Welcome back to another meet! Kevin report today is a Saturday February 4th and boy we have a lot to cover in today's Not only are we going to talk about a CPI shocker coming up, but we've got to talk about this Chinese spy balloon we're going to talk about Tesla and Ford what are the CEO of Ford Just say that was probably the most ludicrous thing that I could possibly imagine and it was hilarious. You're gonna love it. The earnings call was great I've got the breakdown for you. We'll talk about uh, what hedge funds are up to, what's going on with the Federal Reserve as well as a bunch of other things. so a lot to cover. Let's get into it. First, we got to talk about a coming CPI shock because the initial estimates for January's CPI from economists are out and remember the next inflation report isn't until February 14th between then. Now we've got a few catalysts to go through. so what I'll do is I'll hit what some of these catalysts are going to be in the coming couple weeks here coming 10 days and then I'll talk about what's going on with this CPI shock that we're expecting. So let's hit some Catalyst first and we'll just go in order. So obviously today is Saturday markets are closed, but we want to prepare for Monday Monday We're going to start with Pinterest Pinterest is going to be really interesting from a consumer point of view because at least for my purposes I'm going to be looking at Pinterest for a leading indicator on Etsy sales. I'm an investor in Etsy because I really believe that Etsy's got some real nice margins over a company like Amazon because Etsy is not doing the Fulfillment I Think fulfillment is a great way to sandbag your cash flow. You're never going to get it faster. You're better off letting UPS FedEx and Amazon Fulfillment and all that kind of stuff. Uh, personally, I don't want to be in that business because I think you're in a race to zero dollars of profit as soon as you get two days of shipping. What happened? let's go to one day, then it's same day. Then it's going to be drone deliveries. It's the most expensive thing you can get into in my opinion anyway. Pinterest I Think is going to be a very interesting leading tell for advertisers as well because a lot of people spend money advertising and companies spend money advertising on Pinterest including Etsy sellers advertised on Pinterest. So interesting tells on the consumer. uh, we'll get some leading uh indicators for Etsy We'll get some sort of more data on Amazon although we already saw Amazon's earnings, but we'll also learn a little bit for advertisers. what? Uh, what are Advertiser appetites like? How does it compare to the advertising declines that we saw at Google the slight beat but still reduction in advertising spend that we saw at Facebook and what could it mean for trade desk coming up? then on? Monday we'll also be talking Activision Activision Blizzard They just settled with the SEC for 35 million dollars for frat boy uh, culture? uh I'm not sure if the SEC is taking that entire 35 mil. I Imagine part of that is going to the Uh to the people who submit to these allegations, to the women who submitted these allegations. but uh, obviously looking for insights here on Activision Blizzard To see hey, are they actually going to get acquired by Microsoft or is that deal going to get stuck in the mud? Take two interactive reports Spirit Airlines Reports now. Spirit I Think is actually leading potentially deflationary indicator we want to pay attention to because guess what folks, if the discount Airlines If the discount Airlines start discounting even more, guess what? I Think you're going to end up seeing pricing war from Big Boys American Airlines United JetBlue Delta These companies are also going to get into a pricing war and we'll actually see a reduction in ticket prices, which is a disinflationary aspect that we would love to see in the next. Inflation reports all throughout this year I'd Love to see airfares actually come down. Keep in mind, the airline industry is still trying to get back to equilibrium. We're still not at 2019 levels of equilibrium. You still have 10 fewer Pilots About 15 percent fewer overall staff. You've got substantially or you're You're already basically back to 2019 levels of travel. And those will potentially exceed 2019 levels of travel. So more travel, less capability of servicing has led to a lot of deflation. uh, sorry, has led to a lot of inflation. Let me correct my yourself. there has led to prices rising, obviously, and we're hoping that balance starts coming back in the next few months, especially as used car prices are expecting to potentially stabilize and that falling anchor of used car prices goes away. so it'd be nice to see some pickup from Airlines potentially competing a little bit more. We'll see. Simon Property Group Report on Monday Simon Property Group Lar one of the largest mall owners in America They actually own some pretty good quality malls I I Personally I like the company I Like what they do I'm not a big fan of investing in commercial real estate not at this point I Think valuations are quite stretched at this point in commercial real estate, but we'll get some consumer insights here. Uh, especially what kind of businesses are going Uh, BK Basically, especially not not sort of on the big scale like maybe uh, Bed Bath and Beyond But how many of the smaller stores are picking up and leaving? Uh, you know there was a big belief that we're going to be able to go from a 2000 sort of 19 spending world to a covet everybody spends on world and the reopening. Everybody goes back to the mall, but our people actually consistently going back to the most. How is traffic looking now compared to the Past Tyson Food We'll see if some meat prices are coming down. What kind of inflationary aspects are we seeing for food or really great indicator? Tyson Foods should be a great tell for us I'm a big fan of studying earnings and earnings calls for deflationary signs. So far, almost every single report I'm reading is indicating that the first half of 2023 still tough, second half expected to be boom time. Now you know all of the CEOs could be wrong, but let's just say they weren't wrong in the last time around. Where in January of 2022 they're all like, oh, we're gonna have some inflationary problems. Sure enough, we did. uh Tuesday we'll have Hertz the rental car company I Think it'll be interesting to see if uh, we have any indicators on their interest in buying even more Teslas uh, this is something that they're actually a big fans of buying Teslas and pole Stars actually. uh, so we'll see if there's any kind of increase or or more motivation now after price drops to uh to potentially take advantage of uh, uh, some lower prices and buying some more electric vehicles. We'll see. apparently these rent very well. People want to rent these. and also keep in mind the network effects of renting cars when car companies. Rent Out Cars One of the neat things that happens is people go in the cars and they're like oh, I kind of like this car and they potentially want to buy them. Rental car companies are a fantastic way for companies to advertise their car by actually letting people drive them without actually advertising their cars. It's great. Uh, you've got BP reporting Tuesday You've got five serve, which is, uh, the traditional sort of more Legacy Fintech, if you will. Company that also processes a ton of transactions I Think they're they represent over 50 percent of retail store transactions. Think of them as checkout terminals. old cash registers, baby. Obviously, they're trying to change with the times, but we'll get some insight on consumer spending from them. Dupont is an industrial. We'll see what's going on with Industrials So far from 3M and down, we've gotten a lot of indicators of layoffs. Uh, industrial layoffs are often the last leg to fall in a recession. so we'll see. Does this mean we're just getting started? or does this mean we're over the pain? Who knows. If you look at the Bond market, the pain hasn't even really started yet because of the inverted yield curve and the depth of