Check out coupon code Jet for the programs on building your wealth. Pricing will be changing soon. So some minor setbacks for Tesla we have to talk about. Uh, first gig at Shanghai Was expecting a massive phase three expansion in 2023.

That phase three expansion was expected to start mid this year, so they're still in theory time for that expansion to actually start mid this year. But now we've got some problems and it's not great because we were pretty excited about this expansion for Giga Shanghai because it would have taken Giga Shanghai from 1 million units a year of production to 2 million years or 2 million units a year of production. So we're going to talk Giga Shanghai We'll talk about the implications of that, sort of my thoughts on that. we gotta talk a little bit about Indonesia Okay, we get a little bit of an issue over here and then we'll talk a little bit about what's happening globally with EVS in 2023, which is also quite interesting.

So regarding Shanghai the government, the Chinese Communist party is now expressing concerns about yes, Starlink having a large presence in China. Now that's frustrating to government officials because there's for years been something known as the Chinese great Firewall Instead of like the Great Wall of fire, it's the censorship that the Chinese government is able to implement through their control of Internet service providers and what you're able to access on the internet in China. Well, Starlink allows people to bypass China's great firewall because they don't have control of the Starlink ISP internet service provider, right? And China is really worried about data security. And they've been worried about data security whether it's rightfully so or not for a while.

probably because they steal our data through apps like Tick Tock and they say they don't store our data in America outside of a America or from Americans outside of Americans and yet troves of American Tick Tock data was found on Chinese servers in Singapore. This is why governments and politicians are starting to ban people from even having tick tock on their phone. Okay, so this is kind of like back and forth nonsense that goes on between the two countries. Part of it is in truth, each country is probably trying to mine data out of the other one, but China in 2021 and we don't actually think that Tesla is explicitly involved in this.

But China believes it could be possible that Tesla's cameras are farming data for the US government when they go drive around military complexes and housing compounds. And that's why China banned Teslas from military complexes and housing compounds in 2021 over data concerns. right? Well, now, similar concerns are potentially stalling expansion plans of Giga Shanghai keeping it at the 1 million production a year, taking Tesla from sort of a Chinese favorite where China was rolling out the red carpet for Elon Musk to kind of making Tesla a little bit of a target for the Chinese Communist Party potentially because Elon Musk is also the CEO of SpaceX and therefore Starlink and Starlink is potentially that Great China bypasser that Great China firewall bypasser and I believe this. Okay, a lot of other people think I'm nuts but I think the 4D chess move that in the future is coming which I think China is starting to sniff out I think that Tesla is going to enable Starlink as a subscription service software as a service anyone on Tesla vehicles that guess what allows Teslas to potentially and this is my speculation to potentially in the future get a real time feed of neural net information now I Don't even know if we could process all this information in real time, but usually what happens now is you park your car at home where there's Wi-Fi and then data uploads to the Tesla servers about your your driving history and your camera footage or whatever.

right? Well, if that could be done live through Starlink or you could stream information like stream YouTube videos, well maybe I should say YouTube audio or whatever on your Tesla you could or your family can stream YouTube videos in 4k or play video games through the Starlink network without crazy disruptions, then that's pretty dang cool, right? That's another selling feature for Teslas and it seems like it would be a relatively simple thing to do to add some kind of radio uh, adapter for the satellite signals to the vehicles. And we've actually seen patents to this effect now. Uh, whether or not that actually means Starlink is coming to, uh to cars? Total speculation. But the point is, this thesis is enough for China to say yeah, we're not so sure we want to let you double the size of Giga Shanghai Now, implication wise, this might actually not be as bad as it seems.

It seems bad because Shanghai is one of the most efficient factories. It's probably the most efficient Factory that Tesla has right? lower cost of Labor higher margins great, but it would take a lot of capital expenditure that double the facility. What if it took five billion dollars? Let's just say to double the cost of Gage or double the size of Giga Shanghai We'll take 5 billion as an example. It might be closer to 10, but let's just roll with 5 bill, right? Well, what if we could take that five? Bill and instead of either building a gigafactory in Northeast Mexico or Indonesia, we just go.

Okay, fine, we'll take the five bill from China. screw you China and we'll go build it in Indonesia and Mexico right? Put five here. Put five there. So in my opinion, it doesn't It would be convenient.

Obviously, if we could double the factory production over at Giga Shanghai because you have Supply chains around Giga Shanghai it would be a lot easier to move more Vehicles out of Giga Shanghai because all the infrastructure is already there right? But eventually I think China will come to its senses and go. All right. All right, We'll put some parameters on, we'll negotiate something, whatever. We'll let you continue expanding because the reality is, we need people working and our GDP is suffering and you're right.

