Foreign Tesla is finished. This is the end. Now That's what they want you to think now. Tesla Just announced that there are cutting prices in China again for the existing Model S and Model X inventories.

The price cut is going to be about seven to eight thousand dollars a pop and there will be joining the new standing range for the Model S and Model X which will also be discounted. Now look this: Sparks A whole new debate from the Cockroaches who hate Tesla, the Bears and the little haters. And of course over the next few days they will be on social media explaining to you how these price cuts are basically a sign that Tesla is finished. It's over, it's done, it's kaput.

and how this proves that Tesla simply cannot compete with the industry and they're getting annihilated now. Look, the share price is down 20 for the past month currently at 228 as of the making of this video and it seems like it might drop even further. But here's the deal. The news about the demise of Tesla are a little bit premature.

Now let me clue you in on a little secret: Tesla has no issues of competing with the industry and in my little notebook I prepared a few facts to go along with your theories about how Tesla is done. Now look: Tesla is currently shorted at about 2.8 percent I Just want to remind you that Tesla used to be the most shorted company in the market and a lot of people lost their pants and underwear and a little bit more shorting Tesla So at least the shorts have learned their lesson not to bet against Tesla and it's currently below three percent. Sure interest. The stock price is kind of a thing that people talk about right now with Tesla because people constantly measure the fact that that it's up 115 year to date.

Sure, Tesla stock is up 115 year-to-date That is 100 correct. But the thing is, it's still down 25 on a 12-month basis. So the stock is not even up yet. It's still.

you know it's down 25 from the you know what it was a year ago. Now as far as Tesla being able to compete in the market which I found hilariously ridiculous that argument that test is dropping prices because they can't compete, it's a little bit of a misunderstanding of what's going on here. What Tesla is doing is: they're suffocating the competition. They've done it in the US now they're doing it in China.

The idea is you drop prices you Corner the market. You create a pressure on your competitors by the way, which none of can scale a vehicle at this price. There's not a single EV in the market that is retailing at the price of Tesla and has similar margins. There's no competitor Byd included that has Tesla scalability, compatibility, and ability to charge these prices.

So you basically Corner in the market, you're taking over market share. You're killing a competition. You're bringing in more revenues. And since you have the best margins in the business, you can afford it because the margins will drop.

Look Tesla is currently operating on 18 EB down margin. If you compare that to Ford with their measly eight percent and GM with their 10 percent, I mean Tesla is really not in their league. They're in the whole class of their own and may I just mention here that Tesla has better EB down margin than VW and Toyota as well the net income per employee, which is an interesting statistic. It's currently the hundred thousand dollars net income per employee.

A hundred thousand dollars. It's five times higher than Ford. The revenue growth is 40. It doesn't seem to me like they're struggling, especially when Ford grew by 14.

GM grew by 27. So it doesn't seem like they have a lot of trouble selling cars. Now it's true that they're trading at Adpe, which isn't cheap, but look, Tesla is never going to be a cheap stock. Why? Because the numbers are phenomenal.

They're the best in the business. You always got to pay premium to get Michael Jordan to play on your team. It's the same thing. It's never going to be a cheap stock, but Adpe.

I'm going to make an argument here that it's not expensive compared to what you're getting. and if you are a single person that cannot wrap your hand around this and you think that this is ridiculous and you should not buy something above 20pe, Just don't get the stock. The same people who said that in 2013 just 10 years ago, they missed out on 21 000 of appreciation in stock. So here you go.

Hey, look. Tesla has no problem competing. Their numbers are out of this world. Net Income Tesla's net income in 2019 was negative 900 million dollars.

People forgot that part. They had negative 900 negative billion Pretty much just in 2019. they're currently at positive 12.2 billion dollars of net income cash and cash equivalent question cash equivalents and short-term Investments back in 2019 was six billion dollars. Currently at 23 billion long-term debt.

Long-term debt doesn't have long-term debt of 10 billion dollars in 2019. currently at half a billion From 10 billion to half a billion 48 000 employees in 2019 Currently 130 000 employees. Now, it doesn't sound to me based on these very raw, superficial numbers, that Tesla is struggling in every sort of way of fashion. It seems to me that they're doing just fine.

now. Look, we haven't even said a word about the fact that Tesla is the only car company with an ecosystem. We haven't even said the fact that Cybertrack is going to be revolutionary. It's going to change the market, and it's going to put Tesla for the first time in the pickup truck category, which is the best category in the US, which they're not even competing in yet.

We haven't even said a word about the supercharger. Network Being a massive industry standard right now, we haven't said a word about SAS The only company with the SAS software is a Surface income which is the full set of driving is Tesla That's 80 margin. They have the most amount of miles, they have the best system. Nobody comes close to them.

They'll have the best driver assist system in the market for decades and they will license it out which will bring more money. as well as the supercharger. Network It's going to bring more money. It's a behemoth of a company.

not to mention the energy, the mega pack, not to mention the solars, not to mention the robo taxi, the robotics, the AI AGI whatever. I mean are we really going to have the stock? The test is falling apart over a seven thousand dollar discount on Model S and X which they really don't sell yet. even look at how much Model S and model X this company sold in the past year. this uh, really irrelevant numbers.

The money is in the model Y and Model Three model Y, by the way, right now is the best selling car in the world. So are we really going to talk here about discounts? Really? we're talking about discounts Now for those of you who want to learn more about how to become a better long-term investor and join our amazing Community where we have a dedicated Tesla room and test the server on a Discord where 5 000 members check out the link below. Patreon.com forward slash Tom Nash Before you go. one important thing: one of my best friends Kioni he lives in Hawaii and his family was affected by this and the wildfires in Hawaii is a topic which I don't know enough nearly to make any sort of smart comments or remarks.

But the one thing I know these guys need our help. So Kiani started a GoFundMe to help the victims of the wildfires in Hawaii I'm gonna put it in the link below I ask of you to at least share it with your friends and family on your social networks and if you can donate and also help the cause, we would really appreciate it to come together and help these guys. Thank you so much! I'll see you in the next video.