$TSLA Straight to the Moon? 🚀🚀🚀

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Show Notes

We get excited, and talk, about the price action of Tesla stock over the past month/current day and the potential influencing factors. We also fangirl a little about Tesla and Elon Musk 🤗

Note: this episode was recorded on the 25th Oct. 2021. At the time of publishing, $TSLA has broken $1,100 and is currently sitting at $1,114 ($1,138 in premarket trading).


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What is Getting It?: In a Nutshell
A conversation where we explore topics both familiar and unfamiliar to us to find out what makes them interesting, so that we can expand our horizons and further our understanding of the world and people around us.
From science to lifestyle design, languages to religion, plus everything in between – anything can be interesting if exposed to you through the right lens. We hope to spark your curiosity through open-minded and thoughtful discussion, as well as a healthy dose of overthinking.


About us
Subaan is a 4th year medical student, motion designer, and an avid rabbit hole explorer. He has keen interests in lifestyle design, technology, investing, and metabolic health. Follow him on Instagram and Twitter.

Dan is a 5th year medical student, pianist, and random fact connoisseur. He spends most of his time learning about languages, playing sports, music, and geopolitics. Follow him on Instagram and Twitter.


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Transcript

Note: This transcript was generated using AI. Therefore, the transcript will not be 100% accurate in some parts.

00:00:04:09 – 00:00:05:05
Dan
Good evening, Subaan.

00:00:06:03 – 00:00:06:21
Subaan
Good evening, Dan.

00:00:09:07 – 00:00:10:10
Dan
Yeah. How are you doing?

00:00:10:20 – 00:00:11:20
Subaan
Yeah. Not bad.

00:00:12:05 – 00:00:25:20
Dan
It has been a very interesting like half an hour. This is past because I’m with you again in person is actually to only listen to last week’s episode. Like, we’re actually recording this the day after we recorded the last episode.

00:00:26:08 – 00:00:40:17
Dan
Yeah. They meet face to face doing them at Saban’s house at the moment. And I’m like, I just got a haircut from siblings brother because he’s my brother. And during that, we’ve been following the stock market and it’s been pretty interesting just to give a quick.

00:00:41:18 – 00:00:47:10
Subaan
Buy by the stock market. We mean a holy shit 1017, bro.

00:00:50:11 – 00:00:52:02
Dan
Maybe people should. Maybe he should get out.

00:00:52:03 – 00:00:57:04
Subaan
All right, everyone right now, just buy the stock because I like the stock.

00:00:58:13 – 00:01:00:00
Dan
I think a lot of people like the stock.

00:01:00:13 – 00:01:04:23
Subaan
Yeah. Well, if you bought in, if you haven’t or you’re shorting it, you do not like the stock.

00:01:04:24 – 00:01:21:02
Dan
Have you ever seen like, could you just take me through the numbers over the last few days in Tesla, and I’m not expecting you to give any sort of, you know, deep explanation. I know that you’re not like, you know, a seasoned expert, but could you just give a brief analysis as well on why has the stock

00:01:21:02 – 00:01:22:11
Dan
price gone up so quickly?

00:01:22:12 – 00:01:47:24
Subaan
You know, so today’s the 25th and on the fifth, it was around 760 ish around the 760 to seven. Let’s just say 770 range. So 20 days ago, it was around that, around the 770 ton. Okay. So, you know, 20 days ago, around 770, and now it has just broken 118 today is gone up 11.9%, so it’s

00:01:47:24 – 00:02:11:24
Subaan
around 100 $708 right now. So, yeah, it started the day around 950 because it gapped up from, what’s that, uh, around 95 yesterday, which was the highest point of the day yesterday as well. So today has just been a huge move, and I expected that to be an upward movement today because it was a Friday ending on

00:02:11:24 – 00:02:28:18
Subaan
high upward, you know, buying pressure. So but this is just a madness for a company of this size, you know, around $1,000,000,000,000 going up 10%. Well, I mean, it has broken $1,000,000,000,000 now 1.1 1.0, one. Basically, Elon Musk just surpassed Bezos, right?

