Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J.
Speaker 2: Trump's leadership.
Speaker 1: I'm Christy nom the United States Secretary of Homeland Security.
Speaker 1: Under President Trump, attempted illegal border crossings are at the
Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
Speaker 1: aliens have been arrested. If you are here illegally, your
Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned,
Speaker 1: and deported.
Speaker 2: You will never return.
Speaker 1: But if you register using our CBP home app and
Speaker 1: leave now, you could be allowed to return legally.
Speaker 2: Do what's right. Leave now.
Speaker 1: Under President Trump, America's laws, border and families will be protected.
Speaker 3: Sponsored by the United States Department of Homeland Security.
Speaker 4: Let's talk about Tesla, So let's do it. Yeah, so
Speaker 4: he's obviously extremely bullish, but everybody's not bullish on Tesla.
Speaker 4: Famed analyst is expecting a steep decline in Tesla stock.
Speaker 4: According to his estimate, Tesla stock could potentially go down
Speaker 4: to fifty dollars per share. So wow, that's interesting. So
Speaker 4: let's let's have a whole, full fledged conversation about Tesla,
Speaker 4: shall we.
Speaker 5: Yes, Marlon, I appreciate you.
Speaker 6: Tesla is one of our favorite companies and one of
Speaker 6: the reasons I don't talk about it is like one
Speaker 6: of our our star picks in stock Club, but I
Speaker 6: do love it. The strength is it is a combination
Speaker 6: of tech and energy combined to one that uses the
Speaker 6: veneer of automotive to innovate.
Speaker 5: I do love the company. I talked about this in Toronto.
Speaker 6: The only major concern if I'm looking at the splatter
Speaker 6: analysis of Tesla is the weaknesses are lack of Elon's focus.
Speaker 5: I think that acquisition of Twitter wasn't the best it was.
Speaker 6: Bought it for forty four billion, but it's probably worth
Speaker 6: twenty four to fourteen billion. He has as many kids
Speaker 6: as Nick Canada, so it's extracurricular activity is a pretty
Speaker 6: dead UI. But I need the company to focus more.
Speaker 6: Like if I look at the metrics of the business,
Speaker 6: the profit margin is fifteen percent, gross margin is twenty
Speaker 6: five point six percent. Return on equity is twenty one percent.
Speaker 6: For all the fanfare that they have and all the
Speaker 6: brand equity that they have, their margins are not big enough.
Speaker 6: Like if you look at in Video, which we talk
Speaker 6: about later, gross margins are fifty seven percent, and that
Speaker 6: new trip came out, it was about to put some
Speaker 6: pressure on the market. But I think in the EV
Speaker 6: space they are hands down the leader Daniel had asked me,
Speaker 6: is there anybody else that I would invest in the
Speaker 6: EV space? And hands down, I think the only player
Speaker 6: in EV is Tesla. So great company, market cap, amazing,
Speaker 6: revenue ninety five billion, The site truck looks amazing. I
Speaker 6: like what they're doing there. They're finally going to roll
Speaker 6: it out and they also have put in a place
Speaker 6: of policy where you cannot immediately sell it withinside of
Speaker 6: a year, so there's some sustainability in that model. I
Speaker 6: like what they're doing, Like I have a one year
Speaker 6: target for them at like four hundred and ten bucks.
Speaker 6: I don't think it will go down to fifty bucks,
Speaker 6: Like that's too far. I can see it going down
Speaker 6: to eighty four. Worst case scenario seventy nine dollars and
Speaker 6: twenty three cent but to go to fifty impossible, like
Speaker 6: almost if it does. I would easily park six figures
Speaker 6: there if it went down to fifty. But it's less
Speaker 6: than a one percent chance it will ever go that low.
Speaker 6: But the company needs to focus, needs better leadership, needs
Speaker 6: to roll out products a lot faster, and they have
Speaker 6: to work on those profit margins. I kept saying last
Speaker 6: year and earlier this year, you cannot be a luxury
Speaker 6: company and then drop price to scale does not matter.
