You're saying the margin is going to be bigger. 70 of Tesla owners don't even know about your shows. Thank you so much! Hey everyone here! Wow! I Have to say going to the shareholder meeting was a whole lot better than I expected now I Expected to meet people and have a great time and I was blown away by the amount of people were coming up shaking my hands saying I'm a course member you've helped me so much Thank you so much you and your course helped me get a job. Love your shows! Thank you so much! So many nice and friendly people.

it didn't have to be that nice, didn't have to come up. Seriously. the Tesla Community is absolutely amazing. So first and foremost shout out to the Tesla community and well all the people who work for Tesla Now when it comes to the groundbreaking Shockers that we got out of the shareholder meeting, well, there were quite a few and I think first and foremost and it's an honor to be able to say that Elon Musk is not stepping down a CEO and even though I think the company will be just fine without Elon Musk's CEO we did just get JV from Redwood Materials Battery Recycling Company back on Tesla board which is great.

I think that Tesla still needs Elon at this point mostly because even though it feels like the car company is mature and it could really continue going on the product development much like the iPad, the lineup is already built as Steve Jobs said as he was. In this final months we've got four or five years of products lined up. I think that's true of the next few models of vehicles for Teslas Whether that's cyber truck and then maybe Robo taxi potentially that model too that was teased I think that second vehicle because they mentioned they're working on two vehicles. one I think is the model two.

the second I think looks a little bit more like a box fan I think that'll be the robo taxi. Uh, but anyway, whether it's those, or it's uh, the Roadster or maybe even something else after that, not even considering the semi which is already up I think that road map is already set. 4680 is already set. All of that.

So all that is already said Elon though is Mission critical for not only making this artificial intelligence as solid as possible, not just for FSD but for the robot, the Optimus robot. I Want to play some clips here of what happened with the Optimus robot because we saw footage of the Optimus that we actually haven't seen before because as Elon said, it was well filmed yesterday. But let's just say at least for the footage which wasn't a live demonstration, so who knows, it could have taken 20 takes to get these shots. The robots actually look like they're able to start doing functional things like opening every single finger individually or manipulating something into a narrow box and moving their wrist to take their hand back out suppress it.

And while there's a long way to go, that's the part of the vision that I think Elon is actually going to be really critical of. It's a next level of visionary or visionariness or envisioning whatever. uh, and the next level of integrating artificial intelligence with well things we need like robots. Which What was really remarkable was this idea that we might have 10 to 20 billion humanoid robots in the future.

Elon suggested potentially one two two robots per person and I thought that was really incredible because initially I thought to myself okay, yeah, you know we'll count robots in tens of millions like we'll count cars you know we manufacture as a globe somewhere around 80 and sell around 80 million Vehicles a year. Well, it's possible that I mean if you're if you're looking at 10 billion humanoid robots over a 10-year period, That's 1 billion humanoid robots per year. Which means if Tesla wants to have say a 25 market share of cars or 20 market share cars, a 20 market share of robots would be 200 million robots and that's just 20. Now those are obviously extremely optimistic bullish.

hoping big you cannot invest in the stock because of that kind of opium. but I think that is why you still want Elon at Tesla it's because you want the growth to continue at Tesla When you do projections fundamental analysis on a company, you want to project out what is the earnings per share growth going to be over the next five years and then beyond because you don't want to get to the end of five years and then drop off to five percent growth and be a nominal Growth Company You want the next S-curve to be there and this is what Elon is providing the max S curve. So really great to hear that he's not stepping down. Next thing that obviously we have to talk about is advertising.

Let's go ahead and play the clip on: Advertising I'm going to make one little cut for compliance reasons because I cannot mention the name of a certain products that I have. Of course you can learn everything about me on the internet just Google it. But before we talk about my opinions on Advertising I gotta insert off course an ad and yeah, it's from the Financial Times. Here you go, Any of you like to know where does Kevin read his news and I personally love the Financial Times.

I Get the paper edition of the Financial Times I Read them online and on my iPad But not only that, check this out. This is the Financial Times Ft Edit app and they have paid to promote this app in my video today. So thank you to the award-winning journalists at the Financial Times and the team at the Financial Times. I Think this app is a phenomenal product.

