Well this is Huge! The news we've all been waiting for from Tesla are finally here. Also, we have Netflix exploding out of the stratosphere. Incredible earnings they little shot out of Cannon We have Boeing nose diving as Boing usually does and we have some surprising news from Apple. Now you know me: I don't like to keep you hostage so let's go through this quickly so we can get you out of here to the rest of your day.

Now look, Tesla is the first thing on my mind when I wake up along with Paler of course my two big loves and I'm sure it is for you the same. So let's start with Tesla first and then we'll talk about Apple Netflix and God Help Me Boing! So Tesla royalties just came out with a very interesting report. According to Reuters Tesla is starting to prepare for the manufacturing of the new Mass adoption vehicle. That $25,000 car are now in the plans according to Reuters and according to their sources, numerous suppliers of Tesla Tesla is starting to set up the supply chain for the production of the new Mass adoption vehicle.

Now they haven't said the price we don't know. You know if it's going to be $25,000 or $35,000 right? Most likely it's going to be 25 to match the Toyota Corollas of the world right? But we do have a code name for this vehicle. It will be called Redwood for now and the planning is to release the vehicle in the middle of 2025 which is literally 18 months away. Now look when news like this go out, there's a few things you have to keep in mind.

Number one: when Tesla is talking about mid 2025 planned estimated release date, add another six months to it just as a matter of caution. Elon Musk has never released anything on time and that's good because he's not the sort of guy Bo to release something that's half asked or Half Baked Sorry, just because the release date is here now. El has no problem in delaying as much as needed until the product is perfect and I expect there's going to be some delays I don't think we're going to see it in mid 2025 at the earliest beginning of 2026, most likely middle of 2026, Which is still quite remarkable because if you think about it, the strength of Tesla in the Auto industry is of margins Tesla have developed this new manufacturing process that no other autom manufacturer has this modular instead of linear production where they assemble the vehicles and they've talked about about it in the last few earnings calls about how this new Mass adoption vehicle is going to be even better at that. The amount of margin Tesla will be able to squeeze out out of this $25,000 car is going to be way better than what they do with the model 3 compared to the rest of the industry.

and the model 3 already has the best margins. So Tesla is going to kill the margins on this vehicle. The demand is going to be massive because when Tesla puts out a $25,000 vehicle, obviously the demand is going to be through the roof. And if you follow kind of Tesla's logic, it's exactly the plan that El set out 10 years ago.

Model S Premium vehicle, Right? If you don't kind of think about the Roadster right, then you have the Model 3 and the model Y. Then you go for the mass adoption vehicle, which is the classic way to price your way into the market. You start with the best products and then you slowly expand and actually lower the prices. When people talk about margin erosion and they're talking about price erosion for Tesla, they're actually ignoring the fact that this is done on purpose as an aggressive move to wipe out the competition right now.

as stands, Tesla has no competitions in margins in any of the categories, at least in which they compete. Speaking about categories in which Tesla are not competing yet, the cybert TR is about to launch. Which means that Tesla will enter the pickup Market in USA which is the best market for auto manufacturers in North America On top of it, the FSD is coming along nicely. While on the other hand, I'll show you in a second what happened with other companies.

FSD is going to be an industry standard, whether it takes them six months or a year or year and a half to finish this and go fully operational, there's nobody in second place. Nobody has FSD equivalent. These guys are going to be the industry standard. Ron Baron Talked about us multiple times.

Every single OEM that wants to have level Four autonomy will have to license it from Tesla It's going to be a massive boost for the company. We haven't even said a word about robotics. We haven't even said about energy storage and all that stuff. In fact, I would argue that Tesla is the perfect example of a phrase that Warren Buffett coined.

Although we attribute a lot of phrases to this man, he hasn't said but one I believe he did. Which is the the stock market is a transfer mechanism from the impatient to the patient. basically the patient investors keep killing Slowly by Thousand Cuts the impatient Traders and I think Tesla is the best example of that. Anybody who's been long in Tesla the Dave Le the RO Myers the Steven M Ryan all of these guys who have been longterm.

the Warren ridicks, Um, Tesla Boomer Mama all of them I'm probably forgetting a few, right? All of these guys who've been there from the start Farzad right? All of them have made a lot of money in fact, life-changing amounts by being a Tesla investor. The people who you hear getting screwed by this stock is people who trying to time it and trade it and you know they usually get burned because this is an extremely volatile stock. Now if you're looking for something to retire on and to add to your kid college fund and stuff like that, I Think this is a good stock to look at if you're not going to touch it for the next 10 years for Traders I think Tesla is an extremely complicated stock because of how irrational it is, how irrational its CEO is. But for long-term investing, this is definitely worth your time to look into to research and obviously make your own decisions.

Don't do anything because I said so. Now talking about a company that has a lot of issues with full St driving and Autonomy and electric vehicles. Apple has been talking about their electric vehicle for years. They've been talking about it, talking about it, and nothing came out of it.

