Tesla Declares WAR!

Well look, there is a huge demand for electric vehicles and what is happening now is that Tesla has inadvertently started a price war that other automakers simply were not prepared for, so expect to see other manufacturers of cars now, Ford, others will have to follow their example by cutting prices 17 years ago. Even before many people who watch this channel were born, Tessa declared war on the global auto industry in her original secret master plan, a decade later Tesla reiterated its plans to seize even more territory and cause even more casualties if the world I was completely ignoring them once again and now.

More than half a decade after its second master plan, the evaluator once again declared war on the entire auto industry with a wave of price cuts that no one seemed to see coming because they obviously hadn't read the first or second master plan, but It was not his fault. it's not like they've been out for the better part of a decade and a half, oh wait, no, yeah, anyway, let's move on and in less than a month, Tesla's investor date in 2023, another statement from war with details about the great next generation. platform, they are already starting to see that it has a so-called competition drop like flies.

Several EV companies have already filed for bankruptcy or are very close to doing so in 2023 and this is just the beginning, make no mistake, ladies and gentlemen. We are about to witness an absolute bloodbath in the automotive industry about a month ago. Tesla cut prices on its very profitable and highly attractive electric vehicles, forcing other automakers to make their not-so-attractive electric vehicles have to cut prices and lose even more. money per vehicle sold probably won't end well Miraculously, the stock market finally recognized that, believe it or not, Tesla has pricing power and they can actually reduce the price of their vehicles based on their master plans, which again have been online for a While I don't know how people missed it or were surprised by Tesla stock increasing by about 75 percent in 2023, I did think Legacy Automotive manufacturers' reaction to the recent cuts Tesla's price decline was profound and potentially catastrophic, we just have to wait until Tesla begins production of its next-generation vehicle, which we will learn about in less than a month on Tesla Investor Day in 2023.

Today's video is a preview of the impact that a minimal price drop on very expensive vehicles can cause in terms of consumer demand. We have heard this. Order flow is now about twice as many vehicles ordered per day as are actually produced per day, and that's at absurdly high prices for most consumers globally. As you watch today's video, think about the implications when Tesla has more affordable electric vehicles being produced and sold around the world. This war will be over before it even begins. Oh, hey, I didn't see you there. I was reading this tweet from a guy with three names on December 30th who said it was going to be interesting to see Tesla's turnaround year-to-date in 2023 from an incredibly low base.

I have never heard of this guy and in completely unrelated matters, Tesla stock year to date is up to 74.16, who could have seen that coming? I mean, how surprised I am. Surprised, I didn't describe this as the best risk-adjusted opportunity in the stock market that I was aware of. I wasn't buying. I also didn't buy Tesla stock as Christmas gifts for family members. That's been on Tesla's mind for the past year. The stock is still down more than 36 percent and from its recent high closing price in November 2021 it is still down more than 50 percent, which makes sense because I mean deliveries have halved its revenue by collapsing. from the company the next

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co from the competition Riot Tesla is just a gigantic and intricate fraud autonomy It will never happen, plus Elon is bad, so I guess what I'm trying to say is that I definitely didn't see it coming.

If I had, I would have been talking about how it didn't seem to make sense to me and saying the exact same thing. The same thing every day in every video diary for months and months and months and months and months but Hey, no one is perfect. Oh, by the way, I know you probably don't know because I never mention it, but I actually have a Patreon account with over 285 exclusive videos plus Tesla price targets and optional access to a test review model where you can see all of them. the assumptions I have for Tesla for the next decade Vehicles sold gross automotive margins Robbery taxi Revenue, you name it, it's there if you're not a patreon member you probably don't know how to find it because I've never mentioned it before, but you can click on the card in the corner or in the pin comment link to join.