You can get 30 days totally for free by using the link down below. and here's how it works: They basically give you eight of the day's top stories and they sort them by date. So if I want to know about Tesla's resale values on Tuesday March 28th I can do that and the story stays there. Which is great because one of the reasons I like the paper is because the stories don't change on that day whereas on the regular website it feels like the stories are always changing and I'm missing stuff right? The cool thing though is let's say I missed yesterday's fan Financial Times edit Watch this I could just go to Monday March 27th.

Boom. Click on the 27th and what happens? I Can read about big Tech facing a reckoning over a Teen Health crisis or who's this Alvin Brad guy? or maybe I want to learn about Jay and Janet and how even though Jerome Powell is supposed to be politically independent from politics and the Biden Administration he has to align with Janet Yellen via pressure. but she has to align with Joe Biden Now that's just an example of information that I learned directly from the Ft Edit app that even though drum Powell is supposed to be independent, he has to politically align with the political party that's in control to send the same message on financial stability. So in my opinion, the Ft Edit app is a fantastic way to simplify the way that you get news.

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Hey Elon meet Kevin here. Hey, how's it going Good Thanks! So uh Tesla is the largest position I'm curious I really think that some of the features that you highlighted here like the uh, over-the-air airbag deployments of improving the features. The safety features are great things that we could be advertising for I know you've heard this many before I know you have, but no, no, no, sorry, go ahead. Go ahead.

yeah. 525 bucks off every car this year is half a Netflix's advertising budget. Thousand bucks is the entire Netflix advertising budget and I see their ads everywhere. Why not advertise these things that you told us here? I Feel like nobody else knows about this? I Just talked to Gordo the Tesla bear and he's still talking about 2016 New York Times Pieces These people are in the past.

Man, that's like seven years ago at this point. Yeah, that's what I'm saying. Yeah, it's actually I Talk to a lot of people and they still think that like Teslas are like super expensive and like no. Actually, the starting price for a Tesla is below the average auto price in the US that's like and that's a good thing.

I mean I think it's it's it's good that it's that way. you know, like which. Our goal was always to make cars that are affordable to the general public. Um, so so I I hear you? I mean I think um and it's indeed ironic that you know what Twitter is like highly dependent on Advertising So um, you know here I am it's like uh, you know, not never use advertising really before and uh, now uh, have a company that's highly dependent on Advertising So um I I guess I should say advertising is awesome and everyone should do it.

But but I I I think I I hear your your uh sort of logical point, which is that um, there are amazing features and functionality about Teslas that people just don't know about. And and although there's there's obviously a lot of people that follow like say the Tesla account and and the uh, you know my account. whatever on Twitter um, uh, to some degree it is preaching to the choir and the choir is already convinced. Um so I think what you're saying um does does have some merits.

I I Believe in taking, taking suggestions. So um, we'll We'll try a little advertising and see how it goes. Okay, okay, foreign I Wasn't expecting that level of enthusiasm, but uh, okay, it sounds like our shareholders if I read between the lines subtle as it is are saying, we should probably do some advertising. Okay, very well.

All right. So obviously it is a total honor to have Elon be excited about the potential of trying advertising. and I'm very excited that a I had the opportunity to ask the question. but B I'm also very excited for the Tesla community and really everybody a part of it because I think everybody wins.

Uh, in fact, I'll give you an example of what I think a good Tesla ad would look like. Yeah, I'll give you a framework for it in this video and then maybe in a future video we'll try to simulate one. but I'll give you some ideas that we talked about. But first, I think it's useful to get my reaction briefly after the questions ended by giving you part of a clip.

uh with uh with an interview with Ellie in space. check out her Channel on YouTube she does interviews, covers a lot of things. Tesla Well I'm super happy because uh, really, it's it's the owners. it's the shareholders.

It's everyone. because the better the company does all of those existing car owners. Hey, more updates for them Because here's the thing. Tesla will see, we're advertising about all we're doing for our existing owners.

That's going to encourage more people to buy, right? So it helps in both directions, you know? And then of course it helps existing shareholders everything. So now I want to respond to some other arguments that people have made about advertising that oh well, you know, advertising doesn't matter. It's just you know, short term shareholders that care about advertising I actually think that it's completely wrong I Believe that the more Tesla can convince the World by simply informing them earlier that Tesla is safer and Tesla is better in the features that it has and the value that it provides to Consumer the consumer, then what you're actually doing is you're multiplying the Tesla end game. So if you're at 1.9 million vehicles of production now and you say oh well, it doesn't matter.

we're selling every car we make anyway. Oh, oh, just short-term You know, stock speculators want Elon to advertise? That's wrong because the longer it takes for Tesla to share their message, the more time there is for other companies in the longer term to compete. Right now, we as Tesla shareholders. Obviously, I'm a Tesla shareholder.

