tesla – game over

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Well holy smokes folks are saying no dang jokers tesla earnings are out i want to go ahead and take a look at these numbers and share with you guys the good the bad and the great and we’re going to get into the stock price in this video as well people are seeing the stock price not moving after hours i want to explain what exactly is going on with the stock price

And uh why it’s doing certain things so yeah let’s get into this guys that’s all i got for you for an intro hope you enjoy this don’t forget to smash that like button let’s get in this guys okay so right off the bat here automotive revenues up a whopping 58 percent year over year that’s an extraordinary number even quarter over quarter look at that nearly a 20

Percent rise quarter over quarter but you know year over year is what really matters 58 here’s even a better number regulatory credits down significantly year over year this is something that the short sellers always like to point at and say hey tussle is using all these regulatory credits to help them out look at how much that’s down it’s down 30 percent year

Over year so a huge shrink there in regulatory credits and i don’t think tesla should be uh penalized for essentially using those regulatory credits at the end of the day and at the end of the day like it’s a much much smaller number automotive gross profit a lot of folks will get excited about this one 74 automotive gross profit there look at the rise year over

Year 3.6 billion versus 2.1 billion at the same quarter last year automotive gross margin up 281 basis points from from basically 27.7 at this time last year to 30.5 now that is a number a lot of people look at and they’re like what’s the gross margin for tesla and this was always something that was kind of um you know a lot of short sellers would talk about and now

There’s not a whole lot of bad stuff to talk about and look at this from q4 24.1 and just consistently rising and rising and rising for the past several quarters there total revenues up 57 percent this is why i’m in this company because the revenue beast and long term a profit beast 57 percent year over year i’ll take that all day total gross profit 77 percent rise

There significant number total gap gross margin so this is generally accepted accounting principles which is something a lot of people like to look at because it’s it’s the truest way of doing your accounting essentially 26.6 percent versus 23.5 at this time last year operating expenses are are still significantly rising for the tesla for tesla as they’re building

Out the company right and don’t look for those numbers to come down anytime soon the day operating expenses start to shrink i might start to worry about tesla okay uh that was up 32 year-over-year there adjusted ebitda up 77 net income attributable to common shareholders on a gap basis 389 percent rise there that’s an unbelievable number now on a non-gaap basis

139 percent rise there a lot of folks are wondering you know or bitcoin gains in the gap numbers because it’s kind of weird you have to basically if you have an asset like that that goes up or down a bunch in a quarter now you have to count it under the the gap which i don’t think they should do that but you know that’s the way accounting industry wants it nowadays

I think it’s i think it’s i think it isn’t the way it should be done but it’s if that’s the way it’s done like tesla has to do it that way they can’t make up their own rules unless you want to do non-gaap because non-gaap you can start to uh kind of run your own numbers and things like that so i think that’s almost a truer number in regards to that okay now as far

As capital expenditures up 81 percent up 81 percent obviously this company’s spending a fortune right now they’re building out multiple giga factories right now there’s another number like whenever tesla’s capital expenditures go down i start to worry about this company i want to see them building more gigafactories i want to see them having more service centers

More supercharger network this is uh in my opinion a good number spend the daying money and build out this beast over the next 10 plus years the same way amazon did free cash flow down five percent they had a they had a very strange quarter back in q3 of 2020 where basically free cash flow was abnormally high and if you look at this you know from basically 2021

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293 619 up to 1.3 billion it’s been consistently rising throughout this year it’s just last year they had a abnormally high free cash flow okay cash and cash equivalents up 11 percent year over year strong number there s in x production down 47 do not think that number is going to keep going down that’s all i’ll say about that that number is about to go up in

A substantial way over the coming quarters people like myself just took uh delivery of their model s plaids in this quarter we’re in now the q4 quarter i have uh somebody in the private stock group who literally took a delivery of their model s plaid the same exact day i did model x are coming off the line the new model x production so look for s and x to be up

Significantly over the next several quarters and a lot of folks look at those as the best gross margin vehicles tesla produces so don’t be surprised if profitability and gross margin also improve over the coming quarters as s and x basically get ramped up okay very important to remember what i just told you there three in y production up 79 percent year over year

