WEBVTT - Facebook, Apple and Tesla Earnings in Focus

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Bloomberg

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<v Speaker 1>Quick Takes. Tim Stinovic from Bloomberg Radio, want to talk

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<v Speaker 1>a little bit more about Facebook because we do have

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<v Speaker 1>a day ludship big tech names after the close today.

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<v Speaker 1>Facebook is out, Charlie mentioned lower, although it looks like

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<v Speaker 1>it's just a little change, a little bit lower right

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<v Speaker 1>now in the after hours after a steeper loss right

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<v Speaker 1>after the numbers came out. Apples to come, Tesla is

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<v Speaker 1>out and that stocks down, as Charlie mentioned, about three

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<v Speaker 1>percent lower in the after hours. Let's start that with

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<v Speaker 1>what we heard from Facebook. Joining us is John Arlokman

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<v Speaker 1>anchor being in Bloomberg's The Open correspondent for CTV National News,

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<v Speaker 1>on the phone from Toronto. He's also got a great

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<v Speaker 1>tweet out today about Sandra Bullock and the Internet you have.

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<v Speaker 1>If you haven't seen it, you should go and see it. Um, John,

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<v Speaker 1>good to have you here. Yeah, thanks. I mean, one

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<v Speaker 1>of these days I hope I can talk to Sandra

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<v Speaker 1>Bullock about for early days on the internet, don't we all?

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<v Speaker 1>An interesting time back was it was it was good

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<v Speaker 1>to remember that there was a time when there wasn't

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<v Speaker 1>the internet or it was really kind of pretty basic

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<v Speaker 1>and primitive. Not basic, not primitive is Facebook. It's come

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<v Speaker 1>a long way. Uh, investors initially sold off John the

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<v Speaker 1>stock in the after hours. It's now little change what

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<v Speaker 1>jumps out for you. Well, this is that period, of course, Carrol,

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<v Speaker 1>between when the executives field questions from analysts and when

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<v Speaker 1>the market is reacting, when we try to determine where

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<v Speaker 1>the stock could be going, and some of the early

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<v Speaker 1>takeaways and Sarah Fryer from the Bloomberg team already writing

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<v Speaker 1>a story about this. We're trying to figure out what

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<v Speaker 1>because the numbers for the fourth quarter for Facebook we're

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<v Speaker 1>strong as always. I mean, it's become an ad behemoth,

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<v Speaker 1>even with all the uncertainty that we read about and

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<v Speaker 1>saw tied to the uncertainty for Facebook's business and uh,

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<v Speaker 1>you know the uncertainty in Washington. The reality is during

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<v Speaker 1>the pandemic, people were on their phones, they were on Facebook.

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<v Speaker 1>And I would would argue it's hard without getting really

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<v Speaker 1>deep into the numbers, but I would argue, more and

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<v Speaker 1>more of this story is becoming an Instagram story, Carol.

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<v Speaker 1>I mean the team of Bloomberg already estimated the intelligence

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<v Speaker 1>team that Instagram makes up at least the enterprise value

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<v Speaker 1>of Facebook. And I don't know about you, but in

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<v Speaker 1>my household, people were scrolling Instagram. People were shopping through Instagram.

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<v Speaker 1>And so they have my daughter's shop. That's how my

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<v Speaker 1>daughter's shop. She's seventeen, that's how she's shops going through Instagram,

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<v Speaker 1>that's right. So the so the primary driver of that

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<v Speaker 1>business for Instagram are the ads, and they do just

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<v Speaker 1>about everything they can to get people talking about product

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<v Speaker 1>and facilitating commerce because if that is successful, then those

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<v Speaker 1>brands will want to advertise more on Instagram. And you know,

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<v Speaker 1>it's interesting even the CFO Facebook and some prepared commentary

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<v Speaker 1>is highlighting what happened last year which might not happen

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<v Speaker 1>this year. What I mean by that is we all

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<v Speaker 1>bought a lot of stuff we were at home. You know.