the inversion. The pain is usually during the re-stepening phase and we've barely started that. KKR Real estate. You know these real estate companies again. I Think they're terribly overvalued, but I'm curious to see what kind of redemptions uh, and or how the company's planning on handling the massive Redemption requests they're getting. So far, Companies like Blackstone and KKR are not fulfilling all of their Redemption requests. That's basically what investors are like. dude, uh, we want to get our money out, we want to go buy other stuff and the company's like yeah, sorry the Market's trash and we don't want to. but if the company gets forced to, then they might have to liquidate real estate, which could lead to a large bump in real estate inventory. Keeping in mind that after that Jobs report, we got a nice little take up again in that 10-year treasury yield. When you get that tick up in the 10-year treasury, you end up pushing mortgage rates up with it. So something to pay attention to is mortgage rates. Rising more liquidations at rates. A little bit of a risk and phase reports on Tuesday I Do think that End Face Is is one of the most phenomenal companies that you should consider as an investment. obviously hashtag not personalized Financial advice for you. but I think it's a phenomenal company. However, there are massive risks I Think all Enface has to do is say hey, we're starting to see a drop off in residential customers being interested in ordering uh, solar panels because they're worried about the housing market going down. Yeah, that's gonna that Could sandbag that stock. You really need growth at in Phase Now the stock has thankfully sold off from the the insane valuations of the 330s into the low 20s. I actually picked up a few more shares in the low 200s. Uh, but uh, but but you know there's there's still a big risk here now for me. I look at this and go hey look if end face Falls yeah if we can get to that 160 level I Kind of want to start backing up the truck potentially so we'll see and face I Think is a phenomenal company Chipotle reports on Tuesday now I am really excited about Chipotle and now Chipotle is one of those that they've managed to figure out pricing power with rice and beans and it's phenomenal Now what's also really incredible about Chipotle though is they're one of the leading companies coming out right now saying look, we're hiring 15 000 people for burrito season I didn't even know burrito season was a thing I live in California uh and uh, it's like every day is Burrito season here I think I have burritos like three times a week. Okay, it's just what we do out here. Burritos are freaking awesome. uh anyway and I also by the way, just learned like fun fact I Never knew this cilantro is actually not an American word. it's a Spanish word for uh, coriander and I'm like hmm never knew that. The only reason I learned that is because my dad uh was saying he was going to cook something and he was going to put coriander on it which is the same word in German coriander and I'm like what? what is that? so I translate it and and uh it translates to coriander in English too and I'm like it's just spelled with a c instead of a k and I'm like I don't know what that is So so I Google it that's enough or it's cilantro the the Spanish word for it I'm like oh, never knew Anyway, so uh, apparently they're hiring about 15 000 people for uh for burrito season. If you actually go to their website, you'll see right now Chipotle has like 3 200 job openings on their website. Just like insane how much they're hiring. but the leading indicator is probably the best from Chipotle in that Chipotle is is bluntly saying look, it's becoming easier for us to hire people. In other words, PP from people are are getting smaller wage earners, pricing power is going down, their PP is going down and that is leading to more capabilities of businesses who want to expand in a recession to actually hire now. I Actually think that's phenomenal. I'm a big fan and massive believer. then in a recession you double down on your business if you're a business owner right? and you prepare to take market share. So that way when you're in that next Bull Run you're a force to beat. Reckoned with that that's that's my my thesis and so I'm a big fan of doubling down I think that's exactly what Chipotle is doing here and I respect that. I think that's awesome so we'll see what happens with Chipotle that is uh Tuesday We've got Consumer Credit also coming out on Tuesday Tuesdays Consumer Credit numbers we are looking at 25 trillion versus a prior release of 27.96 Uh, that would be good because Consumer Credit has been skyrocketing and it's time for that to come down a little bit. Trade balance is expected to come in at about negative 68.5 Keep in mind that every time consumer credit skyrockets, people start panicking over the the idea that uh, consumers are going into massive loans just to sort of sustain uh, their uh, their, their earnings and uh, or sort of I should say their spending. In March. Of 2022, we hit 46 billion dollars of consumer uh, uh, Consumer Credit which was insane. It was one of the largest numbers ever in June and we hit 39.7 It's recently come down to a low of 23, so if we can sort of resettle back to maybe a longer term average, that would be good. Pre-pandemic Consumer Credit had a high of about 27, which is roughly the survey we expect now, and it averaged closer to about 22 on sort of a monthly basis. And during the pandemic, there were Times Obviously Consumer Credit even went negative. People were just paying off their debt. They're like oh my God everything's gonna work and the world's gonna end. Uh yeah, that was a crazy time anyway. Uh Wednesday We have a wholesale trade coming out as well as some other earnings. Of course we'll review those. Wholesale trade is expected to be negative. 0.2 percent in wholesale inventories on the month over month basis. Expected to be. point one we have Uber coming out I Don't have too much to say about Uber I Personally I think Uber and Lyft are services that I don't think could ever really make a profit. I Think the drivers are the ones who are going to monetize most of the profit and anything that's really left ends up getting spent on Opex at these companies. That's not necessarily to say they're bad companies. I Mean after all, they provide food for all of their employees. Basically right, they provide pay for all their employees. So you know, having a company that that makes no money is not necessarily a bad thing because all the people working there make money. I Just don't think it's a good investment because that means the investors aren't making money. Uh, then you've got CVS and Disney Disney coming out on Wednesday Now Disney is going to be interesting because Disney is going through this this phase of cannibalizing all of the hard-working people's efforts at the parks and the cruise lines. Uh, and and really the the sector that makes money for Disney Disney makes a crapload of money at their Parks People are spending more money than ever 50 percent more per person spending per capita spending at Disney Parks Right now it's insane. People are going nutty. okay, like people love of spending money at Disney But the brand value is huge even though they they write their Goodwill as even lower than teletox which is like hilarious to me. Disney is a quality brand. Okay, we know that unless of course we want to start talking politics and then we can have debates about don't say gay and and then everybody's gonna start getting fussy and go, What do you mean? What are you some Libra who loves Disney We're not going to get into that. Okay, we're talking about PP here. Okay, we're not going to talk about children politics. We're going to talk about PP Pricing power. And their brand has a lot of pricing power. Now the question is, and and sure, some of that politically has been reduced a little bit. But uh, the question is really how much money is Disney going to keep throwing into the entertainment World of Disney Plus, because that's the big money sync right now. It's kind of like a