We know that Tesla has a massive moat. The people who are familiar with full self-driving know that Tesla has a massive moat that will deteriorate over time. In other words, it will be a lot easier for other companies now to get from zero percent to ninety percent FSD while we're at 95 percent slowly getting to 96 and 97, but we want to brag about that lead now because it actually gets more people into the network sooner. which in the end game, could potentially increase your terminal expected value Vehicles produced per year.

So Elon has a goal of producing 20 million vehicles per year as a terminal value. Now, this is important for anybody doing financial analysis in terms of a discounted cash flow, obviously. But even just practically. the jargon aside, think about it: if you get more people into the iPhone in 2007, you sell more iPhones in 2013, 14, 15, 16.

So in other words, if you had 20 extra people who adopted the iPhone in 07 when it first came out, your Tam would likely be substantially larger in 13 and 14. Because you'd be so far ahead of the game, you'd have more money for more r d you'd have larger margin, you'd have larger pricing power. you'd essentially reach almost this a point at this point of an escape velocity lead. and I Don't think that Tesla should assume that everybody knows what Tesla is doing.

Here's a discussion I briefly had, but I'll give you a few examples and then I'll come up with an ad example too. Here's the discussion I had with soft as I was leaving the Tesla event and I argued that people don't even know about this new caller. Tesla has the maroon take a look at that discussion even in the Tesla Community people do not know about that color. Yeah, guaranteed.

I Guarantee 70 of Tesla owners don't even know about that color. Yeah, So I mean or someone was tweeting at me today I Posted a picture of this like is that from Berlin Yeah, Yeah, yeah, it's here. it's available. Here's another one.

Take a look at this clip where I was standing in front of the Cyber truck and I asked, huh? what did Elon mean when he says this is an exoskeleton car and cars are generally built with an endoskeleton I Understand from a human point of view the difference of that or or you know, human endoskeleton. or think of maybe some kind of reptile or whatever which is more exoskeleton. Uh, so now from a car point of view, does that mean there's no frame on the inside? I Mean obviously there have to be axles. So what we decided to do was get somebody on the phone who actually tears these vehicles apart and ask them the question.

And so here's what Sandy Monroe had to say specifically about that. Elon Said that the Cyber truck is an exoskeleton build whereas most cars are endoskeleton. Doesn't this thing have a frame on the inside? Like what's the scoopier money inside? it's an exoskeleton. There's there's no frame inside means that that he owns.

there's no bones inside. It's only the outside skin that's an exoskeleton. So you're saying the margin is going to be bigger. That's all.

I Talk about Ah, Okay, and yes, the margin is bigger. It's bigger because you only have to form one one chunk of Steel Um, whereas uh, the other guys have to have an inner and outer uh structure. The inner structure is, uh, what would they call black metal? Any outer structure is called um, body and white. So there you go.

So now when you walk all of this back, you realize, huh? That's interesting Kevin I Didn't know about the maroon color I didn't know about that exoskeleton I didn't know XYZ about the capabilities of full self-driving I didn't I Personally, this is I'm making those as examples because I knew some of these things. But what I didn't know was that my dad who drives my black ax uh, you like my black X good. What I didn't know is that Elon and the team at Tesla are continuously improving airbag deployment and emergency braking with software by analyzing accidents and then over the air updating the safety features of that vehicle. There is not a single car manufacturer that I'm aware of that Does that? You have to buy the next model to get the next safety features.

I Mean how many times do you look for a new car and then you think, oh, what safety features does it have? Well, what if it was just safety? Yes, and whatever new features came out, they just sort of opted in. That's fantastic. Even if the features are, you know, potentially seemingly nominal if it means you're in capacity. Well, obviously dead or not dead, That's a big deal, but out of work for six weeks after an accident or walking away from an accident, Those are Huge.

And the economic value of that is also very important. You know, sometimes people are like oh, Evan Well, when a hurricane comes through, that's good for the economy, right? Because it means people are rebuilding homes that's actually raw because what you're doing is you're robbing that potential spending power on something else. So you're robbing the economy. Yes, money is being spent, but money is essentially being lost to be spent.

That is problem because now people are being more productive with their money. So anyway, they're going on an economic tangent here. We can debate that in the comments. So let's think about an example of an ad.