00:02:28:19 – 00:02:33:18
Subaan
So Bezos might as well be third. Not like, you know, Musk is first in second.

00:02:33:18 – 00:02:34:23
Subaan
Place kind of thing in terms.

00:02:34:24 – 00:02:55:20
Subaan
Of the richest men in the world. But yeah, so that now means Tesla’s past Facebook, I think, in terms of market cap. So. They’re like the fifth biggest company in the world, so basically. Yeah, and I know, let let me just see on the 11th it was around the 800 mark in the majors, had a massive break

00:02:55:20 – 00:03:09:12
Subaan
up and then it kind of plateaued around the 870 level on the 19th of October. And I thought that was going to be the resistance point at which it will stay there for, you know, next couple of weeks or even days, right?

00:03:09:12 – 00:03:22:23
Subaan
But no, literally just two days after it just had a massive it’s just had a massive spree of like, you know, super high pressure upward candles. So basically it just gone on a mad one. And it’s just like because they released delivery numbers for the third quarter.

00:03:23:14 – 00:03:43:07
Subaan
Yeah, third quarter, which, you know, surpassed expectations and then revenue or earnings, you know, surpassed expectations. Profitability is going up. Basically, Tesla is just ramping up and you’ve got other unit that they’ve got two new factories that are going to start coming online over over the next couple of months and they’re going to start producing vehicles out

00:03:43:07 – 00:03:55:15
Subaan
of those in each of those factories, like have the capacity of like another half a million vehicles per year, the ramp up to max capacity. And then so people are just starting to actually realize this and people thought people were realizing it.

00:03:55:15 – 00:04:18:19
Subaan
Like, you know, a year ago when Tesla had its first big run up before corona coronavirus and all of the other crashes that happened after that and stuff. So 1:19 1019, like these are just, I suppose it’s just nice seeing it as like a fairly long time investor, at least, you know, as the main thing that my

00:04:18:19 – 00:04:22:02
Subaan
net worth is built into. Oh, 1020 Madness.

00:04:22:17 – 00:04:24:20
Subaan
Is just like a running commentary that’s just going to be the hype.

00:04:25:02 – 00:04:38:17
Subaan
But it’s just it’s just nice to know that at least some of your stuff was right. But the thing is, you know, this is one day, but the opera pressure’s actually insane. Thousand 22 Okay, I’m just going to stop looking at least for five minutes.

00:04:39:19 – 00:04:59:09
Subaan
So, yeah, and there’s all the other things that over the past couple of months you do you hear about Tesla HD Nerd? So they beat us when they released that Tesla robot and all of their stuff that they’re going into, particularly with Tesla Dojo, which is like a custom like neural net training system that they’ve made.

00:04:59:09 – 00:05:16:12
Subaan
That’s like modular. And it’s insane because motor right now, what people use like, you know, Google and all these other big companies that use GPU GPU architecture from high end video and stuff. So the chips aren’t actually designed to do neural net training computations, but it was just like, let’s just make our own kind of chipset that’s

00:05:16:12 – 00:05:31:12
Subaan
designed for this, and it’s absolutely insane so that they kind of explained all of that technology to the world. And, you know, because they’re trying to hire, you know, the new wave of A.I. engineers and stuff. And they had like 100 fold increase in AI applicants and everything.

00:05:31:22 – 00:05:39:17
Subaan
But because, you know, everyone says it’s Tesla’s like an AI software, battery tech kind of company, energy tech company, not really just a car company.

00:05:39:18 – 00:05:40:00
Dan
Yeah.

00:05:40:17 – 00:05:49:20
Subaan
And over the past few months, this has just really started to make sense to more people. Every time there’s this huge one off, it’s just because a new wave of people, Oh, OK, this is starting to make sense, does it?

00:05:49:20 – 00:06:04:02
Subaan
Not a car company because you can’t value it like a car company because you okay. Right now, most of their revenue is through. They like the cost, sales and stuff. But that’s not the end goal of Tesla. And that’s not the only goal of Tesla is just electric cars.