Metaverse situation where on one hand you've got Facebook taking in all this money from advertising. but what are they doing? They're dumping it all into the Metaverse and that's a little bit disappointing for investors because you've got a profitable segment that's feeding a not so profitable business. Now the Hope obviously with Disney Plus is that Disney Plus can continue to grow subscriber base, but also grow faster and better than Netflix. Obviously, Disney Plus came out a whole lot later than Netflix, but as of late, they've still been growing better than Netflix and the goal obviously. keep that going. But also, I Think the biggest most interesting part for Disney for me is how is the advertising going? because so far Netflix suggests the advertising isn't actually going that great. uh, that they're having a rougher sign up, period and that they're potentially even considering going to a freemium model where basically they give free Netflix service. But then you get a bunch of ads because they're just not getting a lot of people signing up for the pay and still have ad service. That's actually not a terrible surprise to me, but Disney's trying something like this as well and I'm very curious to see what kind of indicators we can get from Disney for my favorite trade desk and connect the TV advertising. So far, it's not looking that great for advertising though. I've got my fingers crossed: that trade desk can still grow in this recessionary environment. Might take an L on that one though, so we want to be careful on that. Robin Hood Wednesday Now I'm very curious also to see how they're potentially making money, because even though we know companies like Sofi are making more money by attracting depositors offering a higher yield for savings accounts, attracting depositors, and then lending those deposits out and making money on loans. Robin Hood doesn't do lending other than margin lending and margin lending is falling. But they're also now offering 4.15 percent on cash deposits. which by the way is really good. Like if you've got cash sitting around in my opinion, you stick it into like a wealth. Runner Robin Hood I Don't care what you use, uh, and milk that yield. That's incredible. Like why bother dealing with treasuries when you could just milk that? It's great. It gives you that liquidity, too. Instant liquidity. It's phenomenal. So what we've got to consider uh with uh with Robin Hood is they're paying out a lot of uh, their yield. Basically what they could be earning in the market on cash deposits that they have. And so I'm curious to see as that spreads, compression or compressing. Is there Revenue going down? We'll see. and we have had a couple green months here. Uh, in the stock market. or maybe at least a green January We'll see if that was, maybe it will get maybe a good better set of guidance for the first quarter of the year. uh from Robin Hood but no guarantees. Then we'll also get a firm really big consumer spending play here. But I think biggest part for a firm is how are those default rates? I Don't think a firm's really been around long enough to actually be popular during a recession and now we're in a recessionary environment and a firm's basically playing the first rodeo recession. Now a firm likes to argue that oh well, people need us more in a recession? Sure. But are they burning you more in a recession? we'll see Goodyear Reports Win! Reports on Wednesday Mattel reports that if you look at sort of uh, the the earnings that we've already gotten from companies like Hasbro games like toys not looking good so big red flag there for Mattel we'll see how much of that is already priced in uh, consumer and inflationary spend obviously for Goodyear will be interesting and then also win, How's travel doing? How's Macau doing? How is the reopening going in? China From the Macau's point of view. uh and to me that's actually going to be a Starbucks towel because I'm I'm pretty excited about what I'm seeing at Starbucks So then on Thursday we get uh Pepsi Pepsi Pepsi Uh, we'll see what kind of inflationary costs we're getting a Pepsi uh, we've got Toyota Credit Suisse PayPal Lyft Cloud flare. Now that'll be a big one for software service spend. If Bill.com is any tell, Cloudflare is going to get reamed. Software service companies, especially ones that are not profitable, are probably not going to do too well in the next few earning Seasons So there's a big red flag for Cloudflare. However, if it can beat on forecasts, it could move bigly. We'll see I I would expect the implied volatility for cloudflare is probably in excess of uh 15 percent for for uh, a moving earnings kind of. especially following the Bill.com And we can actually find out what that is by looking at what the implied volatility is on earnings day next week and it is, Oh, I was close. 12.1 is the implied volatility. The average volatility for the stock is, uh, generally. uh, for earnings is 5.9 So you've got two and a half times as much volatility expected for these SAS companies. On Friday we get the University of Michigan inflation expectations read and then the week after that, we get CPI which we've just got some of our initial surveys in for. Let me first hit U of M sentiment and then we'll also look at these CPI forecast. Uh, after this stream, by the way, we're going to start working on changing the pricing as we promised and removing that coupon for the programs on building your wealth link down below I Just wanted to give you a heads up in case you're wondering like, hey, it's still there. It's like yep, just woke up. Don't worry, we're going to change that. So uh, we'll get those changes done today. Uh, all right. So what do we got here U of M sentiment and current conditions and expectations The survey says: 65 for sentiment 68 for current conditions expectation 63 These are all slightly higher than the last, with the exception of current conditions slightly lower. But what's interesting to me is the survey actually shows the one year inflation expectation moving up slightly from 3.9 to 4. Ideally, we come in low on that. The most important thing right now is that we keep inflation expectations low and anchored. That's the most important thing as we go forward, especially after a Hot Jobs report for January which we could try to explain away. But let's just be real. It's all going to come down to inflation and inflation expectations right now as well. It's worth noting that inflation expectations are on the Via The Five-Year Break Even are still sitting at about 2.3 Uh, we can look at this graphically as well here on screen. Now, if you're watching, we can see we're sitting at 2.3 That downtrend is really strong. Very, very strong downtrend no matter how you slice it. However, we are still substantially higher than where we were in 2018, especially the FED Went delvish right around here at this bar, which sits you at about 1.6 for the five-year Break Even. We're sitting at 2.3 right now, so we've still got some work to do. However, this really reiterates the the Nike Swoosh scenario of of a stock market recovery if we slowly start seeing it coming down here. Uh, we shall see next inflation report as well. with expectations. This is sort of the expectation set we've been waiting for. Uh, so far we do not have all of the expectations. For example, we do not yet have a survey in on year over year inflation expectations. but we do have some month over month numbers and I think this is actually very interesting CPI month over month survey. Last month, the actual result was a negative 0.1 This spot for January it's expected to be 0.5 That's a really high survey. I'm actually really bullish on that even. Look, Listen, if this survey comes in really high, guess what? It's really easy for it to miss to the low side because if it comes in at point four, you still win. You see what I mean Now 0.5 though on the month over month. pretty up there and this is not the core measure. This is the headline measure and it has to do with Energy prices having risen now 0.5 Again, it's hot. That's a that's a six percent annualized rate of inflation. That's