Tesla is being compared to Apple and is seen as a force to be reckoned with in the electric vehicle industry, with a focus on manufacturing, vertical integration, and a long-term plan for full self-driving software that is expected to result in higher profits and a significant expansion in the market
Questions to inspire discussion
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What is Tesla's long-term prospect compared to?
—Tesla's long-term prospects are compared to Apple on steroids, with a focus on manufacturing, vertical integration, and a long-term plan for full self-driving software.
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What are Wall Street analysts cautious about regarding Tesla?
—Wall Street analysts are cautious about projections and targets for Tesla, feeling that the numbers are arbitrary and not based on market knowledge, and questioning if earnings estimates for 2024 and 2025 are low enough.
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What is Tesla's plan for full self-driving software expected to result in?
—Tesla's plan for full self-driving software is expected to result in higher profits and a significant expansion in the market.
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What is Tesla's focus on in terms of manufacturing and vertical integration?
—Tesla is focused on manufacturing and vertical integration, with plans to grow to tens of millions of units in the future.
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What is Tesla's expansion into new models expected to lead to?
—Tesla's expansion into new models, such as the Cybertruck and compact car, is expected to lead to significant growth and market dominance in the electric vehicle industry.
Key Insights
- 📈 "We think Tesla is Apple on steroids as it focuses on manufacturing and a higher level of vertical integration."
- 📱 Tesla being the new Apple and the comparison to the smartphone industry is a valid and interesting analogy for the EV market.
- 🚗 Tesla's long-term plan to sell full self-driving software is expected to result in higher than average gross margin and profits for their EVs relative to anyone in the marketplace.
- 📈 Analysts expect Tesla to grow to tens of millions of units over time, showing confidence in the company's future success.
- 🚀 "Tesla is Apple on steroids." - Wall Street analyst sees a huge improvement in Tesla's gross margin profile and compares it to Apple's future margin play.
- 🚗 Tesla is just very efficient and has accomplished a lot, making it a force to be reckoned with in the EV industry.
- 📈 The number of car models alone isn't enough for success, as Tesla has surpassed companies with more choices by focusing on making perfect cars.
- 🚗 Tesla's expansion into more models will allow them to continue growing and expand the market by at least a whole pickup truck line, which is a massive Revolution in the electric vehicle industry.
#Tesla #Investment #HerbertOng #BrianWhite
Clips
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00:00 🚀 Tesla is compared to Apple on steroids by analyst George Janas, with a buy rating and price target of $267, emphasizing the value of vehicle autonomy technology and the potential for adding over $6 of value to the stock.
- Analyst George Janas is bullish on Tesla's long-term prospects, comparing it to Apple on steroids, with a buy rating and price target of $267, while also emphasizing the value of vehicle autonomy technology.
- Tesla is seen as the leader in real world AI, with a focus on manufacturing and vertical integration, and if autonomy is solved, it will add more than $6 of value to the stock.
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02:33 📈 Wall Street analysts cautious about Tesla's projections and targets, expressing concerns about margins, high PE, and potential earnings declines.
- Wall Street analysts are cautious about projections and targets for Tesla, with some feeling that the numbers are arbitrary and not based on market knowledge, while also questioning if earnings estimates for 2024 and 2025 are low enough.
- Wall Street analyst expresses caution about Tesla's future growth and stock performance due to concerns about margins, high PE, and potential earnings declines.
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04:22 🚗 Tesla's margins and growth are improving, with a focus on autonomy and AI, but there is concern about competition from Chinese automaker BYD.
- The speaker discusses concerns about Tesla's margins for the Model 3 and Model Y, but is now less concerned after improvements were made.
- Tesla's margins may decrease as they saturate the market, but the company is expected to continue reducing costs and adjusting prices, leading to good margins in the future.
- Tesla's growth is recognized, and it is important for analysts to see it as more than just a car company with low margins and expectations.
- Analysts are now discussing Tesla's focus on autonomy and AI, with expectations for record deliveries, but there is concern about Chinese automaker BYD potentially surpassing Tesla in global EV sales.
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08:22 🚗 Tesla is compared to Apple and predicted to win the profit share battle in the EV market, while Byd struggles to dominate in Western markets and the Chinese and European versions of the car are different.
- Tesla is compared to Apple in terms of market share and profit share, with the prediction that Tesla will ultimately win the profit share battle in the EV market.
- Byd, a low price leader in China, struggles to dominate in Western markets due to increased quality and competition, showing that the idea of them steamrolling into any market misunderstands cars and manufacturing.
- The Chinese and European versions of the car are different in terms of wheelbase and overall length.
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11:53 🚗 Tesla's unique and affordable approach, focus on full self-driving software and vertical integration, efficient manufacturing, and potential for future software sales make it comparable to Apple with a future margin play.
- Tesla is looking to make something new and radical that's affordable and unique, unlike Apple's approach to the low-end market, and Legacy companies like Honda, Toyota, and Volkswagen can't get out of the compact business because it's still profitable.
- Tesla's plan to sell full self-driving software and their vertical integration will result in higher gross margins and profits for their electric vehicles compared to other companies, despite some competitive advantages of other companies like BYD.
- Tesla is ahead of the curve in efficient manufacturing and innovation, with plans to grow to tens of millions of units in the future.
- Tesla aims to scale up production and increase gross margins by removing certain elements from their production line, with the potential for future software sales to vehicles, leading to a comparison of Tesla to Apple with a future margin play.
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15:32 🚗 Tesla remains the EV champ with plans for continued growth and focus on perfect cars, while facing strong competition from BYD in the electric vehicle market.
- Tesla is efficient and still the EV champ, but BYD is not a fluke and is here to stay as a strong competitor in the electric vehicle market.
- Tesla's positive margin allows for continued growth, with plans to build a plant in Mexico and focus on battery manufacturing.
- Tesla is surpassing car companies with more models by focusing on making perfect cars and selling to everyone.
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18:36 🚗 Tesla's strategic expansion into new models will lead to market dominance in the electric vehicle industry, with potential competition from Chinese automakers.
- Tesla strategically started with a luxury sedan, which was a smart move as there were no other electric luxury sedans at the time.
- Tesla's expansion into new models, such as the Cybertruck and compact car, will lead to significant growth and market dominance in the electric vehicle industry, with potential competition from Chinese automakers.
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20:35 🚗 European and American car companies struggling, leaving room for Tesla and Chinese companies to dominate the market together, with Chinese EV market as real competition for Tesla.
- European and American car companies are struggling, leaving room for Tesla and Chinese car companies to dominate the market together.
- Elon Musk laughed at BYD's cars 12 years ago, but now they have earned their stripes, and the Chinese EV market is the real competition for Tesla.
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