00:06:04:03 – 00:06:17:02
Subaan
It’s just so much more in terms of the technology they’re developing and stuff. So they’re really trying to solve things from like a level, a root cause kind of like basis in terms of the problems. So yeah, people are starting to just.

00:06:17:20 – 00:06:32:23
Subaan
And then I suppose it’s just their profitability is increasing and they’re just becoming they’re not so risky now. They’re like they’ve found their path, they’ve found their stride and they’re really just ramping up. So I actually see Tesla right now at the bottom of the inflection point of the sigmoid curve.

00:06:33:08 – 00:06:44:05
Subaan
So yeah, it seems like, oh man, they’ve hit the peak kind of thing, at least for the next couple of months or something. Yeah, OK. Might have for the next couple of months, but I’m looking at on like a five to ten year basis, right?

00:06:44:05 – 00:06:59:18
Subaan
And I wouldn’t say my numbers and projections for what I have for the next five to ten years. one, because I’m not an expert in that area and none of this should be financial advice. I’m just trying to say like why I like Tesla and, you know, mean that have been following, you know, Musk and you know

00:06:59:18 – 00:07:08:08
Subaan
, his endeavors since, you know, sixth form when we just randomly got obsessed with him. You introduce because you introduced the Model S to me and we were like, Man, this is kind of mad.

00:07:08:11 – 00:07:23:01
Dan
Is when we were doing like A-level revisions. Yeah, we would. Every time we just procrastinate here and we used to hang out in the the room like by the men who, you know, the one, I mean, the one of your brother studies, even though I think remember the way you used to have your computer?

00:07:23:07 – 00:07:27:19
Dan
Oh, yeah, yeah, yeah. We used to, like, hang out in there and do our work. Yeah.

00:07:28:12 – 00:07:29:02
Subaan
Tiny room.

00:07:29:03 – 00:07:33:11
Dan
Yeah, don’t do our work, huh? Yeah. We never graduated to the big.

00:07:33:11 – 00:07:35:02
Subaan
Table when when things you know, things.

00:07:35:02 – 00:07:47:20
Dan
Will be serious is and I’d be here until like three or four and drive home. Those are the days when I would go. I remember. Yeah, yeah, but we do. So go to. Oh, I love the would go to like Tesla.

00:07:48:04 – 00:07:51:07
Dan
No, no, no, no, no Tesla. That’s good.

00:07:52:04 – 00:07:55:09
Subaan
No, no, no. Tesla, though those Tesco.

00:07:55:09 – 00:07:58:20
Subaan
Motors for the best, I still reminisce about them. Something like what we’re doing.

00:07:58:21 – 00:07:59:24
Dan
We’d go for like an hour and just be.

00:07:59:24 – 00:08:03:16
Subaan
So fond, though I’d I’d actually have genuinely enjoyed.

00:08:03:16 – 00:08:05:15
Dan
Me. I’ll be having a blast. You know, we’d.

00:08:05:15 – 00:08:15:21
Subaan
Just be like, So Michelangelo, what are we doing? Let’s go to the big Tesco and we just go round for like an hour and a half and be like, Hmm, how much you know sugar is, you think in that nightclub?

00:08:15:22 – 00:08:16:16
Dan
Yeah. And we.

00:08:16:16 – 00:08:18:16
Subaan
Just like trying different foods and just like break down.

00:08:18:16 – 00:08:19:13
Dan
The look at these.

00:08:19:13 – 00:08:28:15
Subaan
Milkshakes. What do you think the the the second ingredient? So the second most in terms of mass in that product is we just try and guess and we got really good. At one point.

00:08:28:17 – 00:08:31:17
Dan
We did get good at analyzing the nutritional information.

00:08:31:17 – 00:08:32:13
Subaan
But just by looking at.

00:08:33:05 – 00:08:38:14
Dan
For like is a bit of a strange thing to do. Amazing. 1026 1020. OK, one sec.

