Why Tesla will make you the big bucks!

Today we'll talk about:

• Story of the day: Teslanomics!
• A rookie analysis: CPI Inflation is back
• How you doing… world? Inflation around the world
• Crypto Rookie Essentials: Macroeconomy key concepts
• Tomorrow we'll talk: Bitcoin Spot-driven rally

Story of the day: Teslanomics!

Well, this will be a long story. Don’t tell me I didn’t warn you, light readers!

Tesla is one of the biggest companies out there. You most likely have heard of it before, they make those weird-shaped cars that drive themselves and don’t need fuel.

Wait, are we living in the future?

They are, Tesla is living in the future (and building it).

Not so much of an introduction kind of guy, but I’ll let you with my analysis of Tesla’s business from top to bottom and bottom to top (That’s how Ark Investment does their analysis, ask them)

What’s going on with Tesla today?

Tesla just released their last Quarter’s report indicating a drop in the deliveries of vehicles compared to 2023.

With the price of TSLA shares also near its 52-week low and EV’s bad propaganda on media, everybody is freaking out!

This is exactly why terms like FUD are coined (Fear, uncertainty, and doubt). A couple of news in the WSJ and investors, usually retail investors, start selling.

They don’t see the big picture. Let’s see the big picture and how Tesla may grow exponentially in the next few years.

Autonomous driving

What do you think when I say self-driven cars?

Well, most would say “Tesla”

Tesla has been leading this industry for the last 5 years or so. The rest, Ford, Google, even Apple now!) are just trying to catch up.

And this is an industry that is about to go up, according to analysts, as it doesn’t just mean self-driven cars. Oh no, we are talking about freight transportation, manufacturers, “gas” stations, robotaxis, fleet owners, and more.

Ark Investment, one of the biggest analysts in innovation, says that in 2026 (that’s less than 2 years from now guys) we will see this autonomous platform provider’s market reach $11.7 T

So, who is the better man to take on this market… old pal Tesla

Breaking News: Tesla’s Robotaxi

They are already building a sexy Robotaxi!

Self-driven, cool prototype, fully electric, AI-powered…

No, it is not for 2030 people, according to Musk it will be revealed this summer.

We are living in the future, and these guys are creating.

But how do we translate this to grow?

All of these new products come with a projected valuation that we can analyze. According to Cern Basher, the Robotaxi valuation for Tesla will grow to almost $9 Billion of Tesla’s revenue, and that’s just one piece of the pie.

We can see in this chart that Robotaxi may be the biggest revenue maker for Tesla in just a couple of years.

How are they doing this you can ask?

Tesla was made for this, they have prepared their whole business for this very moment, like an athlete for the Olympics they have prepared the data and most importantly…

They have practiced

This month Tesla FSD, their Full Self-Driving (FSD) system, has driven over 1 billion Miles! People, the average distance from the Earth to the Sun is about 93 million miles, Tesla has practiced about X10 times that distance.

And because of it, it’s secure AF!

We can see here that the average number of miles before an accident occurs for a normal person is a bit higher than 500,000 miles.

For Tesla’s autopilot is 5.5 million miles, you’re risk of a crash is 10 times lower if you are driven by a Tesla.

Amazing right? And they are saving the world while at it:

But I’m not close to being done …

AI

Tesla is an AI company, nobody is acknowledging this.

Nvidia, the largest AI company right now has grown over 500% because of their AI focus. Imagine what will happen when everybody gets this:

Tesla is doing their own thing. An AI chip

Tesla Dojo is a supercomputer designed and built by Tesla for computer vision video processing and recognition. It will be used for training Tesla’s machine learning models to improve its Full Self-Driving (FSD) advanced driver-assistance system.

According to Tesla, it went into production in July 2023!

Dojo’s goal is to efficiently process millions of terabytes of video data captured from real-life driving situations from Tesla’s 4+ million cars.

This goal led to a considerably different architecture than conventional supercomputer designs.

Data Advantage

Tesla is constantly doing software updates to their products. This is simply because they can do it with the amount of data they gather.

Tesla recently added a little Nodge on the pillar of their Model Y for side impact because they could analyze that every time a Tesla Model 3 was hit by another car on the side it weakened precisely at that point

So, they made it a lot stronger by just adding a little nudge at that spot.

They have the data! And the data they collect helps them enhance vehicle performance, safety, and overall user experience.

The way they easily change their manufacturing for these updates brings us to the other big thing:

Operations

Tesla’s operation process gives an engineer a quick orgasm every time.

In their overall performance, they are doing something radical. Vertical integration

Vertical integration occurs when the supply chain of a company is owned and operated by that company, allowing it to directly control the stages in its production cycle as opposed to outsourcing them to external contractors or third-party facilities. -gildan corp

And they do it better than any traditional car company.

Plus, their manufacturing process is crazy!

Manufacturing

We produce hundreds of thousands of cars, millions of batteries and billions of lithium-ion cells annually — because we know terawatt-scale production and increasingly affordable energy storage holds the key to a more sustainable future.

Big F’ing Robots, new kinds of Giga factories, and several types of products are proof that Tesla is not revolutionizing only the car industry, but also everything they touch, even the industry of “how to build it”.

And they are not taking it slowly (like me and my girlfriend).

These “new factories” are nothing more than GIGA factories, huge complexes of top technology, creating top technology.

It’s beautiful, isn’t it?

And as I said before, they don’t do just cars. Hell no, Telsa also is:

The king of batteries

Another “piel de gallina”/goosebumps moment for an engineer.