Tesla You're just going to end up going to a different country so we may as well have you here. My thesis: although China could have a bias towards their own manufacturers like Byd or Neo especially after these angry protests following Tesla price cuts that we covered the other day Chinese aren't that very happy? But then again, I I'm also shocked that people are actually like really buying new cars going into a recession. but but then again, not everybody in the world watches my videos and and that's why I'm I'm not so surprised that people are still buying Teslas uh at this time or any vehicles I Don't think you should be buying any car right now I Think you should try to minimize their expenses and maximize your Investments but again, I Know that might sound counterintuitive because it's like Kevin but you invest in Tesla Why would you tell people not to buy? Teslas Well, because I want you to build wealth a I'm not your financial advisor right I am a financial advisor but I want you to build wealth and I don't think the entire world watches my videos. That would be very flattering if I could have an impact like That on the whole world.

but I don't think I do. Okay anyway, so that's a China situation. In my opinion, it's it's slightly negative news, right? It opens up the doors to other things. but but this China tension is frustrating.

It's it's frustrating because I I actually do see a really good opportunity for Star Lincoln Teslas in the future and I'd like Shanghai to be able to be expanded, but we again still have six months before this project was expected to break ground, so there's still time for things to be negotiated and I would guess they'll end up figuring it out. So I'm cautiously optimistic here. Unfortunately, though in a weird twist, Elon is now casting doubt. although there could be a reason for this on the Indonesia deal.

so you've got a tweet here: Tesla's close to reaching a preliminary deal to build a factory in Indonesia We actually covered the story yesterday and what did Elon Musk Reply: Please be cautious about writing articles citing unnamed sources as they are frequently false now. I Find this very interesting because Elon Musk in his latest Twitter spaces call, suggested that they were getting close to announcing the location of the next gigafactory. He he specifically said Factory not factories. So in my opinion, what Elon Musk is potentially doing is negotiating the build out.

Obviously, his team's probably doing this whatever with Indonesia and Northeast Mexico And if somebody writes an article saying oh, Tesla's close to signing the deal with Indonesia maybe the Mexican authorities or whomever's negotiating with Elon Musk might get discouraged and you could actually have these articles screw up negotiations I Mean that's just the nature of the press. You can't blame the press for putting this information out there because it could be true that Tesla is close to signing. but maybe Elon Musk is countering here because he doesn't want sort of negotiating clout to be uh, hampered because at the same time you could also have Indonesia throw you know kind of in the towel of more concessions by suggesting oh, deals close to done all right. Sounds good.

Guess we don't have to give you any more Elon right? It could actually piss off his notification or his negotiations now. Reuters actually interviewed a senior Indonesian Ministry official who said that talks are still ongoing. so kind of countering the Elon Claim about being careful about this when Indonesia is like yep, we're definitely still in talks Deal's not done yet, but we're definitely in talks. Interesting.

So kind of confirming it from the Indonesian side right where Elon's kind of throwing cold water on this. Uh, but the individual declined further details citing their non-disclosure agreement. How interesting. Okay, another thing that's worth noting is uh, EV demand and I This is really incredible because we we are in a recessionary time, there's no doubt about that.

Uh, it's very difficult to suggest that we're not in a recession because as soon as you suggest we're not in a recession. Really? I Think you're We're kidding ourselves because you're just waiting for the Bureau of uh, the National Bureau of economic statistics to actually come out and say we're in a recession. Uh, But then again, by the time they actually declare when a recession, it's too late, right? But what's remarkable is in this recessionary time, what do we have here? look at this estimated and projected EV growth. Found this on Twitter somewhere, but this is a Bloomberg uh Nef.

that's like their economics Department uh and their environment Department Economic environment Department I Like to call it, but anyway, they generally do incredible research and Bloomberg Nef is suggesting that electric vehicles, uh, throughout the rest throughout the world will grow from a 10.3 million unit Market in 2022 to 13.6 in 2023. That's 32 growth with what looks like uh, and I'm just kind of ballparking this here with about 20 percent of that growth in North America maybe about 25 in Europe probably closer to about 50 percent of that entire bundle there in China which oftentimes are less expensive or lower priced vehicles and you get the rest of the world up there pretty small. but anyway, generally North America Europe China being the big consumers here. but it's remarkable that in this sort of recessionary time, we could see this sort of EV growth.

It's actually very encouraging in my opinion for the EV sector and I think soon EVS will start behaving much like the chips where the chips are coming in like Taiwan semiconductors this morning with uh, with, you know, bad numbers not that great numbers and the stocks are actually rallying on not so great numbers because it's not as bad as thought. it's kind of remarkable. Anyway, there you have it on. Tesla Thank you so very much for watching and we'll see you in the next one.

Thanks so much! Goodbye.