00:08:39:18 – 00:08:51:02
Subaan
We actually at a peak of 1031 anyway, sort of sorry carrying the you’re just cutting it ha. So I can retire in a couple of months at this rate. Like.

00:08:51:11 – 00:08:52:13
Dan
Man, that’s crazy. But then a.

00:08:52:13 – 00:08:53:12
Subaan
Couple of minutes at this.

00:08:53:12 – 00:08:54:00
Subaan
Rate. OK.

00:08:55:00 – 00:08:55:23
Subaan
Anyway, yeah, it’s.

00:08:56:04 – 00:09:04:05
Dan
2000, by the way. And yeah, so we we would go to those places that were so fundamental as the ones those are.

00:09:05:02 – 00:09:06:05
Subaan
Yeah, but Tesco is.

00:09:06:05 – 00:09:18:12
Dan
Just going ahead. Different Tesla. Tesco. Yes. But yeah, and it was it was when we were like procrastinating that I used to love watching like car videos, just reviews of cars like 1015 minute reviews.

00:09:18:14 – 00:09:20:03
Subaan
What’s that dude’s name the most?

00:09:20:08 – 00:09:26:01
Dan
Yeah, yeah, it was. I think it was like car buyer or something. Yeah, yeah. Another strange hobby that I have is it for, but.

00:09:26:02 – 00:09:32:08
Subaan
It was that review you showed me his review on car buy on the Model S, and I was like, I couldn’t believe either insane.

00:09:32:13 – 00:09:35:08
Dan
It was a complete redefinition of yeah.

00:09:35:13 – 00:09:48:04
Subaan
And then also confused about the technology as well, because it was like it was so simple. It was literally even now basically, the the battery pack is just a bunch of like cells just put in like series, and that’s basically it.

00:09:48:11 – 00:09:53:20
Subaan
But obviously, there’s so much like soft optimization and all of that behind it, but a fundamental level is actually pretty simple.

00:09:53:24 – 00:10:06:19
Dan
Yeah, I’m sort of. And so like, I haven’t followed it too intensely over the years, but it’s been so cool to see Tesla become like a it’s still not there yet. I would say in terms of like, it’s not broadly accepted.

00:10:07:06 – 00:10:25:00
Subaan
You know? Yeah, definitely. And as in, I think over the past at least six to eight months at least, there’s been a huge paradigm shift in some of this whole electrification and everything, especially with all the other car companies Ford, GM, BMW, Volkswagen and everything.

00:10:25:17 – 00:10:44:02
Subaan
They are just, you know, now they’re like, Oh crap, you know, we need to electrify, you know, all the other, you know, government mandates, you know, 100% electrification by 2025, 2030, etc., depending on the country. Basically, every single car manufacturer apart from cars out away from, you know, we got a lot of work to do kind of

00:10:44:03 – 00:10:56:11
Subaan
thing. And like most of them, are probably losing money on electric cars they are even selling right now. But yeah, it was when you showed me that video and then introduced me to Tesla. And then from there you introduced me to Illmatic.

00:10:56:13 – 00:11:07:05
Subaan
Like, you know, he’s the one who made people on his own, though that’s kind of how he went from power to a car company. And then, yeah, like Space X at the same time. And he’s like, you know, put all his money in the.

00:11:07:13 – 00:11:08:22
Dan
Hyperloop even back then.

00:11:09:14 – 00:11:14:23
Subaan
I mean, yeah, hyperloop was a bit of a let down, you know, when it was released, the Vegas tunnel or whatever.

00:11:15:13 – 00:11:21:21
Dan
But then at the time, I remember when we were in sixth form that that concept itself like this guy was trying to redefine transport.

00:11:22:05 – 00:11:28:00
Subaan
And then he made it more like open source. And he just, I mean, I didn’t really I haven’t really followed much hyperloop to be firm, but.

00:11:28:13 – 00:11:32:05
Dan
Solar city open. I like the amount of, yeah, that I’m.

00:11:32:05 – 00:11:33:12
Subaan
On GPT three man.

00:11:33:12 – 00:11:34:12
Subaan
Like, Oh.

