Monica
💫 Summary
The video discusses Tesla's potential partnership with India and its comparison to Apple's supplier model, as well as updates on Tesla's gigafactories and the Model 3 Highland. It also covers Tesla's long-term lithium supply agreement, emphasizing the closed-loop supply chain for lithium in electric vehicle batteries. Additionally, the video touches on the importance of legislators understanding and addressing advancements in technology and supply chains.
✨ Highlights📊 Transcript
India is proposing that Tesla follows Apple's model of partnering with Chinese suppliers to enter the Indian market.
00:00
Tesla is interested in having some of its vendors from China set up operations in India.
India does not have an auto industry currently.
Indian authorities are open to Chinese suppliers partnering with Indian suppliers.
Tesla executives are in India and the country is open to critical parts vendors with tax incentives, but guaranteed orders are needed for vendors to build factories in India.
05:01
Two Tesla executives are currently in India.
India is open to critical parts vendors with tax incentives.
Guaranteed orders would be needed for vendors to build factories in India.
The speaker discusses Apple, Airbnb, Uber, and Tesla's approaches to building ecosystems and keeping profits in-house.
10:02
Apple left money on the table by not building out their ecosystem earlier.
Airbnb's profit is inconsequential or negative.
Uber just posted their first profit.
Tesla is keeping as much as they can in-house and may not have a native Uber app.
Tesla's Model 3 has a feature that can gamify your drive and provide data on headwinds.
15:06
The data provided by Tesla is rich and deep, making it stand out in terms of competency.
The Uber concept is not ideal for Tesla as it would need to change people's mindset from human drivers to robo-taxis.
Apple's massive stock rise in the last 10 years is attributed to their BuyBacks strategy.
BuyBacks can guarantee a rise in stock prices and benefit Tesla investors.
Elon Musk discusses the importance of legislators understanding topics like AI, supply chains, and critical minerals.
20:09
Legislators need to understand the issues in order to effectively legislate.
Elon Musk highlights the challenges of obtaining mining permits and refining permits.
He emphasizes the need to bring mining jobs back to the US and seeks support from legislators.
There may be attempts by companies like Ford to influence policymakers towards protectionist policies.
There are permits being issued for equipment within buildings at the Highland facility, indicating progress in production.
25:12
The permits are not for whole buildings, but for equipment within the buildings at the Highland facility.
There are expectations of different castings and improvements at the Highland facility.
The timeline for completing the Highland facility and getting it up and running again is uncertain, which may affect estimates for this quarter.
The delivery dates for purchasing a Tesla Model 3 in Europe have been pushed back to January 2024.
Tesla extends lithium supply agreement with China's Yahua Group until 2030.
30:13
Lithium supplied is expected to be between 207,000 to 301,000 tons from 2023 to 2030.
Tesla is always signing long-term contracts and is the buyer of preference for these.
Other manufacturers keep pulling back on their announcements while Tesla keeps going full steam.
Lithium extracted by Exxon and used in Tesla and other companies' supply chains remains in the supply chain indefinitely, either being reused or recycled.
35:14
Lithium from Exxon enters a closed-loop supply chain when it is used by Tesla, LG, or Panasonic.
The long lifespan of batteries allows them to be used in stationary storage or emergency battery backups even after they are no longer in cars.
JB Straubel, a board member of Tesla, states that lithium and other elements can be reused and it is cheaper to extract minerals from batteries than from mining.
The Model S and Model X Plaid have recently arrived in Hong Kong, but the sales are not as high as expected for the refresh.
00:00all right everybody Welcome to Tessa
00:02today this is a topic I've been wanting
00:04to do for a long time now and that's
00:06comparing Tesla with apple there was
00:09news today that India was asking Tesla
00:11to try to copy the Apple model of how
00:14they partnered with suppliers so let's
00:15talk about all the various things that
00:17Apple does and does it make sense for
00:19Tesla to copy that as well there is more
00:21news as well with Tesla securing more
00:23lithium and lots of other gigafactory
00:25updates as well as the model 3 Highland
00:27so stick around and let's have some fun
00:29I've got Brian White with us he is the
00:32host of my Tesla weekend on YouTube I
00:36highly highly recommend you follow him
00:38there go there and subscribe after this
00:40show he is just knocking out of the park
00:43every time I do a show with Brian on
00:46this show it is highly highly um
00:50the audience just loves it and wants him
00:52more of him because he's full of
00:54knowledge thank you so much Brian really
00:56appreciate you joining me every
00:58Wednesday
00:59I just love doing it Herbert it's great
01:01hanging out with you you are one of my
01:03closest friends now I think I
01:07yes that is so true at this point right
01:10uh we do this more for fun than we do
01:12actually just to for work like we were
01:15talking about okay so let's get to work
01:17though let's get started here so one of
01:20the big news that recently happened is
01:21as everybody knows following this
01:23channel is that there is continuing to
01:25be more uh smoke around the concept of a
01:28giga India the latest is that India is
01:32now proposing to Tesla to follow Apple's
01:34model which is pairing their Chinese
01:37suppliers Tesla's Chinese suppliers and
01:39you won't let them come in to the
01:42country uh but they want to say hey if
01:44you partner if Chinese your Chinese
01:46suppliers partner with the Indian
01:47suppliers then we'd be okay with that so
