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Whose focus guys we have some breaking news out of elon musk on twitter who would have ever thought it once again elon musk is in the headlines so today it’s some good news in my opinion okay i want to kind of go through a bullish case for what he has announced here and i also want to put like a bearish hat on and kind of look at it from a negative perspective i
Want to kind of give both angles sis because we don’t know what the truth is behind this okay but here’s what has been announced okay so he announced this tweet just a couple hours ago just released a lower-cost mid-range tesla model 3 and super simple new order page alright he was tweeting back at some people that were asking him some questions he says it cost
Thirty five thousand dollars after federal and state tax rebates in california but true cost of ownership is closer to thirty one thousand after gas savings okay tesla rear-wheel-drive can actually do very well and snow somebody asked about snow and ice he said they did their traction testing on an ice lake dual motor all-wheel drive is great but not required for
Cold weather just used sport and summer tires alright you know somebody else asked him another question they said does it come with a with a new mid-range battery or software limited long-range battery he says it’s a long-range battery with fewer cells non cell portion of the pack is disproportionately high but we can get it done now instead of february he says
Okay so if you look at this car here basically if you type in you know a if you guys basically click on the page if you’re looking at this you’re looking at around $33,000 with the federal tax rebate and that’s also with you know what you would saving gas okay now once again if you live in california you can also get a state you know tax credit some kind maybe it
Brings it down to like thirty one thousand it’s about a two hundred and sixty mile range which is more than enough for the average person out there okay unless you’re traveling super long distances it’s supposed to go about 125 miles an hour on the top speed zero to sixty of five point six seconds which is pretty impressive for just a you know a mid-range car there
If you’ll it’s got the heated seats it’s still got you know obviously the center console the glass roof and all that type of stuff so it’s a pretty solid car now you do have to pay for the enhanced auto pilot five thousand dollars extra if you do want that feature there guys so it’s a very interesting move this just came out and nowhere no one was expecting this
Unless maybe you worked high up at tesla or something this just came out of left field to hear on twitter so what i want to do now is it’s gonna go through like a bearish case and a bullish case on why elon musk and tesla has decided to make this move okay i think we’ll go through the bearish one first i think that’s always more fun to go through and then we’ll go
On to the bullish case and why this could be a really you know good thing for tests overall okay so if you’re looking at from a bearish perspective if you look at it from a negative perspective you see something like this okay as a short seller or somebody that maybe doesn’t like tests or something you there’s a few thoughts that can go through your head you could
Say 1 tesla man they’re desperate for demand they don’t have the demand right now that a lot of people think they have from model 3 okay maybe they’ve just been filling and that’s what i hear from short sellers a lot they think that tesla just has a huge backorder of people that want model threes they’re running through that and now send their finding that man
Maybe we don’t have the demand we thought we could have with a tesla model 3 and so they’re they’re in a position now where they’re like dude we gotta we got to come out with a lower priced car we can’t do the 35 k yet but let’s come out to do something in the meantime to try to pimp a you know pent up some more demand we saw over this past weekend they put out
A tweak they said something like you know the federal tax credit might run out so you know get your get your orders in by october 15th and then that i’m getting removed and so short sellers are someone negative might say they’re desperate for demand we don’t know that okay we don’t know from from everything we see as far as numbers demand looks very strong but we
Don’t know you know what the what the actual orders are good let’s say coming in this week or this past week or something like that there’s another you know thing they say is you know tesla they need any money possible to try to look profitable they need every dollar you get they need deposits they need to try to fill orders they need anything they possible just
To get money through the door right now because they’re in a situation where this company is is is has promised profitability and maybe they aren’t profitable yet and maybe they’re still trying to get there we don’t know any of this yet but if you are looking at it from a peer stance that’s something you could say is it men they’re just trying to get money any
Way they can they’re trying to do whatever it takes possible to try to look profitable to try to you know show some strength out there they could also you know a lot of bearish people or a lot of short sellers going to point out when is that $35,000 true cost of a model 3 ever coming out this was the you know car and it’s still on tesla’s website $35,000 and
