hey guys how's it going today i'm going to be talking about tesla's earnings call and
basically what we can expect so if you're new here thank you for watching and please
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so tesla is in a weird position right now they can be included in the s
p or not and because of that there have been a lot of speculation and we can see the stock
showing that speculation the stock is up nearly double what it was before q2 started so before
july started and now it's hovering around 1500 it's been hovering around 1500 for a while now
there's actually a very good reason for it to hover around fifteen hundred dollars
people think that the tesla stock will be included in the s p 500 which is going to be a big deal but
that would only happen if tesla shows a profit how likely is it that tesla will show a profit
everyone is essentially certain that tesla will show a profit because they had 90 000 deliveries
in total analysts predicted they were only gonna have 77 000 70 000 60 000 somewhere along
those lines but tesla proved them wrong again and again and now they have 90 000 deliveries that is
nothing to shy about that is something really impressive that happened during a global pandemic
with their factory their primary factory at fremont factory shut down for the first month
in the quarter so because of that in the earnings report and the earnings call that will happen on
july the 22nd coming up shortly we can estimate that tesla will have a pretty good earnings
report and they will likely show a profit the tesla semi went into volume production the
model y production ramp is occurring as we speak and overall tesla's in a great position to be
profitable in the last quarter all the hints we have now show that tesla will be profitable there
is almost no doubt about it and as we've seen with any tesla product that has come
everyone who actually owns the tesla products loves their products and because of that we can
expect sales to rise in q3 and as production ramp is occurring we know that tesla does not
definitely does not have a demand problem so if any of you skeptics are out there listening and
you think tesla has a demand problem well you are wrong because every other manufacturer every other
car manufacturer had a drop in sales which means their demand was at a peak before this pandemic
tesla was not tesla had so much backlog of demand that even during a global pandemic they
increased their quarter over quarter deliveries and this only really happened because
in q1 they produced slightly more and it carried forward onto q2 which they delivered that is why
you can actually see that tesla has delivered 90 000 vehicles while only producing about 82 000. so
another thing we can actually predict that's going to happen with the q2 earnings call tesla will
show us how much revenue they've earned via their solar and powerwall or just power pack business
because you got to remember this tesla is not only a car manufacturer tesla is a tech company
who happens to make cars their primary business is in batteries they supply solar they supply
batteries for homes and for the grid so they are in the tech business not only in the car business
every other automaker is in the car business and in q2 i feel like that would become more apparent
because a lot more people became more aware of the environment and environmental issues
and that could have a net positive effect on tesla as a whole which we are seeing today now if i may
i want to be slightly negative here and just say that tesla does not have to have a profit in q2
2020 they could have a loss but the thing to keep in mind is that in q3 2020 they will have a profit
so if you are gonna buy the stock hold it instead of just trading it because the tesla stock right
now is very volatile we don't know which way it's going to go the big institutional investors can
basically manipulate the stock legally and they have more say over anyone over this issue but
over time especially over the coming years tesla is bound to increase in price now am i saying that
they didn't produce a profit last quarter i'm not entirely sure because 90 000 deliveries while it
is a lot we have to account for all of their other revenue which has not been accounted for
and chances are because their factory hasn't been up and running their expenses were much lower and
because of that reason they could produce a profit plus by selling the model y which is a higher
priced vehicle with higher margins that could also lead to a higher profit as you have less cost and
more revenue coming in and then you also have to account for the full self driving in autopilot
being discounted about a week or two before the end of q2 the reason elon did this was a to get
some more revenue so that they can probably become profitable if they weren't already just in case
and b it gives people who actually bought a tesla a while back who did not even have an option to
upgrade to fsd now gives the option to upgrade to fsd autopilot was also dropped in price because
when the model 3 launched it did not have autopilot as standard which it does now but
it did not when it was launched so that also got a price reduction which helped because the model 3
over time did receive a price reduction so it makes total sense for it to reduce the price for
those existing owners who were essentially beta testers for the model 3. tesla has a lot going for
them as legacy auto and the financial analysts are actually looking at the stock and they are looking
at what's happening and they're actually starting to understand the company now those financial
advisors are actually learning about the other aspects of the business and of tesla itself and
they're learning that tesla is actually in it for the long run and they're here to stay they're not
going bankrupt that easily the shorts are starting to get it the shorts are at a loss of quite a
big margin obviously using big oil money and with tesla providing a profit we can actually see the
stock rise and it's just gonna be a waiting game at that point the earnings call is only a few
days away we will find out what will happen and it will be an exciting day to see whether they have a
profit or loss but exciting nonetheless and with over 8 billion dollars in the bank tesla is just
ready for pretty much anything they can build eight more giga factories if they wanted to
right now so i want to know what you guys think about this will they have a profit or a loss or
just do you think something random is going to happen i don't know it's all speculation and i'm
very open-minded about it so i would love to know your thoughts so comment down below what you think
and i would like to thank you for watching and stay tuned for my next one alright peace
you