01:50you know Tess of course has expressed
01:52interest in having some of its vendors
01:54from China set up operations in India
01:56they need to do this because India does
01:58not yet today have an auto industry uh
02:02but the Indian authorities have been
02:03kind of like you know pushing back on
02:05that they don't want to just grant
02:06approval so just wholly owned Chinese
02:09companies they because of course the
02:11other complicating factor is that India
02:14and uh China there's been border clashes
02:17between the two countries and in fact we
02:20reported just two weeks ago that byd a
02:23Chinese auto manufacturer India denied
02:26their ability to come in even though byd
02:29promised uh was in joint venture with
02:31mega which is an Indian supplier they
02:33actually denied that
02:34so as an alternative the Indian
02:37officials are suggesting Tesla follow a
02:39similar approach to Apple which is um
02:41you know Partnerships with the Chinese
02:43suppliers what do you think Brian what's
02:45your uh thought about this you know
02:46quite a bit about the supply chain uh
02:48concerns it's a it's a fantastic idea
02:52all around the idea is uh you know Tesla
02:55has said well we want to be able to
02:57bring in our own parts from outside and
02:59India is not a fan of that we want the
03:01jobs here we want the money here and
03:03it's it's a it's a bit of a
03:05misunderstanding they're concerned that
03:07Tesla would say we're only going to be
03:09bringing in parts from outside the
03:11country Tesla doesn't do that they
03:12always Source locally it would be in the
03:15beginning and I think they know that now
03:17they're going to have Partnerships there
03:19but to uh assuage any concerns that
03:23Tesla might have they're saying look you
03:25can work with Indian Partners if you
03:26want but if you really don't want to if
03:28you really want a Chinese company let
03:30them come in on one of these 50 50 joint
03:33ventures and you could have byd as your
03:36battery supplier or one of those guys
03:39but they need to build domestically at
03:42least in a partnership is that good for
03:44Tesla is it bad for Tesla it's it's good
03:47there's there's no downside for Tesla 10
03:49is going to vertically integrate as much
03:51as they can they're going to keep as
03:53much of that money as they can this
03:55isn't replacing that this isn't saying
03:57You must buy headlights from an Indian
03:59company or an Indian Chinese joint
04:02venture it's saying that when you do
04:04those jobs should stay in India you
04:08should import as little as as you can in
04:11terms of raw materials and finished
04:13parts and keep them keep keep the jobs
04:16here keep the money here there's no real
04:18downside for Tesla they're not forced to
04:21do anything this just creates and really
04:24what this does is allows the Indian
04:25government to save face with the public
04:28to just remind them look we're doing
04:31everything we can to make sure that
04:33Tesla does come and does bring jobs with
04:36them not just a factory not just a tax
04:38Dodge where they're avoiding the massive
04:41massive import duties imposed on
04:43finished cars which is a hundred percent
04:46on affordable cars and like a up to 180
04:50percent on premium cars double triple
04:53the price of your car that's why you
04:55don't see Tesla's on the road in India
04:57very very few of them and this is
04:59there's really no downside
05:01and it comes back to the integration
05:04yeah actually I like what you just said
05:06there was just exactly right this is
05:08just just India saying hey we really
05:10want you to do this but they're not
05:12going to force their hands on it uh so
05:14you can see this another article uh that
05:17said this just that this line right here
05:19in principle if there's any critical
05:22Parts vendor that needs to be brought in
05:23it can be considered just no tax
05:26incentive can be given to any one
05:28company so they're just saying yeah look
05:29if you've got a critical vendor we'll go
05:32ahead and still let that through anyways
05:34so yeah it's gonna happen this is
05:37happening it's looking really good
05:39there's just so many conversations that
05:41are happening and two Tesla executives
05:43are actually in India right now we
05:45reported that uh yesterday so and while
05:49we're on this this yeah while we're on
05:51the Apple versus uh Tesla thing you know
05:54uh Foxconn Apple I think made
05:57they made a good decision at the time to
06:00let Foxconn build their phones but over
06:02time they realized it wasn't the fantasy
06:04they may have envisioned but even in
06:07retrospect it looks good apple did not
06:09have proficiencies in building a
06:10high-tech Factory they would not have
06:12had the successes that they have now
06:14they didn't have the competencies to get
06:16it done and Foxconn tried to build
06:18factories in other places that didn't
06:20work that weren't China and it didn't
06:23didn't pan out the way they had hoped so
06:25they've got a lot of opportunities there
06:27to learn from those mistakes so would
06:31they would those vendors even want to
06:33build in India I think probably but it
06:36would depend on on guaranteed orders and
06:39I I'm just not sure how much of that
06:41would actually materialize and yeah
06:43there's there's going to be there's
06:45going to be big opportunities to make
06:46money at this and you know that's the
06:49reason I was looking at this a year ago
06:51India has a domestic Market of like four
06:53and a half million cars and you look
06:55well that's not that big I mean that's
06:57less than you know other small countries
07:00right but India Today is where China was
07:0320 to 23 years ago probably 24 years ago
07:07and it is an Emerging Market their
07:09middle class is beginning to develop if
07:12we just focus on their one percent we're
07:14still talking about you know uh what is
07:16that 12 million people a year is the one
07:19percent 24 million for the two percent
07:21it's it's a lot of people and the middle