Speaker 6: We work tried to do the same thing and they collapsed.
Speaker 6: And with inflation going up, I think Toyota has a
Speaker 6: car that's coming out. It's like one hundred and ten
Speaker 6: grand an suv that looks like the Rose Royce. Yeah,
Speaker 6: everyone is going to have to move into a higher
Speaker 6: price market and higher price services a model to be
Speaker 6: able to sustain. Like if interest rates are going to
Speaker 6: continue to be this high, you can't sell base some
Speaker 6: price because not only are you going to lose market
Speaker 6: share it's the worst way to compete in business, but
Speaker 6: also too, you won't be able to have any money
Speaker 6: to redevelop or invest into the business to make the
Speaker 6: business and products better.
Speaker 5: So I hope they.
Speaker 6: Find their way the stock has came down a lot
Speaker 6: over the last year and a half.
Speaker 5: With fifty bucks, is damn the impossible for them to
Speaker 5: go to.
Speaker 7: Yeah, fifty is pretty pretty drastic, But I mean you
Speaker 7: made a lot of good points for a barecase, right,
Speaker 7: Like when we talk about interest rates getting longer over
Speaker 7: a time period, that affects the car sales, but even
Speaker 7: interest I looked it up, man, The consumer interest has
Speaker 7: declined for the past six straight quarters.
Speaker 5: They were once the number one ranked shop luxury brand.
Speaker 7: They have fallen back, particularly the model ass has fallen
Speaker 7: back ten percent, and shopping consideration, which is something that
Speaker 7: you have to take into to considertion when you're thinking
Speaker 7: about what product that you're putting out.
Speaker 5: They've also had production decline, right.
Speaker 7: We saw over the past quarter, and we talked about
Speaker 7: that pretty extensively about when you're pricing and tried to
Speaker 7: get more vehicles bought. But they've spent a lot of
Speaker 7: time on this cyber truck, and the cyber truck isn't here.
Speaker 7: In fact, did you talk about you can't buy They
Speaker 7: actually put a new rule in with the cyber truck
Speaker 7: that there's a fine if you try to sell it
Speaker 7: a year after purchase, so that that's unprecedented. Right like
Speaker 7: after you buy it, if you try to sell it
Speaker 7: within twelve months, there is a fifty thousand dollars fine
Speaker 7: for selling it, which is interesting, smart, pretty smart, but competition.
Speaker 7: I know that by far the leader in the EV space,
Speaker 7: definitely here in America, but the base that they have
Speaker 7: are fine, and to have greater margin, it's China, and
Speaker 7: evs are being built and companies that are being created
Speaker 7: and flourishing.
Speaker 5: You're talking about having.
Speaker 7: Four models or a company like BYD has thirty models, right,
Speaker 7: and so if you're talking about little prices and more
Speaker 7: models to choose from, there's competition in that space. Again,
Speaker 7: they are by far the leader in the space, but
Speaker 7: competition is there, and so there's a bare case to
Speaker 7: be spoken of. Fifty dollars is completely drastic, but if
Speaker 7: we do see a pullback, because I want to look
Speaker 7: at Tesla and I think about it, Yes, it's more
Speaker 7: than the EV companies. A tech company obviously disguise is one.
Speaker 7: But we know how interest rates have effected tech companies,
Speaker 7: and there is talks of recession. In twenty twenty four,
Speaker 7: I was I was hearing some one hundred percent chances
Speaker 7: over the weekend. These things have to be taken into
Speaker 7: consideration when we're touching out the future outlook. I always
Speaker 7: Tesla has always been something that's been volatile, you know,
Speaker 7: over the pandemics for sure, and so to drop egially,
Speaker 7: when I saw the question, I thought, a dropping fifty dollars,
Speaker 7: I'm like, that's not bad.
Speaker 5: We've seen it have those type of moves.
