's going to tank the share price.

Only thing is this has nothing to do on the cash flow, the ability of El to pay how his loans. It's an internal valuation process for stock based compensation. It has nothing to do with the viability of Elon Musk to pay out these loans. So again, a nothing burger that freaks people out for no reason.

Now another non- Tesla related story. that kind of Tanked the Stck again I Don't understand why the UAW won. Surprise surprise. They took GM and Stant T and Ford to the Woodshed and they won.

They got about a 25 to 30% raise and now you know everybody's convinced that Tesla is next. Tesla employees will now be paid more because of what happened with UAW and the big three. Only thing is that's not necessarily the case for a lot of reasons. The main reason is look: Tesla has currently the lowest spend per employee in the industry lower than Stantis lower the for lower than GM.

Now the quality of employees that Tesla has is by far better than all the big three. Apologies for you guys, but you know we know that HR quality in Tesla is superior. So the expectation is that if everybody else has got a 30% raise, a 30% bump, the Tesla employees will unionize and they will ask to UAW to come in through the front door and get the same deal in Tesla. But that's not necessarily what's going to happen.

You see the UAW tried to unionize Tesla employees before and failed multiple times and the reason is because Tesla employees number one have a different DNA They're kind of the people who are in the trenches together trying to get the company to succeed. They're not there to do, you know, punch the clock, come in at 9, live at five, don't care. They're all invested in company mentally, physically, emotionally, and also financially because a lot of them, most of them have stock based compensation that is completely correlated with the success of the company. Now that stock based compensation is where I think the big difference is not to mention that the conditions, the working conditions, the the whole experience of being A tes employee is 100x better than any of the big three.

but they're actually invested in the company and because Tesla doesn't give out dividends or does any serious BuyBacks the share price appreciates every year and because that their stock Bas competition is actually goes up every year. So a lot of these employees are not looking for a meily 25% raise when they're actually becoming millionaires through stock based compensation which I think Tesla has made more employees millionaires than any other company in the history. So happy employees, well compensated, and with equity in the company are not going to give a chunk of the salary to the UAW to try to get 25% more so that the company, can underperform. and they're going to lose that back on the Stock B compensation.

So again, I Don't think it's happening Now There's a lot of talk about bad macro. Sure, bad macro is definitely an option, but you have to understand that for a industry leader like Tesla, bad macro means that all the people who are barely holding on are going to drown and they're going to be the last on standing. So bad times benefit industry leaders. They kill the Fords and GMS.

Unfortunately, you have Model Y currently the bestselling vehicle model in the world. They already are leading in cost. They're leading in battery software energy. We're talking about infrastructure We're talking about FSD God Cyber TR is actually coming out at the end of this year and that's going to open up the floodgates.

That's the best category in the US to be in for vehicles and there's no demand problem there. Massive, massive pre-orders for that. and and that's going to sell even in bad times. pickup trucks sell in the US always.

We're talking about the Highland coming out soon on a massive release at the end of the year. Again, more margins because this vehicle. even though it's more expensive, it's actually cheaper for Tesla to make so margins, expansions, and potentially flexibility with price drops to deal with bad macro. And of course I I Also think macro severity is overplayed by El for 2024.

I think is kind of taking a precautionary M measure here Tesla still has a mountain of cash. It's still you know the best in the industry with cogs, cost of goods, and salaries. Look, in my opinion, it's the best time to get in and Tesla 200 Why? and again just my opinion. not Financial Advice: doing research decide for itself.

but in my opinion which might be wrong might be the REM of a Madman. In my opinion, this 200 is exactly what we had in January in January 2023 Tesla stock was $120 Everybody was saying rest in peace Tesla We'll see you at 70, We'll see you at 60 stock jump to 280. All these same clowns that said oh no I'm not going to buy this at 120 bought it at 280. Now it's dropping against back to 200.

Same debate starts. People who have Macademia nuts that are shaking. they're not doing the right thing. They're basically saying well, tessla is going to drop more I'm going to wait for 15 I'm going to wait 120.

Look, it's not going to happen. Deal with it. This is going to be very successful over the course of the next 10 years. If you got the patience and you have the long-term investing mentality, you're going to be just fine.

I'll see you next video.