I should definitely remember to plug my patreon a little more. Shouldn't you welcome me back to the watchlist? I'm Nicole Petalidis, time to focus on the views. Electric vehicles are joining me right now. Steve Wesley, Founder, Managing Partner of the Wesley Group, thank you for being with us. I was looking at some of your statistics where sales, while car sales were down, electric vehicle sales were up over 80 percent, which tells me there's the right demand. I mean, where are we in the world of electric vehicles and the demand landscape? Well look, there is a huge demand for electric vehicles and what is happening now is that Tesla has inadvertently started a price war that other automakers simply weren't prepared for, so expect to see other automakers now, Hey Ford, others will have to do the same by cutting prices.

It's great news for consumers, but here's what you should think: Tesla can afford it. They make a gross profit of 15.7,000 per vehicle they sell and think about this. Tesla's margins are 5 times larger than four times larger than Toyota's 2 times larger than Volkswagen's General Motors is losing money on every EV, so the question is big news for consumers: What does this mean? what to do for the car company's bottom line, yes that's a great question, although we all know the answer, what effect does it have on that bottom line, does it accelerate its ultimate demise and eventual bankruptcy outside of China, no one is making money selling vehicles electrical, as we have just heard.

There's Steve Wesley discussing the automotive margins of some of Tesla's so-called competitors, but that's based on their current and I use the word currently profitable sales of ICE vehicles that over the next few years can continue to be a big source of profits, but as we are seeing sales tips vehicles are literally starting to fall off a cliff

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has officially declared war there will be many casualties tesla has officially reached escape velocity they have enough scale to attract enough product and then make enough profit per vehicle sold to They are almost bulletproof for the next decade, they have made it to the other side of hell.

Remember if you are going through hell, keep going. Every other automaker hoping to compete with Tesla and not go bankrupt needs to climb several Mount Everests. and somehow survive and my best guess is that it's probably at least a half decade window with these automakers need to somehow go through hell and suffer catastrophic losses on every vehicle sold while their ICE vehicle sales collapse, The business's previous profit drivers disappear, meaning These companies need to go to the market to issue shares and borrow tens of billions of dollars in an attempt to save them and close the gap between low-volume and non-low-volume EB production. profitable and hopefully eventually scale production and innovate in terms of manufacturing to the point where they can actually make money on these vehicles sold the problem is that Tesla has a permanent and unassailable cost Advantage they are way ahead in the next five years The next half decade are critical for all automakers globally, whether they produce ICE EVS vehicles alone or both Tesla has already made it to the other side and were first by a large margin.

This is not a race that everyone is guaranteed to finish. In fact, in the country, very few will finish this race and make it to the other side. The fact that Tesla has this price. power they dictate the terms here is how much consumers will pay for an attractive electric vehicle with these specs because we are selling one at this price for these specs as Tesla continues to reduce their costs, they can pass these cost savings on to other companies trying to stay in the business will need to reduce their prices or they will not sell vehicles, but wait if they need to reduce prices to stay in business or to continue selling vehicles, but by reducing prices they will go out of business because we are losing more and more money for each vehicle sold.

Wait, I'm just thinking about this logically, so I need to cut prices to stay in business, but cutting prices will put you out of business, but not cutting prices will put you out of business. out of business I think that means that, anyway, no, really, actually they are. This is not hyperbole. I know it sounds hyperbolic. I've been saying this for years since the channel launched. Everyone is going to close. I don't. Say that because it sounded cool, it was controversial I said it because it was true, it's going to happen, no, really, it's going to happen, you understand right, I'm not kidding when I say these companies are all we're going to see. a massive consolidation in the auto industry in the next five years massive let me explain how the death spiral unfolds after this they got their athletic greens using the link in the description just the year's supply of vitamin D3 and K2 one of my major health tricks and keep those DMS working.

I love hearing your success stories. I'm glad to see how many intelligent viewers there are on this channel. We have taken the step, we tried the athletic greens and they are already sending me a message saying what I have. more energy I feel better I'm sleeping better My mood has improved blah blah blah blah, this really isn't a joke. Athleticgreens.com SMR 90-Day Money Back Guarantee, Nothing to Lose, Everything to Gain, and Now Back to Legacy Health and Longevity. Automakers, as we've discussed recently, this is a death spiral and at some point the Penny's will fall, the capital markets will realize that EVS are the future.

