Tesla Wins Tariff Exclusion Plus Big China Gigafactory Update
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We had some big news out today around Tesla! Some of the Tesla news involved the Tesla Shanghai Gigafactory and how fast that is going up. Some news was around Tesla winning in the tariff exclusion situation. The last news we cover is around Tesla autonomous opportunity and how ark invests feels about it. Specifically talking about ark invest analyst Tasha Keeney.
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Well, good day subscribers Hope you guys are having a great day out there. As always, we got a lot of good news in relation to Tesla today Tesla got an exclusion from some very important tariffs, we got a big update in relation to the Shanghai Giga factory and then Tasha Kenny, who’s an analyst for arc invest came out with some very big comments in relation to autonomous driving in Tesla’s lead there guys.
So hope you enjoy this video as always, and by the way, there’s a big Tesla news in relation to me. Now, I told you guys I want to hold 300 Tesla shares in total, I’m getting very close to that amount. And I told you guys I wanted to have 150 shares worth of Tesla in my public account alone, which is in my private stock group.
And here today we bought the remaining 17 shares. So now we own 150 shares of Tesla in this particular account, which is my goal that I wanted to have in that particular account. So needless to say, I am thrilled with that I do have some more Tesla shares I do have to buy in some other accounts to get us to the full 300 which I want which once I add the 300 Dennis was to hold and then it’s just let’s see if my bullish thesis around.
Tesla plays out over the next 357 years guys so needless to say I’m very excited about this. Okay, so first story up with a three is in relation to Tesla when the tariff exclusion from us on imported aluminum Hey, a positive story from CNBC in relation to Tesla, all I can say about that is Bravo, CNBC.
Okay, electric carmaker Tesla won a tariff exclusion from the United States on imported Japanese aluminum uses to produce its battery cells. The Commerce Department’s decision waives the 10% tariffs that would be placed on the battery cells manufactured in Tesla’s Nevada Giga factory.
According to Reuters, which reported the news Monday, the Palo Alto California based company asked for the waiver in April, Tesla said the aluminum is produced by knife on light metal in salt and exclusion for 10 million kilograms annually.
The Commerce Department said in a document dated June 5 in post in recent days that the aluminum quote is not produced in the United States in a sufficient and reasonable available amount or of satisfactory quality void of reported the waiver will last one year.
So that’s obviously very good news. For Tesla, as Tesla is looking to obviously bring down the cost of vehicles one, so maybe they can charge even cheaper prices for the vehicles in the future. But only that so the company can be profitable, and can maybe actually make some profits on the bottom line, and then go ahead and pump that money back into the business because we know what Tesla loves to do.
They love to build the business bigger and bigger, similar to like an Amazon, so they don’t focus as much on profits. But hey, if you can, you know, make the cars more profitably then essentially allows you a lot more money around to put back into the business to build out for the next big ramp up, which would be obviously model wise, the next big ramp up for the company.
Shanghai, Giga factory is coming, which we’ll talk about here in this video today that’s coming in the end of this year. So needless to say Tesla is in a position where they want to be able to make each car as profitably as possible. So this is something that helps so some good news in relation to Tesla, okay, now Tasha Kenny, who’s an ark invest analyst, okay, by the way, Ark invest is one of the biggest investors in Tesla.
And one of the biggest bowls in relation to Tesla, okay, has some very big comments to make around autonomous driving. Okay, here, Tasha said, we think the autonomous driving market is going to be a huge opportunity. We think this should be valued at $2 trillion today in the equity markets, and it’s virtually unaccounted for.
She said, we think Tesla has a great lead there. And that’s because of the data advantage they have. They’re the only automaker collecting data from customer cars that use that data to train their machine learning algorithms. And we think that’s really going to pay off.
And you know, to that, I say, absolutely, I 100% agree with that. And if you if you kind of like think about and you ask yourself, how do these massive tech companies like Tesla is a company that’s what a $40 billion market cap? How does Tesla go from $40 billion market cap to $400 billion market cap to $800 billion market cap?
How does it go from a list and up and coming big tech company to an actual Goliath big tech company? And the answer is data, what makes Amazon so special, that their customer data, all those filters, like the fact that you can search, you could just like type in something random on Amazon, and there’s a good chance that whatever you were actually searching for will pop up.
Even if you didn’t put in the correct name for that product. That is unbelievable. That’s because Amazon has this ridiculous amount of data. And they know Oh, if somebody searches for you know, XYZ item, then they probably want this item. And only if they bought that item over there, then they’re probably going to buy this item over there.
Okay, Google how to Google gets so big from the data, the data that YouTube collects, and the data that Google Search collects, all that data has made those platforms the biggest and the best platforms in the world, right Facebook, had Facebook become one of the biggest companies in the world through all the data they collect.
Okay, if you want to go Basically being a company that is on the come up, like, oh, you’re a big tech company, you’re on the come up, but you want to get to that place you need data in Tesla’s data they need is they need the autonomous driving data, they need all the data every time I put my Tesla on autonomous driving mode and the cars driving itself.
It’s collecting data. And that’s the type of data you need, and somebody takes it off the autonomous driving. But why did they go ahead and do that? What’s the data behind that? Why did they make that decision? If the car makes a mistake?