Now before we talk about what kind of examples of ads Tesla should operate, we need I'm sorry another ad, but this one's for me. It's just to remind you that I've got amazing programs on building your wealth. Link down below. as you've seen, many people came up and said thank you for the value you provide.

That's my goal. Long time supporter course members thank you so much for being a member. If I could provide more value, we all win And I really believe that. Course members get some remarkable value.

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I Personally think and it's a discussion we had that Elon should be thinking and he said himself, he wants an ad that's informative. Well, an ad that's informative. Something like what Ryan Reynolds used to do with Mint Mobile before he sold it to T-Mobile Which the irony of that is, Mint Mobile was really just a way to sell people. T-Mobile at a cheaper price because they use the same network technically.

T-Mobile Folks got prioritization, but it was the same network. If at 15 bucks a month versus 70 bucks a month, it's brilliant. But anyway, picture of Ryan Reynolds style ad and it's just Ryan Reynolds And hey, did you know full self-driving could do this? Yeah, that's a Tesla The car doesn't care about your politics. it cares about your safety.

and it's watching from X number cameras. This that whatever. something super simple, short and sweet like that. 15 seconds, 30 seconds from different actors or just use Ryan Reynolds exclusively.

I Mean if he's done with mid mobile, maybe you can now move on to Tesla and help them out. There's some massive opportunities to now go. From this to safety stats to FSD stats. How FSD is 2.4 times safer than a regular driver in a certain circumstance or night driving or rain driving? Whatever the various different stats or this airbag stat that we talked about or hey, did you know the price of a Tesla now was actually only 39 900 or whatever, right? A Lot of people as Elon himself said, aren't even aware the cars have become this affordable or how about this screenshot which was literally me taking a picture of the slide at the event which showed that the total cost of ownership of a Tesla is comparable to that of a Toyota Corolla was it Corolla or Camry does anybody remember I think it was Corolla Anyway, Corolla is the entry-level version of the Camry Another really phenomenal thing that I saw, which is unique to being an event in person.

Listen to what I say about Robin and the head of the Board of Directors, the Director of the Board of Directors. This was actually something you just can't experience when you're not somewhere in person and it's really magical. It's it's pretty powerful. Listen to this clip from the Alien Space Interview when somebody had the shareholder proposal on Cobalt and he's like, you know what, we'll do it Yeah, and we'll do an audit and what was remarkable was I Looked at the director of the board Robin and I saw her reaction was kind of like here goes Elon again and I'm like this is so cool I'm seeing in real time the sort of dissension between like there's Elon saying stuff and now we gotta clean it up.

You know, right? That was awesome. You know something else that was remarkable about the event was this idea. Then the more people apply for a company, the more desirable the company is potentially to work for. And the idea is that the more people apply, the more competitive it is to get into the company.

and the more Talent actually ends up at the company. And if the best talent regularly goes to the best companies that it will always be the best companies that end up innovating the most and the best the most cost effectively and ultimately provide the best shareholder value. The fact that they received 3.6 million job applications is phenomenal, because think about it, even if they wanted and that was in 2022, even if they wanted to hire their entire staff again, they have about 126 000 employees. Think about that.

3.6 million applications divided by their entire staff of 126 000, they received 28.5 times as many applications as they actually have jobs. Now imagine available jobs. it's remarkable. Really interesting argument.

One I haven't thought of before this Uh 48 Volt Architecture part about saving and spending. You know, one-fourth of the Uh money on Copper for wiring for cars probably I would say here on the relatively insignificant side. from a margin point of view, we're not really going to see that end up in margin, but it's not wrong. Copper is a form of a precious metal.

Uh, and this is good. I Mean this is why European countries generally. Well, one of the reasons use a 240 volt architecture as opposed to the 120 or some people say 110 that we use in our homes because you could use thinner wiring so less copper so it's not wrong. Interesting.

Love the idea about FSD Beta growing exponentially that the curve of adoption was going to look like a wall. I think Dave Faber from his CNBC interview with Elon Musk afterwards did hit on something that I was skeptical about myself and we'll play that clip. but this idea that the value of the car would 5x overnight after essentially becoming a robo taxi and elon's using this rough math of oh well, if you use your car seven hours a week typically and we can now use it, you know, 35 hours a week because of Robo taxi. Okay, now it's worth five times as much or whatever the the value of a fully autonomous, fully autonomous car is.

