Tesla's 12.3.3 update is rolling out wide and the company is on a path for a major transition where a larger percentage of revenues will come from software as a service, potentially swallowing the current hardware revenues
Questions to inspire discussion
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What is the 12.3.3 update for Tesla?
—The 12.3.3 update is a software update for Tesla vehicles that has been tested and found to be perfect by Hol Mars.
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What is Tesla's major transition?
—Tesla is transitioning to a software as a service company, with a larger percentage of revenues expected to come from software rather than hardware.
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What are the potential advantages of Tesla's Robo taxi?
—Tesla's unique Robo taxi service is special and can scale globally, offering potential advantages to consumers.
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What is impacting Tesla's stock and economy?
—Inflation, interest rates, and commodity price fluctuations are impacting Tesla's stock and the overall economy.
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What is the impact of the CPI on Tesla?
—The Consumer Price Index (CPI) is impacting Tesla's earnings and potential negative cash flow due to the amount of compute they are procuring.
Key Insights
Tesla's Innovation and Growth
- 🧠 12.3.3 update is rolling out wide and has been tested to be absolutely perfect by Hol Mars, exciting news for Tesla owners.
- 🚀 Tesla's rapid problem-solving and stable platform indicate a whole new paradigm and pace in the automotive industry.
- 📈 The company is on a path for a major transition where a larger percentage of revenues will come from software as a service, potentially swallowing the current hardware revenues.
- 📈 Elon Musk's perspective on the growth of EV adoption and Tesla's role in it is a topic of interest and debate.
- 🏭 Tesla's approach to factory development and manufacturing is fundamentally different, allowing them to leapfrog themselves and outdo their original plans.
- 🌍 Tesla plans to announce an Indian operation and eventually add a phase in Shanghai as well.
- 📈 Tesla's market share is growing as they are shipping a couple million cars at a rapid rate.
- 🚗 The issue lies in ramping up production to meet the high demand for Tesla's products, not in a lack of consumer interest.
- 📈 Good news has given Tesla a lot of resilience and they actually thrived in the last five days.
Economic Concerns and Policy Impact
- 💰 The current economic policies and spending choices are not aligned with the 2% inflation target, leading to concerns about inflation and interest rates.
- 💸 The possibility of 8% interest rates and 7.5% treasuries due to 5% inflation rate is a cause for concern.
#Tesla
XMentions: @Tesla @RandyWKirk1 @HabitatsDigital @theJeffLutz
Clips
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00:00 🚗 Tesla's platform is stabilizing and undergoing a significant transition to software as a service, with uncertainty surrounding key dates and milestones, and potential advantages for consumers.
- 12.3.3 update is rolling out and has been tested by Hol Mars, who found it to be perfect.
- Tesla's platform is stabilizing and solving problems rapidly, reaching a fleet of potentially up to a million vehicles, and operating on a whole new pace and paradigm.
- Elon Musk predicted significant improvements for Tesla, and the speaker is curious about what questions others would ask during the earnings call.
- The company is undergoing a significant transition to software as a service, and there is uncertainty about key dates and milestones.
- The speaker discusses the uncertainty surrounding the rollout of Tesla's Robo taxi and the potential advantages Tesla could offer consumers.
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05:52 🚗 Tesla's unique Robo taxi service is questioned for its necessity and superiority, while the impact of CPI on Tesla and the need for innovation in factory development and manufacturing processes are discussed.
- Tesla's unique Robo taxi service is special and can scale globally, and the speaker wants to know why it is needed and better than other services.
- The speaker wants to ask Tesla about the growth of EVs, the company's role, and any changes in the auto industry.
- The speaker discusses the impact of CPI on Tesla and the halt in factory rollouts, and criticizes the crude metric of counting factories as a measure of success.
- The speaker discusses the potential impact of changing consumer behavior on Tesla's factory footprint and the need for innovation to increase output per square meter.
- Tesla is focused on becoming more efficient and transforming their output, potentially leapfrogging themselves in terms of factory development and manufacturing processes.
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11:41 🚗 Tesla faces challenges with expansion in Nevada and Mexico, plans to introduce Next Generation vehicle in all existing plants, and is monitoring political developments while considering building a facility in Shanghai.
- Tesla is facing challenges with expansion and progress in Nevada and Mexico, while also considering building a facility in Shanghai and monitoring political developments.
- Tesla plans to introduce the Next Generation vehicle in all existing plants, including China, and is also expanding operations in Berlin, Austin, Mexico, India, and Shanghai.
- The speaker discusses questions about battery output and when 4680 output will reach escape velocity.
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14:48 🚗 Tesla's transition to a software as a service company and concerns about earnings and cash flow, as well as potential high demand for Model 3 and Model Y in the used car market.