not great. We don't want to see six percent annualized inflation. We want to see less something around two percent. So we'll really have to pay attention to the core serving. Now the core survey is not out yet, but it really sets us up for a shocker. Now, we do have a core month-to-month survey though. Uh sorry. Uh oh yeah, we do have a core month-to-month survey. Uh, we just don't have core year over year. Okay, so the core Month-to-month survey taking out food and energy is actually also expected to come in hotter. Last month, we were sitting at point three percent, which is 3.6 percent annualized this month. The forecast is point four, so both of these month over month reads are setting up for a a high report. Again, though, if we go in with high expectations, it's easier to miss. To the downside, which is nice, we want that now, not considering Core for a moment. If we just consider the headline, we could look at what's been going on with oil and what we'll find in the last three months is we had a spike in January which this helps explain some of that headline inflation look at this. Starting at the first week of January, we actually ran up on Brent. That's your International crude oil cost per barrel. We ran up to about 84 to 87 and we sat there quite a bit under this trade thesis that uh, oh, here we go. You've got, uh, a lot of inflationary pressure because of the Chinese reopening. But what's remarkable about that? because I don't think the Chinese reopening is going to lead to that much inflation is what do we have over here. You've got this decline in oil prices International oil prices again to under 80.. So you're actually now starting to get to the same levels that we had the first week of January and some of the lows that we had the first week of December. So I'm excited to see those inflationary pressures on the headline go down and hopefully stay down. But what about Core, Because that core month over month? Uh, even though we don't have the year-over-year estimates yet, that core month over month is very interesting to me. Point four: Why is Core expected to rise? Is it because those used cars so unexpected to go down As much? Is it because we're not seeing airfares come down as much yet? Is it because household data isn't coming in Weak yet? And so even though that Core coming in at 0.4 would be expected to be weaker, uh, than than where we have been, which has been anywhere between 0.5 to 0.6 in the middle of last year, it's still Hot. We'd still like to see this come in at say, 0.1 or 0.2 so we could really reiterate that disinflationary narrative that's needed in Core. Now, be careful though, so far we only have like six to ten estimates coming in for some of these early estimates. What's going to happen over the next week is we're going to get many more economists providing their estimates and we know they could be crazy off and wrong. But at least it'll give us some kind of guide of what the market wants to be. And as long as we can beat those estimates, the market usually goes up. So we like that. We like it where as the market goes up unless of course you're a short seller. Anyway, this gives us a breakdown of some of the massive catalysts coming in the next two weeks. You'll notice there actually aren't that many other than the inflation report. And really, the next Fomc meeting is not until March 22nd. So we've got another five six weeks here before we have to deal with the FED Again, That's also where we're going to get a new summary of Economic projections. That summary of economic projections is going to be critical because we want to see a softening from December, but that's softening from December I Think is only going to get written into that summer of economic projections. If the CPI report coming up actually comes in weaker than expected. Fingers crossed. All righty. Then let's see what we got here. So we got a question. Uh, we have Apple last report uh, 2022 versus the 2021 see the dates in the report. They added an extra week of sales. Sales loss was more than expected. Yeah, this is true. Um, so a lot of people are pissed that Apple stock went up on Friday I Think a lot of people wanted to buy the dip and then they couldn't because the stock price actually went up and so people are like what is going on here. This was ridiculous. Uh, and uh, the reality is, the market doesn't so much care about that extra week I think it was very well disclosed that there was an extra week I Think what the market cares about is uh, this idea that hey, what's what caused the sales Miss Yeah the sales Miss seemed to be caused at least if you listen to Tim Cook by supply chain issues Now personally I wonder is that a cop-out Are we actually going to see those supply chain issues resolve? and then all of a sudden all this crazy demand come back for iPhones uh which missed wearables which missed and Max which missed iPads was the only thing that B who knows. Maybe after all iPads had the worst supply chain issues last year for Apple and now we're beating so maybe because they're becoming available again. That's why we're seeing those beats. Who knows? We'll see, we will see. so. Wonder Bread Ass Boy says, stop spreading fud you know your name tells me how seriously I need to take you Lyft is already profitable Uber can never. Well, we'll see their profitability next week when they report is this real me Kevin or someone rebroadcasting him asks Jumpy, bumpy 69 from Twitch Yeah. I am multi-streaming from on YouTube Facebook and Twitch right now so you can watch on any of those platforms apparently I can't stream on Twitter but who knows. All right. Next up, we gotta talk about the balloon. We gotta talk about my thesis on the balloon. What's going on with the balloon. I Shorted the market for the first time in two years. The dump is coming too far too fast. Ouch Welcome! Brian Anthony Thanks for being a new member. All right, stand by. We gotta talk about this crazy Chinese a spy balloon because uh, yesterday I jokingly tweeted which of course I encourage you to follow me on. Twitter you could see some of the crazy stuff that I post uh, there at realmeet Kevin But yesterday I posted this crazy post that here is a leaked photo of U.S Airspace Tomorrow following Biden's harsh actions today and this post was inspired by the fact that we didn't shoot down the large Chinese spine balloon and uh, my joke was that there are now going to be eight of them in the sky. And obviously I'm being facetious because I don't actually expect they're gonna be like eight of them in the sky. but I photoshopped an image of eight of them in the sky Anyway, for the lulls now, what's remarkable is no earlier or or should I say no later than five o'clock yesterday. Do I get a message or a notification then. Now all of a sudden, the second Chinese spy balloon has been discovered in Latin America and apparently China is sending them all over the place. now. we have no idea how many of them there are. These instances have come up in the past, but apparently now there are two Chinese fiber balloons floating around. Now it's remarkable. And I'm going to give some thesis in terms of my theorist what's actually happening here because I've got an idea apparently and allegedly and I don't know if this was like an after the fact backlash and so they wanted to politically re-engineer the message. But some people are saying Hey Joe Biden actually wanted to shoot down the plane, but for the Pentagon's like, no, no, you can't shoot it down because the damn balloon is like they're the size of three school buses wide. And if you shoot it down, what ends up happening, you end up getting a lot of a debris field. And if you have a debris field, guess what? Uh yeah, it might potentially end up hurting people and that's not good, sure. But then again, the darn balloon was also floating around Montana and Kansas And let's just say, there's plenty of open space for you to calculate the trajectory of you shooting this thing down. And at Landing where they ain't nobody you gotta worry about now. obviously. uh, who knows what actually happened Did Joe Biden