07:24class is emerging India is a big market
07:27and if you and if your Tesla moving in
07:29there you've got basically a first mover
07:32advantage in EVS there are EVS that
07:35exist they're not very exciting or
07:37compelling which is why you don't see
07:39them outside of India very much but they
07:42can
07:42boy if this can if this deal can be made
07:45to work this is going to be as big as
07:48Shanghai
07:49in pretty short order and especially if
07:52you can export from there now you've got
07:53a right-hand Drive export Hub it there's
07:57a reason I made the video a year ago
07:59saying that Giga India makes sense
08:02yeah absolutely and it makes sense
08:05um actually I won't I will actually I'll
08:08pull that back Kenya India did not make
08:10sense
08:11for all sorts of reasons I told just
08:14very recently I knew pointed some of
08:16that stuff out but okay let's stick to
08:18the concept of uh you know Apple model
08:21and is there things that Tesla could do
08:23that are very similar to what apple is
08:25and right now everything I think of the
08:27answer is absolutely not there's nothing
08:29that Apple's doing that Tesla should be
08:31doing except for something like this you
08:33know they their presence in India but uh
08:35you brought up foxcom so right now Apple
08:38outsources almost all of the entire
08:42manufacturing of their products they
08:44designed it in California but then the
08:46rest of it is just built they Outsource
08:48manufacturing clearly that's not Tesla's
08:51model Tesla is a manufacturer first you
08:54are the most aware of their gigafactory
08:57expertise and in fact they've said that
08:59the factory is their product and they're
09:02making that so efficient I mean I don't
09:04think there's anyone in the world that
09:06can say that they can manufacture better
09:07than Tesla today right so that's an
09:10obvious crazy thing to say Tesla should
09:13do what Foxconn does
09:15um the second thing that Tesla does is
09:17our Apple does is the App Store so I
09:19wanted to ask you you know should Tesla
09:22do an app store
09:23uh but there's a different model so I
09:26just did an interview with connecting
09:28the dots and he said that you know Apple
09:30made a massive mistake believe it or not
09:32even though today they're the biggest
09:34company in the world they created an App
09:36Store but they let go of money on the
09:38table because they decided to focus
09:41and not build Airbnb app they did not
09:44build the Uber app they just let other
09:46companies who are now massive on their
09:49own to build this
09:50so that's not what that's necessarily
09:53going to do because they're so big into
09:56Innovation and virtual virtual vertical
09:59integration so what do you think of
10:01right
10:02so first of all dots is a very sharp guy
10:06I love his channel he does great work uh
10:09the uh in in hindsight it's a lot easier
10:13to to predict the past than the future
10:16uh Apple absolutely left money on the
10:18table their reasoning at the time is we
10:20don't have the resource to build these
10:22out we don't know what things to build
10:24out and there's not going to be uh
10:27we need to make it appear as though
10:30we're creating this ecosystem which they
10:32were for everyone to have room to
10:34prosper
10:35if you look at Airbnb their profit is is
10:39what somewhere between inconsequential
10:42and negative uh Uber just posted their
10:46first profit they're they're I don't
10:49know how much smarter or better they
10:51could have these companies could have
10:52done this and Tesla's approaches uh at
10:56least you know they said they were going
10:57to open up their App Store years ago and
10:59I suppose in some sense they did but it
11:02never really developed because I think
11:03like you said they're trying to keep as
11:05much as they can in-house and they
11:07haven't had the bandwidth to deal with
11:09it since then
11:10so is you know is there going to be a a
11:13native Uber app in Tesla I think the
11:18answer is no I think they're going to
11:19wait for their own Robo taxi Network to
11:21deploy that now you could still use your
11:23Tesla on the Uber network uh but it
11:25wouldn't be a native sort of situation
11:27and there would be yeah there's I I'd
11:31love to take you know 10 or 20 or 30
11:34percent of whatever it is you're
11:36charging people but what I'd really love
11:38to do is keep all the money instead and
11:40this would be like if those giant
11:43shipping companies of of previous
11:45centuries also owned the farms and the
11:49and the railroads and in some cases they
11:52did and they did so because then they
11:55controlled 100 of the profit and also
11:57bore a hundred percent of the
11:59responsibility for making sure it worked
12:01how many times have you in your business
12:03life had a problem where a deal fell
12:05apart or some or some critical situation
12:08arose that was out of your control it's
12:11still your problem even though suppliers
12:13Upstream that you cannot control made
12:16very simple very stupid mistakes and
12:19this is something where you could
12:20control the entire process as well as
12:22the entire Revenue stream I think that's
12:25what Tesla's looking to do
12:27yeah there's a debate that's going on in
12:30Tesla Twitter Community this morning
12:31with Gary black suggesting that Tesla
12:34buy Uber this has been brought up a
12:37while back and we can do a whole show on
12:39this uh it doesn't make sense to me of
12:42course if they think that they should
12:43buy it they will but it really doesn't
12:45make sense it's amazing how much data
12:47Tesla already has with 4 million cars
12:50driving around in every major city
12:53um they track more data than anyone else
12:55does including Uber
12:57and um like you said they're gonna just
12:59they're is they're they're an innovation
13:01company their software company Tesla so
13:03you know they don't need to Outsource
13:05this to some other company and I'm just
13:08struggling to understand what the