00:11:34:13 – 00:11:35:12
Subaan
Yeah, a Neuralink.

00:11:35:12 – 00:11:38:02
Subaan
Bro. I mean, yeah.

00:11:38:07 – 00:11:41:12
Subaan
I end up sounding like, you know, most fanboy, and I suppose I am to it to a certain extent.

00:11:41:20 – 00:11:42:20
Dan
If you’re looking for further.

00:11:45:19 – 00:11:46:04
Subaan
Yeah.

00:11:46:16 – 00:12:03:24
Subaan
It’s just he’s in so many different domains, right? And he’s it’s almost like creating solutions to all of this, not just him, it’s just the team he’s creating and the mentality in terms like first principle, like root cause analysis kind of thing, just solving these problems and really innovating and pushing it to the limit, right?

00:12:04:10 – 00:12:16:08
Subaan
So yeah, it’s just he’s developing all this new technology that is absolutely using Starlink. Forgot about that going to Mars, The BFG, the big effin rocket, The BFG.

00:12:16:14 – 00:12:19:05
Subaan
BFG, the big friendly BFR.

00:12:20:05 – 00:12:31:04
Subaan
The you know, the big f ing rocket. Yeah, it’s actually insane or all of what he’s doing. And it’s it’s weird to think that so like one human, can manage all of that kind of workload.

00:12:31:06 – 00:12:43:14
Dan
I don’t understand. But yeah, I mean, my mum had a question today, probably quite a simple question, so I could ask you on the spot. So Tesla today has gone up in its value by over 10%.

00:12:44:05 – 00:12:57:00
Subaan
1037 broken up 14% of the trillion dollar company. Yeah, but yeah, you said the value of Tesla has gone up a lot today. Yeah.

00:12:58:09 – 00:12:59:11
Dan
Has this ever happened before?

00:12:59:22 – 00:13:06:05
Subaan
No, not for a company of this size, at least not in my, you know of the big, you know, FAANG stocks and of in recent history.

00:13:07:01 – 00:13:09:14
Dan
So this actually with a raised bow.

00:13:09:17 – 00:13:12:04
Subaan
Yeah, it does. Conducting make me a bit scary, but.

00:13:12:18 – 00:13:13:08
Dan
Holds up now.

00:13:14:08 – 00:13:14:21
Subaan
But yeah.

00:13:15:03 – 00:13:15:10
Subaan
Sorry.

00:13:16:22 – 00:13:18:24
Dan
I just yes, I can tell you that. No.

00:13:19:10 – 00:13:21:18
Subaan
It’s boomer madness way.

00:13:23:16 – 00:13:24:12
Dan
Definitely cut this up.

00:13:24:21 – 00:13:26:22
Subaan
Or be bleep it out or something at.

00:13:27:11 – 00:13:43:04
Dan
I’m sorry. So the question that my mom had. The value has gone up by, let’s say, 10% in a day. Mm-Hmm. But like what’s actually changed in the company is the company actually 10% more valuable? Or is that just a reflection of people’s opinions on it?

00:13:43:13 – 00:13:58:07
Subaan
Yes, that does the main thing. And then there’s just a lot of buying pressure because people are OK, you know what? I’m just going to buy it right. But that’s the same is the same thing when it goes down ten, 20, 30% over like a week or something like, oh, what’s happened to nothing?

00:13:58:15 – 00:14:16:03
Subaan
You know, last time it crashed? Or, you know, when, like, the coronavirus dip happened, you know, nothing actually happened to the companies who are at least, you know, to some companies. Yeah, it did have a big impact. But certain companies like Apple and Facebook and Amazon and stuff, you know, Amazon in the end went up massively and

00:14:16:10 – 00:14:29:22
Subaan
so did all of these other high tech stocks because they’re the ones that are innovating right? And innovation is inherently like deflationary as well. So it’s a times of crisis where these kind of companies are innovating. New technologies end up coming out on top.