Speaker 7: But to go down to fifty dollars a year, I
Speaker 7: think it's a bit much, A bit much.
Speaker 6: Who would beat the number one competitor right now? I
Speaker 6: don't see anybody being like, man, I want the Rivene
Speaker 6: bad as hell.
Speaker 7: I was just good you just I was thinking Rivian.
Speaker 7: You're seeing them a lot more. They're starting to turn
Speaker 7: profit with I don't see the demand.
Speaker 5: We're seeing production more.
Speaker 4: I think the number one competitor is not necessarily one
Speaker 4: company's every company. You see Mercedes gonna come out with
Speaker 4: the electric g Wagon. I feel like every coach has
Speaker 4: every I think I think the competition doesn't come from
Speaker 4: one particular company I cut. I think it comes from
Speaker 4: every single company getting into the EV space, where now
Speaker 4: Tesla has. It's kind of like, you know, the go
Speaker 4: to when you think they'd be like band aid. Like
Speaker 4: when you think of electric car, you think of Tesla,
Speaker 4: but soon the dangerous part is when you think of
Speaker 4: electric car, you think of every single car. Yeah, and
Speaker 4: as eventually as what is going to happen, I don't
Speaker 4: know how long it'll take.
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Speaker 1: Legal alien from Guatemala charged with raping a child in Massachusetts.
Speaker 1: An MS thirteen gang member from Al Salvador accused of
Speaker 1: murdering a Texas. Man of Venezuelan charged with filming and
Speaker 1: selling child pornography in Michigan. These are just some of
Speaker 1: the heinous migrant criminals caught because of President Donald J.
Speaker 2: Trump's leadership. I'm Christy nom the.
Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
Speaker 1: illegal border crossings are at the lowest levels ever recorded,
Speaker 1: and over one hundred thousand illegal aliens have been arrested.
Speaker 1: If you are here illegally, your next you will be
Speaker 1: fined nearly one thousand dollars a day, imprisoned, and deported.
Speaker 2: You will never return.
Speaker 1: But if you register using our CBP home app and
Speaker 1: leave now, you could be allowed to return legally.
Speaker 2: Do what's right. Leave now.
Speaker 1: Under President Trump, America's laws, border and families will.
Speaker 3: Be protected sponsored by the United States Department of Homeland Security.
Speaker 4: Actually, every car will be an electric car at some
Speaker 4: point in time in the future, right, so that I
Speaker 4: think long term is the biggest competitor to Tesla's dominance
Speaker 4: when every single car is the same.
Speaker 5: Now, what advantages Tesla have? What's up? Great?
Speaker 7: You?
Speaker 6: I keep saying they needed to cook, they need they
Speaker 6: have great leadership there, but they need a operator who
Speaker 6: is solely focused on the business. I brought this up
Speaker 6: in Toronto, Like, what do we know about Satia from
Speaker 6: Microsoft other than the works of Microsoft.
Speaker 7: You know, you spoke about Focus, and over the past week,
Speaker 7: Starlink has been everywhere in the news. Do you think
Speaker 7: because of the attention that is going there. I mean,
Speaker 7: you're talking about two different companies that are world changing
Speaker 7: When you speak about Focus, are you talking about that?
Speaker 7: Like there there is another thing that he's working on
Speaker 7: that would be a monster I mean by hisself. I
Speaker 7: think they said it could ipal by twenty twenty seven
Speaker 7: from older reports. I was reading you're talking about multi
Speaker 7: billion dollar evaluation. Yeah, maybe that's what the focus should
Speaker 7: be or is that where it's going.
Speaker 6: I think Starlin could on the publicly traded side, will
Speaker 6: probably perform better than Tessa. It's something that's needed. They
Speaker 6: have a competitive advantage. I don't see anyone in the
Speaker 6: space coming close to But he's going to have to
Speaker 6: hunker down and focus on something. I don't think he'll
Speaker 6: leave that CEO role of Tessa. But Starlink looks like
Speaker 6: the Star for sure. It looks like Lebron in two
Speaker 6: thousand and three. It's like, you know this is coming.
