hey this is Tom Nash and we got a huge bombshell coming out out of Elon Musk and Tesla today so Tesla just announced they're gonna be releasing the standard Range model S and model X and they're gonna be pricing those at ten thousand dollars cheaper versus the normal s and X now a lot of people are going to make some hoopla around this and I want to come on here and explain to you what this actually means without all this noise now look there's gonna be people saying that this proves that Tesla is losing demand they have to drop prices to get some sales etc etc the normal you know pavlovian response from all the Tesla Q crowd and all the haters and the Bears they're gonna come out swimming today basically saying oh this is proof that Tesla you know can't push the cars out Etc look the truth is very simple here number one the model S and the model X barely make it dent in Tesla's Automotive revenues the automotive revenues are mainly comprised by the model y mainly and the model 3. the S and the X are a bug on the windshield of Tesla they're not really money making um Revenue centers right now it's it's kind of an expensive premium product the money is in the model Y and the model 3. now obviously Tesla wants to get more sales from these cars and that's why they're making that push and I totally get where they're coming from so it's not going to take over the model y the model 3 it's still going to be a tiny percentage of their revenues but no why not take more money by lowering the price by ten thousand dollars now here's how I think this thing is going to be played out the share price is going to react negatively because people are going to make some hoopla around this but at the end of the day what's gonna happen with the company with the business forget the share price and the stock market in the posts on X formerly known as Twitter what's going to happen to the company well the company is going to sell more cars the company is going to sell more expensive cars that make more money more revenue for the company their revenue is going to grow the net income is going to grow demand is going to grow and the business is going to benefit from this so no matter how the short-sighted Traders are going to treat this which I couldn't care you know less about you know you have limited amounts of in life and this is the least of my right now no matter what the short-term Traders are going to do about this this benefits the business greatly it's a smart move the company will make more money and eventually these fundamentals will be reflected in the share price which always happens with Tesla you know people distrust this they don't believe they can see it happening the noise is getting to them and then eventually the share price catches up with the fundamentals which are extremely strong so this is not a great move by Tesla again don't listen to all the hype and the noise as a long-term investor I think you should be focusing strictly on fundamentals and ignoring all this noise around the social networks Etc et cetera companies lowering prices by ten thousand dollars more sales more revenues God knows Tesla has the margins to do it look 10 years ago before the gym we're creating a hundred billion dollars Tesla was trading at four billion dollars 10 years later you know what the story is don't be a sucker don't let them fool you have a great day