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<v Speaker 1>Maybe it did some stuff with the pool, maybe you uh,

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<v Speaker 1>you know a lot of new death because you're working

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<v Speaker 1>from home, maybe about a new TV set. Whatever. Instagram

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<v Speaker 1>is all about stuff you can buy, uh, And so

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<v Speaker 1>that was also helping their advertising business last year. If

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<v Speaker 1>we cross our fingers and hope that the vaccine roll

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<v Speaker 1>up can be successful, could be more about services. Maybe

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<v Speaker 1>we'll go out to restaurants more. Maybe we'll finally take

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<v Speaker 1>that trip. And so they're already warning that that shift

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<v Speaker 1>in spending could ultimately hurt them, but we'll have to

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<v Speaker 1>see with times. So I think they had a big quarter,

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<v Speaker 1>a monster even in the face of what are seen

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<v Speaker 1>as some regulatory head ones for Facebook. And now we

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<v Speaker 1>try to figure out who are the post pandemic winners.

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<v Speaker 1>If you will, Well and John, I guess a question

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<v Speaker 1>for me is, yeah, even if I mean, this is

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<v Speaker 1>a company where a fourth quarter sales jump and as

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<v Speaker 1>you said, online shopping was feeling a lot of that.

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<v Speaker 1>But you know, if we have a company where a Facebook,

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<v Speaker 1>where sales jump fifteen or twenty, those are still strong numbers,

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<v Speaker 1>you know what I mean, even if there's an adjustment,

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<v Speaker 1>but maybe investors just have to kind of potentially potentially

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<v Speaker 1>adjust those expectations. Well, I've always tried to be measured

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<v Speaker 1>in these earnings reactions, dating back to when I was

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<v Speaker 1>based in San Francisco for Blueberg, and we recovering these

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<v Speaker 1>earnings out there because the numbers are truly astonishing. And

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<v Speaker 1>to your point, last year their odd revenue jumped another

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<v Speaker 1>twenty plus percent. Now is that a couple percent off

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<v Speaker 1>what we saw on the previous year. Sure, but again

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<v Speaker 1>we're talking about people. We're talking about one of the

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<v Speaker 1>most traumatic years of our lives, and this company is

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<v Speaker 1>talking about well into double digit advertising revenue growth. And

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<v Speaker 1>that's gotta that's got to come from somewhere. That's not

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<v Speaker 1>like the pie is getting bigger right now. So I

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<v Speaker 1>think Facebook continues to be in a pole position thanks

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<v Speaker 1>to that savvy billion dollar purchase in so Puny looking

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<v Speaker 1>back for Instagram ahead of their I p O. But

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<v Speaker 1>I think we also know beyond just what the financial

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<v Speaker 1>outlook the company shares with us is, they're going to

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<v Speaker 1>have to navigate these waters in Washington. Um. I think

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<v Speaker 1>even with the core Facebook product, we've all learned our

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<v Speaker 1>lesson of these last few months of you know, the

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<v Speaker 1>the negative side of what can happen on social media

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<v Speaker 1>and being accountable and responsible for that not only takes

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<v Speaker 1>a change in how you get the business, but also

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<v Speaker 1>it costs money, and they're spending a lot of money

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<v Speaker 1>to try and fix those problems too, and that investor's

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<v Speaker 1>watch as well. And it's not just this you know,

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<v Speaker 1>US regulatory environment. They also mentioned some concerns about data

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<v Speaker 1>transfers to and from Europe that could be heard with

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<v Speaker 1>new regulations. So you know, increasingly this these types of

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<v Speaker 1>companies are facing potentially greater regulation, whether it's here in

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<v Speaker 1>the US or over in your uh, looks like a

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<v Speaker 1>pretty good quarter, John Man as always right, underestimate speaking

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<v Speaker 1>this this this big numbers game, a big teg. The

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<v Speaker 1>symbolism of reaching a hundred billion dollars or I guess

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<v Speaker 1>in this case more than a hundred and eleven billion,

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<v Speaker 1>as you pointed out, Um, how unprecedented this really is

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<v Speaker 1>in corporate America. I mean, there's just a handful of

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<v Speaker 1>companies and in the next few days, and sure we'll

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<v Speaker 1>be talking about the mighty Amazon, But think about the

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<v Speaker 1>business of Amazon, at least for the most part in

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<v Speaker 1>their growth. Yeah, that that the cloud business, which is astonishing,

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<v Speaker 1>but really it was about moving goods. Walmart, we know,

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<v Speaker 1>has already reached this threshold of being able to generate

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<v Speaker 1>more than a hundred billion and a quarter, and it's impressive.

