Hey guys, it's sasha, some really big news today that i want to talk about. First tesla just filed some paperwork with the texas public utility commission, and this might be the most important bit of tesla news this year, more important than the berlin and austin gigafactories combined. We're going to cover this news first, next up staying on the tesla theme, we're going to have sandy monroe coming out with a huge rant about the government's blatant anti-tesla stance. This one is pretty entertaining.

Then we need to talk about etfs because they are getting out of control. Could this lead to tighter restrictions and controls, also in the news's pellet and share price crashing today, the pandemic boost to the stock seems to have been temporary, but how far down will the price fall and nvidia is in trouble in the last few hours? The takeover of arm the british computer chip designer has taken a blow from both the uk and european regulators. We'll talk about this big issue, how big it really is and what it means for nvidia stock. So, let's first start with tesla's fighting in texas.

Cnbc of all people broke this news story and i checked it out, and it is incredible on the 16th of august. Nobody knows this. For a few days, tesla filed an application with a texas public utility commission to become a retail electric provider. They have created a subsidiary called tesla energy ventures and the application isn't the name of that company, and this news might be the most important milestone for tesla this year.

A lot of the media and the tesla q community love to dismiss tesla fanboys, who say tesla, is more than a car company and that made sense until now, because almost all of the revenue generated by tesla comes from their car business. But some people out there expect that over time, some of tesla's other business ventures may actually grow and could overtake the car business in terms of size. I talked about this in two of my tesla valuation videos in recent months and i specifically said that i think that there is a good chance that it will be the energy business that can become tesla's biggest revenue driver by as early as 2030.. Now i forecast energy to actually overtake tesla's automotive business in 2029.

In this model. Now, texas was in the news in february when the state electricity grid failed, which left people without power for days during an exceptionally harsh cold spell and texas is also unique, because their electricity grid is not connected to other states. It's not connected to any of the rest of the united states, so texas manages their own power at the moment. It is not clear what the exact plan is for this new business, because there is no real information, but there are two options: tesla is already building a hundred megawatt energy storage system near houston, and storage can be an incredibly powerful way of increasing the supply of Electricity that 100 megawatt energy storage system is about equivalent to 10 of an entire nuclear power plant.

Now texas has two power plants that each have two reactors and texas also produces more wind power than any other u.s state. Those power sources can be captured into tesla storage facility when demand is low, like at night time, when the cost of energy is basically nothing and then released during peak hours when the price also happens to peak. This is a solution that can provide far more electricity to texas and, in the future, other places, without actually needing to build any new power stations, which is also epic from an environmental point of view. Tesla could also start deploying solar power.

Texas would be a perfect location in theory for large solar farms and elon musk has been a huge proponent for a long time now. Tesla's energy business has already made a record 801 million dollars in q2 of this year in terms of revenue, but it currently doesn't turn a profit. Could this be the big step that lets tesla build out an actual energy business at scale? Well, we'll have to wait and see, let's move on to sandy monroe, if you don't know who he is, he is a very famous car engineer and he posted an 11 minute rant where he highlights a lot of the obvious truths. The bias against tesla from the regulators, media and the government and how ridiculous it is for a country to be bashing a company that has single-handedly dragged the entire world towards electric cars and is objectively years ahead of any other manufacturer on the technology.

I'm going to give you a tip here: gasoline is kind of dangerous as well. It catches on fire a lot easier than you can catch on fire. A battery a lot easier. I'm gon na leave a link in the description.

If you want to go and check that video out now, let's talk about etfs. This might sound boring, but etfs have gone nuts over the last year and i don't think this is actually good at all. I'm going to explain why now, ets first came about as easy and flexible ways to invest in funds which would let you invest in a basket of companies without you having to do it so that somebody can go and make those decisions for you. Maybe you want to go and invest in the market index, but more recently, we've seen ets go down a really weird path.

First interest and money shifted towards some of the new styles of etfs that are active rather than passive, and some of the most popular ones that everyone talks about are definitely on the higher end of the risk spectrum in terms of strategies. But that's not really the problem it looks like. Maybe that was just the stepping stone. Now we have the next level of etf ridiculousness.

