There seems to be some confusion as to what Tesla is.
Yes, Tesla is a benevolent company, they are actually the good guys, they are also marketed
this way, and thus cannot be seen to do any bad in the public's eye, as it would be very
off brand.
CONSUMER But Tesla is not a consumer first company.
They are not out there conducting marketing research asking you what you look for most
when buying a new car.
Tesla and Elon know what the best things are in a car, that add the most value, along with
the added value relative to cost, and how much harder it may be to engineer or manufacturer
any features.
The end result is complete value for money, with no fads, or soon to become obsolete technology.
The most bang your buck as possible for car.
It just wasn't marketed to you, how convenient in-cabin YouTube is, not in the same way Audi
like to show off their optional extra orange stitching in their e-Tron GT.
The competition are trying to make faster horses.
ENGINEERS Tesla is a large collection of some of the
best engineer minds on the planet.
Together they are coming up with ideas on how to improve the world.
However, any idea is only good if its profitable.
Tesla have a huge mission, and it's going to take a lot of money to do it.
This money, as hard as it may be for some people to believe, well its going to come
from profits.
The problem is though, for extreme lack of better word, that Tesla are too good, really,
they are making products that are so far ahead of everyone else.
And now they have just launched their latest product, the 4680 Model Y.
We don't know what this car is capable of yet, or will be in the future.
But it's extremely unlikely anyone else is catching up to it, this decade.
Tesla have about a decade lead, at least, as that somewhat implies others will catch
Tesla up, which may very well never happen.
It is possible that no other EV company, or battery company, ever produces a cell as good
as the 4680, by which I mean, Tesla's 4680.
TOO GOOD What do I mean by too good?
Well what if for example, all this effort Tesla are going to producing the 4680, well
what if there are unintended side effects that crop up.
Like for example, the cells end up having more power than they thought.
Tesla may have intended on producing a somewhat affordable Model Y from Austin, but then these
4680 cells ended up being much more powerful than they thought, and ended up with a much
faster 0 to 60 time than Tesla had originally planned for pricing the car.
Now Tesla may have delivered the intended specification of the car, except its just
super quick, maybe even too quick a lot of consumers.
Well in that case, limit it with software.
But there's all that wasted power, then sell it as a software upgrade to whomever wants
it.
Tesla didn't going into the 4680 design with the target of 5x energy and 6x power, that's
just what the results were, after everything else they did.
And likely things like charging times are obviously important, but would obviously take
a backseat to production speed and cost, but charging speed would not have been the priority
as the battery design.
However, possibly due to features like tabless cell design, that was required for the larger
cell.
Well what if a side effect meant that 4680 cells can be charged up to 400 kW or something
ridiculous.
Again Tesla didn't do market research and discover that customers want 400 kW charging
speeds, and they have to build a cell that meets that requirement, as the customer is
always right.
Now consumers seem to expect, that because Tesla can do that, then they deserve that.
ENTITLED In fact I feel like there is some entitlement
in the community.
Look I dont meant to sound apathetic, or insensitive.
I know a lot of you really covet a Tesla, and are loyal to the brand and CEO, and possibly
feel that you deserve one.
And alright, Elon did promise a $25,000 Tesla.
But this is an investment channel, so in theory I should have no empathy for anyone listening,
as raising prices and increasing profit is good for investors.
Perhaps Tesla under estimated their demand, or changed their business plan from Battery
Day, when this low cost EV was announced.
I think now Tesla's demand is so much higher than even Tesla anticipated, that Tesla don't
need to release any low cost EV any time soon for the mission.
The Model 2, was the favorite placeholder name for some time.
This was going to be a major direction for the company.
Tesla needed to get tons of these Teslas out into consumers hands, so they can operate
the Robotaxi network.
Perhaps it was unrealistic to think that so many consumers would want a Model Y, due to
the prices being regarded as somewhat high, although around the time of Battery Day, the
Model Ys feel like they were priced pretty well now, don't they?
But potentially still too expensive to expect enough people to own them for a feasible Robotaxi
fleet.
Except people kept buying them, and then more, and more, and its now lined up to be the biggest
selling car of all time.
Impying that Tesla don't need the Model 2 out that early.
