A Review of Tesla's Quarter: It Is A Full On AI Company
The market appears to like the fact that Tesla said on its earnings call that it is not delaying the production of the next gen car. In fact, it is accelerating that by adapting its present lines. There was also the mention by Elon that he does not believe deliveries will be down and expects to have an increase (no specifics). That means at least 1.8 million is still on the table.
All the focus upon autos.
In this video I discuss some of the key points as to why Tesla is much more than that and how it is unfolding in front of our eyes.
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This is a great move by tesla to back up their future projects and automatically being on the good side of potential investors as well.
They've provided no renderings or any information on the next gen car... so I don't personally see how it could be in production in 14-18 months. Honestly, I think he was lying about that to pump the share price.
I'm pretty confident the market is acting irrationally and the stock price will drop again once people start to think about Elon's statements and how they're too vague and don't make a lot of sense. The 10-Q next week should bring a lot of that enthusiasm back down to Earth.
The problem with Tesla being an AI company is that it still has to pay for all those gigafactories and vertical integration capabilities, so if Elon is lying again and deliveries are actually down YoY, then those fixed costs make each vehicle more expensive and less profitable and they could get into cashflow trouble before Robotaxis/Cybercabs are profitable. (And that's not taking into account that Tesla would suddenly be responsible for every accident their owned assets cause or that human passengers might take years before accepting being driven around without a human driver).
I am a bit concerned for Tesla, since it seems their profit is down by 55%. It is interesting that their stock is up though. I guess this shows that a lot of investors still believe in Tesla. If they can release Robotaxi soon, then that would further boost the confidence and trust in the company.