We think, perhaps, uh, five times more valuable than a non-autonomous car. Why? Okay, I I'm not convinced on that. Uh, so so we'll see Uh, because it makes you wonder when are you ever going to actually have to own a car and does that then commoditize the value of a car. Does that reduce what you could sell a car for? Does it reduce your margin? We're not sure who the beneficiary is yet of Robo taxi, so I don't include it in any of my formulas.

It's it's we're not even there yet. Let's get through the next difficult 12 months which Elon Musk Told us the next 12 months would be difficult. So let's get through the next difficult 12 months and buy the dip. As he says, when the opportunity comes and if you make it out of this, he's right Tesla will emerge stronger.

That is the case of every recession. A recession is a weeding opportunity. You weed out the talent that isn't actually Talent Your company is forced to become more efficient and less complacent. and then when you come out you're uh, more mature worked out companies so to speak.

So we heard about this idea potentially of in the future the Roadster will have a Starling package I Don't think we're going anywhere on the Roadster anytime soon. sorry I won't want to. it's not coming anytime soon. The model S Plaid is great, but Jetpack Roadster it's gonna be a while I Honestly don't think until past 2030, it's just not going to be a priority.

the energy storage segment growing faster than Automotive this is presently true I would have loved a little bit of a sort of a Elon a projection on what kind of sustainable growth rate, but we could speculate on that whether it's 60, 70, 80 percent 50. However, but it is more than the automotive growth. I Think there's also some potential to integrate. Uh, some form of artificial intelligence chat bot at basically next to zero cost for chat GPD or Bard or whatever into the voice commands of a Tesla I Think that would be quite useful because I think there's a lot of frustration around the quality of uh, voice chat, but generally that's always the case I Feel the same way about Siri I Would obviously love to see Apple carplay in the Tesla I Don't think that's ever going to happen.

GM is actually they've got it in their cars now. they're taking it out of some of their new cars. Kind of remarkable I looked up by a Bard actually. uh, what the cost is for a manufacturer to include Apple carplay in the car and as long as you have the equipment, there really isn't an extra cost.

Uh, with the exception of programming it and making sure it operates and coordinates with your system, so I still think there's a potential missed opportunity there just because there's so much of an ease of integration. But I Understand, reading off your calendar, coordinating with FSD is probably a lot more complicated than we think. But bottom line: out of all of this: I Think this was a phenomenal presentation. We know the next macro cycle is going to be difficult when it comes to interest rates.

Somebody asked, oh, why don't we do 10-year car loans because cars generally don't keep their value that long Elon said well, you have to resell these loans It's called securitizing these loans, which is you bundle them up and you sell little bonds of them. Nobody wants to hold a 30-year Bond on cars because those cars are gonna be worthless in 30 years. That's why it works on houses, not on cars, but it's probably a good thing for affordable ability anyway. Otherwise, people will stretch their payments ridiculously and never build wealth, which is bad.

Not a big fan of buying cars, but I do think that when the Federal Reserve begins cutting interest rates, margins will. Skyrocket Uh, Tesla I mean there's no question about that I mean the entire Market should ride up. But think about it. Tesla's subsidizing a lot of their rates right now, down to 3.9 And you know what? Most people probably weren't aware of that.

Hey Where's Ryan Reynolds on? TV Hey, it's Ryan Reynolds Did you know that Tesla will let you finance a car with full self-driving for a 3.9 interest rate for five, six, seven years. whatever you want. Yeah, I didn't either and that's it. Just added little Clips Like that little 15 seconds, but it's got to be Riot it could be in this little in front of his green screen background.

You don't even have to do much work I think there's so much phenomenal value you can provide and see none of that is it's none of it is clickbaity. None of it is is like trying to sell you on music or cars rolling down the road. It's just valuable information which is obviously what I try to provide every day on the channel and hopefully you subscribe. share the video.

Hopefully you uh, enjoyed the benefit to all of the Tesla community of Elon getting on the bandwagon or the train of actually advertising Tesla and the amazing value and the incredibleness of this community. Uh so uh this this is a win for everyone. Thank you so much for watching! Thank you to all those people again who came up and shook my hand. Here's some more of you shout out to all of you a big shout out also uh to uh Jose and uh Sammy y'all Amazing! Thank you so much! uh for the plus ones yell Rock uh Christian I Had a great time and uh, look forward to being at Future meetings Martin at Investor Relations.

You're amazing too! We'll see you all soon! Thanks.