13:09benefits are
13:11um you know certainly Uber's known as
13:12the ride hill uh company but
13:17you know that I don't know how big of a
13:18deal that is uh maybe look at what Uber
13:21would cost the market cap is such that
13:24buying Uber you'd be paying such a
13:27premium over over just getting it
13:29yourself and as as the reason Elon chose
13:33to buy Twitter instead of create as
13:35alternative is new entrance in social
13:37media have not succeeded in a very long
13:40time there is brand loyalty Within
13:43Twitter or X if we're calling it that or
13:47Facebook or whatever
13:48where with ride sharing
13:51if somebody comes along and they're 30
13:53percent cheaper than Uber and every bit
13:56is good
13:57at 30 percent cheaper they could be half
13:59as good and I would still pick them in
14:01anything but a Time critical situation
14:03and very quickly we've seen with Tesla
14:06products they go from brand new and a
14:08little rough to awfully awfully good
14:11relatively quickly and uh seamlessly
14:14painlessly behind the scenes you don't
14:16even see it
14:18so yeah I believe that for Tesla to run
14:20their own ride sharing app their data is
14:23very good for people who've never owned
14:25or driven in a Tesla they they don't see
14:28what what you see when you're in the car
14:30especially road tripping so I just got
14:31back from the California takeover John
14:34and Kelvin put on one world-class event
14:37next year it's going to be even bigger
14:40I'm confident because wow
14:42on the way there on the way back when
14:45you put in your destination it's it was
14:47we're going just just north just take me
14:49you know back all the way home it says
14:51okay here's the map here's a circle
14:52showing all the superchargers you can
14:54reach today right now and you look at
14:58and you pick and I'm gonna do this one
14:59it goes okay here's if you'd like to see
15:01the analytics here's a chart that shows
15:03what your power consumption for this
15:06drive should be and you can gamify you
15:08can go a little more chill and get more
15:11green on the chart you if the if you've
15:14got a headwind and it and it'll tell you
15:16oh you do have a headwind you'll see
15:18that it's under it the data is so rich
15:21and so deep and we're having a
15:24conversation about it I was talking with
15:25with Ken who who was saying well yeah of
15:29course it's good they they have all this
15:30data I'm like right every everybody has
15:34everybody could have the capacity to do
15:37something like this Tesla actually does
15:39it so when it comes to running making
15:41these back-end systems that work in
15:44software in Automotive nobody has this
15:47kind of Competency and it's just
15:50stunning to see the degree of execution
15:52and how well it works yeah and to just
15:55put the nail on the head about the Uber
15:56concept it's actually a bad deal because
15:59Uber's known as the brand as the ride
16:01hell for human drivers
16:03and it's all about their their big their
16:06big deal is that you've got these driver
16:08Network and you don't want to be known
16:10for human drivers it's going to have to
16:13change the the mind of people that I'm
16:15ordering an Uber but no no this one is
16:17no it's Robo taxing now it's completely
16:19wrong okay we probably should talk
16:22briefly about BuyBacks Apple does
16:24BuyBacks that's the reason why their
16:26stocks Rose really fast in the last 10
16:28years it's massive BuyBacks we're
16:31talking 20 billion dollars
16:33now uh of course I'm a fan of BuyBacks
16:37but not necessarily now and I don't
16:40necessarily need it now the reason I am
16:41is because I'm a Tesla investor if I'm
16:43an investor in a company and they do
16:45BuyBacks it's a guaranteed way for the
16:48stock to rise like significantly because
16:50you're reducing the shares outstanding
16:52you're raising the earnings more than it
16:54would normally be and you have extra
16:57cash that you don't need to spend even
16:59after all of these r d all the robots
17:01and energy and gigafactories there's so
17:04much cash that's flowing that's going to
17:06be flowing in you can't today they just
17:09reported that the Tesla is putting money
17:11into CDs
17:13and and because they they need to you
17:16have extra cash you need to put it
17:17somewhere these are long-term CDs like
17:1910-year plus so why not do BuyBacks
17:22which you can reverse it anymore now the
17:24thing about Apple was they did the
17:25BuyBacks when they had 120 billion
17:27dollars in cash on hand already and
17:30that's when they start thinking about it
17:31so I you know Tesla has 23
17:34they don't have to do it now but boy if
17:36they did I'd be all for it because I'm
17:38gonna get my stock Rising quickly so the
17:41answers don't do it Tesla but if they do
17:43fine
17:45and I I agree with all those points it
17:48if you look though Facebook did a lot of
17:50BuyBacks and did not uh has and then
17:53went down but they would have gone down
17:55more had they not done it BuyBacks make
17:58sense when you have significantly more
18:00cash on hand than capacity to deploy it
18:03uh uh apple with 120 billion dollars
18:07what are you going to spend it on
18:09they're not building factories they're
18:11not you know you could buy
18:13any company you want without it making
18:15an appreciable dent in the in the
18:17balance sheet now with with Tesla 23
18:21billion sounds like a lot it's really
18:22not it's really not that's yeah four or
18:25five factories they're spending a
18:27billion in r d on dojo alone uh that's
18:30great but BuyBacks are the time the day
18:34will come the day will come but at that
18:36point it might be a two three trillion
18:38dollar company and even still in our
18:41lifetimes they could buy back the
18:43majority of the shares it would be uh
18:47breathtaking to see and we will get
18:49there because at some point this turns
18:50into a cash printing machine it is a
18:53customer pick machine now and it's just
18:54going to be like exponential oh God I'm
