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Automatic TRANSCRIPT

Got a couple of the bank stocks. We've got facebook. We've got Microsoft. We're going to start with Tesla though. Because shares of Tesla up ten percent fourth-quarter fourth quarter profits and revenue game and higher-than-expected. How much of this is short-selling? I know that there is some level of short-selling telling why someone would short tesla is beyond me. But how much of what we're seeing today is short seller saying I'm out. Yeah so what you're mentioning there. Is that short short-squeeze right so in shorted. This has gone up significantly. Another like gotta get out. GotTa cut my losses here. I agree with you. I'm not quite sure why anyone would choose to short the stock we've seen sort of a History of being. I would say almost irrational. I don't think the stock trades in a predictable manner relative to performance indications leading to stock price movements. But I think in this can case. We're releasing tesla hit this inflection. Point so earnings-positive earnings-positive consistently and also cash cash low positive so management does expect that positive gap net. Income should continue going Forward but they also made this sort of Ten Gentle response that there is a temporary exception around the launch and ramp of new products. Yes which seems like it's constantly in a launch and ramp of new products for Tesla so Something to be aware of but I think that cash flow metric is really going to be eh The key point for this thesis because I mean I think historically you've seen a lot of analysts doubt Tesla's ability to have enough funding to I proceed and I think that was a a fair critique right but management does say that they now believe business has grown to the point of being self funding and and they now have a cash balance of about six point. Three billion cash flow for the quarter was about a billion so All positive metrics and really. Actually it quite impactful for Tesla's business going forward. Yeah it was an interesting moment on the call where essentially institutional investors were saying are. Are you sure you don't WanNa raise some money right now because you're in a better position financially and so therefore you could get more favorable terms and musk was basically like yeah. I mean I think also the thing to even mind is. This doesn't this company doesn't necessarily have a management team that is By any means conservative so they set they set very aggressive targets ended up. Just a wonderful understatement right. I mean they set very aggressive targets and routinely miss them right right and sort of miss them not just marginally but pretty catastrophically. I would say so I don't know necessarily that. Their confidence is the end Albion but it is certainly a change of pace. I want to get to the stock in just a second. But they also mentioned they're going to have an investor day event in April roll centered entirely around batteries. Other than the fact that that's going to happen I didn't see any color on that I don't know if they shared more on that. What should should investors look for in the Battery Park because obviously the this is one of those companies where the the thing you can't take your eyes off of the CEO and then it's the vehicles may but the battery part of the business could be a huge driver Dan? I'm curious when you look at this business. How do you think about the battery part of the business absolutely so I think Tesla does have an advantage on their batteries so they do have the long range? Batteries Electric drive trains and sort of ubiquitous charging network. So I don't think that advantage is going to last forever. Certainly but in the short to medium-term where people are making sort of purchasing decisions off of Range Distance Tusla certainly has an advantage. They now have fifteen thousand fast charging stalls worldwide and yeah worldwide and ninety nine percent of the population lives within one hundred and fifty miles of one of them. So that's a pretty powerful network when you think about the initial barrier to entry for someone buying an electric vehicle that is really a a game. Changer the stock is now somewhere in the neighborhood of six hundred forty donald to share it has more than doubled over the past year. bonkers is up fifty percent in the last month. I'm not even sure what I want to ask you. It seems as someone who does not own this stock. This seems like a crazy time to buy this stock. When in the market CAP is one hundred fifteen billion dollars as you said the stocks of fifty percent in a month right? I would agree with that. I think but again it goes back to this being a key inflection point for them and it is really a thesis. Changer I think long term that market cap might not seem so extreme dream over the next twenty years right but they're talking about scaling from making about three hundred and fifty thousand vehicles annually to millions and so without a doubt it's going to create lumpy ness right so Management says they feel like they're going to be able to comfortably exceed five hundred thousand next year. I'm not quite sure that I fully believe that and I think there will be opportunistic points if and when management fails to achieve set