Hey everybody, welcome back! My name is Tom Nash and I got a special treat for you today. My jaw is literally still on the floor from what I just saw mid Kevin went on one of the craziest, most epic meltdowns I've ever seen before about the Tesla investors day I am pissed I am utterly pissed at Tesla for the absolute lack of presentation prep. Elon Musk was apparently up at 2AM yesterday around testing a new feature on Twitter spaces and now he's sitting on stage looking like he's about to fall asleep. Now he was live streaming the entire show and he went on this recap where he absolutely went ape crazy, basically tearing Elon and musk.

Elon Musk that's a new one. It's no surprise that a presentation that Tesla Was preparing to put on for the last what six months is a complete flop and a complete disaster. basically blaming them for dropping the ball for shooting the bed absolutely consent. And the craziest part came in the last three minutes of it where he made a whole impersonation of Elon Musk as Donald Trump I'm not even making this up.

this is absolutely insane. You have to see this. see as Elon Musk My goal is to make sure we have bigly success and as a result at some point in the future we don't have an exact time frame yet, but we plan to unveil the model 2. Now the one real criticism I have towards Kevin here and the bone to pick with him is the fact that in eight minutes of recap he managed to plug his product twice twice in eight minutes.

Kevin What are you doing? Yeah, it's just like the buy the dip opportunity for you to use the flash sale coupon code that expires today because the price will be higher guaranteed in the future. Dude like us, do it once. You can now buy stock MVP for 50 off for Life using the code last 50. that's it.

You're not gonna hear about it anymore in this video. I'm just let's move on, dude. That's all that's all that's literally all they needed to say. That's literally it.

Three minutes. That's all they needed to do. God I'm leaving now. but Kevin raises a few interesting points and a few valid points which we have to actually analyze here.

Now look: I Ran a Twitter poll. Although not really, you know an empirical data here, but a thousand people voted on my Twitter poll from about two hours ago Asked: how did you like the invest today? Good, bad or neutral 45 Said good 36 Said neutral So Kevin while in the minority here, at least, it seems there's a plenty of audience here who seems to agree with Kevin Now I Want to be the judge here I Want to look at all the evidence and decide whether Kevin's arguments here are or legit. Now for that, we're gonna have two lawyers, one representing Kevin one representing the pools and I'm gonna decide based on this data. So first of all, before we get started, we go to Crazytom to argue on behalf of Kevin's name was Death.

Well, that was really faithful. Thank you Angry Tom And now we go to Insightful Tom to hear from the other side. Oh hello I didn't notice you there. Well, thank you for that, whatever that was.

And now let's talk about what happened. Now this was obviously a very polarizing event and I want to explain why? On the one hand, you know Kevin is kind of right about two things. Number one, we didn't get enough detail about the Next Generation car. They talk all about the efficiencies and all that good stuff which we'll cover, but we didn't see a picture of the car, how it's going to look like, what it's going to be called, how much it's going to cost.

no actual details as far as what this car is going to be Beyond how good it's going to be and it's something I also kind of expected to see. Instead, we got a picture of a white towel which we've seen before. Now that's a valid concern. Number two, Another thing that kind of bothers me: look: I want more institutional investors to invest in? Tesla Sometimes you just got to play the game.

You have to give them a little bit of Wall Street speak. You can talk about engineering and Visionary stuff for sure they're massive, but what about the worship stuff? the earnings per share, the margins. all that stuff. They talked about this in the financial section, but not enough and that's why you see a lot of institutionals are still hesitant about investing in.

Tesla Now another thing I want to talk about is something that Gary black raised on Twitter and I don't think Kevin actually talked about this but it kind of goes along because Gary basically said look I like the presentation, but look I asked multiple times and never got an answer. how is Tesla going to get from 2 million cars to 20 million cars by 2030.? how's this demand problem going to be solved? It's a lot of cars to be sold and the only answer I got is don't worry about it, we got it and I also agree with Gary at that point I mean I'd like to hear a little bit more details on that rope map that's going to 10x the amount of cars they sell in seven years. I think it's a valid question not answered in this investors day. Now on the other hand, I have some notes and I want to talk about the positives of this because I think overall the investors they had a lot of positives.

Number one: look, you have to give credit for Tesla for their boldness to start the presentation and go hard on the environmental stuff, on the energy stuff, on the whole sustainability issue. I mean it's not really sexy to talk about it with Wall Street invest but they put that thing first and that just shows you what Tesla is all about. They're about that and they believe that the money will follow as long as you actually make an impact. and in all previous companies in Philomass the same Mantra kind of always was applied.

He always thinks that if he actually solves a problem, the money will follow. So far, it panned out quite nicely for him. Now look I want to talk a little bit about the production stuff. They talked about the Next Generation car and they gave away a lot of details.