00:14:30:03 – 00:14:49:04
Subaan
So that’s why I would just like doubling down on these different types of stocks, particularly Tesla, because that’s the one I have most conviction in, at least for growth over the next ten to 20 years. Other stocks like Tesla, Amazon, Apple, those kind of stocks, right, that they’re already so mature that even though they are still innovating

00:14:49:05 – 00:15:05:23
Subaan
and developing new technology, is there room for growth? There’s just lower, right? Yeah. And because I’m young, I can take high risk because I’ve got a larger time horizon, so I’m willing to take that, which is why, you know, if you are older and maybe, you know, in your retirement plan kind of thinking, I wouldn’t recommend going

00:15:05:23 – 00:15:13:09
Subaan
as hard as I did into Tesla, even though I basically did it with, like my parents, it’s like family, like retirement money. Yeah.

00:15:13:20 – 00:15:16:01
Dan
Freshman year. So that’s like external pressure.

00:15:16:02 – 00:15:31:07
Subaan
Yeah, but the thing is, is that we did it gradually. Initially, it was a small amount, you know, just on the side to be, I think, the biggest risk with my own money, like my own like money. I basically lost all of it because I I put it into Luckin Coffee back a while ago around coronavirus time

00:15:31:07 – 00:15:45:19
Subaan
, or maybe before they turned out to just be a fraud company. So I’m just not going to invest in Chinese stocks again, basically. So, but anyway, that was a good lesson. But yeah, that was only my money. So that was a super risky play, to be fair.

00:15:46:15 – 00:15:59:09
Subaan
But the numbers were good. So, you know, it was fine until there were fraud. But, you know, hopefully Tesla isn’t a fraud. But yeah, going back to the point, if it goes down 20% in a day, the company probably hasn’t lost value in a day.

00:15:59:17 – 00:16:17:03
Subaan
That value in a day unless there is some major news. But most of the time these fluctuations aren’t based on any news. There’s just been a lot of positive sentiment towards Tesla over the past couple of months, and the mainstream media, the mainstream finance media, like, you know, CNN and Fox News and finance on all of these

00:16:17:15 – 00:16:33:17
Subaan
like people on TV like Classic Wall Street, that’s going to have a more positive sentiment. They’re citing their ratings that they have on Tesla and stuff they are starting to upgrade them, have actual positive things before. Oh yeah, we think in the next twelve months we might see the price of Tesla was like $500.

00:16:33:21 – 00:16:47:03
Subaan
Be like, Yeah, my our twelve month price target is $200, $100. So basically that thing is going to go down, right? But it’s always just gone up. Basically, Tesla’s always delivered, more cars produce more cars, made more money kind of thing.

00:16:47:06 – 00:16:58:20
Subaan
So they’re just growing and they’re growing and increasing rate, basically, and people are starting to catch on to this. And this, like at this point, is just there’s no real stopping Tesla really at this point. They’ve just hit that point now.

00:16:58:20 – 00:17:26:24
Subaan
Everyone’s just flipping basically in terms of the mainstream, like Wall Street Finance, Wall Street money, basically. There’s a futures are born here right now, basically the day after. And I suppose another aspect adding to the massive run on Tesla stock yesterday was the announcement by Hertz saying that they’ve ordered 100,000 Teslas for their fleet, for the hiring

00:17:27:12 – 00:17:41:18
Subaan
car rental fleet and their electrification goals. And Tom Brady is at the forefront of the marketing campaign as well. So I suppose this should put in a lot of hype, but the reason I didn’t actually mention it at the time saying that you know what happened?

00:17:42:03 – 00:17:57:14
Subaan
What changed in Tesla today that, you know, shot the price up so much? You know, I didn’t add it in because we just didn’t really come to mind as a big factor, because again, this is just very short term thing, just a one big time contract that’s been announced, kind of thing.

00:17:58:09 – 00:18:18:23
Subaan
And the main thing is that this just shows demand. So maybe for people who initially thought like Tesla vehicles don’t really have much demand or something, that’s just not true, that already they’re already constrained on that front. They can’t produce enough cars for the demand that they can’t produce enough cars to meet the current demand.

