Hey everybody, this is Tom and Tesla is blowing everybody out of the water again. I Don't know why some people are surprised they say in the first time I think Tesla Dropped a huge bombshell yesterday. The earnings were phenomenal Revenue Beat earnings per share beat a lot of new, disappointed employees behind the dumpster the Quickie Mart today because of betting against Elon and Thursdays today. But that's besides the point neither here or there.

Let's talk about the earnings. I Mean the numbers are very impressive. 24 billion, 24.3 actually in revenues 1.19 per share. Very impressive Beat Beat.

You know, as always, Tesla doesn't disappoint much when it does. it's very, very rare. now. Look, the numbers are high quality.

There is an interesting number in there as far as the predictions for the future. Tesla's guiding towards 1.8 million cars this year. this is very interesting because 1.8 million cars is pretty much what they're making right now. The current Pace that they're on is 1.8 million based on Q4 deliveries.

So that means the Tesla saying we're not going to ramp up at all in 2023. While we know objectively that's false, that's incorrect. The likelihood of Tesla doing 1.8 million cars in 2023 I Think is the same likelihood as my grandpa quitting alcohol. It ain't happening I Think the number is going to be much higher closer to 2 million easily.

I Think just like sandbagging the numbers just to look better. I Mean everybody's doing it on Wall Street Why not? I Get it? Also, there's a risk management element here. I Mean we've seen a pandemic, a war in Europe I mean Russia against Ukraine It's like U.S against Canada it's pretty much the same Insanity so nothing will surprise me anymore. So if you have an alien invasion or some sort of a global collapse, yes, 1.8 million is possible.

But besides that, I think they're sandbagging and they're gonna do two I probably think they're gonna do 2.1 2.2 million just in 2023. You know you can replay this video in a year and either embarrass me or say hey, Tom you called it correctly. In either case, I'll be fine. Don't worry about it now.

look more importantly, a lot of nitpicking is going on right now mainstream media about the margins. So Tesla's reduced prices all the short Sellers and theirs were static the old gist in their pants basically saying oh yes, But the problem is that despite dropping the prices, the margins are still great despite what they're telling you on. TV Now they're talking about how the gross profit has reduced from 29 a year ago you know, to 24. Oh my goodness, the problem is that the operating margin didn't really budge at all.

I Mean it's pretty much at 17 now when you have a competitor like Tesla which has double double operating margin then every other competitors gross profit margin I think that this discussion is pretty much a moot point. It's almost like debating. You know? Um, I have a Toyota Corolla and I'm trying to figure out whether the private jet that my neighbor just bought is good enough and big enough. and there's a bigger Lear jet he could have bought and you know he's he's losing money.

So my guy, he's flying a Learjet and I'm driving in Toyota Corolla I shouldn't be talking about his margins Tesla has by far the most exciting product lineup going forward with the Cyber truck with the semi with the 25 000 car they've talked about with SAS Income Software as a service income with FSD which nobody else has I mean Dylan called it. you know you got to have a telescope to see Tesla from the second place at this point. So talking about their margins I think it's ridiculous. Yes, they're dropping prices, but they're dropping price is because they want it.

It's their game. It's an aggressive move. Tesla's doing it on their terms. They're basically now ready to ramp up and because they're ready to ramp up, they'll sell you the car for cheap so you can actually sell more units.

They didn't have any interest in selling more units before because they couldn't procure enough materials at a decent price and couldn't just build enough of them. Not enough. Factory Ramp Up Now the factories are working at a higher Pace each unit cost is now lower because of that ramp up raw material. Supply chains are better, so you can actually produce cars cheaper.

So reducing prices actually will do nothing for the long-term margins for Tesla and increase capacity because more people will buy it. Not to talk about the EV tax credit and even if you look at the revenues, the revenues are up 37 on a quarterly basis, 20 gross profit increase on a quarterly basis, net income is up 60. If you go annual on an annual basis, revenues are up 51, 53 increase in Gross profits, and 130 increase in net income. Balance sheet is incredibly strong with 22 billion dollars in cash, virtually no debt, so the company is doing better than ever.

However, two things I want to mention here. Number one: this stock is still exposed to the risks. It's exposed to the elements. We don't know how Market forces will interact with the stock because if the FED decides to hammer the economy even further, Tesla is going to get wet and it's going to get hurt.

So the market forces can and take the stock down significantly from this point. and it's not something that cannot happen. but it absolutely has nothing to do with Tesla If it happens, it happens. But in the long term, Tesla is doing better than ever.

Now the second point I want to mention here is the BuyBacks I was really interesting to see if Elon Musk will talk about the BuyBacks He didn't directly mention BuyBacks but two things happen. Number one, he said about we're going into recession year. cash is King which basically implies he's probably not going to do BuyBacks But also, we found out yesterday and you can check me on this: Elon actually purchased four billion dollars of bonds. Now if they spent four billion on bonds which actually produce interest and he's talking about cash as king Recession uncertainty I think it would be very unlikely he's going to spend five to ten billion dollars on BuyBacks because it's basically prepping for the worst.

So in a sense Elon is telling you what I just said a second ago. the share price is too exposed to the elements right now to do a buyback. There's a lot of unknowns about where the market is headed and I think a buyback pays based on what we saw yesterday is off the table. but it doesn't really matter.

Now let's talk about the other stuff that we promised in the beginning of this video. So the US GDP is up 2.9 in Q4 which is better than the 2.7 anticipated. It does mean that the FED is going to hammer us quite significantly next time. Everybody now knows it promises us a 25 increase 0.25 and another 0.25 after that.

So this 2.9 GDP increase is nice, but it pretty much guarantees another half a percent of increase by the FED which is going to be painful. It's not like we can ignore it. Some people are also talking about Google Google announced they're firing employees. We know this, but out of the 1800 employees they're firing in.

California Get this, They're firing 27 massage therapists now I Don't know why you need 27 massage therapists I Mean you can have one or two, or three or five. Why did they need 27 massage therapists? It feels like there's a little bit of slack there. and Elim is also talking about selling three billion dollars of Twitter shares to fund the debt. Guess what? It's a private company.

He gets to do that. That's the beauty of having a private company. It does nothing to the share price and I don't think it's going to have a problem finding investors because look, everybody wants to be a shareholder in the Illinois company for the network, he's going to easily fund that. Not a lot of concerns at this point.

It seems like he's stabilizing the ship, but Twitter is such a dumpster fire. He has a lot of work to be done. And finally we have to talk about Toyota So Toyota CEO Akio Toyota The legendary CEO 66 years old has been on the job for a long time. The grandson of um, he's stepping down.

he's moving to the Chairman position and he's gonna you know it's gonna be replaced by a new CEO There is talk that is happening because it's voluntarily doing this. I Think it's more of a push out because he's been the guy leading this hubris. this kind of, uh, we're the best. We're going to tell the customer what the customer wants.

Nobody wants an EV they get left behind. They came up with the Prius years ago, led the industry and now they're little behind Ford in EV development. Oh my goodness and as always thank you for joining me today. If you want to show me some love and appreciation, hit that like button.

It makes me giggle every time you do it. I'll see you in the next video.