Tesla plans to open its charging network to other EVs [Brilliant Move]
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👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
You can now book a live 1X1 call with me via Clarity here: https://clarity.fm/tomnashv2
I have a long position in TSLA.
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
Hey this is tom, and if you watch any sort of sports you know there's one golden rule. If you see an opposing team, do a certain drill or a certain exercise or a certain play, there is no way in hell. They're gon na run the same play. The next time it's pretty much a given that now the defense have adjusted and they have to go to a different play.
That thing does not apply to tesla and the legacy automakers, apparently, because tesla just did something incredible. What they did now is nothing short of brilliant check. This out, tesla just announced that they're opening up their charging network to every single ev out there, and that is a crazy move. Let me explain why, so, when you think about it, tesla has two main advantages over every other ev out there, which is engineering and infrastructure.
The one thing you have with the tesla is the experience of convenience of abundance. You don't have to struggle with charging stations whatsoever and now they're, giving up half at the i one half of that advantage towards other evs and on the surface that might look like a dumb move. But, as you know, elon is no dummy and there's a lot of logic in what he just did. Let me explain so you know we all enjoy laughing about regulatory credits, how regulatory credits were weaponized by tesla to destroy their competition with the competition paying for its own destruction.
Now, if you don't know exactly what happened with regulatory credits, so basically this is what happened in a nutshell. Tesla came to the legacy automakers and said: well guys we only make electric vehicles, so we have plenty of these credits. We have no use for instead of you, making yourself more efficient and actually building infrastructure for ev manufacturing. Don't do that.
Just use our credits and keep printing money by selling internal combustion engine cars until the cows come home, enjoy yourself. Why not, you know, take a lot of put up your feed and that was the honey trap. Basically, what happened is that the automakers, at least the legacy automakers all jumped on the opportunity to buy these credits and keep selling ice cars ice being internal combustion engines. I know they're not called ice, that's just me being an idiot now.
What eventually happened is that tesla is now getting paid by these other auto manufacturers to get ahead instead of them, which is something brilliant, because they literally now can't stop making internal combustion engine cars they're stuck in this vicious loop. Now you would think that even the legacy automakers are not that dumb, they will not get played again. You remember the old george w bush thing. Fool me once shame on you fool me twice.
Well, i guess you can't shame it on me. I probably butchered the whole thing, but you can listen to the j call song - it's very good in there, but essentially they just got played again. So what tesla is doing here is brilliant, they're, basically saying to the legacy: automakers, hey guys. Instead of you spending billions of dollars billions on building this infrastructure, don't we have so much space? Look we just idle, just use it use ours. No worries take a lot of put up your feet. It's the same thing happening right now, so what's happening here, is essentially tesla, creating a negative incentive for these legacy, automakers to set up their own infrastructure and become more competitive over the long term. Why? Because every other ceo out there is thinking in five year increments. That's how every ceo thinks, unless you're a special kind of ceo and elon, is a special kind of ceo and he's thinking in 50-year increments.
So, basically, for a ceo like that to come up with this plan is kind of a no-brainer, but for a ceo who's. Thinking five-year terms denying this deal means that he's not getting his bonus, he's going to spend a lot of money and the shareholders are going to be angry at him for losing money spending billions on capex is not a popular thing to do when you're, the ceo, So for them to agree to this deal is like for my grandpa to offer him a glass of vodka. Obviously, he's going to take it, no matter what, and by doing that, they're going to eliminate the only chance they have to catch up, at least with having comparable infrastructure to tesla, not to mention tesla is going to get free cash flow by doing nothing by getting More customers to their charging stations, which they actually can convert to tesla customers for the second and third car, because they're going to see how much teslas are better they're, exposing tesla to these actual potential customers, not to mention this free cash flow. As you know, the demand is definitely there not enough charging stations for evs right now, at least in north america.
It's going to take all this extra cash and expand these stations by essentially creating the situation where the other legacy automakers are now paying for tesla to expand its own infrastructure and actually put itself further and further ahead. It's the same play tesla is getting legacy automakers to pay for tesla's expansion of infrastructure and getting itself further and further ahead. And if there's some people in the comment section saying well tom, you know as a tesla client you're going to feel real pain. You're going to come up to the charging station, it's going to be filled with ladders and pintos and you're going to get annoyed.
No sherlock, obviously there's a chance of that happening. But given what you know about tesla and elon selling experience and value, do you really think they haven't considered this before opening up their charging stations? They definitely have, and they will there's no way the tesla is going to do display without having a plan for not hurting the experience of the current users. Obviously they're going to expand. That's the whole idea of this thing, but the other guys will pay for it. That's like the donald trump plan with the wall and mexico is paying for the wall. Well, donald couldn't get it done, but elon can maybe he should run for president. I don't know, can he i don't think he was born in the u.s. Whatever and jokes aside.
Thank you for the channel members and the patrons you guys are amazing, love you all. So much we'll see you guys in the next video.
Elon for president!
Not born in America? – That didn't stop Obama.
Every Tesla charging station will be a free Tesla showroom for Tesla.
Elon should run for President as an African American. Not born in the USA was not a problem for Obama.