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<v Speaker 1>But again the nature of Walmart's business is different. Move

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<v Speaker 1>everything we can, and our margins are razor thin. Apple,

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<v Speaker 1>there are limitations on how far they're blull and go

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<v Speaker 1>in selling product because they like those big margins. So

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<v Speaker 1>I think going back to what we talked about earlier

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<v Speaker 1>with people staying home during the pandemic and school going

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<v Speaker 1>through Instagram, they were, indeed but getting new iPhones, and

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<v Speaker 1>you know, if the kids were at home, they were

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<v Speaker 1>buying some of the other gear. And then there's that

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<v Speaker 1>services business, Carol, which is that's the leg of growth

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<v Speaker 1>they're they're leaning on right now, John, Where else though?

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<v Speaker 1>I always think about my European grandparents who came over,

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<v Speaker 1>you know, um where else would you get a product

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<v Speaker 1>that's roughly especially if you you know, depending on which model,

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<v Speaker 1>But you can spend a thousand dollars on something that

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<v Speaker 1>you are going to consider disposable because at something like

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<v Speaker 1>in a couple of years, you're going to replace it

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<v Speaker 1>or maybe sooner. I mean, we've got two new iPhones

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<v Speaker 1>in our house. Uh you know, I just look at

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<v Speaker 1>I understand what you're saying, Like the limitations in terms

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<v Speaker 1>of you know, they want to stick with those high margins,

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<v Speaker 1>but it works for them. Like everybody said, you got

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<v Speaker 1>to go mass market, you gotta go down market. Well

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<v Speaker 1>maybe you don't. Well they and we should be clear again,

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<v Speaker 1>there were pandemic winners, and Apple clearly was one of

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<v Speaker 1>them because is there was just that simple need for

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<v Speaker 1>us to make sure we had good take at home.

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<v Speaker 1>And and when you're a consumer and you're making a decision, um,

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<v Speaker 1>you might have to cough up a little bit more

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<v Speaker 1>for an Apple product, but you're you're pretty confident in

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<v Speaker 1>what you're getting with that product. Now the question becomes,

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<v Speaker 1>if you were busy buying Apple stuff last year, are

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<v Speaker 1>you going to need to go out and get something

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<v Speaker 1>in two thousand and twenty one. I think that's again

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<v Speaker 1>why before the pandemic hit. And we've talked for years,

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<v Speaker 1>Carol about how, yeah, they still have the big product days,

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<v Speaker 1>but they're not as exciting as they once were when

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<v Speaker 1>the iPhone was brand new or you know today, uh

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<v Speaker 1>in two thousand and ten was when Steve Jobs first

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<v Speaker 1>unveil the iPad. Right, it doesn't feel like there's a new,

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<v Speaker 1>flashy product that gets as excited. Although I have to

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<v Speaker 1>tell you I love my AirPods, and you know, there

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<v Speaker 1>wasn't as much fanfare around the launch of those a

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<v Speaker 1>few years ago. So I think you'll continue to see

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<v Speaker 1>Carroll this company really focus on their services business revenue

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<v Speaker 1>there was substantial at more than fifteen billion dollars. And

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<v Speaker 1>that's things like yeah, it's it's it's what you're putting

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<v Speaker 1>in the cloud. But it's you know, getting you to

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<v Speaker 1>choose Apple Music over Spotify. It's getting you to use

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<v Speaker 1>the Apple TV service, you know, right in the mix

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<v Speaker 1>there with Disney Plus and Netflix. Uh. And then you

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<v Speaker 1>know if they if they can sell you on some

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<v Speaker 1>of the other stuff, you know, wearables is is still

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<v Speaker 1>a growing category for them. People are still picking up

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<v Speaker 1>the Apple Watch, and I think after the initial excitement

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<v Speaker 1>of the quarter, will probably go back to that storyline

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<v Speaker 1>of what else does Apple That's That's what I'm thinking about.

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<v Speaker 1>How many times over the years we've we've said like,

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<v Speaker 1>you know, come on, Apple, you've got to diversify, You've

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<v Speaker 1>got to diversify. And yet here we are, like, hey, listen,

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<v Speaker 1>these are these are pretty impressive numbers. You know, I

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<v Speaker 1>feel like we talk about Apple, it's always in a

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<v Speaker 1>whole other category. Just got about twenty seconds left here, John,

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<v Speaker 1>any final thoughts. The one thing I'll just note is

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<v Speaker 1>in China, sales were up substantially. They were north of

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<v Speaker 1>twenty one billion that was up from about fourteen billion

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<v Speaker 1>a year ago. And we know that the China recovery

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<v Speaker 1>stories something people are already talking about. Yeah, exactly in

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<v Speaker 1>our own Mark German, who we follow so closely. Also

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<v Speaker 1>when it comes to Apple, talking about the wearables, home

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<v Speaker 1>and accessories boost due to major updates in that line

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<v Speaker 1>in including you talked about two new Apple Watch models,

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<v Speaker 1>the air Pods, the air AirPods Max headphones. John was

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<v Speaker 1>talking about the headphones there and also the home Pod Mini.