Enough people will buy 3s and Ys for that mission.
Then there will be enough profit from these vehicles, to fund the extension of the mission.
Previously Tesla might have thought that they need a low cost vehicle to go mass market
enough for Robotaxis.
They were wrong.
Plenty of people to buy Model Ys and fund the mission.
COMPACT And in case you were wondering, there will
likely be a compact Tesla perhaps in the second half of this decade, but 1.
it will not be Teslas biggest selling model, and 2.
I'm afraid it won't be $25,000 either.
But that's ok right?
Remember, you are shareholders.
This means that although you may not be able to buy the $25,000 Tesla now, it likely wont
be long until you can afford the $66,000 Model Y.
Demand is too high for vastly more popular models already, oh and significantly more
profitable.
The processes and systems are all in place, could you imagine how long it would take to
get a new compact model out, that was potentially going to be in higher production units than
the Y?
It would have been years away still, look how long the Cybertruck has taken.
CYBERTRUCK The Cybertruck is going to be insanely profitable,
I am thinking 50% margin.
And you can bet there will be people upset they can't afford them, as if it's Teslas
fault.
Tesla are just making excellent products, its the consumers fault for liking them so
much, and increasing demand so high, that Tesla have to raise prices.
Then the next models are the Semi Truck and Roadster.
Something tells me, that these products are also going to massively profitable.
Tesla is starting with all the most profitable products first, it was the only way.
Higher priced items are in lower quantity.
Lower quantity means less economies of scale.
Less economies of scale means lower barrier to entry.
Which is exactly how Tesla entered the auto market and was the only successful US auto
company to survive since Chrysler.
Because the big 3 had such a hold on the industry.
Elon managed to penetrate even the almighty 3 big US auto cartel of cronyism, but still
only just.
Makes you wonder how the others might get on, just kidding, it's obvious.
The strategy hasn't stopped.
Tesla are still launching the expensive, more profitable models, that will go on to fund
the less expensive vehicles for the masses.
WANT I think this is where the confusion lies.
Elon is trying to make clean energy the lowest cost of transport, for everyone.
Elon is not trying to make Teslas for everyone, the world isn't that abundant.
But with technology you can leverage.
And that one electric robobus maybe able to serve transportation requirements for as many
as 100 people in a city.
That's 100 people that get to travel in Teslas per vehicle.
Compared to a Model 2, which is one person, or perhaps replaces 5 ICE vehicles, with robotaxi
capabilities.
I am sorry, but Tesla is about the mission, not the consumer.
The consumer is here to fund the mission.
The consumer gets exceptional products that would possibly never have been invented had
it not been for this company.
Personally, for me as a consumer for Tesla, I think its best to appreciate whatever products
they decide to make for us.
Ok the current Model Y Long Range, isn't using 4680 cells, and you really want a Long Range
Model Y with 4680 cells, well get over yourself.
Tesla have kindly made you a Model Y Long Range with 2170 cells, the 4680 cells are
for a different vehicle.
There is still nothing in the world that comes remotely close to a Long Range Model Y.
People are still willing to buy them, despite price rises.
Tesla are supply constrained, they made something so popular that everyone wants them, yes,
including people who cannot afford them.
SUMMARY I have been speaking about this a bit lately.
Tesla is still offering absolutely amazing value at their current prices, they really
are.
Sure it might be expensive, but value for money is relative.
And we talk about priorities.
As a Tesla owner, I have never bought a product that I derive more enjoyment.
If I had known it would bring me this much satisfaction, and if it was out my budget,
I would have made the sacrifices necessary.
Now when I say outside of "my budget", I mean anyone's budget who is looking at buying a
new car.
Remember, it's not that the cost of the Tesla is $66,000 its that it might be $20,000 more
than your budget for a regular car.
My point is, that additional $20,000 is well worth it, and well worth sacrificing holidays,
or expensive items, or even working some overtime to have one.
Within time, there will likely be more affordable Teslas, but lets face it, $25,000 was ridiculous
from the start.
The loan payments on that car could have been almost covered with what you save on bus fare.
But I'm what may be best for the mission, is not always best for the individual consumer,
on the other hand, its usually good for the shareholder.