This move will accelerate transition to sustainable energy by permitting other EV owners to buy EVs that Tesla can’t produce because of lack of production capacity
It will increasing Tesla earnings and Tesla will use these funds to increase production capacity
Then this will be free publicity from other EV owners to see how fast à TSLA can charge by pulling in after and pulling out before another EV even charged 50%
Tom, Serious question.
Any chance that Charge point and Tesla get together in a business venture?
Also dude, remember Tesla are getting into the food industry, setting up Tesla restaurants at their charging stations. They just increased their customer base for this new enterprise.
I was saying in 2016 that F should buy TSLA and people laughed at me, "what would Ford do with it?" was the most popular response.
We need to know the plan, otherwise this could backfire spectacularly for Tesla. Significant selling point was Superchargers and I wouldn't have an EV without that access. Many have been loyal to BMW/Merc/VW/Audi & Ford for years and if they get access to Superchargers, they could well return to these brands. I want a smaller hatch, Tesla don't sell one, so my next EV is unlikely to be Tesla.
Elon should go for Emperor of earth, so far as we know he was born on it 🙂
The new camera is showing us the effectiveness of your beauty regime (or not :))
Actually it's worse than that for the other car makers. Tesla's Supercharger network is probably a strong net profit for Tesla. The more charging is done at them, the more profits Tesla has to build out more Superchargers.
So basically this makes the other car makers pay to build out Tesla's Supercharger network even faster, to the detriment of their own charging networks.
In other words it causes the purported competitors to accelerate and grow one of Tesla's major competitive advantages.
What happens to companies like ChargePoint in the charging scenarios for EV's?
I think it was a smart move. None of the other manufacturers are interested in infrastructure so they partner with charging providers. Tesla happens to have the best infrastructure out of necessity since they where first to market with all electric and needed to solve the range issue without infrastructure in place.
Keep in mind that as these manufacturers move over to EV’s Tesla’s regulatory credit revenue will go down so this move is actually a necessity from a revenue standpoint.
Musk is an absolute fraud he's DARPA backed just like Bezos in Amazon's infancy just like Uber in its infancy. He isn't the genius everyone is so quick to give him credit for. He isn't meant to fail. He's a technocrat in a Brave New World that was all admitted decades ago when TVs didn't even have color. The traditional automakers's major corporate players don't care. They've already made their fortunes and connections. They'll always be taken care of. It's the little guy that will pay. We always do.
If the other cars are going to charge at Tesla stations why should tesla cars pay for charging?
non-tesla owner at charging station: what? tesla can do much more than cruise control?
Why not make money? Gas stations are open to everyone.
It's ev against ice not Tesla against ? (Who ever else makes ev)
what tesla will do is make their own cars charge 10 times faster than the other auto makers so every person will see a tesla pull up and charge in 15 mins and zoom off and wonder why they never bought a tesla. should be easy to make it so the charging stations will know what type of car its charging.
As a Tesla owner I am not very happy about this, when I bought my car in 2018 there wasn't many people at the superchargers compared to today. Nowadays they are packed, so much so that people park around you and knock on your window to let you know that they want your spot once you are done. The other day there were four people waiting to charge, adding everyone else it is a nightmare and could potentially add time to long road trips if when you arrive to charge there are many other drivers from all manufacturers using the Tesla charger. I don't see how this benefits me as a Tesla consumer.
Plus free marketing every EV owner charging at Tesla will subconsciously read the name Tesla, Tesla, Tesla
Next time buy a Tesla
hey tom if you do a dcf and your opinion on microvast / thcb i will become patreon for a year 😃
As a model 3 owner don’t love it, but as a shareholder great plan. Not only beating legacy auto markers but gas stations to the transformation.
I wonder if TSLA was pushed into the move in order to be eligible for Infrastructure funding?
Tesla should do it. If legacy auto is stupid enough to pay them, let them.
Your POV on this never occurred you me, but now it's makes a lot of sense. Brilliant.
"There's an old saying in Tennessee – I know it's in Texas, probably in Tennessee – that says, fool me once… shame on… shame on you. Fool me – can't get fooled again!"
I don't think GM executives think past the end of the current fiscal year, they've been trading short term "gains" for long-term losses for years.
Congress will be passing this infrastructure bill anytime soon and TSLA will be in the forefront on this.
There is probably a subsidy on the table that grants $ per charging station that requires any car can charge on it for qualification. I don't expect other OEMs will pay, I expect it to be government will fund expansion.
Tesla can also give out ads via the phone when you are at a charging station with the Tesla App. That is free marketing! Higher chance for the people that are not using Tesla to convert them.
It's hardly revolutionary for a company to sell its idle capacity. Surely that's all they are doing. Tesla will need that extra cashflow from charging once it loses the $500+ million per quarter in regulatory credits .
Can't they just push up the price to non-Tesla owners to ration demand at charging stations to favour Tesla owners?
I've read that Tesla's service network isn't being expanded as fast as its car production so the "experience" of owners is already suffering.
So tell me the truth: is your grandpa real or is he a stereotypical fiction you created? We’ll need you to bring him onto your channel to confirm 😂