18:57so excited Tesla is not the next Toyota
19:00Tesla is not the next apple Tesla is the
19:03next Dutch East India Company
19:06yeah
19:07it's crazy I love it I'm so excited
19:10about Tesla just crazy and I love the
19:12fact that they're the financial uh
19:14standing is so strong and we've got so
19:16many things to do okay let's move move
19:19we've got some other news to cover so
19:21this is not that big of a deal but U.S
19:23senator visited Giga Texas met with Elon
19:26so this is Senator John cornyn and he is
19:30a Republican senator that's been a
19:32senator for 20 years
19:34and he's a eternity attorney who became
19:37a judge Supreme Court of Texas and he
19:40said
19:41everything is bigger oh he's a center
19:43for Texas of course everything is bigger
19:45in the Lone Star State
19:47the second largest manufacturing
19:48facility in the U.S gigafactory Texas
19:50employs 10 000 tax Texans
19:54I'm curious how he how he's coming up
19:56with second largest facility what what
19:58facility would be larger I wonder uh
20:00certainly it's the largest single
20:02building for manufacturing in the world
20:03uh but all right in any case it's a very
20:06big number
20:09yeah then he tweeted this out we talked
20:12about AI Supply chains critical minerals
20:15SpaceX and China no shortage of
20:19important topics to discuss anything
20:21here that uh
20:22is it of interest to you
20:24yes it is important that our legislators
20:27have some understanding of what's going
20:29on you've seen bills to crack down on
20:31things like email spam that took forever
20:34and the reason was because the people in
20:36charge of making the laws weren't using
20:38email yet they had no understanding of
20:40how big the problem already was 20 years
20:42ago uh same with like the Do Not Call
20:45list if you're never at home and you
20:47have someone who handles all your phone
20:49calls you don't understand how
20:50frustrating robocalls can be because it
20:54doesn't impact you personally and then
20:55all of a sudden they all get cell phones
20:57and realize this thing is ringing off
20:58the hook all day let's address it
21:01the Senate and Congress and and all your
21:04representatives can't effectively
21:06legislate things that matter to the
21:09Future like Tesla like like the supply
21:12chain the minerals all that they can't
21:14effectively legislate it if they don't
21:16understand it he gets in there and he
21:19and I imagine he was just there for for
21:21publicity or for fun or because he
21:24wanted because he wanted to be there and
21:26Elon said hey well you're here we need
21:28to talk about minerals do you know how
21:30hard it is to get mining permits
21:32refining permits buildings built and the
21:36senator could he is in a position to
21:39help open up mining to streamline
21:41permits and approvals and get these
21:44shovels into the ground and elon's able
21:46to say to him look
21:48other cut China is around the world
21:50refining and Mining these minerals and
21:52they're eating our lunch we can bring
21:54these jobs home today we're already
21:56building a facility that will refine
21:58there are permits pending in several
22:01states to get these critical minerals
22:03right here
22:05I need I need you in my corner and it
22:09sounds like that's what he got
22:10is is maybe Ford is pulling strings to
22:15to try and get people like this on board
22:17but it doesn't feel like they are what
22:19they're doing is saying we need
22:20protectionist policies and Elon is
22:22saying we need good policies that help
22:25everyone because if it helps everyone
22:27it's going to help us the most because
22:28we're the best at it
22:30so I think this was an opportunity that
22:32Elon saw where he had a senator willing
22:35to come in and just say hello glad hand
22:37get some pictures and he sees the
22:39opportunity and said look here's the the
22:42pressing issues and I know that you have
22:44some capacity to bring attention to them
22:47and get them done
22:49yeah it's um
22:52so you know many different points here
22:54but obviously there's a lot of people
22:55who who are enemies of Tesla it's a you
22:59know big Auto Big Oil
23:01multimedia politicians but on the other
23:05hand
23:06everybody seems to want to meet with
23:08Elon he gets to speak to the world
23:11leaders so anytime he speaks to a world
23:13leader like this it's great I mean he's
23:15not a world leader but he's a top up
23:16there and the topics that they're
23:18talking about is crazy I mean we're
23:19talking AI critical minerals SpaceX
23:22China
23:23these are the big ones okay so that's
23:26great that that happened small thing
23:28um but some other things are happening
23:30they're showing that uh possibly the
23:32Highland model 3 is absolutely moving
23:34forward so in the last earnings call we
23:37did have Elon
23:39uh talking about a Slowdown in the
23:41factories because they're retooling it
23:43uh possibly because of model 3 possibly
23:46for something else but so here's some
23:48more signs the Fremont Factory they
23:50resume filing building permits now this
23:52is the part I wanted to ask you Brian
23:54because I was a little uh confused so
23:56last week we reported that the Fremont
23:58Factory had a one-week stoppage
24:00that's great so today what they're
24:02reporting now is they're filing more
24:04building permits right so why are they
24:08why did they file that uh you know
24:11earlier and the permit says demolition
24:13of existing equipment and installation
24:15of new equipment which is the same kind
24:16of permit they've received before so why
24:19what's going on why is it like uh they
24:21they paused it then they have to file
24:22even new permits now
24:25so it's it's all about agile
24:27construction we see this a lot in Texas
24:29we see it less so in Shanghai and Berlin
24:31in Shanghai and Berlin the amount of
24:33rework that's been done has been very
24:35limited where in Texas has been a lot
24:38more substantial we still see it in
24:40every facility but not as much the way
24:42agile construction Works in this case is
