This video is brought to you by extra go to metcalf.com extra to learn more hey everyone. We kevin here in this video we're going to talk about a bullish, inflection point for what's happening inside of tesla and facebook, but most of this video is going to be about a tesla. However, the insight affects both of these companies. We'll talk about that.

We'll also talk about cops buying tesla, some hertz updates, among others. So let's get into some of these updates and then talk about that bullish. Inflection point so first bloomberg just reported that new york city police department, nypd, is considering the purchase of up to 250 model. Threes uh: this is helping tesla go trending right now on twitter.

They pay about fifty one thousand nine hundred forty dollars for each vehicle, making the deal valued at 12.4 million dollars if the contract ends up going through for context, nypd is the largest police department in the united states, has a fleet of about 9 000 vehicles. So this tesla purchase would just account for less than 3 percent of their fleet. I imagine these have to get retrofitted, uh, obviously they're going to have to get retrofitted and then uh. I expect that the police department would evaluate which of the cars are more reliable.

Is it possible to operate these uh model threes on enough of a charge? Is it possible to uh charge and and uh you know either have charging stations at the police station or elsewhere throughout the city? That officers could now use and would that uh at any point hinder them from being able to respond to situations. I expect not. I expect it would be. Okay, there's plenty of downtime and report writing time as an officer, but this is an interesting inflection point for tesla: it's not the big one that we want to talk about, we're getting the stock but very, very cool.

Now one of the reasons police departments have been looking at uh teslas uh is that uh they they have such high reliability and little maintenance, and that's one of the big aspects of law enforcement companies starting to look at these because then, if you don't have to Bring a car in for maintenance or repair uh as frequently. Well, then, you have less overall downtime for the vehicle. You also have a lot lower brake wear, which is also important in law enforcement. There's a lot of driving around compared to other electric or other non-electric vehicles, so these are some things that could really help police departments now the way so far, these police departments are retrofitting them.

Is they take them to a third party that make all of the police accessories the light bars the laptop stands and that and then what the police departments are doing is they're keeping track of their per mile savings once they factor in the additional costs of modifications Per vehicle, but also the lifetime savings that they're experiencing compared to other cars that they're buying so great test for law enforcement. I could only imagine if a police department started saying that's it. Our savings conclusions have come out and the evs are just as effective. We can charge them in down times and there are plenty of those uh and uh and, and we never run out of electricity or rarely do, and we have lower maintenance.

Let's go all in be a big moment for uh for tesla, mostly because it's such a such an endorsement for the consumer. The law enforcement companies are buying them for their reliability and rental. Car companies are buying them for their reliability. I mean that that is.

This is a huge signal to consumers, but we're not expecting any lack of demand for teslas. At the moment you look at the model x, plaid you're, waiting until 2023 for one of these, the s and y. Well, you could get the model s plaid actually in about a month, but most of the vehicles you're going to be waiting for an average of about three to six months right now, if you bought a tesla, whether that's a model 3 or model y now, tesla Has also been filing some lawsuits in china, which is interesting within the last six months. Tesla has filed at least two defamation claims against chinese citizens, who spoke negatively about a tesla and the quality of teslas, but before we hit on that, we've got to get a quick note in from our sponsor.

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One lawsuit against a model s owner who has been claiming for the last two years that tesla committed fraud by selling him a used but heavily repaired vehicle and pretended it was new in this particular lawsuit. Tesla has been called by this person a hooligan company, and now tesla is countering with a lawsuit for unverified ungrounded and defamatory remarks. Tesla is looking for 785 000 us dollars in reasonable expenses. Another defendant is somebody who jumped on top of a model 3 at the shanghai auto show earlier this year.

She was the one complaining about the faulty brakes of her tesla that allegedly killed her family, that is, the breaks allegedly led to the death of her family. She uh did not allow tesla to inspect the tesla after it crashed leading tesla to suspect that it wasn't necessarily the breaks that actually killed her family. Now she is also getting sued for the same amount about 785 000 back in september. A chinese court did order.

The model 3 owner by the way to apologize for blaming the accident on faulty tesla breaks, and then she was required to pay about seven thousand eight hundred fifty dollars now tesla is suing for even more now. Uh bloomberg also reports that in-house lawyers over a tesla have been threatening social media influencers in china to take down bad publicity and apologize publicly. Tesla's also been in the news for replacing some front-facing autopilot, uh cameras and some camera, and some cars for free. They haven't issued a recall here, but apparently there are some faulty repeater cameras that are getting replaced at no cost to owners uh.

This is uh. This news helped microvision pop a little bit, though microvision is still substantially down uh. When this news came out and uh yeah microvision is a lidar play and there's a lot of talk that maybe tesla should just end up buying microvision, but anyway, they're still down from this news, they're at six dollars and five cents. Kathy wood is uh.

Instead of buying the dip on tesla, she has reduced her position or exposure to tesla. To about seven point. Seven percent she's now been buying the dip on xsping. Yesterday, uh ark bought uh or sorry.

This is uh yeah on tuesday ark bought 97 697 shares of xbing worth somewhere between four to four and a half million dollars. This was done in ark q. That's the autonomous and robo tax era. Robotics etf, robo taxi would be part of this as well.