We now have etfs that only exist to allow people to avoid laws and regulations, for example like etfs that allow people in the uk to invest in chinese companies through their tax advantages to isa, accounts something that the law doesn't actually allow you to do directly. But you know if you invest in an etf that then goes and invests in that same chinese company, and only in a chinese company that is apparently okay, then we've had a rise of leveraged etfs and this is a whole different thing. The customer who signs up to proper leverage trading platforms to trade cfds has to go through extra screening, there's a whole load of extra questions. You have to self-certify how much you actually understand about investing, and there are millions of risk warnings that will tell you that more than half of the people who use their platform will end up losing their money.

But you can avoid all of that headache now, because these new etfs, let you go and invest in a leveraged etf without having to go through any of the rigmarole just through your general investor, account instead, no risk warnings necessary yesterday. This got even more absurd. There is now a new etf application that is waiting for regulatory approval and it's called meme. I am not kidding you and you guessed it.

This etf will invest exclusively in mean stocks that are popular on social media and it will not be weighted by market capitalization or risk levels or anything else that might make any kind of sense, you'll, be instead weighted by the level of social media, attention and short Interest the world has really gone insane now. I really hope the regulators eventually wake up from whatever drunken stupor that they happen to be in and do something about this, because, if i'm completely honest, this is just taking the piss all right. Let's talk about peloton as i'm recording this video person's share price is about eight percent down in pre-market trading. It's actually doing better than the 14 drop that happened immediately after they release their quarterly results.

Those results were really bad. Their revenue actually was on target, but everything else in there pretty much looked rough peloton had to do a major recall of its treadmills over the last three months and halted sales of those same treadmills while they were fixing their problems. As a result, they posted a huge loss of 313 million dollars on revenues of 937 million. That loss was 200 million dollars.

Worse than analyst expectations, which is huge - and on top of all that they reduced their next quarterly outlook from one billion dollars to just 800 million dollars - that's a 20 drop and it is much lower than the preceding quarter as well. Now some of the usage metrics actually kind of look good people are still using the product and their subscriptions are actually doing all right. But there is a big element of fear because of these numbers because of the trends in those numbers that the huge boost that palestine got during the lockdown periods over the last 18 months. Those benefits are not going to last and if the next two quarters, the numbers do decline, as they are now saying they may that 34 billion valuation, which is based on very high levels of growth over the coming years, that valuation could really collapse.

So now, let's talk about nvidia, because this news that just came out is big nvidia. If you remember announce that they are planning to take over arm in september last year, almost exactly a year ago, and this acquisition is really important for nvidia because they want to compete with amd on the processor side of things, they want to compete with other manufacturers Of other types of computer chips, they want to make more computer chips for industry use and a lot of the work they've already put in on that front. Actually licenses on technology, just like many other providers do as well. Analysts used to say that as much as 25 of nvidia's valuation could be hanging on this deal going through.

I talked about this in my nvidia evaluation, video that i posted a while ago and i actually sold all of my nvidia shares two months ago before the stock split, partly because of this issue that i'm going to raise. But over the last couple weeks, nvidia's share price has actually jumped up because people got really excited about the prospect of nvidia partnering, with the likes of tesla on that dojo super computer build and other similar applications, and this means that if the arm deal was to Fall through because the regulators don't pass it, the impact on nvidia's share price as a proportion might be even higher. Now. First, the uk competition and markets authority said that there are serious competition concerns about the deal which mean that they have to open a more detailed investigation, so they haven't improved.

It and they've raised a lot of concerns. They even said that nvidia's response to those concerns was not sufficient or appropriate. Arms technology is used by a lot of invidious competition, so the regulator's concerned that nvidia could screw all of them over by denying the ability to continue to license that technology, and today the european commission said that they will open their own investigation as soon as nvidia Files, details of that acquisition with them, which is expected to happen in september, and here is the problem. Not only is it becoming an issue where nvidia might actually be blocked from buying arm, which would be a huge blow to the company, but the eu is not known for being fast with their bureaucracy, and i haven't seen other people talk about this.

So if that investigation only starts in september, it is not looking promising that, even if they do approve it, it's going to happen anytime soon. Remember that that same european commission investigated microsoft for breaking competition law and that investigation took five years now, i'm not saying that this one will also take five years, but time is a really big deal in tech and this could be a big big hit for nvidia. Interestingly, the share price hasn't really been affected at all so far, so we'll have to wait and see what happens over the coming weeks or months. If you found this video useful, please don't forget to smash the like button for the youtube algorithm.

Thank you. So much for watching, i really really appreciate it and, as always i'll see you guys later, you.