say let's shoot it down after he got a bunch of backlash on the Internet or did that happen before? Nobody knows but Canada Apparently First saw the Spy balloon coming through their airspace and kind of floated over the Pacific Ocean from China and through Canada and then down through Montana. Obviously the concern is hey man, why y'all flying spy balloons where we've got military bases around the heart of America China's like, no, it's just a weather balloon. it's just following the jet stream. We can't control it. But then yesterday, the Wall Street Journal is like, wait a minute. The darn thing just changed Manu it just maneuvered into a different direction. It obviously is controllable. The Chinese are controlling this. It's probably not a weather balloon. Well, no. duh, it's probably not the weather balloon. You know what? Because China tells us oh well, it's just a weather balloon and it's conducting other scientific research as well. Sure, let's fly a balloon. uh, you know, somewhere around 60 000 feet in the air above America and get substantially better real-time imagery of America than we could get from satellite. It's kind of interesting now. What's also very interesting. And this is where I want to get into my thesis as to what's actually happening here, because obviously the Pentagon doesn't want to shoot this thing down. Although there were some videos on Twitter of what looked like potentially something getting shot down, nobody really knows what this was yet. Uh, but I Also tweet replied to it yesterday and I'm like, uh, what is going on here So I'll go ahead and play that. It's basically apparently a video from Montana where somebody says a military jet just buzzed a neighborhood and so after a military jet buzzed the neighborhood, this person takes out their camera and starts filming and you get this footage of what looks like something being shot down. I You know, can't actually confirm that with a malicious intent. Uh, hold on here. I Don't think we have audio there I Don't know that there is actually audio? Oh, there we go. Okay, so you get some kind of Flash and some kind of Boom I'll Replay that Yeah. So basically what you have is something that looks like you know, comet in the sky, big contrail of something falling and uh, there's some sort of explosion in the sky. We don't know if that was, uh, just the breaking the sound barrier. Like a jet breaking the sound barrier. That's entirely possible. We don't know if something was actually shot down. it certainly looks that way from the picture. The Pentagon in the White House Say no, Nothing was shot down and then the balloon was no longer spotted in Montana it's been spotted in Kansas and and now it's expected to be somewhere Over by Tennessee Now then it begs the question. Are there multiple spy balloons already? Well, given that we saw another one in Latin America Maybe there are. Who knows. But what we do know is exactly what Colleen here says: China lies about everything. Well, yeah, there's no doubt about that. but I think nobody actually in China believes that America believes this is a spy balloon. Let me tell you what. I think this actually is starting with where it is. So the Spy balloon is floating around at 60 000 feet. Now that is above our air traffic. Our air traffic's generally at 30 to 35 000 feet and private jet travel is somewhere around 40 to 45 000 feet. Now what's interesting about that is private jets Like a citation that was flying. uh I think it was a Latitude that was flying around. Kansas actually reported a derelict balloon floating just a few thousand feet above it and they report this to the FAA. Uh and I think the message that's being sent is hey, we're really here's China really trying to purposefully toy with your airspace even though we're at that safe level 60 000 feet or close to private jet travel is kind of a way of saying hey, we're just going to taunt you America Usually we fly spy balloons between 80 to 100 000 feet. Why don't we fly this spy balloon at sixty thousand feet? So that way the private jet people can see it and the Americans can see it from the from the ground and it sends an uncertainty. It sends a signal to Americans of oh my gosh, the Chinese are watching us. On top of that, it sends a message to the Biden administration of look, y'all aren't doing anything right even though maybe they want to and they're choosing not to. Whatever it's China's way of basically telling Americans you should be afraid of China because your government ain't gonna do anything about us and you know why this is happening. In my opinion, this is retaliation for two big things: Number one: the chips Act sanctioning China and limiting the export of high quality Advanced manufacturing chip machines like Advanced lithography machines from Asml the Dutch company to China a Dutch company is not allowed to sell Advanced lithography machines to China because America said so China is like how dare you f you now people are like why can't a Dutch company sell products to China Well because if they do, the United States will say fine, we won't do business with you anymore. And guess who does the most business for advanced chips with companies like Taiwan semiconductors? Obviously, Taiwan Semiconductors doesn't really like what's going on in China and Asml obviously America because not only do we have the largest ship demand in the world, we also have the largest demand for through our chip demand. Uh, chip making equipment from companies like Asml. Even other companies like Intel Intel is the third largest chip manufacturer in America and it's expected to spend over a hundred billion dollars making new chip making plans over the next three to four years. It's going to be a lot of Chip making capacity and a lot more orders for chip manufacturers or or chip equipment manufacturers again like that Dutch company Smll. And so what does Asml not want to do? They don't want to lose American business so they comply. So who loses what we lose? in part because things get more expensive when you cut out part of the world, right? Consumers always end up losing when it comes to sanctions because things become more expensive. That's just simple Econ 101. We won't go through that sort of explanation. But what's more important is China gets pissed because China's like you're saying, we have to take the old like third generation or like the old generation crap and you guys get all the new stuff, all the advanced stuff and America's like yeah, what are you gonna do about it And China is kind of like the little toddler talking to their parent like the parent is obviously stronger. But the toddler is starting to grow up a little bit and they realize that well, even though they may get thrown in time out, they could still throw crap down the stairs and piss you off. And that's kind of what China is doing because it's sending the signal of hey, hey, we can We can fight back too. Obviously, that's somewhat what China is doing here. they're trying to purposefully. Oh look, Fox is playing it right now on. TV there's there's a video of it Pentagon confirms second Chinese balloon. In my opinion, what you have is you have China trying to create a retaliatory, saber-rattling environment for America and send the signal that if you limit us from being able to buy chips and you keep doing business with Taiwan Well, we'll do missile tests. We'll do military tests, We'll fly balloons over your country. and you know what? That's politically going to look bad for you Because guess what? You're too much of a weenie baby to actually shoot him down. And because he ain't gonna shoot him down, we're gonna look great. and then guess what we're gonna do. The more you sanction us, the more balloons we're gonna launch, the more stupid crap we're gonna do to make Americans feel worried about China because the more Americans are worried about China the more Americans are going to call into their Congress people and go do something. We hate that our Administration and Congress people aren't going to do anything. We're not going to vote for you anymore and then in some degree that