Rq. Now holds about 24 million dollars of x-ping motors x-ping has been on a substantial downtrend. It uh has not been doing as poorly as a neo. Although then again, neo substantially outperformed x-bang leading into the latest uh x-ping excitement that we've seen, but we have seen some of that euphoria die down.

We saw a lot of this in the ev run. Here we saw x being moved from about 35 to a high of about 56. It is down to about 43 right now, but if you compare this to neo neo's been uh did not really participate. Much in that october rally went from about 35 to about 41.

Only to come falling back down to where we sit now about 29 yesterday and right now, we're trading for about 30, even on neo x-bank did deliver more monthly units than neo-orlean auto in november. Both delivered more than 10 000 units, but x-bang had 15 613 at deliveries. Rivian's also expected to announce that it's building a 5 billion battery and assembly plant near atlanta today, the planet is projected to employ 7 500 workers, with the possibility of scaling up to 10 000 workers, that's about the same size as gigafactory nevada. This would also make it one of the largest auto assembly complexes in the united states.

The associated press is reporting that this will be the largest industrial announcement in georgia's history. Previously, the largest was 4 400 a 400 worker facility about a decade ago. Now we know that uh biden's also not uh. Well, i mean biden's probably not very happy about this, but we know that elon musk has been suggesting that uh uh, the entire buildback better plan just be canned.

Obviously, a lot of frustration there has been built around the fact that evs will get a 7 500 federal tax credit, but evs made with union labor will get an additional credit of up to 12 500, but it's only via unionized work, which uh tesla is unfortunately Not so a lot of frustration here now in one additional update, it's worth noting that a goldman sachs analyst mentions that hertz customers have been paying more than a hundred dollars a day for tesla rentals, that's much more than the average of sixty dollars a day for The rest of the fleet, so people are willing to pay a forty dollar premium per day for tesla. Remember hertz plans to have tesla be about one-fifth of their entire fleet next year and the goldman sachs analyst figures that hertz will pay about forty two thousand dollars a per tesla vehicle and then sell them four years later for about twenty three thousand five hundred dollars. Each that's the expected depreciation. That means the monthly depreciation is about 458 for the vehicle per month.

This is higher than the average of about 357 in depreciation. On a monthly basis, however, tesla's tend to have a longer life and significant and require significantly less maintenance. So who knows? Maybe uh hertz will keep these vehicles longer. Since who knows, maybe they'll they'll come across as newer longer we'll see, though, usually car rental companies don't want cars to be older than three to four years now the inflection point in something that we're noticing it comes also from another bloomberg report shout out to bloomberg.com Bloomberg is reporting that elon, musk and mark zuckerberg have been selling shares of their company substantially over the last month.

Here we know that with elon musk, potentially because of taxes he's sold about 70 of his shares, uh that he promised to sell, which means he's, got another 30 to go. It's possible. We not might not see the rest of these sales anymore this year, it's possible. We might have to wait for january, so we'll still have some selling pressure from elon next month, but it is worth noting that uh insiders, that's company, executives and officers - have been buying both facebook and tesla at record amounts and the highest amount since march of 2020.

According to the washington service, that is, 1300 executives and officers between facebook and tesla have been buying the companies and this type of buying correctly signaled a bottom in march of 2020 per bloomberg. Now this is some indicator of a bullish, inflection point for tesla brought to us by company insiders. Now we still uh well, i personally still am aiming at uh 1700 vehicle deliveries for tesla in 2022. I'm not sure if we're going to quite get to a million here in 2021.

We know that that's a big goal. I will see how december goes. This is usually when we get the biggest rush for deliveries right at the end of the year where people are trying to get their ev tax credits. So, in my opinion, that is also bullish and we're probably seeing that same bullishness coming from company executives and officers.

That's why they're buying the dip, whereas elon is, is selling to pay taxes for his option gains which he could have just borrowed, but obviously he decided to sell shares instead, if we do get, if we do stay along this course of eventually getting to about 4.8 Million vehicles by 2025 we're hoping, with an average revenue about 40k per vehicle, which this might end up being higher honestly in the 30 margin. We're we're seeing at least i'm seeing a future price target, a reasonable price target. In my opinion of around 1987.. That is a double which a given tesla's current price at about 960 dollars.

That would give you a four year since the end of 2025 is actually only four years away. That would give you almost a 20 compounded annual rate of return investing in tesla. At this point, if these projections hold obviously uh, some of these numbers can change like, for example, if we go to 45 000 in revenue per vehicle, but maybe we only do 4 million vehicles so about 800 000 less than expected, we'd be at about a future Value about 1862, which is roughly the same if we just terribly miss - and we come in at 3 million in 2025, which would be pretty low still looking at about a 1400 target here, which, from 960 dollars still works out to about a 10 compounded annual rate Of return every year for the next four years, hashtag no guarantees hashtag, not financial advice, but uh yeah, tesla tesla's. Definitely one i've been uh.

I've been adding a little bit on the dip on, so i've been excited about that. Anyway. These are some updates and an inflection point for tesla. Let me know your thoughts about tesla in the comments down below, remember, to check out extra and the link to extra in the description down below, as well as my programs on building your wealth thanks.

So much for watching and we'll see in the next one thanks.