Vehicle sales are collapsing and companies like Ford General Motors, etc. Companies need to borrow tens of billions of dollars in an attempt to transition to AVS and if they need to endure multi-billion dollar quarterly losses for years, hopefully to get to the other end, they will make no money or profit from their vehicle sales. ice, which have since collapsed and the capital markets recognize that they are probably going to go bankrupt, no one is going to want to lend the money, at least not on reasonable terms, and then there is the whole financial part of the auto businesses, which Let's not even go there.

Tesla can afford to cut prices, Tesla's competition can't afford to cut prices, but Tesla's competition doesn't determine whether or not Tesla cuts prices. Tesla does. Tesla will almost single-handedly determine fate. of the world's legacy automakers and the big problem here If you're an investor especially for Ford for following the Wars because you have to hand it over to Ford for 42 years in a row, the best-selling vehicle in America. Ford F-150 Lightning, great truck, but they only sold 13.2,000 units last year. great truck, they only sold 24,000 units. Tesla is about to start selling its cyber trucks in the third quarter from a massive new plant in Austin and if they sell even a fraction of 1.4 million pre-orders, that could really eat into the Ford car companies' revenue and profits. . so Ford will have to buckle up, let's hope they can retain their market share, we will see this is a very important point of Steve Wesley's pickup truck sales, the most popular vehicle in the United States, I'm not too sure why it is obviously a cultural issue. because I don't think many people really need the functionality of a truck, correct me if I'm wrong and I even have credit to Ford, they actually have an electric F-150 available on the market, however as Steve points out they are currently producing roughly all of them. units per year of the ef-150 Lightning.

Hopefully, they can increase this from full to a little more than full and eventually a significant amount ofvehicles, but Tesla begins ramping up production of the cyber truck in the middle of this year. very, very crude ramp, new technology, I mean exoskeleton, no one has done that before, but within a few years Tesla may be making more cyber trucks per year than Ford lightning F-150 and then every other automaker will be manufacturing electric vehicles. trucks I'm not sure Ford is going to put up with the advertising campaigns these days once a cyber truck is released and people see what this thing can do.

I think there will be many more consumers interested in this ugly ass. doorstop that is actually almost indestructible now I'm not going to call it yet, but if I were to be direct and I'm not, maybe someone can send this clip to Jim Farley, he seems to be paying some attention. He would drop everything and simply increase the absolute. of the F-150 Lightning, getting it to scale as quickly as possible because that will generate profits once they scale; In fact, if he were ahead, he would consider abandoning all other vehicle models and just getting a category that eliminates the traditional looking pickup trucks available. for consumers in Cyber ​​truck production increases deliveries start these things start looking at the roads and job sites and people see what they can do I don't think it's going to be pretty, I mean I didn't even remotely know that the Cyber ​​truck had all those pre-orders over a million, you said 1.4, you know, I heard 1.1, whatever, well over a million, it's a crazy number, you have to put in a small amount to know we'll see if people really commit or not. when the time comes, but a million versus the competition from the F-150 Lightning, which is a beauty, but you're talking about 15,000.

Did you just say 15,000? sold? That's right, I said fifteen thousand. Now the big question is what do they do? They will grow and I have a feeling they will grow rapidly, they should be fifty or a hundred thousand, but the size and magnitude of Tesla's facility in Texas, combined with their manufacturing expertise and, by the way, the lower cost of the battery, I think they could fly. For the rest and again proves, no one has been able to break into the Ford 150 market. If Tesla manages to sell two three-four hundred thousand units this year and go to something closer to five hundred six hundred thousand next year, they will make a dent in the majority from Ford. profitable sector right now the way they are making profits you said GM will not be profitable for the next few years, maybe until 2025.