actually makes politicians go. Maybe we don't want to be so harsh on China because I'm losing votes over here. See how it's all like a game of 4D chess I Think China really gives a crap about what they can't already see with satellites this higher resolution imagery. You think they really give a crap what Nancy's doing in her backyard in San Francisco although they didn't fly over San Francisco Uh, and there's probably not much going on in the backyard over there. Anyway, You think we really care what Karen's are doing in Montana in their backyards or what these military facilities look like that have our Icbms and nuclear warheads in the middle of nowhere? We really think China really needs a weather balloon to spot that and that they'd really be so dumb to Signal some form of like impending attack. Of course, not because there is no impending attack. it's all just saber rattling. It's for the show. It's designed to make everybody talk about China And guess what when everybody talks about China It puts political pressure on politicians to do something. It makes them look weak and then they get pissed because they don't want to look like little weenie babies. But now they do look like Winnie weenie babies and so guess who wins? China So whether or not you actually shoot the balloon down China wins because China says we are a loose cannon even though they won't ever actually do anything. Well, no guarantees, just knock on wood. But that's the signal they're trying to send is. hey, we can look what we just did. We just flew a balloon over your country and you did nothing. Y'all weak. It's all gamesmanship. That's all this whole balloon thing is. I mean look at it. Look at this. Look at the caption on Fox News I mean it's no surprise on Fox News Biden Silent on Chinese Five Balloon right? Let's elicit for a moment. I Mean in Montana we have an Air Force Base Uh, we have about a third of our uh, strategic uh, missile defense silos scattered across. So here's a republican: the Governor of Montana and what's he doing? He's bagging on the Democratic Leadership Obviously that pisses off the Dems and that is how China wins China wins by Fox News Showing all the voting people, the voting people wake up early. Okay, the old people wake up early and watch Fox and Friends and us who will watch it now. Okay, and if you're old I respect you if you're young I respect you too. I Think it's great I Like waking up early, but everybody's different. You know, no shade on somebody who wants to replay it later. It doesn't matter to me. Uh, but look, this is exactly the media attention China wants they wanted this sucker to be seen because it's part of psychological warfare. That's what this is. It's so simple. nobody gets hurt except Americans feelings and that's what China is doing in my opinion in retaliation for Taiwan Nancy Pelosi visiting Taiwan Kevin McCarthy potentially promising to visit Taiwan And the chips act. China's pissed they want the advanced chips because Advanced chips Guess what? Advanced Ships go into bombs, they go into missiles, they go into computers and they go into things that people buy like iPhones And people want the advanced chips and the latest and greatest. Who wants to buy an old chip or a phone? Nobody. Everyone wants the latest And greatest. So who wins America America wins militarily America wins with product sales and China loses and China's pissed about that China doesn't want to lose China Already got embarrassed enough with the covet zero lockdowns. so now they're just waving their little saber around in the air again and that's exactly what you have going on here. It's simple psychological warfare. That's it now. I Understand, we could get you know we like. Let me just put it this way and I'm not going to comment on it Beyond just reading it out loud Joe can't do anything China owns Joe and Hunter they have given both Millions All right and that is my talk on the Chinese balloon. Yes, so that's psychological warfare 101 for you. All righty? So um, let me take a listen here for a moment. What? What is what is Fox talking about here? I lived in Nebraska when I was a kid. Yeah, we'll talk about that afterwards. Okay, uh. well and so this is not that cold. Are you sitting here thinking why are these guys complaining about this cold? Because we can tell you that's the Rockefeller Center isn't it? Pete and Rachel and Will are sorry. Come on. they're inside the studio complaining that it's cold. Take a look at the weather map, show you what's going on. It is obviously really cold here. these are the actual air temperatures and of course it gets okay. I Don't know why we're looking at the weather right now. uh sorry, um I Got distracted for some reason. Uh, all right. So uh. now we have to talk about. what else do we have to talk about. There's a lot. Okay, here we go next. Oh we gotta talk about Elon baby Elon elongate uh Elon and Ford Oh, this is going to be a fun one. Elon Musk and Ford Oh boy, we've got a lot to talk about when it comes to Elon Musk and four Elon Musk Just got the results of his lawsuit. Not only that, but Ford has some insane things to say and boy it's gonna make all the Tesla people nervous or will it. We'll talk about all of that in this video. So first, Musk and Tesla were sued with potential damages as high as 6 to 12 billion dollars for Elon Musk's August of 2018 tweet taking Tesla private at 4 20. the SEC alleged that that tweet was false that Elon Musk had no rational basis for making that tweet. Elon Musk replied and said I totally did. Not only did I have Goldman Sachs and bankers lined up to fund it, but the Saudi Arabian private investment fund was essentially providing me with a handshake deal that they they would help me buy out Tesla And even though later there was some confusion and some backtracking on that handshake deal, Elon Musk believes that at the time he made the Tweet, he was completely correct in making the Tweet. The SEC ended up settling with Elon Musk and finding him 20 million dollars requiring Elon Musk to have a Twitter babysitter that is somebody who monitors Elon Musk's tweets before he actually posts his tweets. Now I Actually doubt that happens, but so far the SEC has been relatively silent on whether or not Elon Musk actually is. maybe because he hasn't been tweeting stuff like taking Tesla private at 420 anymore and most of his tweets have turned more into Political tweets. but anyway, moving on from that settlement which Elon Musk says he was forced into because otherwise Banks were going to limit access to his wholesale lines of credit which would have stalled Model 3 production at Tesla and led to a potential Tesla bankruptcy. What happened today? Fast forward investors say they didn't make enough money on their Tesla option and trade contracts and they missed out on the rally. And even though the judge in the San Francisco District Judge Chan ended up telling the court Elon Musk tweets about testing, taking Tesla private at 420 funding secured were untrue even though the judge said Elon Musk tweets were untrue, which would have easily set up for an appeals court claim because that could be deemed a lack of due process. Despite that, the jury ended up deciding that Elon Musk had no liability and making the Tweet funding secured and any of the trade losses that people incurred or lack of additional gains that people wanted were the fault of people themselves. So the entire class action lawsuit was dismissed and this is shocking given that it was in a San Francisco Court this happened. Which goes to show that even people in San Francisco realized what happened to Elon Musk is BS which is pretty dang impressive. Now don't get me wrong, I Like people in San Francisco I think they're very smart and intelligent people and I think this shows Justice because it shows that the people are not as loony as the political system is in San Francisco I think the Judge system. the judicial system in San Francisco is substantially more rigged. Now don't get me wrong, Okay, I'm gonna go slight tinfoil hat here but I highly believe it I have been in San Francisco courts I