Speaker 6: We got to figure out how to put Dwan Wagner
Speaker 6: whoever was playing for Cleveland after the pasture, Darius Miles
Speaker 6: and somebody like Starlink has to be the focus. I
Speaker 6: know he has a lot on his plate, but at
Speaker 6: some point you have to hunker that I'll find way
Speaker 6: to blend those companies into one, for.
Speaker 7: Sure, because if I'm hearing what Shatty's saying, it's like, yeah,
Speaker 7: it's just some truth to that, right. And we saw
Speaker 7: states making mandates New York, we know twenty thirty five,
Speaker 7: California twenty thirty five. Everybody has to have zero emissions.
Speaker 7: And so if everybody's in the space, what separates me.
Speaker 7: Is it creating something different inside of Tesla or is
Speaker 7: it creating an entire new branch of my business? And more,
Speaker 7: I mean, Starlink is that generational talent that can change.
Speaker 5: Things, and the product has to get better for Tesla
Speaker 5: as well.
Speaker 6: Like the people that I know who bought in twenty
Speaker 6: twenty one, whenever sending me like, hey, I'm underwater in
Speaker 6: the car because they dropped the price, I'm like, it's
Speaker 6: not a good feeling.
Speaker 5: It's not a good feeling.
Speaker 6: But we've all, you know, ran a business and at
Speaker 6: some point taking our eyes off of something.
Speaker 5: But I feel like this is going on for too
Speaker 5: long with him.
Speaker 6: I mean, the stock at one point was that almost
Speaker 6: thirteen hundred bucks now being the two hundred dollars range.
Speaker 5: Insane. Yeah, splits included.
Speaker 7: Everybody's been like, oh, wait, well they split.
Speaker 5: Yes, yes, of course they split twice. But they split twice.
Speaker 7: We've seen and we talked about episode before they split.
Speaker 5: When Bezos was in charge.
Speaker 7: It never split right to a point where you saw
Speaker 7: two shares splits in matter of three years.
Speaker 4: Yeah, what's the business model Tesla do.
Speaker 5: They need to follow or the one they use it now?
Speaker 5: The one they use it now?
Speaker 6: Well, they're selling batteries. The thing that I love on
Speaker 6: the car side though, is like they sell direct to consumer,
Speaker 6: so they're way ahead of.
Speaker 5: All of their.
Speaker 6: Peers, and I think there was a certain cache that
Speaker 6: came with owning the particularly like the models, but I
Speaker 6: do like the business model. The thing the only thing
Speaker 6: I hate in their model is the margins. They have
Speaker 6: to find a way to get margins up, Like you
Speaker 6: cannot have your operating margin B eleven percent in your
Speaker 6: profit margin B fifteen percent. Yes, that's good for a
Speaker 6: car company, terrible for energy and terrible for a tech company, terrible.
Speaker 6: I know the cost to hire for those unit comments.
Speaker 6: I know that it's.
Speaker 5: Hardware, I know fabrication production. I get it.
Speaker 6: But they have to find a way to at least
Speaker 6: not that that margin up to like twenty one to
Speaker 6: three to like keep their competitor is at Bay.
Speaker 5: Which stay done a great job. Four can't catch up.
Speaker 5: GM is foundering.
Speaker 6: The best Mercedes with eqs and a g Wagon will
Speaker 6: have some impact. Rose Royce now has a Specter will
Speaker 6: have some impact. But you have to get those margins up,
Speaker 6: especially if we're going to go into recession.
Speaker 7: It is one of those places inside of the chardin stations.
Speaker 7: We saw the partnership with GM. We've seen it right.