Tesla had the ability to reduce prices now that we see the Maki being cut at Ford, so , which is the end? The bottom line is that there is room for all of these names to do well. The short answer is no. Sometimes the shortest answer is the most accurate. Steve is right. No, there is no room for all these companies to compete. There will be massive consolidation. a lot of bankruptcies and very few winners. It looks like the auto industry shrank by eight percent last year, at precisely the same time you're seeing 22 uh 25 new electric vehicle manufacturers entering the sector.

There will be a ShakeOut, so what everyone should be watching. The question is who is growing and who can remain profitable now. Tesla sold 1.3 million units last year, compared to 60,000 for Ford and 50,000 for GM. You did it, Mary, so they're already 15 times ahead. The big question is will Tesla make the early price cuts this year, it looks like they are going to go from 1.3 million units sold to something closer to 1.9 or 2 million units if Ford and GM stay where I think they will be. in the 200,000 range, maybe a little north that Tesla will still have a 10x lead, but they are no longer the main competitors, you have to look at Volkswagen, they have major plants up and running in Europe, North America and Asia , and the real challengers are probably the Chinese they get used to.

I hear a lot about new brands like Byd and Saic, the government subsidizes them, they have a battery cost advantage and they are getting ready to come to Europe and North America, so get ready for the big Smackdown truck and the big International Car .battle, this will be a fascinating race, you are right, expect an invasion of Chinese automakers in Europe and the United States in the next few years with fairly reliable, profitable and decent looking electric vehicles. Consider these to be the equivalent of an Android phone versus an iPhone. GM Ford Etc Legacy Automakers have already lost and there is no hope that they will ever catch up to Tesla, they shouldn't even try, they should be very worried, however, about the tsunami of Chinese electric vehicles that will soon be unleashed.

I love it, I love it. It's a lot because it's obviously fascinating, we love watching the battle and of course you want a fair playing field, but there's no doubt that Tesla started early in this game and did very well. I mean, we also talked about the Cyber ​​truck. The semi also has orders from many of the large corporations, so they certainly bring a lot to the table. What's up with these other names? Are there any of these overseas names that you think could be formidable competitors that you mentioned? I think Neo and ex-bang and you mentioned a newer one xaic um do you know what's up with us?

Sales in China are likely to increase, so sales in China will definitely increase and again look at the big picture here suddenly after people became concerned about US car manufacturing feat you have Tesla Seller of number one cars in Australia Tesla owns the US luxury market in the US for the first time in 25 years an American brand is overtaking the Germans in luxury sales in Japan and Tesla, the Model Y, is the largest selling gasoline or electric cars in all of Europe. This has Europeans going crazy, but nothing stays the same in the auto industry and China is the largest car market in the world.

ByD makes great cars. They are the masters of selling low-end products. They may be at Honda's. It was 30 years ago in the US market and they are good cars and they are getting ready to go international, so that's something Tesla has to be looking over their shoulder because Neo looks pretty good. I'm a little worried about his ability to produce. vehicles profitably and now you have the Vietnamese manufacturer, the first at an even lower cost with, uh Vin quick, opening showrooms as we speak in California, so it's a whole new world that if you're an auto investor already it is not. enough to know what the Japanese, the Europeans and the Americans are doing, you should look at China and it's going to be fascinating, aha.

Now I want everyone to know that you used to sit on the board of Tesla, right? At this point, obviously everyone wants to know about Elon Musk, is he still the right person? It's still focused on Tesla. I'd like you to answer that, as well as where the fair valuation is for this company. There are a lot of people who think it's pretty valued right where it is, there are some who think it will hit 500 and some think it will hit over a thousand in the autonomous ridesharing world, give me some perspective and where Elon Musk fits into the picture, yeah, Well, I was hoping they would ask you.

