ELON MUSK SHOCKS INVESTORS ON TESLA EARNINGS CONFERENCE CALL
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Tesla just had their Q2 earnings conference call and Elon Musk had some shocking statements regarding the Model 3, the Shanghai factory, and company profitability.
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Holy smokers guys, I just got off the Tesla conference call. And there were four things. Ilan musk just said on that conference call that are absolutely shocked to the investment community.
I’m going to first go through all the facts that based upon what they did for this past quarter. But that is not why the stock is up nine plus percent right now nearly $30 a share after hours, this stock is up huge because of some shocking things.
Ilan must sit on the conference call that a lot of bears never saw coming. And even a lot of bowls were not expecting some of these things, guys. So we got some absolutely massive stuff to get into here.
A lot of big news out of Tesla, first off the stocks up over 9% after hours as of right now, which is kind of funny, because if you paid attention to put options and call options, that was actually the move it was expected to make it was fucking expected to make around a 9% move up or down.
That’s basically what column it calls and puts were at, they’re at about a 9% move. So that’s what Wall Street expected. Now tomorrow, we don’t know if that stocks gonna move 9% it could move way more than 9%.
It could be an up 12% day or 14% day could get back some of those gains, we have no clue what will end up happening tomorrow. But as of right now, and a lot of trading volume after hours, this stock is up over 9% after hours, as of right now.
So first off, they took a loss of $3.06 per share that was versus $2.92 was expected. So that was a disappointment number they lost more than what was expected, you know, they were expected to lose revenue came in at 4 billion versus 3.9 2 billion was expected.
So a nice small beat their cash of $2.2 billion. So this was kind of important is still not nearly as big as the four points I’m gonna bring out in just a second. But this is still big, because a lot of the short thesis out there.
And a lot of people are talking about, oh my gosh, Tesla’s gonna run out of cash, they’re not gonna have any money to do anything. They still have $2.2 billion on that balance sheet and cash right now.
So a pretty high amount. This is pretty big news. So they want to 6000 model threes per week by the end of this month, August Okay, they want to hit 6000 model threes per week produced by the end of this month.
We’re in right now August Okay, they want to hit 10,000 by the end of year most bowls about you know, that’s kind of the number they want to aim to around 10,000 model threes per week by the end of the year.
We’ll have to see if they can hit that or not. revenue was up 43% year over year. So sometimes you see these numbers you’re like okay, what’s that mean? 43% revenue was up year over year so very you know strong numbers Other than that obviously they took a bigger than expected loss.
But these next four things I’m going to share with you were the absolute things that shocked investment community after hours Tesla stock was not doing that much it was like it was up a little bit then it was down a little bit and it was up to 3% and then all sudden the stock exploded on these four things.
So let’s get into those now. Alright guys, the first piece of shocking information Ilan musk told us on that conference call was that the company expects to be non gap profitable from now on.
This is way big news guys the you know, Ilan Musk has talked about how they could be profitable in q3 and q4. But most people expected them to start taking some losses at some point in time.
The fact that musk now believes that they will be non GAAP profitable from now on he said basically other than maybe a massive recession happening or some type of you know, catastrophic event.
The fact that he expects the company being profitable for now on is absolutely massive news guys, this is the first thing that came out in a conference call that really shocked everybody everybody’s like.
Whoa, in a pretty much a raid after he said this, the stock started to move up also went from like being up like 4%, toss it up 6% 7%. And then we got some more pieces of news. And that just put the stock up bigger and bigger.
Let’s get into piece number two already, guys, a second big piece of news that came out in this conference call that started to move the stock up even more, as they announced they have had a secret project going for the past two to three years.
Basically, they’ve been building their own computer chips for self driving cars, okay, this is a massive thing. And the Tesla claims that these chips are up to 10 times faster than some of the current invidious current products.
Okay, this is a big, big thing, because we know Tesla has been trying to move into a space where you know, they have fully fully autonomous, you know, cars, level five type stuff, you know, moving from a level three to a level five type autonomous cars.
Where literally you don’t have to do anything, the car just does everything for you. So the fact that they’re building their own chips, they want to have something that’s better than anyone else has an end that would anybody else would have access to.
Because see invidious products, anybody can build upon invidious products, right? Any car manufacturer out there, the fact that Tesla’s going ahead and building their own stuff, this makes it proprietary technology, okay.
And they will have patents on all this type of stuff. This is really, really big news. This was the next thing that sent the stock up even more guys, huge news and in effect, they’ve been doing this secretly for two to three years and now the cats out of the bag.
It’s really big news there guys. Let’s get into part number three. The third piece of shocking news that came out of this conference call that’s really really really good news for bowls out there is they got into what the top five cars are that are being traded in for model threes, okay.
