Dan IES just showed these analysts what Tesla investing truly is and his comments are truly eye openening Tesla's demand has been so soft is it simply that they've overproduced and they can't cut prices enough because there's just no pent up demand additionally for EES and there's nothing there's another but why is it that those delivery numbers and that they have so much excess inventory right now how long is it going to take for that to be absorbed and so we think it's really fourth quarter I mean if I look overall take a step back if you look at 1.8 million what I believe is going be deliveries for the year that's a super strong number relative to the environment I think margins trough and Phil's talked about that as well Q4 I think you have cyber truck that starts production a refresher model 3 and I think in China they actually start to gain more share that's why in our view this is more of what I view is a pause into the next phase of the Tesla growth story which is why we've been telling our investors here you continue to own this name how did they go from not being a a year ago not being able to meet demand uh to this the situation where they are right now yeah demand's definitely soft we've seen that in China in terms of Cent price War that's happened in China but I believe the poker move of cutting prices that was the right thing I think we've seen it in the stock in terms of stimulating demand for Tesla to value a business's future investors often play the prediction game they crunch all the numbers forecast sales cash flows and earnings over the next 5 to 10 years but that's not usually the best way to go about things when predicting the future of Tesla's stock it's important to start with the basics and by this we mean Tesla's demand in the booming EV industry both where it currently thrives and where it's about to make its Mark Tesla has a secret Source a formula for its success and not every investor has identified this think about it Tesla is a killer brand with enthusiasts environmentalists and early adopters all flocking to the company performance range and Innovation are also a part of this package and this is a combo that is hard to resist over the course of this video we're going to discover why unlike most other analysts are predicting Tesla's demand is actually in the positives in just a few years Tesla will record so much demand that it will have to manufacture more cars in order to meet up with it moving on Tesla stock has taken a dip today after new data from China shows that the appetite for its electric vehicles made in the country has decreased by 10% actually the stock there now you can see battling back to the Flatline and last year new report by the China passenger car Association found sales were down for both the model 3 and Y cars and it comes after the company had a difficult run last week also reporting delivery and production data that was less than the previous quarter so this is interesting Tesla we know uh Elon Musk not shy about the strategy he's been cutting prices hard it's a volume game even if that means you expensive profit margins yeah and it's interesting too that Tesla has sort of followed the shape of the market today in other words it was falling more this morning part on this China data and now seems to have come back but at the same time if you look at the China EV makers they have been under a lot of pressure today and I don't believe that we have seen the same kind of recovery when it comes to those stocks I've been watching the likes of Neo and xong and Lee Auto today and indeed they're still down on the day so not catching a bid uh as the day has gone on like Tesla has yep take a look at the numbers during the first three quarters of 20 22 Tesla raed in a jaw dropping $ 57.1 billion in revenue and most of this Treasure Chest came from selling their stunning vehicles in the same period they rolled out nearly 930,000 vehicles and handed over more than 900,000 units to delighted customers this is proof that contrary to what these analysts are saying Tesla's demand is actually on the positive side so if you've been selling your Tesla shares due to pursued demand decline then think again because you may have just been throwing your diamonds in search of stones hey guys welcome back to Tesla tomorrow Tesla is not just a player it's a Pioneer in the EV Arena and the world is focused on sustainability and battling carbon emissions leading to a demand in EVS which are seeing a steep Ascent right now and Tesla with its Mighty brand and significant market share is played to reap the results the company has made significant advancements in electric vehicle technology including Battery Technology autonomous driving capabilities and charging infrastructure these technological advances give Tesla a Competitive Edge in the market and help to differentiate its products from different and traditional automakers but before we carry on if you're liking this type of content hit the like button subscribe and turn on post notifications to keep up toate on everything going on with Tesla think about it Tesla is producing electric vehicles that are known for their advanced technology long range and sustainability which attracts Environmental conscientious consumers and Tech enthusiasts it also constantly involves and updates its vehicles with new features and improvements enticing both existing and potential customers to stay engaged and up-to-date and interested in the offerings Tesla has that make it stand out and interestingly these Innovations span Beyond just Vehicles think about Tesla's groundbreaking Battery tech autonomous driving and robust charging infrastructure these Innovations aren't just good they're Superior and they give Tesla an enviable Edge over traditional car makers the automaker has also been expanding markets into other countries as well as more and more countries recognize and emphasize sustainability and they shift away towards EVS Tesla stands to benefit massively from a growing Market that seeks alternatives to traditional gasoline powered cars I mean who wouldn't want a car that supersedes its peers in terms of acceleration handling and safety Tesla also has has an expansive supercharger Network providing convenience and it also addresses range anxiety which thus reassures potential buyers about the feasibility of EVS for long-distance travel so how can EV users not want Teslas well Tesla's got an expansion strategy firing on all cylinders gigafactories in the US China and Germany and also Tesla flexing his production muscles to meet soaring demand and more production equals more market share possibly leading to gamechanging economies of scale in fact UBS analysts seem to think Tesla's got an ace of its sleeve when it comes to sourcing vital components semiconductors and batteries included and while Rivals May face bottlenecks Tesla's in-house battery production and a grip on raw materials may just tip the scales in their favor so looking at expansion Tesla's pumping up its capital expenditure in 2024 with plans for gigafactories and investments in Advanced Battery Technology the future is looking electrifying Tesla's power wall and power pack are likely the answers to energy storage challenges as they're making a mark in both residential and Commercial sectors it's a smart diversification and it goes beyond just cars Tesla doesn't rest its Laurels it is always continually refining and it expanding on its engineering and Manufacturing processes to create top tier products at industry-leading costs and the result incredible Vehicles no doubt there are other variables Cub an iron for example macroeconomic factors like interest rates might Shake Tesla stock price and higher rates means lower stock valuations and potentially decreased vehicle demand due to increased borrowing costs also the competition is heating up too and while Tesla enjoys robust margins on its EVS companies like byd are nipping at their heels but this should not be a big concern for Tesla investors Tesla has implemented price cuts to help make sure that these price Cuts aren't just about protecting market share it's also a flex for Tesla to keep its rivals on their toes Tesla continue to grow and its sales and earnings are going up at an impressive Pace the company grew Revenue by 47% this year's second quarter and it helped it to reach $4.9 billion despite soft demand in the broader Auto industry and net income Rose 20% to hit 2.7 billion do given the historically cynical nature of the Auto industry some aggressive price cuts on its V and investments in long-term growth initiatives Beyond Auto Sales it's reasonable to expect that Tesla will see some fluctuations with its margins however long term this will eventually take a positive turn even with some recent declines the EV leader continues to enjoy strong margins in the context of the broader automotive industry Tesla's been flexing its pricing and then it's been aiming to strengthen the market share it's got with recent pricing cuts and this strike could pay off over the long term but here where Tesla's superpower emerges Elon mus had previously mentioned that Tesla could sell its cars at zero profit and still mint money through autopilot technology and if that happens Tesla's already won the competitive race because no other automaker can match that Tesla will make so much money that no rival can meet its number do you think that Tesla will be able to sell a lot of cars in the future let us know your thoughts in the comments section and don't forget to tell us what your valuation of Tesla is and if you want to know more about what Tesla's been up to over the last few days go ahead and click on this next video and screen see you there