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<v Speaker 1>So he said Apple went out all on accessories this

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<v Speaker 1>past quarter. John, great to have you back with us

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<v Speaker 1>breaking everything and anything you need to know. When it

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<v Speaker 1>comes to Facebook and Apple, John is anchor up Being

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<v Speaker 1>and Bloomberg's the open correspondent for CTV National News. This

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<v Speaker 1>is Bloomberg Business Week with Carol Messer and Bloomberg Quick

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<v Speaker 1>Takes Tim Stinovic from Bloomberg Radio. So Tesla is also

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<v Speaker 1>at It's been a big day. Uh. In the after

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<v Speaker 1>hours for earnings Tesla shares, I should point out they

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<v Speaker 1>are lower in the after hours right now, They're just

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<v Speaker 1>down about four point eight percent. So listen, it was

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<v Speaker 1>an outperformer last year. Up it was already an outperformer

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<v Speaker 1>this year up heading into these earnings, growth stock, auto stock,

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<v Speaker 1>tech stock, battery stock, It's many things. So let's get

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<v Speaker 1>into it with Bloomberg News reporter Ed Ludlow. He's with

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<v Speaker 1>us from our Bloomberg nine sixties studio in San Francisco,

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<v Speaker 1>along with Ross Gerber, president CEO of Gerber Kawasaki Wealth

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<v Speaker 1>and Investment Management. He's on the phone from Santa Monica.

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<v Speaker 1>He owns Tesla Shares, owns Tesla Cars. Um, guys, let's

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<v Speaker 1>get into it, and I'm going to start with you

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<v Speaker 1>what jumps out because I just want to say I

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<v Speaker 1>just saw a headline that Tesla expects to achieve fifty

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<v Speaker 1>average annual growth and vehicle deliveries. That was in their letter. Yeah,

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<v Speaker 1>that was in the letter. The thing that wasn't was

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<v Speaker 1>basically a stated delivery goal for right consensus going into

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<v Speaker 1>this was around eight hundred thousand units. And perhaps, you know,

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<v Speaker 1>the market a little bit disappointed that Tesla didn't just

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<v Speaker 1>stay outright what they think they will deliver this year. You,

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<v Speaker 1>I guess you could ask Ross about that. Well, let's say,

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<v Speaker 1>crass Rus, what do you think about that? Oh? I

0:12:02.640 --> 0:12:05.720
<v Speaker 1>think he wants learned his lessons about you know, telling

0:12:05.760 --> 0:12:08.240
<v Speaker 1>people what his goals are and then everybody jumps on

0:12:08.320 --> 0:12:10.760
<v Speaker 1>him if he's short. So he's doing what an Apple

0:12:10.800 --> 0:12:12.600
<v Speaker 1>and all the other companies are doing and leaving a

0:12:12.600 --> 0:12:15.880
<v Speaker 1>little more wiggle room for error. And maybe the more

0:12:15.920 --> 0:12:17.400
<v Speaker 1>I think the market is reacting a little bit more

0:12:17.440 --> 0:12:20.240
<v Speaker 1>towards missing on the on the EPs side than per

0:12:20.240 --> 0:12:23.960
<v Speaker 1>se what we expect out of deliveries. Alright, ed, go

0:12:24.000 --> 0:12:25.960
<v Speaker 1>ahead and pick up what else stands out for you, yeah,

0:12:26.000 --> 0:12:27.559
<v Speaker 1>you know, and beyond that, I mean credit where credit

0:12:27.600 --> 0:12:30.440
<v Speaker 1>is due. Tesla says that they're on tracking in Berlin

0:12:30.960 --> 0:12:33.240
<v Speaker 1>with the Giga factory and also in Austin to start

0:12:33.280 --> 0:12:37.080
<v Speaker 1>deliveries from those locations this year, which is pretty astonishing,