That’s a phenomenal number there that’s that’s tesla big dog vehicles at the end of the day that’s what’s going to drive the business and also i think cyber trucks going to drive this business no pun intended over the next several several years total production up 64 percent if we look at snx deliveries down 39 percent once again look for that to flip in a massive

Way over the coming quarters and and shoot to the moon uh three in y deliveries up 87 so essentially the delivery numbers is up even a more substantial rate than the actual production okay very important total delivery is up 73 percent year over year i mean who else is putting up these sorts of numbers absolutely off the charts total end of quarter operating

Lease vehicle count up 76 something i definitely love seeing i love seeing more and more folks leasing tesla’s that’s a great number to see global vehicle inventory days of supply extremely important number right down 57 percent you want to see this number be very very low global vehicle inventory you want to see it be a low number because if it’s a super high

Number that means tesla’s just producing cars to produce cars right if this was at 30 days 60 days 90 days oh that’s that’s a little worrisome you want to see it as a low number because that means tesla is basically producing as many as they can get off the line and getting it out there immediately essentially so this line item very important one and something

You definitely love seeing there solar deployed up 46 percent you’re over here down to keep in mind that’s such an insignificant number for tesla when it comes to solar deploy don’t uh get too excited about that number because it’s such a small number it could build into a much bigger number long term but right now it’s like almost minuscule storage deployed as

Far as this 1.295 is that you know that’s a huge ramp up there versus 759 there 71 rise there so storage deployed solar deployed keep in mind those are smaller businesses uh but at the end of the day growth is growth they’re just dwarfed the numbers are dwarfed essentially by the automotive revenue so it is something to kind of keep in mind now store and service

Locations up 35 percent year-over-year that’s something i love to see as well as a mobile fleet service up 43 at the end of the day all these people getting all these teslas they they’re going to have issues with them right from time to time there’s going to be something that goes wrong maybe a uh you know some sort of rat comes in and choose their wiring maybe

Something like that happens because they parked their monoliths planted in the driveway instead of the garage one night and just like happened to eat through the wiring so anyways yeah needless to say you’ve got to see these numbers continue to increase that’s a that’s something you you know if you’re if you care about the company long term and you care about the

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Customers you’ve got to see these numbers continue to increase and increase as more vehicles get out there supercharger stations and supercharger connectors that’s another those are numbers you want to see continue to go up as well with all these people driving all these teslas all over the place you know the busiest locations end up starting to get filled up so

You need either more connectors or you don’t need just more supercharger stations in general i still imagine a future let me be very clear about this i still imagine a future where you’re gonna be able to go to mcdonald’s a starbucks places like that grocery store and it’s gonna be commonplace to have electric chargers there and specifically even tesla ones where

You can just plug in your car right there and that parking lot and charge your car and you won’t even need to go to one of these uh quote unquote just like random uh stations that tesla has around sometimes on the outskirts of cities and things like that okay so yeah good numbers you want to see those continue to go up yes it hurts profitability doing all those

Sorts of things and yes you got to have all the capital expenditures to build out those numbers but at the end of the day you want tesla customers happy you want tesla customers to say good things about you especially because tesla’s playing the long game okay now this might be my favorite chart of all charts when it comes to tesla and this is what my eyes are

Going to be on over the coming years in a massive massive way this shows you market share of tesla vehicles by region not electric vehicles vehicles in general and what you’re seeing is tesla just rising and rising and rising and i believe we’re going to get to a day when tesla is at 20 30 and maybe even someday in the u.s near 50 market share i’ve been saying

That since i started on my bullish uh you know basically my bullish weighs around tesla and i still believe that by the year 2028 tesla will be accounting for somewhere around 50 percent of all new cars sold in the united states of america i truly believe that and we’ll see what happens over this next you know seven eight years and it’s going to be fun to kind of

Watch what happens there i think they’re also going to continue to grow massive market share in in regions like europe and china i don’t think the market share will be as high in some of those markets but could i see a day when they have 10 percent or 20 of all vehicle sales in china absolutely could i see a day when they got 20 30 of all vehicle seals in europe

