Uncertainty Surrounding Tesla Model 2 Causes Investor Panic

Herbert Ong -

Uncertainty Surrounding Tesla Model 2 Causes Investor Panic

There is uncertainty and speculation surrounding the future of Tesla's Model 2 program, causing panic among investors, but there are also positive developments and strong leadership within the company

Questions to inspire discussion

  • Is Tesla canceling the Model 2 program?

    No, Tesla is not canceling the Model 2 program. They are prioritizing other projects with higher profitability, but the compact car will still be developed in the future.

  • What is Tesla's focus on manufacturing?

    Tesla is focusing on building a Next Generation platform to produce multiple lower cost vehicles in different form factors, using a modular parallel assembly process to improve efficiency and output per square meter of factory space.

  • What is causing panic among Tesla investors?

    Investors are panicking over the uncertainty and speculation surrounding the future of the Model 2 program, as well as the potential delay of the Robo taxi and the compact car.

  • What is Elon Musk's clarification about the Model 2?

    Elon Musk clarified that Tesla is not canceling the Model 2, but is prioritizing autonomy and robotex due to higher margins and a unique advantage over competition.

  • What should investors focus on amidst the panic?

    It's important for investors to focus on the positive news and have a long-term investment strategy, rather than being discouraged by the fluctuating stock and negative sentiment. 

 

Key Insights

  • 🚗 The debate over the Tesla Model 2 being scrapped or delayed is causing panic among investors, with conflicting opinions from industry experts.
  • 🏭 The Next Generation platform is based on a modular parallel assembly process, aiming to reduce the total process time to produce a vehicle and improve the output per square meter of factory space.
  • 📉 There's no reason for Tesla to scrap the Model 2 program unless there's data showing people don't want to buy a vehicle at a $25,000 price point.
  • 🤔 It is uncertain whether Tesla will prioritize one vehicle program over another, leading to speculation and uncertainty among investors.
  • 💰 The platform for the Model Y makes too much sense and allows for multiple vehicle variants, so scrapping it would not be logical.
  • 📱 Tesla's future cars will be more about the software, with people buying a Tesla because it will be a self-driving car.
  • 💰 People seem to focus only on the negative, ignoring the positive news such as no compute restraint for FSD and the upcoming date for robot taxis.
  • 🤔 It is arrogant for critics to believe they know how to run a company like Tesla, especially in the difficult car industry where a hardware company becomes a software company.
  • 🤔 The average tenure of top executives at Tesla reporting to Elon Musk is significantly longer than the average Fortune 100 company, indicating a strong and cohesive team. 

 

#Cyberbulls

XMentions: @herbertong @TeslaBoomerMama @theJeffLutz 

 

Clips

 