That’s without any tax credits whatsoever when is that end up going come through you know if you’re having negative stance on tesla you’re saying that’s just a pipe dream man that car is never gonna come they’re never gonna make that cut a car and if they do it might be years from now so if you’re looking at it for a bearish case you could definitely say some
Things ok however on the flip side you could also have a very bullish case about a move like this but elon musk and tesla has made here with this new model 3 ok well it’s not new model 3 just a different version of a model 3 right you’d say you know if you’re looking at it from bullish case you’re saying they’re pushing for as much profitability as possible yeah
They’re pushing for as much profitability as possible they want to show as big of profit as possible they want to show the world that yes we can really make money on that bottom line not only is that top line going up at a massive rate but we can make a very impressive number on that bottom line that is a big thing elon musk has been pushing for it’s a big thing
He wants it’s a big thing for tesla at this stage of the company they want to show profitability now some bulls say we actually don’t want to show profitability they just care about chasing top-line but he eat on must he wants to show that bottom line is is profitable ok another thing you know the bullish case could say is they’re gonna push for as many profitable
Cars sold as possible alright so yeah you know assuming that this car should be profitable there’s no reason we’ve seen experts tear down the model threes okay and the experts that have torn down the model 3 say this should absolutely be a profitable car especially when it’s sold for 45 to 50 you know five thousand or something like that it should be a very very
Profitable car for tesla the way they’ve designed it all okay so if you’re looking at it from both stance you’re saying okay this might be a you know a forty five thousand dollar car maybe you know for what somebody actually has to buy for of course they get the tax credit back you know seventy five hundred bucks and things like that that doesn’t affect tesla the us
Government does that okay so tesla’s really still getting forty five plus thousand for these cars so you just look at it from a both stances ma’am there’s trying to sell as many profitable cars as possible right now trying to get the trying to get their money up and that’s a great thing for the company okay another thing people you know if you have a bullish case
You say well they’re pushing for market share okay this is something that’s not thought about obviously if somebody buys somebody else’s car that puts them out of market generally for 3 5 to 7 years sometimes ok however if somebody buys a model 3 that you already gets up on the electric bandwagon and the chances are their next car is also going to be electric ok
However other people that are looking at cars right now right might end up going buying a nice car and if you’re tesla now you’ve got to wait for maybe potentially 3 years 5 years 7 years to have a chance to sell them an electric car right because people don’t just switch our most people i should say most people don’t just buy a car and then you know a few months
Later a year later trading in for another car that’s just not how most people do it maybe some people do most people that’s not the case most people buy a car they keep that for 3 years 5 years 7 years depending on their their time horizon and then they go get a new one okay so tehsils again this is we want to push market share now we want to get people moved over
The electric wave now as much as possible okay all these people that are looking for cars out there right now come come get a model three okay and the last thing is is if tesla does want to end up raising some money in 2019 if they show as much profitability as much revenue growth as possible a much as many units sold as possible it puts them in a better and better
Position of power for raising money okay it’s one thing to raise money when you’re an unprofitable company that has limited units it’s in a whole other ballgame if you have if you have these unbelievable volumes if you have this unbelievable revenue growth and you have very strong bottom line you put you in a much better position of power if you decide you want to
Raise money and go ahead and do that something like that and raise it you know what billion dollars are a few billion dollars to go do another plane or something like that guys so if you’re looking at the bullish case are definitely some things to be excited about with this new model 3 model of model 3 if you’re bearish there there’s definitely some things that
You have questions about and we’ll have to see answers that we’re gonna have earnings here in a few weeks i think that’s gonna be a big thing you want muskie has to get out there on twitter once again get some things round up this is a positive like like there’s no controversy here or something he’s just reno announcing a thing this is a good move for you on musk
And this shows the power of his twitter account i think it’s i think it’s a good thing for him i think it’s a good thing for tests overall as long as he stays away from all that that conflicting stuff so let me know what your guys opinion is down there in that comment section i would love to hear from you guys as always thank you for watching have a great day
Transcribed from video
ELON MUSK ANNOUNCES NEW TESLA MODEL 3 MODEL ON HIS TWITTER By Financial Education
