Loved the interview. Very nearly a must watch deep dive with an analyst. Rob was a great interviewer and Alex was thoughtful, logical and very well spoken, although maybe a little long winded on details about Nio.
If you do not have time, here are some of the takeaways I got:
1) China luxury market may be tougher to crack. It’s all about prestige, impressing in-laws, demonstrating value. The leaders are Bentley, BMW and Audi. It may be tough to crack for Tesla, as a newcomer, Chinese not as familiar with Tesla because of the Great fireWall, and because the vehicles might be lumped as just another EV.
2) Places zero value on Energy and Autonomy. He was very humble about it and said he just didn’t understand it well enough to value it. Also spoke about how he only put stuff in the Model he could defend.
—-My take: If Solar Roof successfully ramps into the thousands per week as planned, with decent gross margins, I think it could be a bigger stock catalyst than Model Y, since that’s already accounted for. And of course if Tesla cracks FSD, we’ll all be rich beyond the greatest dreams of avarice
3) Although he has the concerns about China, he has zero concerns about U.S. and Europe and basically stated Tesla just nukes the heart of whichever market they enter (with the exception of Cybertruck which he only credits for 200k/year). Because it is just U.S. and he doesn’t see it up there taking huge portions of Silverado, Ford...
— My take: Cybertruck will tear open not only the Pickup, but also the full-size SUV market
4) China ZEV system could be a license for Tesla to print money IF the government takes a hard stand.
5) Reiterated some of Sandy Munro’s points about Tesla’s massive advantage being vertically integrated. Gave an example of Mobileye, just trying to work out a simple mapping deal with VW, that just took quarter after quarter after quarter of meetings.
Probably left out a lot, but if you can’t watch, that was off the top of my head.
Hope that helps.
I just feel better and better about Tesla’s chance to skyrocket every day! Every day I feel better, not that TSLA will skyrocket every day, though you never know