24:43I wish to do this
24:45um it's going to take us three months to
24:47get everything exactly right to file for
24:49a permit but we want to start
24:51construction in three months so they'll
24:53find out preliminary permits even if
24:55they're not going to be right just
24:57because they'll be close and getting a
24:59revised permit is quicker than a fresh
25:02one from scratch so this isn't bad news
25:05this is really no news this is just how
25:07they do it and they're getting it all uh
25:09submitted early and submitted often
25:12which can be a little bit of a headache
25:13for the permit office but that's the job
25:16that's what they supposed to be doing so
25:19that's great they're going to have but
25:22yeah then the question is are we talking
25:23whole buildings are we just talking
25:24parts of the line and at least in the
25:27case of these permits it doesn't sound
25:28like whole buildings so much as
25:31equipment within the buildings which is
25:33absolutely what Highland is about it is
25:35absolutely about
25:37on the surface the car may look as
25:40similar well it won't look as similar as
25:43the old s to the refreshed s it's going
25:46to look more different than that but
25:47under the skin we're going to have a
25:49whole lot of different uh and big
25:51improvements uh we're expecting the
25:53castings to be a thing and we've seen
25:56that over by where they do the castings
25:58there's a foundation excavated they've
26:00already started pouring for that there's
26:02going to be more casting machines in
26:04Fremont that's what are those for if not
26:07Highland and the demolition of equipment
26:10and the replacing it with new equipment
26:12again that's all going to be Highland
26:14stuff so the question is how quickly can
26:17they get it in and done and running
26:19again and that's the big question mark
26:21that is going to make uh estimates for
26:25this quarter a pretty difficult I think
26:27yeah absolutely so that's good news
26:30fantastic news first of all it's
26:31happening at the beginning of the
26:32quarter looks like it's moving maybe a
26:35pause but uh it seems to be happening
26:38there's new sign as well that model 3 is
26:41going to be the highlands going to come
26:42soon the other new news that came out
26:45today was
26:46the delivery dates when somebody wants
26:49to buy a model 3 in Europe it's being
26:51pushed back to January 2024 now so if
26:55you decide to buy a model 3 it's being
26:56pushed back it looks like the model 3
26:58rear wheel drive as October November
27:01model 3 long range is October November
27:03and then the model 3 Performance is
27:05November to January so
27:07this is again another signal right but
27:10possibly it's coming what's uh what's
27:13your what was your takeaway
27:15uh wow why would they wow why would they
27:18announce that model 3 is is no longer
27:21going to be customized uh for order in
27:24Europe it's almost as if they're
27:26shutting down the production line to do
27:28something significant and they're unsure
27:30of how long it will take to get it back
27:31running again associated with the model
27:33three hmm what could that mean I wonder
27:36and there are still people saying oh
27:38Highland 3 refresh isn't coming and if
27:41if you're if you're watching people who
27:43are saying that that's a thing you you
27:45really need to reevaluate your your
27:48sources on that because it's real it's
27:51100 I mean what are we doing what are we
27:54doing here so this that's exciting
27:56January 2024 might be a little overly
27:59pessimistic just setting expectations
28:02because if you set a date and you come
28:05in two months early you're the hero of
28:07the world but if you set a date and miss
28:08it by a week late you're the villain so
28:12it's managing expectations that's
28:14something I believe believe Tesla has
28:16gotten a lot better at over the last
28:17four years certainly over the last five
28:20years since semi and Roadster were
28:22unveiled
28:24they will yeah this is this is evidence
28:28that is moving forward and the good news
28:30is that if they pushed back the delivery
28:32dates to October right October so it's
28:37already August now and it's coming in a
28:39couple months then it's if this is to be
28:41believed because some people were saying
28:43that it might happen next year and it's
28:46looking like it's actually going to
28:47happen
28:48probably in September they'll probably
28:50announce it in September so very big
28:53news it is big news and they did not
28:55they will yeah a very big rumor they're
28:59yeah all the pieces are there you just
29:00gotta you gotta step back and cross your
29:03eyes like a Magic Eye to actually see it
29:05the
29:07and this doesn't mean Highland will not
29:09arrive until December this means there
29:12the number of local deliveries they
29:15could make of this model will surely
29:17outstrip as many as they could build
29:19between now and the end of the year and
29:22it does take time to ship the logistics
29:24are it's going to be a good at best 30
29:28days from the time it rolls out your
29:30door to the time it gets to your
29:31customer and they they especially with
29:34any amount of downtime on the line to
29:36keep the numbers looking good because
29:37Wall Street is so fickle I think when
29:40Hyland comes out from Shanghai it'll be
29:43only local deliveries until the
29:46following quarter Brian when are we
29:47going to hear that Giga Berlin is slowed
29:49down or has that is that the news that
29:52we reported several a month ago that one
29:54of the lines were slowing down
29:56no no Berlin is the opposite they were
29:58adding lines two and three and those
30:01should be coming up the only thing we
30:02heard is that there were some temporary
30:04workers who had been hired uh attempts
30:07who had been let go and of course the uh
30:10negative Nancy's had to uh latch onto
30:13that and say oh they're laying off the
30:15end has finally arrived just as we've
30:17been predicting every week since 2012.