Why did it make that mistake, all that data is being collected in mass scale in think about the numbers of that Tesla’s starting to produce when it comes to electric cars, and imagine if Tesla is going to get to a scale where they’re producing millions of electric cars a year that imagine how many people are going to be basically feeding data to.
Tesla’s AI, that’s going to ultimately make Tesla by far and away the best autonomous driving platform in the world. And it won’t even be close number two will be so far behind that it will be a joke, it’s no different than Google search. It’s like who’s number two behind Google search, we don’t even know because they’re that irrelevant, right.
And same thing with test. So they’re collecting so much data, that they’re going to have such an advantage there that no one’s going to really want to use any other autonomous platforms in the future when it comes to driving. Okay, she also goes on to say they’ve been talking about launching the Tesla network for some time, their version of Uber.
And we might even see them launch ride hailing, just to sort out some of the kinks that might come with something like that, before they actually get to full autonomy, that could even happen in the next year or so if they want to do that ahead of time.
And we think that’s what they shouldn’t do that could put Tesla at a slight advantage of not a huge advantage to way mo in cruise, which some folks view as being in the position of front runners, which I 100% don’t agree with, although they absolutely should be respected as competitors, I don’t think they’re really in the front runners.
Okay. And that’s my personal opinion, okay, we think most of the economics will go to the platform provider, she said, these are really the companies that own the full technology stack, the companies that are actually making the car autonomous and have the software advantage and will get the nice software like margins.
So Tesla sits nicely in that place, Uber and Lyft could potentially have a role. But again, it would have to be through partnerships with a technology company that could actually provide that autonomy, because it doesn’t seem like Uber and Lyft are going to get there or have a credible autonomous driving platform in house today.
And I absolutely agree with that. Like if Uber and Lyft are going to stay relevant in the autonomous age that will be coming in, I don’t know three years, five years from now, if Uber and Lyft want to stay relevant, right, they’re gonna have to partner with somebody like cruise automation, or Wei, Mo, or Tesla, but I doubt Tesla would want to give them all that data.
So they’ll have to partner with somebody to try to stay relevant. That’s going to be really hard when when you know Tesla’s kind of doing the approach of like an apple for instance, where they’re going to have the whole supply chain where they’re going to do the whole thing. So that makes them really special.
I’m really excited about Tesla’s and autonomy and autonomous driving not only from an investment standpoint, but when you look at the amount of people that die on the road on a given day are seriously injured in car accidents, those numbers are going to shrink substantially once we have an autonomous driving fleet and accidents will come few and far between which will be really special.
And I’ve just like from a human standpoint, I think that’s a really good thing guys. So needless to say, if you’re rooting for Tesla or rooting against it, you should at least be rooting for autonomous driving in the future. Okay, now, let’s go ahead and talk about the Shanghai Giga factory, which is going up at a ridiculous ridiculous pace.
Okay, Tesla starts work on a substation to power Gigafactory three, head of production, if you guys have been keeping up with some of these videos they’ve been producing out of China, they’re just amazing. I applaud these gentlemen who fly their drones all around and whatnot to get these pictures of the Tesla Giga factory, because it is just going up at such a substantial rate, guys, it’s unbelievable.
I’m probably showing you guys a couple pictures right now. And it’s just unbelievable the rate that that that Giga factory is being built. I honestly like literally when they said, Oh, it might open in 2019. I was like, they’re crazy. That thing’s never gonna open in 2019 paper and keep mine. It’s coming from a Tesla bull. But I was like, No way, no way that Gigafactory is opening in 2019.
And literally, no, I’m 100% convinced that Giga factory is going to open in 2019 and be at some kind of good production in 2019. It’s just unbelievable, like how fast a Giga factory is being built out. And I’m just so excited from from an investment standpoint, because the amount of Chinese orders are going to get one step factories open is going to be substantially more than they’ve ever gotten in the past in my personal opinion.
And not only that, I believe those vehicles that are going to be produced out of that Shanghai Giga factory will be some of the most profitable Tesla’s produced anywhere in the world. And the reason is, is honestly the wages you have to pay in China are substantially less they might even have better supply chain setup in China because you think about it.
Like Tesla’s learned so much from the Gigafactory in Reno as well as obviously having their their their main factory in Fremont, California. They’ve learned so much over the years in terms of Oh, we need to do supply chain this way. Oh, if we can make a car this way and this way, and this way, we can make it a lot more profitably than if we do it this way.
In this way. They will learned so much over the past decade that they’re essentially going to be able to apply into this Giga factory to make it the most profitable and the most efficient Giga factory out there and so if you’re looking for an opportunity for Tesla just to increase their numbers but maybe actually get to a place where.
They’re consistently profitable on the bottom line honestly the Shanghai Giga factory is probably the one of the biggest things to get the company over that hump and to get to a company to a place where they’re actually making yearly positive net income guys, so I’m super excited for that.
It’s going up so fast, like literally I was convinced that they’re never gonna open that in 2019. Now I’m 100% convinced they will open it guys. So anything we discussed in today’s video, I really want to hear your guy’s opinion down there in the comment section. Make sure if you enjoy Tesla videos, you smash that thumbs up button. As always, thank you for watching and have a great day.