Maybe by the end of this decade absolutely at the end of the day by the end of this decade this was put that way by 2030 i think they could hit around a 50 number in the us i i truly stand by that in china in europe i think anywhere between 10 and 30 by the end of this decade not talking 50 years from now i’m talking by the end of this decade we’re in right now

Okay so yeah this is what my eyes are glued to for the next many many years i can’t wait to see the number continue to grow and grow this is always an important slide that tesla puts out here volume we plan to grow our manufacturing capacity as quickly as possible over a multi-year horizon we expect to achieve 50 percent average annual growth in vehicle deliveries

That’s an enormous number the rate of growth will depend upon equipment capacity operational efficiency and the capacity and stability of our supply chain obviously it’s important cash we have significant uh sufficient liquidity to fund our production roadmap long-term capacity expansion plans and other expenses profit we expect our operating margin will continue

To grow over time continue to grow over time continuing to reach industry-leading levels with capacity expansion localization plans underway product we continue to target our first model y production builds in berlin and austin by the end of the year so which means in the next few months guys the pace of the basically production ramps will be influenced by the

Successful introduction of many new product manufacturing technologies in new locations ongoing supply chain related challenges and regional permitting we are making progress in the industrialization of cyber truck which is currently planned for austin production and the subsequent model y so a subsequent two model y so basically everything is going exactly as

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Planned they’re talking about a mar operating margin should grow over time they’re talking about you know model y builds in berlin and austin coming by the end of this year which is huge huge and they’re talking about cyber trucks you know going to be up and running very shortly we should see some cyber trucks on the road in 22. it’s just a question of how many

Cyber trucks will we see out there in 2022 i think that’s the biggest question and so great news sticking be they’re totally backing this elon musk and the whole team they’re totally back in this 50 average annual growth in vehicle deliveries on a multi-year horizon so that’s great to see them sticking by that check this out gigafactory berlin they’re having the

Fair there man look at that that just looks like a grand old time if i lived in berlin i would take the kids there gladly that’s amazing i mean just a cool event there and uh this baby should be up and rolling big time very very shortly that’s huge for the european market over the coming years there’s no dang doubt about that also for the r d team long term a lot

Of talent a lot of a lot of car manufacturing talent in germany a lot of best practices right tesla’s figured out some ways that are smarter than the industry right but there’s still going to be some definitely some some good things for tesla to learn from some experienced engineers and folks that are in in that region as well so don’t ever discount how important

That is for the long-term trajectory of this company now this is one of my last favorite slides to look at in tesla and then we’re going to talk about this stock price okay so if you look at vehicle deliveries i love to just see those numbers and by the way it would have been more of a straight up line if it wasn’t for ronnie rona kind of messing up everything and

Then you know it would have been more of a but anyways it is what it is it kind of said tesla behind the ball a little bit but hey it set everybody behind the ball tesla’s just done a lot better job than any auto manufacturing company out there at managing those issues right operating cash flow i mean look at the difference over time i mean it’s just extraordinary

Look at free cash flow the difference over time it’s extraordinary and then lastly my favorite thing to look at net income over time and adjust to d but over time everything is going exactly as planned here with tesla if not a little better now with that being said some people get frustrated they look at the stock price and like what in the heck are you kidding

Me the stock is doing nothing after hours i’ve seen it up as much as about one percent and down as much about one percent it’s doing nothing people are frustrated like what what the heck man these numbers are amazing well something very important you gotta remember is this stock went on a crazy run man i mean it went on an epic epic run and when you go on these

Epic runs i mean the beats have to be so insane for you to get that stock price to continue to roar higher and i think this is what a lot of people don’t account for and even going into these earnings the stock ran a lot okay i mean it wasn’t that long ago tesla was 730 dollars probably a month ago it’s 8.65 today so when you have these sorts of massive runs the

Beats you have to have for those earnings have to be so ridiculous and if they’re not that ridiculous wall street they’re kind of like uh we don’t have to buy tesla today so at the end of the day i’m super happy with these earnings and you know whatever happens the stock price short term is whatever happens to stock price short term i love these earnings i love

The execution of tesla i’m a very happy shareholder hope you guys enjoyed this video and me running through the numbers all i ask in returns that you smash that like button that’s it guys much love have a great day peace

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tesla – game over By Financial Education

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