- The speaker discusses the issues with the model 3 production and questions if it is a widespread problem, as well as mentioning other news related to Tesla.
- UBS has a neutral rating on Tesla with a price target of $160, and there have been a lot of downgrades from analysts due to lack of visibility on Tesla's production and delivery plans.
- Tesla is transitioning to a software as a service company, expecting low growth for the rest of the year, but with rapid growth in another component of their business, and they are confident in their ability to unveil a robo taxi.
- Analysts are concerned about Tesla's earnings and potential negative cash flow due to the amount of compute they are procuring.
- Tesla's Model 3 and Model Y are popular in the used car market, indicating potential high demand, and Tesla's market share is growing as they ship more cars.
- FSD adoption could lead to a spike in used Tesla prices, with potential for fleet operators to capitalize on future robotaxi opportunities.
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20:51 📉 Tesla impacted by inflation and interest rates, government urged to reconsider spending; market uncertainty leads to shift towards companies like Nvidia in AI sector.
- Tesla was impacted by inflation and interest rates, and the speaker suggests that the government should reconsider their spending choices.
- CPI came in higher, which impacts Tesla and the FED uses it for PCE.
- The market is being impacted by stickiness in services like insurance and healthcare, leading to uncertainty about the Fed's ability to cut rates, causing a selloff and shift towards companies like Nvidia in the AI sector.
- The allocation of 6.6 billion for TSMC will lead to inflation and increased costs for silicon production in the US due to supply chain issues and lack of automation.
- CNBC reports that the super core inflation rate has accelerated to 4.8%, with some experts suggesting an annualized rate of more than 8%, posing a challenge to the Federal Reserve's 2% target.
- Car insurance rates are expected to come down in 2025 as insurance companies are currently making a lot of money, but will be forced to lower their prices next year.
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28:56 📈 Tesla and other areas are impacted by inflation, with concerns about fuel prices, oil prices, and consumption, potential financing problems, rising copper prices, and the effectiveness of the FED's tools to address the situation.
- The speaker discusses concerns about inflation impacting Tesla and other areas such as food.
- Fuel prices, oil prices, and consumption are all factors impacting Tesla, with disinflationary signs in the job market affecting the Fed's decision-making.
- The 10-year bond auction was bad, and there may be a problem financing debt if treasuries aren't being bought at a 4.5% or higher yield, potentially leading to 8% interest rates.
- Copper prices have been consistently rising, indicating potential inflation, and the Federal Reserve may need to start cutting to address the lagging effects.
- The speaker discusses the potential impact of job growth and inflation on the economy, and questions the effectiveness of the tools the FED has to address the situation.
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34:31 📉 Tesla is facing demand and execution issues, supply disruptions, and a transition to being a software company, potentially impacting their stock.
- Inflation and interest rates are impacting the stock market and economy, but strong earnings are expected to prevent a significant selloff.
- Companies are looking for guidance for the next quarter, with expectations that big tech and advertising earnings will be strong, while Tesla may be under duress.
- Retail sales are strong, job market is doing well, and people are spending, with Costco reporting a 9% increase in March sales, indicating a positive trend in the market.
- Tesla has products that people want, but there was a miss in expectations for the first quarter, and the company needs to ramp up production to meet demand.
- Tesla's software and services business will be extremely powerful and more valuable than the auto business once it's fully functional and at scale.
- Tesla is facing demand and execution issues, supply disruptions, and a transition to being a software company, with potential cannibalization of their models, leading to a negative impact on their stock.
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40:49 📈 Tesla's stock is resilient despite pressure from CPI and potential interest rate increases, while oil prices are rising due to international issues and commodities like gold, copper, and Bitcoin are fluctuating.
- Tesla's stock held up well despite resistance at 170, with good news giving them resilience and thriving in the last five days.
- Tesla is facing pressure due to the Consumer Price Index and potential increase in interest rates, while oil prices are also experiencing fluctuations.
- Oil prices are rising due to international issues, with production reductions in Texas and Mexico causing pressure to the upside, while natural gas is taking a breather.
- The prices of commodities like gold, copper, and Bitcoin are fluctuating, with the dollar surging to a 34-year high against the yen, and Tesla being impacted by the CPI.
- Bitcoin and ethereum are up, while equities are down, with the NASDAQ showing some recovery but the Dow not as much.
- Tesla is transitioning into a world of SaaS, and there is a reminder to watch a Scott Walter video.
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Duration: 0:48:35
Publication Date: 2024-04-11T00:25:17Z
WatchUrl: https://www.youtube.com/watch?v=xnIaUpneIl4
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