Represented myself because I had to fire my attorney in a San Francisco court because I couldn't get any Democratic attorney to represent me Why? Because I was running for governor against the Democratic governor and nobody wanted to be seen as representing somebody fighting the Democratic governor Because if you take a democratic attorney into a democratic Court while you're trying to replace the existing Governor nobody else wants to work with that attorney because you can't go against the existing Governor How dare there be a free political process? But here's the part that could potentially be slightly rigged of: California courts and is potentially why: Judge Chan Okay, again, maybe slightly tinfoil had here, but potentially why Judge Chan went hard on Elon Musk suggesting to the jury that Elon Musk tweets or Falls judge Chan is a democratic judge in the San Francisco District Democratic Judges in the San Francisco District have a very close relationship to the Governor of California. Now why does that matter? Well, it matters a lot because the Governor of California anytime he gets sued, his cases end up in courts in Northern California San Francisco and Sacramento courts Northern District Courts And guess what Those judges want? They want to be in the good graces of the Governor. Now, why would judges in Northern California want to be in the good graces of the Governor of California? Oh, that's right, because the governor of California is usually seen as a stepping stone to become president. Oh well, that's interesting. So if you're the Governor of California, maybe you want to run to be president one day. Which is exactly what Gavin Newsom is basically revving up to do. Should Joe Biden not run for president in 2024, we widely expect Gavin Newsom to step in. Now, why is that really interesting? Because if Gavin Newsom were to become president, guess what the President does? Ah, they appoint federal judges. That means you take judges from the state level and you move them up to federal judges. And guess what Federal judges get to potentially become Supreme Court judges. And so you got to kind of stroke the governor as a California judge to have hopes that the California governor becomes president and then potentially you get promoted to a federal judge and maybe a Supreme Court judge in the future. It's all part of the game. So when I say I'm putting on my tinfoil hat, let's be real. Some of that stuff actually happens. It's all long-term planning. Okay, this is why the judicial system in California really mirrors whatever the hell the Governor wants. So if you go against the governor, even if you have a great argument, you're more likely to lose. Now what do we have to say about Elon Musk and Tesla Well first, it's great that Elon Musk and Tesla don't have to actually deal with a potential 6 to 12 billion dollar liability. Although if this did end up being a loss, that's 6 to 12 billion dollar liability would have probably been settled down to 500 million to a billion dollars. But it's nice. And after hours after the court case was decided, Tesla stock did rise about two percent. It never really made it to 200 though. So good news for those of you who do not want me to dye my hair green I will not be dying my hair green Tesla did not make it. It came within a dollar and one cent and it just couldn't make it. It just didn't have the pricing power to make it there. However, what you did end up having was Tesla increasing prices for some of its model wise. Model Y long range was increased 2.8 percent. Model Y a standard was increased 1.8 or 1.75 percent. However, the Model 3 rear rear wheel drive vehicle was dropped in price one point 0.1 So you've had some small pricing adjustments and you did also have the IRS and Treasury Department finally providing the appropriate Clarity that was needed to indicate that now all Model Y Vehicles actually qualify for the full 7 500 federal tax EV credit including model wise that sell up to an eighty thousand dollar MSRP up from fifty five thousand dollars. This is a great win for not just Tesla, but quite frankly any EV manufacturer. So this is fantastic. It is great that these tax credit rules have been clarified. So good! win On the lawsuit by Musk, we learned a little bit about the rigged system we learned about EV tax credits. but what the hell did Ford just do? Okay Ford this is a laughable one. This I'm gonna bring you first to the most Salient part of the forward earnings call and I Have to tell you this part was ridiculous because they basically sell you a stock that isn't Ford and that's the funny part. So first what we want to do is we want to go to an analyst Rob Lash Rob Latch asks the question. Considering everyone's aspirations for growth in electric vehicles, do you think you could stand by pricing assumptions and maybe in another way of asking this: Do you think you can sell and I'm putting this on screen now as well so you can see him just reading this verbatim from the earnings call transcript. Okay, this is what I do by the way I Read this stuff with my team team. by the way, amazing team now I Used to do all this stuff alone now I Get to do more content because I've got a great team helping me. These guys are awesome. Team's amazing You'll Rock Uh but anyway, do you think you can sell a forty thousand dollar electric Crossover with a 20 gross margin? Now why would Rod Latch be asking this question? Because Tesla Folks Tesla Said worst case scenario, their gross profit margin would be 20 percent. So in other words, Rod is asking the question here. Hey, do you think you can compete with Tesla's margins? And let me provide you the CEO of Ford's response. He starts off by saying that's a very important Crush question. The reality is, we will we. We are structuring our portfolio to compete in very specific segments. Now if you just read the transcript there, it seems like he's saying we will get to 20 gross margins. but I actually went to listen to the audio and he corrected himself. He didn't confirm that they will. He kind of stumbled over that the way I just said. it was kind of like he did. The reality is we we were restructuring to our portfolio to compete in very specific segments. Crossover is turning to be more core Civic to the EV business blah blah blah. Talks about the lightning being sold out. even though they are not profitable on the EV segment. we'll talk about that in just a moment. The real driver of our future profitability is on second Cycle products. And this is really interesting because listen to them talk about the iterative process of manufacturing. We didn't know when we designed the first three EV products. We didn't know that wiring harnesses for the Maki were longer than they needed to be. We didn't know that batteries were heavier than they needed to be. We didn't know that we under invested in braking technology to save on battery size. In other words, they're basically saying look, we've been really unprofitable at EVS because we don't know what we're doing with EV manufacturing but we're learning. Okay, that's super normal right? So far, very, very normal to expect the iterative process of manufacturing to make a better, uh, to make a better vehicle right? To be clear, this is the earnings call. so this is not an article. This is an earnings call from Ford So they talk about how they need, they're learning how to manufacture better, and they're very optimistic. They're also very optimistic because they have a lot of new Talent Now don't get me wrong, but when I hear they have a lot of new Talent it kind of suggests that the old Talent just don't know how to make electric vehicle. and that's because obviously they're in the internal combustion engine business. now. What's interesting here is they're basically selling this idea that we want to make cars with fewer Parts The CEO of Ford is basically handing it to Tesla who's making cars with fewer Parts via their Giga presses. But that's not even the entertaining part. Let's keep going. We want to play hard our strength our commercial truck, larger vehicles. On the category side, we don't want