Some more difficult questions, well, let's address those first too. I think Elon is probably the right person for the job. Look, he's the father, essentially, of the global electric auto industry. He has led the field from start to finish and has not only developed the most innovative vehicles. today, but it's been a master at keeping costs down, bringing the battery cost in-house, the first to really get extra margins from what's called wireless software, so as long as it stays focused on Tesla, I think it will be just fine, but focus is the key in terms of pricing.

Look, there's nothing magical about electric vehicles. The whole world is going in that direction. Revenue is going to increase in that area, but you have to look at the numbers, so here's what they are, roughly. 81 billion dollars sold last year, an increase of 45 from the previous year now that they have reduced prices. I think that number is going to increase. I think Tesla is on the right track due to an increase from 1.3 million units sold to very close to 2.2 million sold and the average. The price, even though they have cut costs, will likely increase because they will be selling cyber trucks, which tend to be more expensive, and they will also be selling their semi-trailers, which no one is looking at.

I want to tease you with this and we'll talk more about it in the future. Tesla also has a fast-growing energy division where they not only sell electric walls and solar roof tiles, but they also sell 1.5 gigawatts of power. packages utilities globally, so Tesla is doing something older, faster, and bigger than anyone else. Pay attention. It's going to take a while for someone to dethrone them. We will also call them a utility company. What did you think I was going to ask you? That was going to be more difficult. Are you buying or selling your shares well?

What didn't I ask you? Not predicting Elon's next move is pretty difficult. One thing I can promise is that it's going to be exciting, but stay tuned on the energy front because what customers are doing. Really what they're looking for, especially as you move to electric vehicles, is not just a car, they're looking for a turnkey solution and that means: can you show me the solar panels, the electric wall and the car all together? It's a whole new mindset that Gen Z voters are getting. If Tesla is at the forefront, the other auto company will have to move hard to catch up to the example Ford has already followed.

They have a relationship with Sunrun and LG Cam, so they are providing their own turnkey solution. The other car companies will have to jump into this new world, but the promise that Mr. Musk has offered is to come with me to Tesla and you will never pay a cent for electricity or gas again. It's a pretty powerful value proposition. Actually, it is an important point that we often forget. because Tesla is so dominant with EVs and is making a lot of progress with FSD, but the whole long-term Tesla ecosystem looks like this Tesla solar panel or solar shingles on your roof, an energy wall to store that energy and use said surplus energy to resell it. the grid forms energy arbitrage print money while you're asleep or awake with tesla energy software recharge your tesla with your sustainably generated and stored energy.

Alternatively, you may not have a Tesla, but you will use Tesla Robo taxis to get from point A to B to C, D, e, F and all the other points, because why would you use your own vehicle? Why would you own your own vehicle if you don't need it now? I know many people like the idea of ​​having their own personal transportation. None of them have owned a vehicle for five and a half years, no doubt in the long term Tesla will also have an HVAC system in many homes around the world. A typical home might have Tesla solar, a Tesla electric wall, there's an HVAC system, maybe a one or two Tesla vehicles in the garage, but chances are you'll be using their on-demand Robo taxis a little later in the future. .

Beyond that point you probably have a bottle of Tesla 3 helping you around the house, in the garden, in the kitchen, in the bedroom, whatever you like, Tesla is still in the early innings and as I mentioned, often We get lost in a particular product, a particular technology, but in the long term, Tesla is looking at a handful of multi-billion dollar opportunities that the world is finally starting to maybe. understand a little about Tesla's dominant position when it comes to electric vehicles, completely ignore the energy business including generation and storage, a bad idea, ignore the autonomy and potential of Tesla's humanoid robot , which is probably not wise, so to sum this up in just a few words make no mistake ladies and gentlemen, there will only be one winner in this war and you already know who that winner is and if there is only one winner I guess That means there will be a lot of casualties, it won't be nice to talk about. not pretty if you want to see more of my not pretty face head over to pay john over 285 exclusive videos my tesla price plus optional access to my test review model you join patreon with the card in the corner or the link Comment in the bin and see you there I love you