30:20yeah okay good I'm very very excited I'm
30:24looking forward to model three we're
30:25just growing in terms of their sales to
30:30kind of maybe you know catching up to us
30:32close to model y right now this is not
30:34as high okay some big news about Tesla
30:37securing more lithium supplies so we've
30:40got here Tesla extended their agreement
30:43with China's Yahoo group until 2030. so
30:46they already had an agreement with them
30:48that they signed in 2020 and that went
30:52from 2021 to 2025 and now they've
30:54extended that to 2030
30:56so that's just another great uh signal
31:00they're always signing long-term
31:01contracts Tesla is always going to be
31:03the the lead dog here companies will
31:06want to partner with them because it's
31:08almost a guarantee to sale at this point
31:10and they're gonna be able to uh to make
31:12sure that that works well
31:14um and then just this bit of fact here
31:17that from 2023 to 2030 the lithium
31:19supplied is expected to be between 207
31:22000 tons to 301 000 tons so those
31:25numbers
31:27mean anything to you to me they're just
31:29numbers but
31:33and it looks like when they're saying
31:36yeah I I and that's the raw material not
31:39the finished material 300 000 tons of
31:42finished material would be too much on
31:44account of there only being like 50
31:45kilograms in a car something like that
31:48uh of refined material no it's just big
31:51numbers it's just good news and like you
31:53were saying uh Tesla is the buyer of
31:56preference for these because we know
31:58they're going to just keep going full
31:59steam where other manufacturers really
32:02keep pulling back on their announcements
32:04you know uh GM had their best selling
32:06car their best-selling EV the bolt and
32:08they canceled it because Tesla dropped
32:10price on the three and now they're only
32:12a few thousand dollars apart and the
32:15bolt they could not afford to cut the
32:17prices anymore they were already deeply
32:19negative on it so they just had to
32:21cancel it entirely but Mary the the
32:24indisputable leader of the in of the EV
32:26industry and it matters said we're going
32:29to bring it back we're going to bring
32:30bring back the bolt and there was much
32:32rejoicing but the rejoicing was
32:34premature because she added we're going
32:35to build it on our ultium platform
32:37in-house that's not the same car that's
32:40a different car with the same name this
32:42will allow them to get better pricing
32:44because they won't be paying the
32:46middleman LG it'll also make their
32:48numbers look better because when you buy
32:51something that LG designed the price
32:53that you pay for it shows up as cost of
32:56goods if you design it yourself all that
32:58r d shows up as a capex it goes onto the
33:02long-term sheet instead it looks better
33:05on paper even if it ends up costing
33:07slightly more or the same the hope is
33:09that it would cost less so the yeah the
33:12lithium
33:13the long-term contracts you know who's
33:15going to buy it who's going to
33:17definitely come through on their orders
33:18and it is Tesla so yeah
33:21more news about lithium I wanted to ask
33:25you this question because I've reported
33:26on this already but Exxon is really
33:29making a big deal about them getting
33:31into lithium supply and they're in talks
33:33with Tesla Ford and Volkswagen so that
33:35the Exxon can provide them with lithium
33:39and uh the talks are in early stages
33:42right now both Exxon and Volkswagen
33:47well nobody's talking about it but
33:50here's the number Exxon has a set a
33:52target of extracting 100 000 tons uh
33:55annually so they want to get into this
33:57what do you think uh Brian what's uh you
34:00know some people are saying that Exxon
34:02doing this they're actually nefarious
34:04about it they're going to try to you
34:06know capture as much lithium as possible
34:07and then control it and not let it out
34:10so that they can manage your business
34:13um or is this a real deal good good news
34:15for the world sure so I understand the
34:18cynicism behind it Exxon is a dastardly
34:21company and they've got a terrible track
34:24record but trying to monopolize lithium
34:28would be like trying to monopolize all
34:30charging while we have charging at home
34:33getting a 10 Acre Site in Arkansas is a
34:36drop in the bucket or rather A Drop in
34:38the Ocean because you can also refine it
34:40from ocean water then you've got lithium
34:44exists everywhere they couldn't Corner
34:46the market if they tried there's it
34:48would require all the land in the world
34:50essentially okay Exxon do we do we
34:54do we want Exxon to die well maybe some
34:57people for sure with all the things
34:59they've done knowingly to cause harm but
35:02Exxon is not going to die they have too
35:03much money they have too much revenue
35:05they have too much profit
35:07would you like if given the choice would
35:09you rather have them involved in the
35:11green transition or not knowing that
35:13they're going to be around either way
35:14when you extract oil you use it once
35:18it's burnt and it's gone when Exxon
35:20extracts lithium and it gets into the
35:22hands of Tesla or LG or Panasonic it is
35:25now in a supply chain that has an almost
35:28closed loop that lithium will remain in
35:31the supply chain indefinitely now it
35:34might take 10 or 20 years before it hits
35:36a recycling center because it the
35:39batteries have such a long use case uh
35:41use usable lifespan even after they've
35:44exited the car they go into stationary
35:46storage they can go into a emergency
35:48battery backups Japan uses old Nissan