They haven't shown the car. Sure, they haven't said the name or the price, but they've shown a lot of very interesting details. Number one is that the production of this new generation car, this model 2 or 25 000 car, whatever you call it. it's actually going to be very different from how they manufacture cars today.

And it's kind of funny because Toyota was basically saying the other day that they took apart the model Y and they were blown away by the efficiencies in production. They've never seen anything like this. This was like taking an alien spaceship and you know, studying at reverse engineering it. And Tesla was basically dunking on the Model Y design saying well, the Model Y production is obsolete.

It's old news. We have a new process for the new new generation car and it's going to be even better. How much better? Well, 50 cheaper to make and 40 faster to make Because it's going to be modular, it's going to be pretty much like Legos They're going to basically pre-build parts and then just bring it together. Smaller space, faster production, cheaper, and actually better margins.

Now basically the idea here that this car is going to cost around 16 17 000 to make. which means that at 25 000, you're gonna make still the best margins in the business, even on the entry-level cars, which is quite impressive. Um, now the other thing they talked about which is really interesting, is the powertrain. As far as the powertrain, they're talking about the new powertrain.

for these, you know, the Model 2, the next Gen car, whatever they call it. The main thing for me was that they said that we're not going to need any rare earth materials here for this drivetrain. That's insane to me if that's indeed the case. That eliminates the whole thud of how Tesla will get to 20 million cars because this is a major issue now.

Beyond That aspect, which is massive, Not needing all these rare earth materials, it's insane. The other thing is, this is actually going to be a smaller drivetrain. 75 percent actually smaller and 60 cheaper. Which means about a thousand dollar cheaper than the current drivetrain at 17 000.

Whereas the cost, this is a massive cost reduction don't not contested. They already have the best margins in the business. This thing seems to just make it even crazier. They talked a little bit about FSD and the Tesla bot.

a lot of fluff I didn't really see anything crazy there and I know a lot of people geeking over this. Sure I get it. but I didn't get enough of it for me to say oh my God this blew me away. The one thing that Elon said which was very interesting, he said it Optimus that the bot is going to be bigger than the car business and that very well may be the case.

but I mean it remains to be seen. This is a huge DVD and the one thing I I took away here that they said well there's already 400 000 of full self-driving beta. Which means that the Wendover Productions video where they knocked on people for you know for for getting a sub power product with FSD I mean there's 400 000 idiots who think that this product is actually worth paying a lot of money for. So I think it's working just fine and throwing a little shade here at Wendover Productions Now on the manufacturing side, they actually sold Tom Zhu for the first time the guy from China there's a lot of talk about him actually being the next.

CEO at some point didn't see enough of him to say anything. The main thing he said is that, um, you know they sold 4 million cars so far. in aggregate, let's Tesla just reach 4 million cars. We knew that not a lot of news here on the supply chain.

They also talked about hitting 20 million cars and there's never been any issues on the supply chain. Again, We'd like to see a little bit more detail on that as well as on the demand side. And now this is the most part. The most interesting part at least was for me now.

Look We've talked about it multiple times, right? Tesla has exponential growth in revenues and it has linear growth in costs. And what they showed here was absolutely for me as somebody who's into financials blew me away. I Mean this was insane. They showed their operating cost as a percentage of revenues.

So basically your operating cost is how much it costs to operate your business, your revenues is your sales and total right? So their operating cost as a percentage of revenues was already an industry low, which is a good thing at 17 in 2018.. right now, four years later, they went from 17 to seven and a half percent. They literally slashed by more than half their operating expense as a percentage of revenues in just four years. This is unheard of.

They already have the best margins in the business, but it seems that they're absolutely going insane. And they said they go, we'll go below seven percent in 2023. 6.9 Absolutely insane. Those who talk about their Sgna: the sales General administrative being 60 to 70 lower than the rest of the industry.

Now there's a huge chunk here that actually has to do with Tesla not promoting the cars. Sgna has a lot of marketing expense built in, so by Tesla not having a marketing department, that's where the 60 70 is coming from. Very impressive. Look at the end of the day Tesla is Miles Ahead of the competition.

This invested day, although a little bit short on the details about the next Gen car, shows you how far ahead this is. Tesla is absolutely insane because what they're doing is unrivaled. Tesla has become a master of reducing costs. The savings of costs increase their margins even more in increase their revenues even more which goes back into R D into further cost reductions.

This is a cycle that makes it literally impossible for any Legacy audit to compete with. It's pretty much game over after this investors day. I Loved it. Maybe you didn't let me know below.

If you agree with Kevin or you agree with the bulls, what do you think about the versus day? no hey to Kevin Kevin I Love you! Great video. Absolutely phenomenal stream. see in the next video.