Speaker 7: So if we can't, it's a good way. If we're
Speaker 7: gonna create competition, and we know that everybody's coming to
Speaker 7: the space, well let's control other factors or other areas
Speaker 7: of the space, i e. Charged stations, i e. Create
Speaker 7: batteries for these companies and so that they'll always become
Speaker 7: a customer. They always be relying on some part of
Speaker 7: our business to make sure that we always have higher revenue, which.
Speaker 6: Is like the B to B version of Apple's app store,
Speaker 6: which is brilliant. You just need more players in that
Speaker 6: space and more partnerships like That's why, especially in recession,
Speaker 6: we touched on this lightly before we started. It's much
Speaker 6: better to have collaborative partners than to go to war.
Speaker 6: War is really expensive on us.
Speaker 5: You make the arms. You are in the rown business.
Speaker 5: I know, hit him him up made it a little
Speaker 5: bit of money.
Speaker 6: I don't know any rapper this like thrives off of
Speaker 6: beefit and dissing.
Speaker 5: It costs too much money to do so.
Speaker 6: So I think it's brilliant that they have those partnerships
Speaker 6: in place for the charging stations.
Speaker 5: I think they should be more aggressive there.
Speaker 6: But I think that leadership team really needs to figure
Speaker 6: out a way how to bump up that margin by
Speaker 6: seven to eight percent, because if I don't want to
Speaker 6: talk about it too much, but when so we were
Speaker 6: at dinner and Daniel was like, Hey, did you know
Speaker 6: in Canada the mortgages renew every five years.
Speaker 5: I'm like, what the hell you mean?
Speaker 6: He was like, yeah, Like you don't have a thirty
Speaker 6: year three percent rate every five years They'redjust for those
Speaker 6: of you who don't know, forty one percent of Royal
Speaker 6: Bank of Canada's mortgages are set to reset in the
Speaker 6: August of twenty twenty four. Now's not the time to
Speaker 6: have then margins. They could go through what we went
Speaker 6: through in a bit short era of two thousand and eight.
Speaker 6: Now's not the time to have nine percent or twelve
Speaker 6: percent margins in your business because you may have to
Speaker 6: have two years where two years of revenue will have
Speaker 6: to last you four and a half to make it
Speaker 6: out of the store.
Speaker 5: Hunker down. What do I know? What's your long term
Speaker 5: projection for Tesla four fifty. I'm not leaving Tesla. If
Speaker 5: Eli's that we got a shot. We got to shoot
Speaker 5: a shot. He's a generation of talent and he succeeded
Speaker 5: at every level.
Speaker 4: Until you're still it's still bullesh on Tesla.
Speaker 5: Hell yeah, it hasn't left stock club.
Speaker 6: If it goes to fifty easy, hundred grands, boll, I
Speaker 6: would be like I was in Girl Collection at one time.
Speaker 6: Go ahead, shot to the ballerinas, get all this real
Speaker 6: quick on Tesla. If it goes to fifty, oh baby,
Speaker 6: please Jamie Diamond. Michael Burry shorted down in.
Speaker 7: Fifty for me, please dah. If it goes to fifty.
Speaker 7: What does the automotive market look like for the rest
Speaker 7: of companies? What does the economy look like?
Speaker 5: Right? And think about it. That's terrible. Yes, it's judgment
Speaker 5: day and the machines they hear absolutely.
Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J.
Speaker 2: Trump's leadership. I'm Christy Noman, the.
Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
Speaker 1: illegal border crossings are at the lowest levels ever recorded,
Speaker 1: and over one hundred thousand illegal aliens have been arrested.
Speaker 1: If you are here illegally, your next you will be
Speaker 1: fine nearly one thousand dollars a day, imprisoned and deported.
Speaker 2: You will never return.
Speaker 1: But if you register using our CBP home app and
Speaker 1: leave now, you could be allowed to return legally.
Speaker 2: Do what's right. Leave now.
Speaker 1: Under President Trump, America's laws, border and families will be protected.
Speaker 3: Sponsored by the United States Department of Homeland Security,