It was basically a fart. At least they didn't embarrass themselves like other companies who launched way too early and had burned the Lucid of the world. And you know the Lord sounds and the many other examples. And Apple just announced that they're scaling back on the entire electric vehicle project.

Having spent hundreds of millions and almost 10 years on this thing, they've actually now scaled back from level four autonomy to level Two Autonomy and also delayed it by two years from 2026 to 2028. What exactly does this mean? They're still going to come out with a car in 2026, but it won't be a self-driving vehicle. They're no longer targeting a full level five self-driving system. Now they're looking at something a bit more traditional with full self-driving capabilities, but initially only for highways and freeways.

I Don't know what it looks like, they don't even know what it looks like under this new Direction Now look I get it. I Could have saved you $500 million in 10 years I could have sent you that article by Elon Musk where he said hey, making electric vehicles is freaking hard. Guess what it is Now the official explanation from Apple is that this vehicle project is a little bit more complicated than they imagined, which is nothing by corporate talk and the translation should be look, we have nothing. We have no idea what we're doing.

This is an extremely complicated project. We're in trouble here, so let's put out something on a white label that we can push out in three or four years. Um, let's have the Autonomy project of It kind of sidelined and just put out something basic and we'll make the money off of the user experience. So what it means is that Apple isn't going to put out the most advanced vehicle out there, but they're definitely going to make something that people would love.

People love their iPhones They love the Macs They love the Apple products. so cult members of Apple which they're plenty of will still buy it. nevertheless. I'm not taking shots at Apple here I'm still extremely bullish on the company longterm.

I think they have a lot of SC curves coming up. Lots of services to be sold, lots of money to be made I Don't think they should be examined and judged based on this project which I think was overshoot a little bit of the capabilities. Now let's talk about Netflix Now Netflix is a very interesting animal here. Netflix Just killed earnings absolutely insanely killed.

Earnings added 13 million Subs they're currently at 200 60 million Subs The problem is that most of this money and the additional subscribers they came because of the Crackdown on the password sharing. Basically Netflix said look, you can't share passwords anymore and I totally get it but I think it drove a lot of subscribership from these password sharing pulls back into the freay. But the problem is if you kind of look into the nuts and bolts of this thing, sure, a lot of password crackdowns are converted to subscribers. They also have this great WWE deal and they're talking about price hikes in the future.

Sure, but Netflix still has the hamster problem hamster wheel problem that they haven't solved yet because look at the end of the day, the power of of Netflix the kind of bread and butter The Wheelhouse was the fact that Netflix was the content aggregator of the world, right? Every single content producer also let Netflix have a piece of it because why not? They make some extra bucks, right? And obviously right now that's not happening. Everybody have their own service in which they actually show exclusively their stuff. So Netflix doesn't have a Content aggregation system anymore to sell to its client, so now it has pivoted into making their own content. They're spending a lot of money creating original films and original series and that will be the greatest test.

I Don't think the test will be WWE or the password crackdowns or even the ad supported system I Think the success of Netflix will be tested over time by the ability to produce good content and not to overspend because so far every single Netflix original suffered from the same problem. They overpaid for the product and the product wasn't good enough. The films they put out were just not good enough and they were extremely expensive if they can. Master This if they can become kind of a quasi studio and create a library of content of their own, they have a chance.

but it's too early to tell all these analysts are now you know de writing this company. Obviously analysts are really smart right after earnings I would just cool my Jets on this one and be very very careful. Now talk about a company that uh, needs no introduction. This is Boing they're in trouble again.

A lot going on with Boeing right now. Just give me a general sense. um, how do you see the company and the stock right now? and what's the future of these? Max Jets Company could earn maybe six to eight billion of free cash flow instead of 10 to 15 like the street things because it's permanently impairing Max production and deliveries. so a very significant impact.

These guys are in trouble again as you heard a door blew up midf flight in Alaska A. Now Boing just permanently the production deliveries of the max 9 indefinitely. The FAA literally said, hey, we're going from audit to actual active inspection. Nobody is putting out a single plane until we go and do quality control in every single play right now.

The FAA doesn't even trust Boing right now. This is abysmal. and to say that this is some sort of a idiosyncratic situation where one door blew out. Look, if a person grabs a gun and Robs a store and then he does it again and then does again.

It's not OS syncratic. He's a criminal. He's a crook. If Boing planes keep falling apart, that's not idiosyncratic.

This is an example of corporate culture bankruptcy. That's how it put it right. After the McDonald Douglas merger, the corporate culture of Boing went to and now year after year, we're seeing the results. Which is very interesting because if you look across the pond, the A350 is doing wonderfully.

Airbus is doing great. so the A350 is killing it. Boing 737s are falling apart which shows you the importance of culture, the importance of engineering and shows you by the way why the Airbus Paler project for the A350 which started years ago has done so much for Airbus and so much for the A350 showing you how much Paler can do for companies in any industry in production, in safety and quality control. In all of these things, Boing are failing on.

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