  • 00:00 🚗 Tesla investors panicked over the potential cancellation of the Model 2, but Elon Musk clarified that it is not being scrapped, and Tesla is prioritizing autonomy and robotex for higher margins.
    • Tesla investors are debating whether the compact car has been scrapped or delayed, with David Baron expressing surprise if the Model 2 is taken off the table, while Jeff Lutz discusses Tesla's focus on evolutionary manufacturing processes and capital efficiency.
    • Tesla is focusing on building a Next Generation platform to produce multiple lower cost vehicles in different form factors, using a modular parallel assembly process to improve efficiency and output per square meter of factory space.
    • Tesla's new approach to manufacturing, called unboxed model, allows for quick changeovers in the factory and late-stage decisions about what to build, enabling faster reaction to consumer demand.
    • Tesla is working on a Next Generation vehicle platform that will allow them to create a compact vehicle and other vehicle form factors, and there is no reason for them to scrap the Model 2 at this point.
    • Elon Musk clarified that Tesla is not canceling the Model 2, but is prioritizing autonomy and robotex due to higher margins and a unique advantage over competition.
    • Investors panicked over the cancellation of the Tesla Model 2, but it was clarified that "balls to the wall" refers to extreme control in aviation and steam engines.
  • 08:37 🚗 Tesla is not canceling the Model 2, but shifting priorities to focus on other projects, causing investor concern about potential delays and uncertainty.
    • Tesla is not canceling the Model 2, but they are shifting their priorities to focus on other projects with higher profitability, and the compact car will still be developed in the future.
    • Investors are concerned about the potential delay of the Robo taxi and the compact car, but it is uncertain which program Tesla will prioritize.
    • Tesla may have canceled one project and moved onto another, with the unveiling of robotaxi functionality and capability, and the potential enablement of this functionality on existing vehicles.
    • Investors are panicking about the cancellation of the Tesla Model 2 and the uncertainty surrounding the operation of robot taxis.
    • Elon Musk may be unveiling a dedicated robot taxi and a compact car as part of the Next Generation platform, despite concerns about Tesla's growth.
    • The speaker discusses the monumental shift towards autonomous vehicles and the potential utility and financial benefits of embracing this change.
  • 20:00 🚗 Tesla Model 2 canceled, investors panic, but Tesla is still focused on developing new vehicle platforms and hardware for future robotaxi technology, shifting towards software and creating variations of vehicles.
    • Don't be discouraged by naysayers, as they are repeating the same negative opinions that have been fed to them.
    • Investors are panicking over the cancellation of the Tesla Model 2, but the speaker argues that Tesla is still focused on developing new vehicle platforms and hardware for future robotaxi technology.
    • Tesla is working on electrifying multiple vehicle categories and making capital decisions to prioritize the development of the Model Y platform for future vehicle variants.
    • Tesla is shifting towards focusing on software and creating variations of vehicles, with an emphasis on self-driving cars and the importance of the software over the hardware.
    • Investors are panicking about the negative sentiment surrounding Tesla stock, with former bullish supporters now expressing complete hatred and the belief that the company will have low earnings and growth for the rest of the year.
    • Tesla stock has been fluctuating, causing panic for investors, but it's important to focus on the positive news and have a long-term investment strategy.
  • 29:01 🚨 Tesla supporters turned against the company, investors should seek specialized advice and not rely on rumors about the cancellation of the Tesla Model 2.
    • Some Tesla supporters turned against the company and Elon Musk due to controversial posts and personal disappointments, causing pain and disappointment for those who trusted them.
    • Investors should be cautious about taking advice from individuals outside of their expertise, such as medical advice from a supply chain leader.
    • Big accounts should preface their opinions as such, and people should seek advice from experienced sources rather than relying on accounts that try to cover everything.
    • Tesla's earnings per vehicle and per quarter are decreasing, causing a shift in sentiment and a need for specialized advice.
    • Investors are panicking over the debate about the delay of the robo taxi, and some former Tesla supporters are now promoting negative views of the company.
    • The speaker believes that the rumors about the cancellation of the Tesla Model 2 are unnecessary clickbait and a ploy to stay relevant.
  • 37:13 🚨 Investors are panicking over the potential cancellation of the Tesla Model 2, feeling ignored and let down by management, while critics should trust Elon Musk's leadership and the company's decision-making process.
    • Investors, including Ross, have become disillusioned with Tesla and are selling their stock after feeling ignored and let down by management.
    • Elon Musk's appearances and controversies bring attention and potential clients to his firm, and managing a company like Tesla involves significant accountability and responsibility.
    • Critics should have humility and understand the complexity of managing a global business before criticizing Tesla's management decisions.
    • Critics of Tesla's decision-making process are being arrogant and don't understand the complexities of running a vertically integrated company in the car industry.
    • Investors should trust Tesla's decision-making process and Elon Musk's leadership, as the company's engineers are highly qualified and criticisms are unwarranted.
    • Investors are panicking because Tesla may have canceled the Model 2.
  • 45:41 🚗 Tesla's management style and strategic changes, including layoffs in Berlin, are causing speculation and panic among investors.
    • Elon Musk's management style at Tesla, with 35 people reporting directly to him and an executive team with an average tenure of 9.7 years, is a key factor in the company's success.
    • The stability of Tesla's board and executives, along with the challenges of retaining talent in the engineering and software fields, demonstrates the success of the company's management and operations.
    • Elon Musk is praised for building strong management teams and leading sales to streamline and simplify the approach.
    • Tesla is making strategic changes, including removing inventory discounts, and there is speculation about the reasons behind these changes.
    • Other car manufacturers rely on their suppliers for parts and outsource a lot of their R&D, while Tesla has the most vehicles for the least employees and top R&D efficiency.
    • Tesla is laying off 300 contractors in Berlin, with the possibility of direct employees being affected, and the layoffs appear to be project-based with outsized reductions, potentially averaging 10% across the company.
  • 54:28 🚗 Tesla investors urged to participate in upcoming shareholder vote, contact their broker for necessary materials, and not be discouraged by small percentage of votes against Tesla Model 2.
    • The annual shareholder meeting on June 13th will include a vote on reelecting directors and approving Tesla's move of incorporation, with uncertainty about how retail investors will vote.
    • Investors need to understand the upcoming proxy vote for Tesla, contact their broker or fund manager to get the necessary materials, and be aware of the deadline to hold Tesla shares in order to vote.
    • Tesla investors are urged to participate in voting for Elon Musk's compensation package, as institutional investors hold the majority of voting rights and retail shareholders need to step up to support it.
    • Investors should not be discouraged by the small percentage of votes against the Tesla Model 2, as the shareholder vote is important and there may be further litigation and appeals in the future.
    • Investors are invited to a Tesla earnings call where they can vote on questions to be answered, with the most important questions being about the compact car, the robo taxi plan, and the company's commitment to AI work.
    • The speaker discusses Elon Musk's exclusion from decision making and his upcoming plans for shareholder meetings, India, and Mexico.
  • 01:09:58 🚨 Investors are worried about Tesla's future earnings and want more information about the company's decisions, including the potential cancellation of the Tesla Model 2 and the start of customer cars with dedicated Robo taxis.
    • Investors are concerned about Tesla's future earnings and are seeking more detailed information about the company's strategic decisions and future outlook.
    • Inventory and configurator discounts have been removed, and there are questions about the direction of the company, the amount of compute power, and the progress of FSD full self-driving 12.3.3.
    • Investors discuss the possibility of Tesla Model 2 being canceled and the potential start of customer cars with dedicated Robo taxis.

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Duration: 1:13:5

Publication Date: 2024-04-19T14:23:26Z

WatchUrl:https://www.youtube.com/watch?v=hV5v4obxDls

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