00:18:19:04 – 00:18:33:01
Subaan
Right now, if you were to order and model three like before. The 100,000 vehicle announcement, if you were to order a Model three or Model S, I can’t remember which the delivery time would be September. Right now we’re in October.

00:18:33:01 – 00:18:47:23
Subaan
So just to put that in perspective, that’s like a ten to eleven month wait. Basically, because they’re so strained that they’re basically selling every vehicle they are producing off the line straight away, and it’s going to be like that, probably for the next, you know, at least five to ten years.

00:18:48:07 – 00:19:00:00
Subaan
So adding another 100,000 vehicles to that, you know, is a pretty minor thing. But I suppose it’s just, you know, a big marketing thing. A lot of people want to build awareness and people all around, you know, companies are now adding large contracts with Tesla and stuff.

00:19:00:00 – 00:19:11:11
Subaan
So maybe this is a factor whose opinion. But in reality, I don’t think so, because Tesla is supply constrained, not demand constrained. So it shouldn’t really add into, you know, change in the company. There’s a big inflection point in the company kind of thing.

00:19:11:19 – 00:19:25:13
Subaan
So yeah, I suppose it was a factor to a certain extent that probably just, you know, compiled in onto the positive news of the past couple of months. And it just all kind of concentrated onto the onto this day, you know, yesterday because I’m speaking from the future right now.

00:19:25:24 – 00:19:35:20
Subaan
So, you know, I didn’t mention that while we were recording, but I thought it’d be worth mentioning. And the thing is, is that this is going to be released, you know, basically a week after all of this happened.

00:19:35:20 – 00:19:48:01
Subaan
So me saying, I’m from the future, I’m basically on Tuesday instead of Monday when it happened. So be it. It’s got some time jumping in it, probably breaking some, you know, laws of time travel, but it’d be laid out some things.

00:19:49:08 – 00:20:09:07
Dan
Do you think that Tesla will? I don’t know how to ask us the. Are there any companies yet that have come out of like that? Have that exist due to Tesla, in your opinion, basically, like a new electric car company in the West, which has come as a result of Tesla?

00:20:09:07 – 00:20:22:18
Dan
So basically what I’m trying to say, I can articulate it better known. Yeah, in a car I can use like football terms. Often a team will come up, let’s say Juergen Klopp’s Liverpool. five years ago, he came in with a philosophy.

00:20:23:05 – 00:20:35:18
Dan
It won a lot of won us a lot of matches and I won two trophies. Yeah, from him. There are people who have taken his philosophy and then will improve on that naturally. Yeah, Tesla will not be the last company.

00:20:35:18 – 00:20:50:20
Dan
In fact, it may be the best to go. It may end up being the electric car company for Ford has done. But there will very likely just the nature of capitalism in the West, like there will be someone or like a company which looks at the flaws of Tesla or builds on the work that they’ve done and

00:20:50:20 – 00:21:06:18
Dan
improves it again. And what I’m curious to know with Liverpool, there are teams now which have sort of built on the high priced philosophy that Liverpool have. Yeah, like, for example, Chelsea, in my opinion, the Chelsea manager used to manage the same club, the same two clubs that Klopp used to manage.

00:21:07:01 – 00:21:21:07
Dan
And he has. He’s German as well, and he has a similar style. Chelsea now have a kind of similar identity to Liverpool and the like physical discipline of the players. Do you think there’s an equivalent in the electric car industry or are there no like serious new?

00:21:22:08 – 00:21:22:18
Dan
Yeah.

00:21:23:09 – 00:21:39:04
Subaan
So just quickly. So it hit a peak of 1045 and has, you know, had a pull back down to 1:10 1617 and is pulling back now, which is fine. Anyway, so to answer the question, your question was like, are there any like up and coming?

00:21:39:10 – 00:21:59:12
Subaan
Electrical companies are potentially going to compete at a significant level with Tesla and if any other companies come out through the new innovations and technologies that a particular company brings out. So in this case, Tesla. So I mean, one potential car company that was going to come out that kind of pulled along or like, you know, dragged

00:21:59:12 – 00:22:07:18
Subaan
myself along with the hype of Tesla when it was kind of coming up, you know, having significant link up trends and stuff was Nicola Nikola Motors than it.