0:12:37.160 --> 0:12:39.520
<v Speaker 1>right based on you know, how quickly they built the

0:12:39.520 --> 0:12:42.760
<v Speaker 1>Shanghai plant. They've now brought Shanghai up to installed annual

0:12:42.800 --> 0:12:46.839
<v Speaker 1>capacity of four and fifty thou vehicles, which is impressive,

0:12:46.880 --> 0:12:49.920
<v Speaker 1>and they're basically touting in the earnings release that they

0:12:49.960 --> 0:12:52.600
<v Speaker 1>expect Germany at least and perhaps Austin to go the

0:12:52.640 --> 0:12:55.520
<v Speaker 1>same way. There is some pressure on operating margins that

0:12:55.600 --> 0:12:58.720
<v Speaker 1>Tesla says is largely from aggressive price cuts in China.

0:12:59.080 --> 0:13:01.640
<v Speaker 1>The average selling ice for test of vehicles came down,

0:13:01.679 --> 0:13:04.520
<v Speaker 1>which is interesting, right because Ellen, Musk and Cove talked

0:13:04.520 --> 0:13:07.160
<v Speaker 1>for a while about wanting to make their vehicles more affordable,

0:13:07.360 --> 0:13:09.319
<v Speaker 1>but that is completely at odds with where the rest

0:13:09.360 --> 0:13:11.800
<v Speaker 1>of the industry is going. We're seeing high average setting prices,

0:13:12.120 --> 0:13:15.240
<v Speaker 1>particularly in combustion engine cars. And the final thing is

0:13:15.280 --> 0:13:18.120
<v Speaker 1>that executive compensation was very high, which eight into margins

0:13:18.120 --> 0:13:20.960
<v Speaker 1>as well. Yeah, hey, listen, well, okay, So I wonder

0:13:21.040 --> 0:13:23.720
<v Speaker 1>Ross Garber, uh, if there's a bit of a pullback,

0:13:23.800 --> 0:13:26.880
<v Speaker 1>are you going to be buying into this? Well, no,

0:13:27.200 --> 0:13:30.480
<v Speaker 1>because we think where we'd like to buy Tesla is

0:13:31.080 --> 0:13:34.839
<v Speaker 1>much lower than it's going to go tomorrow. How well,

0:13:34.880 --> 0:13:37.000
<v Speaker 1>you know, we see Tesla as a buying around five

0:13:37.559 --> 0:13:40.480
<v Speaker 1>dollars a share, you know, and that that's figuring looking

0:13:40.520 --> 0:13:44.080
<v Speaker 1>at a hundred times this year's estimate for us in

0:13:45.080 --> 0:13:48.559
<v Speaker 1>five dollars. So so you know, like, to me, paying

0:13:48.600 --> 0:13:52.800
<v Speaker 1>five is is what I would pay, you know, But

0:13:52.880 --> 0:13:55.240
<v Speaker 1>I also paid seven dollars for all my shares, so

0:13:55.760 --> 0:13:57.840
<v Speaker 1>you know I'm in No, I don't need to sell,

0:13:57.880 --> 0:13:59.439
<v Speaker 1>I don't need to do anything. So I'm a holder

0:13:59.480 --> 0:14:01.800
<v Speaker 1>of Tesla's as it bounced around here, and if I

0:14:01.840 --> 0:14:03.839
<v Speaker 1>get a real correction in Tesla, I'm certainly going to

0:14:03.880 --> 0:14:05.720
<v Speaker 1>add to it. All right, And what what do you

0:14:05.760 --> 0:14:09.920
<v Speaker 1>like about this quarter? What don't you like about this quarter? Ross? Well,

0:14:09.960 --> 0:14:12.240
<v Speaker 1>I like the top line. The top line numbers are great.

0:14:12.240 --> 0:14:14.240
<v Speaker 1>But I think you guys kind of hit on on

0:14:14.320 --> 0:14:18.360
<v Speaker 1>the topic. Margins were definitely hit, whether it's from price

0:14:18.400 --> 0:14:22.640
<v Speaker 1>reductions or increasing expenses. Uh, they were definitely hit from

0:14:22.640 --> 0:14:25.800
<v Speaker 1>what they should have been on an operating level, and

0:14:25.840 --> 0:14:27.960
<v Speaker 1>that's I think is why you're seeing the Staco down.