35:52Leafs not even the batteries just Parks
35:55Leafs to use as emergency power in case
35:58of tsunami or earthquake and there are
36:01the lithium is getting into the supply
36:03chain and once it gets in it doesn't
36:04come out
36:05and Exxon is just looking for another
36:07Revenue stream and they have always been
36:10able to read the writing on the wall
36:12regardless of whether or not they're
36:14willing to admit it
36:16yeah JB Straubel who's now the board
36:18member of Tesla who's running Redmond
36:21materials which is one of the leading
36:22recycling of minerals and um he has said
36:26that that you know lithium and other
36:28elements these things are uh they can be
36:31reused in depth definitely and it's much
36:34easier to take a battery and you know
36:37get the minerals out of that instead of
36:39doing the mining so once it's mined then
36:42they can just either reuse the battery
36:44itself or take off the minerals and
36:46restart again but it's so much cheaper
36:48than doing that and so and it's going to
36:50be reused forever which is carbon oil
36:52burned gone atmosphere never redo okay a
36:56couple quick news that we can cover
36:58before we end here uh tell me about this
37:00so plaid has arrived Model S and model X
37:03uh yeah yeah made it to Hong Kong and
37:09the this is still going on even for the
37:12models three and why why is only just
37:14recently entered Korea with thousands
37:17and thousands of sales in orders place
37:20on day one but the Plaid uh the model S
37:25and X are the sales are not what many
37:27had hoped they would be on the refresh
37:29uh but then again the refresh wasn't
37:31quite as refreshing as many it hoped
37:33yeah but there are still more markets
37:36into which they're going and it's and
37:38it's still expanding gotcha and the
37:41small numbers for us okay here's another
37:43fun bit in you so this guy named Jared
37:45he reported that Tesla charging uh Tesla
37:48still uh installing magic docs and they
37:51installed one in Fort Worth Texas he
37:53spoke with installers and it's
37:55unofficial for now but um there's a
37:58magic dock in this supercharger and what
38:01they do apparently is they have a rental
38:03for an F-150 Lightning and they can test
38:06to see so this is a magic dock that lets
38:09non-teslas charge at Tesla superchargers
38:11and this is before of course uh
38:14um before the supercharger partner so
38:16now Ford has partnered with the way you
38:19don't necessarily need this magic dock
38:20anymore in the future with the Ford
38:22F-150 will actually have the nacs
38:25standard that allows any Tesla to be
38:27able to plug in directly into them but
38:28that will be the future vehicles of 2025
38:31and onward but for now is still
38:33happening
38:35yeah and this is another like you said
38:38small bit of news this is a dead end but
38:41sometimes but even Google's street view
38:43uh drives the car all the way down the
38:45dead end you got to get there and get
38:47the picture and this will help a few
38:49people in a few places and it's a very
38:52cheap program to in to implement for
38:54Tesla because all they need is a small
38:56crew and a but a handful of these very
39:00cheap to manufacture pieces in order to
39:03enable it and this is also a good test
39:05for the system because if you can this
39:07is like a soft launch you get cars
39:09coming in using the magic dock to
39:12connect to the Tesla Network you can
39:14test and trial and troubleshoot two
39:17years before these cars are going to be
39:18coming out uh with their own native
39:20Chargers so it's going to be a nice low
39:24volume lightweight situation in which to
39:27iron out all the all the difficulties of
39:29providing services for all these
39:31different manufacturers using all these
39:33different parts many of which may not be
39:36well understood until you actually get
39:39connected
39:40all right thank you so much Brian fun
39:42episode we covered Giga India lots more
39:45news there I bet that that will sign
39:47before the end of this year given the
39:49fact that there's so much movement the
39:51test Tesla is securing more lithium
39:53supplies and just things are continuing
39:56before thank you so much Brian
39:57appreciate you thank you Herbert hey
39:59everybody
40:03foreign
40:06[Music]
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FAQs about This YouTube Video

1. What is the potential partnership that the video discusses between Tesla and India?

The video discusses the potential partnership between Tesla and India, particularly in comparison to Apple's supplier model.

2. What updates on Tesla's gigafactories are covered in the video?

The video covers updates on Tesla's gigafactories, providing insights into the latest developments and expansions in their gigafactory network.

3. What does the video emphasize about Tesla's long-term lithium supply agreement?

The video emphasizes the closed-loop supply chain for lithium in electric vehicle batteries, highlighting the significance of Tesla's long-term lithium supply agreement.

4. How does the video connect advancements in technology and supply chains with the importance of legislators' understanding?

The video touches on the importance of legislators understanding and addressing advancements in technology and supply chains, highlighting the need for policy makers to keep pace with technological advancements.

5. What updates on Tesla's Model 3 Highland are provided in the video?

The video provides updates on Tesla's Model 3 Highland, offering insights into the latest developments and advancements in the Model 3 production.

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