This is the future, and Tesla has doubled down on it.

Tesla became the world’s largest supplier of energy storage systems in the first half of 2023. The company overtook BYD to top the list dominated by Chinese suppliers.

Tesla’s supply in the first six months of the year exceeded 7 GWh, placing it first in the world.

This is the Megapack battery storage, remember that name because it will be important.

Analysts at RBC Capital believe that Tesla’s Megapack battery storage business could be worth substantially more than its standalone car business!

And it is for everybody… Especially for themselves

The battery cell for their model Y is a new thing in this world. 5 times more energy and giving 6 times more power there is nobody who can compare.

And it’s a full circle from here:

Yep, they provide solar products too.

When I say full circle, it means FULL circle:

Gas stations

I’m not over yet! (told ya was going to be long).

In February of this year, Tesla opened their supercharger network in the USA to Rivian, General Motors, Volvo, and Polestar.

“Opening our charging network is the right thing to do and helps us accelerate the transition to sustainable energy” -Musk

Yeah, and it’s also a supersmart thing to do!!!

Everybody eating from the palm of Tesla, even their competition.

Aaaand finally…

You thought I was done? Just one more thing:

Robots!

Wait, what?

Yes, robots! humanoid, AI power freaking ROBOTS are coming!

Again, not in 20, 10, or 5 years, they are being manufactured and tested TODAY!

This is some data from the jaw-dropping research that ARK Invest did for all of us on humanoid robots:

1. Big performance causing huge demands for the robots that we already have in the industry
2. Trends of companies deploying more humans than robots.
3. The huge impact the industry has had on automation
4. And the revenue potential of +$24 Trillion (yes, trillion) for the global workload given to robots in the future.

These big hedge funds are talking about it, and I saved it for last because is the biggest opportunity here yet.

Look at the Bot deployment expected growth if you don’t believe me:

You read it right, 1.5 Billion robots for 2040 managing +35% of human physical labor.

These are all speculations of course, but they are based on real tryouts happening today in factories and already in some restaurants around the world.

And guess who is the perfect guy for the job?

Tesla is the perfect guy for the job (in case you didn’t get it)

They have:

1. Top expertise in AI and machine learning
2. Top manufacturing capabilities
3. Top synergy integration with existing products
4. Top access to data
5. Domination in all fields

And so they launched on December 2023: Optimus Gen 2

As Musk said (Already 3 years ago with Gen 1):

Tesla Bots are initially positioned to replace people in repetitive, boring, and dangerous tasks. But the vision is for them to serve millions of households, such as cooking, mowing lawns, and caring for the elderly.

There is a good chance that the first shipment of the Optimus Gen 2 will be out in 2025.

Yes, it was long, but wasn’t it worth it?

Tesla is in another class of company by itself. With huge potential in different industries, the innovation that they bring to the world, and a strong financial position:

• $30 Billion in the bank
• $4.4 billion in free cash flow last year
• Almost $15 billion in net income today

At a value of $170 per stock today, with an average price forecast of $355.79 from institution analysts and $500 from retail analysts, it is a no-brainer decision.

(Not financial advice)

A rookie analysis: CPI Inflation is back

We’ll keep it short after that long story today:

The market fell because of higher than expected Inflation.

High inflation -> FED decision to NOT cut rates -> QT (quantitative tightening) for longer -> no room for business expansion -> Markets down:

Is a tiny correction, I know, but it can always get worse. So, be aware and ready for any shifts in the macroeconomy.

How you doing… world?

We are seeing high inflation in the US today, but that is not the case in the rest of the world:

• Eurozone’s inflation, which was expected to remain flat, actually fell from 2.6% to 2.4%
• Job openings in the US rose slightly, but less than expected. Still reflecting a stable labor market.
• Record gold exports brought a wide trade surplus of over CA$1.39 Billion to the sweet brother of the US, Canada.

Tomorrow we’ll talk!

Spot Driven Rally

We’ll cover many interesting BITCOIN charts!

Crypto Rookie Essentials: Macroeconomy key concepts

Although today we didn’t talk much about crypto… let’s learn about some financial data that also affects it:

1. Inflation: Imagine you have $100 today. With inflation, the prices of goods and services tend to increase over time. So, if inflation is, let’s say, 2%, your $100 won’t buy as much next year because prices will likely go up by 2%. That’s why your parents might say, “Back in my day, a candy bar cost a quarter!”
2. Interest Rates: When you save money in a bank or borrow money for, say, a car or a house, interest rates matter. If you’re saving money, you want a good interest rate so your savings grow faster. But if you’re borrowing, you want a low-interest rate because it means you’ll pay less back over time.

Now, here’s how they affect everyone:

• Daily Spending: Higher inflation means you might have to spend more on groceries, gas, etc. So, if your allowance stays the same but prices go up, you might not be able to buy as many things.
• Savings and Investments: If you’re saving up for something, like a new phone, higher inflation might make it harder to reach your goal because the money you saved might not be worth as much by the time you have enough. And if you’re investing in stocks or bonds, inflation can affect how much your investments grow.
• Loans and Mortgages: If you or your family want to borrow money for a house or a car, higher interest rates mean you’ll pay more each month. That can make it harder to afford big purchases.

So, inflation and interest rates might seem like boring numbers, but they affect your everyday life more than you might realize!

Created by Chat gpt 3.5 “Explain it to me like I’m a teenager”

That’s all for today, it was a long one to write also, sooo please like and subscribe if you liked it and found it useful.

See you tomorrow!