0:14:28.000 --> 0:14:31.000
<v Speaker 1>But I also look at those things is not material

0:14:31.120 --> 0:14:33.880
<v Speaker 1>in the story of Tesla, which is really about a

0:14:33.920 --> 0:14:38.920
<v Speaker 1>company that's growing incredibly fast. I'm completely innovating in several

0:14:38.960 --> 0:14:43.240
<v Speaker 1>industries and has just the most incredible long term future

0:14:43.520 --> 0:14:46.240
<v Speaker 1>of any company I own. So so I I don't

0:14:46.240 --> 0:14:48.640
<v Speaker 1>want to look at this as anything meaningful. Yeah, well, Russ,

0:14:48.720 --> 0:14:51.520
<v Speaker 1>let's jump into the story that you're describing. If you

0:14:51.560 --> 0:14:53.800
<v Speaker 1>look at the kind of action that we saw of

0:14:53.840 --> 0:14:55.920
<v Speaker 1>the last twelve months in the share price, every time

0:14:56.080 --> 0:14:58.560
<v Speaker 1>a street end lists raised their price target, a lot

0:14:58.640 --> 0:15:01.920
<v Speaker 1>of that was based on future revenues. Higher margin software revenue.

0:15:02.000 --> 0:15:05.600
<v Speaker 1>ROBOTAXI are you disappointed we didn't hear more about that

0:15:05.800 --> 0:15:08.720
<v Speaker 1>from Tesla in terms of progress and autopilot. What are

0:15:08.720 --> 0:15:11.040
<v Speaker 1>you listening for on the cool on those kind of

0:15:11.120 --> 0:15:14.200
<v Speaker 1>value add and other business areas outside of the business

0:15:14.200 --> 0:15:17.200
<v Speaker 1>of just building e vs. Yeah, you know, it's it's funny,

0:15:17.240 --> 0:15:18.880
<v Speaker 1>that's a it's a great way to look at it.

0:15:19.000 --> 0:15:22.320
<v Speaker 1>So from a fundamental perspective, a lot of those things

0:15:22.320 --> 0:15:25.560
<v Speaker 1>like ROBOTAXI, I don't even factor into my analysis because

0:15:25.840 --> 0:15:29.080
<v Speaker 1>I look at that as those will happen when they happen. Okay,

0:15:29.280 --> 0:15:31.960
<v Speaker 1>what matters to me is how many cars they're gonna

0:15:31.960 --> 0:15:34.560
<v Speaker 1>sell and batteries and solar they're going to sell in

0:15:34.600 --> 0:15:37.880
<v Speaker 1>the next two years, and what is the ramp of

0:15:37.920 --> 0:15:41.280
<v Speaker 1>these products moving forward. So, for example, you brought up

0:15:41.520 --> 0:15:44.920
<v Speaker 1>the rapid growing of the factories and how quickly they're

0:15:44.960 --> 0:15:49.200
<v Speaker 1>getting this production up. The monthing I'm focused Laser focused

0:15:49.200 --> 0:15:53.480
<v Speaker 1>on is on cybertruck and semi you know, production and delivery,

0:15:53.480 --> 0:15:55.920
<v Speaker 1>because that's going to be the next big leg up

0:15:55.920 --> 0:15:59.360
<v Speaker 1>for Tesla is taking over the trucking business in America,

0:15:59.720 --> 0:16:02.040
<v Speaker 1>and so like that's what I care about because I

0:16:02.040 --> 0:16:04.080
<v Speaker 1>think it's gonna be hard to build the cyber truck,

0:16:04.440 --> 0:16:06.240
<v Speaker 1>and we've seen it with every time they build a

0:16:06.240 --> 0:16:08.920
<v Speaker 1>new vehicle, it's kind of a nightmare. So what I'm

0:16:08.960 --> 0:16:12.240
<v Speaker 1>really focused on is are they going to execute, you know,

0:16:12.360 --> 0:16:15.200
<v Speaker 1>successfully with cyber and semi in the next twelve months

0:16:15.480 --> 0:16:16.800
<v Speaker 1>or is this thing going to get delayed and we're

0:16:16.800 --> 0:16:19.240
<v Speaker 1>gonna run into problems and run into issues that could

0:16:19.280 --> 0:16:22.160
<v Speaker 1>hurt the stock. So so that's what we're really focused on.