What are people actually bringing into trading are they bringing in Mercedes, are they bringing them BMWs? are they bringing them out? He’s what type of cars are people bringing in to trade in for model threes.
And you would think at this point in time, when it’s only high end model threes being produced a 50,000 plus dollar cars, you would think it would just be Mercedes and BMWs, and Land Rovers and maybe things like that, right? That is completely false.
The people are trading in basic cars for the model three, okay, there’s some of the cars that were mentioned were the Honda Accord, the Honda Civic, Toyota Prius, Nissan LEAF, these are very, very, very basic cars, guys.
These are not super expensive cars. So the fact that people are trading up into a model three is a really, really good sign for the company. Okay, it’s not just like somebody’s trading in Mercedes and some of the higher end cars and think about in this respect.
People are trading up for the model threes that they think are worth it right? Now imagine when the $35,000 model actually gets out there to people. Okay. Imagine when that actually happens. Okay, another thing Tesla mentioned.
This is not one of the four shocking points, this is something I’ve called out is basically, the best sales force for Tesla is actual Tesla customers, because when they get a model three in their hands, they love it.
They show all their friends and family then next thing you know, some friends and family go on and they they end up ordering one as well, guys, so the fact that people are trading in basic cars for a 50,000 plus dollar model three right now is a really, really good sign.
Now imagine when the $35,000 model gets out there, guys, it’s gonna be a total game changer and the whole realm of of people trading in for model threes and model S’s and x’s in model y whenever that comes out and whatnot.
Let’s get into the last piece of shocking news piece number four. Now, let’s get into the fourth shocking thing that came out in this conference call and then I’ll kind of give you my opinion as someone that’s a new Tesla shareholder.
How I felt about the numbers that could the conference call and all those type of things. Okay, piece number four that came out was in regards to Shanghai factory. Okay, the Shanghai factory was just announced recently.
And they should get that under construction very soon, hoping to open it by you know, 2020 at some point in time, okay. So they’re talking about Elon Musk basically said it maybe only cost around $2 billion to build that factory.
When I think most analysts out there and most people expected that to be a 3 billion plus dollar project. So basically, there are two factors working in in Ilan musk and Tesla’s advantage here, okay.
One is the fact they have experience doing this type of stuff. Okay, as you get more and more experience open and factories building, you just can build cheaper, okay, that’s just the, you know, a well known fact out there.
The second part is Chinese labor is a heck of a lot cheaper than the labor out in California out here in the UK. And it’s just a bottom line. All right, think about the massive amount of workers that would work on a project like this.
You can pay most of them half the wages, maybe a third of the wages that someone working on factory in California, or Nevada, or New York or something like that would make guys so a massive, massive difference in price.
So me as a new Tesla, shareholder, you guys know, I post that video about a Whoo, I don’t know, two weeks ago or whatever. When I bought those Tesla shares, Tesla is my spec stock.
And as my spec stock I don’t take it too crazy, you know, as far as seriousness and whatnot. But I do definitely love the way this company is headed. Okay, here’s a company I plan on holding for five to 10 years, though do I get super excited over this.
Not really, but I’m very happy the company is moving the ball the way I will I was not expecting these things to come out today. Okay, non GAAP profitable from now on that was huge news.
All right, building their own computer chips that could be better than Nvidia, I always thought this would be you know, they might just be 100% reliant on a video. And somebody could just, you know, else could just, you know, incorporating video on it.
Tesla might not and never have something special. The fact that they’re doing that is big guys. Also the fact that people are treating them very basic cars, Honda accords and Honda Civics and stuff and trading up to a model three, that is really big news.
All right, in the Shanghai factory, if they only cost around $2 billion. That is a really, really good news guys. So me as a as a Tesla shareholder, as someone that’s holding it as a spec stock for the next five or 10 years.
I’m very happy with what happened on this conference call. I’m very excited about the vision for Tesla, I think they’re going to execute on this, I think it’s going to be a company that, you know.
Has a chance to be worth several 100 billion dollars someday, time will tell if that comes out to be true or not. I think that’s the place it’s going. Okay, I think this is a company that could have a $500 billion market cap five to 10 years, well,
I’ll just see if it happens or not just kind of looking at the trends, looking at the data, looking at where this company is going the way I expect this company to grow revenue at a 50% plus clip for the next few years.
It’s just it’s, you know, I’m super bullish on the stock. So I bought it as a spec stock. So we’ll see what happens. I want to know your guy’s opinion about Tesla in that comment section.
Let me know what you guys thought about these numbers. What do you think about Tesla overall, make sure you follow me on Instagram if you have not already The link is down there in the description along with my snapchat and all those different things all down in the description down there.
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