to have too many choices. This was a little. the transcription here wasn't great, but basically they're saying we don't want to have too many cars for people to choose from because that puts a lot of costs on our engineers and we're trying to be more profitable on electric vehicles. So we want to give people fewer cars to choose from. which is the opposite of what Legacy car automakers usually do. and it's exactly what Tesla does. You don't have that many choices. It's kind of like Ford back in the 1920s. Henry Ford You could have any cars that you want as long as it's black and it was basically just a black Model T right? And so they want. They like that because you can have better margins when you do this. They're also talking about designing smaller batteries for competitive size now. I Personally think that is actually really great and it's something that Tesla's probably going to do in the future as well. You're going to end up coming out with 20 kilowatt hour battery packs as soon as people get over the head that the mental Head trip that you need a big ass battery that you're lugging around. The fact of the matter is most people don't need a big battery in their car because what it does is it adds more weight and ruins your fuel efficiency. You really only need 80 mile charges and you plug the thing in every night, so you should have a daily commuter and then maybe a more long-range vehicle. I Think that's perfect because most households have multiple cars anyway. So then this is where things get interesting. Okay, he talks about how basically we have negative pricing on electric vehicles right now and this is very true. Ford Does not expect to be profitable on electric vehicles until 2026.. there's a company called Uh Ford Authority They are a, uh, they're They're sort of a news organization. It's kind of like a nine to five. Mac But for cars and uh, here's the article from them where they talk about investing 50 billion dollars in electric vehicles in the next coming years, How they're trying to produce 600 000 electric vehicles by the end of 2023. This is a recent article by the way. from Feb one here and what's interesting is 600 000 Vehicles is a run rate of about 50 000 vehicles per month in 2022. Guess how many vehicles Ford produced per month that were electric? They want to produce 50 000.

guess how many they actually produced 12. Okay, they produced 12 000 Vehicles So they wanted more than 4X how many vehicles they're making that are electric in their ramp process. Uh, they expect to get to 2 million electric vehicles by 2026.. However, folks, let's make it very, very clear. all you have to do is read the headline here and we already knew this: Ford electric vehicles still not expected to be profitable until 2026.. think about that for a moment, folks. Ford Still can't figure out how to make a buck on electric vehicles today in 2023, as they're ramping, they still can't figure it out. Neither can Rivian. Rivian people are like, oh, Tesla lost a lot of money as well when they were ramping their cars. not on a gross profit margin basis. Tesla In 2014 when they produced as many vehicles as Rivien about 7000 Vehicles could actually go look at the earnings calls they're all public and the earnings reports Tesla had about 20 percent gross margin all the way back to 2014.

in 2014 when they were doing just 7 000 Vehicles Tesla was positive without energy credits. Let me, let me just like demonstrate that to you here. Okay, look. 24 2014 Tesla had 20 percent gross margin without credits. it was like 29 gross margin with the credits. Okay, that was in 2014, folks. At the same time, in 2022, Rivian producing about the same amount as Tesla then is negative, substantially negative on their gross profit margin. And in 2023, 2024, and 2025, Ford is also expected to have a negative gross margin. And Byd the only Electric Vehicle Manufacturer that's actually remotely killing. it is sitting at a margin of about 1.5 percent. That's really, really Well, that's I mean like they're They're gross margins a little higher. Let me not confuse that here. Let's let's just stick with gross profit. I'm sorry with Byd, just pretend I didn't say that for a moment because Byd, that's their net margin. That's not fair. That's their bottom line. Their gross margin is a little higher. Uh, actually, they. You know they they. That's how they actually are remotely profitable. Uh, is they make Ice Vehicles They make uh, hybrid vehicles. and they're They're definitely a better company than uh when it comes to making Vehicles than like Rivien or Ford These guys can't figure it out. Uh, But the point is that Tesla back in the day of a relatively similar production of of Rivian, was able to figure it out. Ford Still can't figure it out. They're not figuring it out today. they can't figure it out going forward and they probably won't figure it out until 2026. and I Hate to say it, but even as you get to 2026, it's just hopium if they actually end up making it profitable, which is kind of accountable. If you think about it, it's kind of embarrassing in my opinion. Now, not only is that embarrassing, but this is where things get really embarrassing I Hate to say it, but this is where the earnings call just goes ugly. You ready for this? So in the earnings call, they talk about what becomes more critical because they realize that in the future there's going to be more competition for electric vehicles. and they actually literally say, and because of that competition quote, we have to expect negative pricing. Okay, now after they talk about negative pricing, they talk about electric vehicle software becoming more critical for the business. Now this is where things, in my opinion actually get laughable because the analysts ask them, hey, how are you ever going to get profitable, right? How are you ever going to make money on electric vehicles And what Ford says is the following: I'm going to play the audio of it so you could hear it because I thought it was fun I Also posted it on Twitter Ready for this Here we go play audio on Twitter Now not the EV platforms, but our new fully updated electrical architecture. Because what we've learned on Pro is we can make real money on software, not our batteries. All right. What you learned on Pro for it is that we can make real money on software and he kind of says it like a creep. It felt very creepy listening to the earnings call the way you said it. But yeah, but beyond me, just like bagging on the way he said it. Let's think about what he just said. He was asked by an analyst, do you think you can get to 20 gross profit margins and he talks about trying to make the manufacturing process better. We know they're not going to be profitable until 2026. We know they can't figure out how to make EVS profitable and at the same time he's warning that electric vehicles are going to be a negative pricing Market And so how does he end the answer? He ends the answer with we can make real money on software and I'm like dude, what software clown That's what I wrote on Twitter because I'm sincere with that. What software? What software I'll tell you what software they're talking about They're talking about the following they're talking about their their Blue Cruise or whatever you call it. Yeah, it's Ford's Bluecrest and basically they refer to this idea that Consumer Reports suggest that Blue Cruise is a better active driving assistance system than Tesla And what they do is when you go to the ratings, you'll actually see that some of the heaviest weights are the following: Keeping driver engaged nine out of ten for Ford Unresponsive Driver 6 out of ten clear When safe to use nine out of ten Yeah, that's because you could barely use it anywhere. So they give these bigger ratings for four. When you scroll down to Tesla it says keeping Driver engaged three out of ten Clear when safe to use three out of ten Unresponsive Driver 4 out of ten And what they say is the following: Listen to this. This is ridiculous. Okay, this is the bagging that they give Tesla you ready for this It is also disappointing that Advanced Driver Autonomy s