0:16:22.280 --> 0:16:25.120
<v Speaker 1>Is the next market for Tesla is trucks. We want

0:16:25.160 --> 0:16:28.160
<v Speaker 1>them to dominate this market, and that's the most important

0:16:28.160 --> 0:16:31.520
<v Speaker 1>step besides getting full self driving done, which they're working

0:16:31.560 --> 0:16:35.080
<v Speaker 1>with simultaneously. But with the new battery cell structures and

0:16:36.320 --> 0:16:39.000
<v Speaker 1>what they're building on the long term looks amazing. But

0:16:39.040 --> 0:16:40.840
<v Speaker 1>as far as what's going to drive the stock, it's

0:16:40.840 --> 0:16:43.680
<v Speaker 1>getting the truck business going roster. We need to look

0:16:43.680 --> 0:16:46.000
<v Speaker 1>at this as more of a battery company in addition

0:16:46.040 --> 0:16:49.800
<v Speaker 1>to being an auto or tech company. Absolutely. In fact,

0:16:49.840 --> 0:16:51.960
<v Speaker 1>that's where I think they now have the biggest mode

0:16:52.320 --> 0:16:55.240
<v Speaker 1>because every other company trying to build VS is trying

0:16:55.240 --> 0:16:57.360
<v Speaker 1>to get batteries from the same three players. And we've

0:16:57.400 --> 0:17:01.360
<v Speaker 1>now made significant investment in other terry companies and other

0:17:01.400 --> 0:17:06.200
<v Speaker 1>battery technologies because basically, there isn't enough of this stuff.

0:17:06.240 --> 0:17:08.840
<v Speaker 1>There isn't enough cells, There isn't enough way to fill

0:17:08.920 --> 0:17:11.720
<v Speaker 1>the demand that all the automakers want. So when Fisker

0:17:11.760 --> 0:17:13.600
<v Speaker 1>says they're going to build a car GM, where are

0:17:13.600 --> 0:17:15.240
<v Speaker 1>they going to get all the batteries? That's gonna be

0:17:15.280 --> 0:17:18.000
<v Speaker 1>the good question. So with Tesla doing this all in house,

0:17:18.240 --> 0:17:22.160
<v Speaker 1>but inventing a new cell that six or seven times better,

0:17:22.800 --> 0:17:25.600
<v Speaker 1>this is going to differentiate them from the competitors for

0:17:25.680 --> 0:17:29.000
<v Speaker 1>the next decade. Ross in one word, does does Tesla

0:17:29.080 --> 0:17:32.000
<v Speaker 1>Needle must need to start acknowledging competition more from the

0:17:32.040 --> 0:17:34.919
<v Speaker 1>likes of Riva and Lucid, etcetera. They're not competition, No,

0:17:35.040 --> 0:17:37.760
<v Speaker 1>they're not competition. Who's what's the competition. They don't even

0:17:37.800 --> 0:17:39.679
<v Speaker 1>have a truck, you know, So like when they get

0:17:39.720 --> 0:17:41.760
<v Speaker 1>a truck and they can actually make the truck and

0:17:41.800 --> 0:17:44.080
<v Speaker 1>I can get in this truck and drive it. And

0:17:44.280 --> 0:17:47.320
<v Speaker 1>so the competition I see is in China. And that's

0:17:47.320 --> 0:17:50.080
<v Speaker 1>why they lowered prices in China. There are some good

0:17:50.080 --> 0:17:52.400
<v Speaker 1>cars in China being made, whether it be by Neo

0:17:52.720 --> 0:17:56.560
<v Speaker 1>or b I D or whatever. And then we're also seeing, uh,

0:17:56.600 --> 0:17:59.960
<v Speaker 1>this new car from Lucid kind of getting towards production

0:18:00.040 --> 0:18:02.679
<v Speaker 1>and which is a really nice car. To hence the

0:18:02.680 --> 0:18:06.960
<v Speaker 1>refresh of the models, so you know that refresh was

0:18:07.000 --> 0:18:09.399
<v Speaker 1>a big thing. So I'm really stoked about it. You

0:18:09.400 --> 0:18:12.360
<v Speaker 1>guys are the best. Ed Ludlow Auto reporter of Berg News,

0:18:12.400 --> 0:18:16.000
<v Speaker 1>Russ Gerber, Overber Kawasaki Wealth and investment management guys. Thank

0:18:16.040 --> 0:18:19.200
<v Speaker 1>you so much. Great breakout of Tesla