00:22:08:11 – 00:22:10:07
Subaan
Did at Corning? Yeah, exactly.

00:22:10:07 – 00:22:20:17
Subaan
So that was the hydrogen cell. So people like, you know, this is a different type of technology, clean technology kind of thing. But it was pretty clear from the beginning that it was basically a fraud. There was no technology.

00:22:20:17 – 00:22:40:03
Subaan
It was just a bunch of marketing that could add up to like a 34 billion dollar valuation. And you just like, you know, conked out. But obviously, you know, he’s being trialed for whatever fraud and whatnot. And like one of the videos where he had the, you know, the Nikola one truck in motion right in motion just meant

00:22:40:04 – 00:22:51:16
Subaan
like, you know, in motion. But the thing is the truck they rolled down a hill, but the angle, the camera. So it looked like it was going along a flat surface. That’s very deceptive, marketing, very deceptive. And that’s only one thing, right?

00:22:51:17 – 00:23:04:11
Subaan
And that’s one of the big things, because at that point, they’re they’re basically employing like, you know, we got this functioning hydrogen fuel cell truck, right? This semi truck kind of. And his working lorry, basically. But yeah, play on light.

00:23:04:15 – 00:23:15:24
Subaan
But then right now, we’d never said it was actually functional work, and we just said it was in motion, which it is is just going down a hill. But yeah, they tried covering the and everything. Yeah, so that that was one thing.

00:23:15:24 – 00:23:19:23
Subaan
So people were trying take advantage. But to be fair, what’s his name?

00:23:20:10 – 00:23:20:23
Dan
So one.

00:23:21:19 – 00:23:28:05
Subaan
Of. Nikola Motors, you can remember his name, I just erased it from my brain. Trevor Milton.

00:23:28:19 – 00:23:29:20
Dan
Mark Russell. Well.

00:23:30:03 – 00:23:43:22
Subaan
I know that’s right now. Yeah. So Trevor Milton. Even from his early companies and endeavors, like he’d always had a weird kind of shady thing, man, so I suppose it was kind of inevitable to a certain extent anyway.

00:23:43:22 – 00:23:58:15
Subaan
So that was just one example, but I think the one like the thing, the company that I’m most convinced about that there are a lot of Chinese electric car companies, Xpeng. And what’s the one that does the car battery swap site?

00:23:59:05 – 00:24:12:21
Subaan
I can’t remember, but I haven’t looked into them for a while because I’m just like, I’m just all in on Tesla, basically in terms of electric cars and stuff. So the the other one that I’m most convinced about is is Rivian, Rivian.

00:24:13:13 – 00:24:26:22
Subaan
And there’s another one. I can’t remember the name of it now. I don’t know why I’m blanking on all of them. But anyway, so there are a couple and I think it was Rivian that, you know, have some pretty, pretty good line up lucid.

00:24:27:20 – 00:24:40:05
Subaan
Lucid Motors was the other one. Lucid Motors. Yeah, that what they are saying they can produce in terms of their prototypes and stuff look really promising. But again, it comes down to actually being able to produce it at mass and stuff.

00:24:40:14 – 00:24:59:09
Subaan
You must keep saying that, you know, prototypes easy, but mass production is insanely difficult. He says that’s why he respects everyone like companies that do mass production because the logistics behind it is disgusting. Basically, when they were ramping up Model three, they learn a lot in terms of producing factories and, you know, production lines and stuff.

00:24:59:09 – 00:25:14:08
Subaan
So. And then there are a lot of new companies that are in this whole, you know, luxury electric vehicle kind of stuff like Tesla started down there in the beginning stages, but that’s a most risky, risky stage. They can actually start producing vehicles like none of these other companies that have really high valuations.

00:25:14:12 – 00:25:28:24
Subaan
Had you started producing and selling vehicles to the public market? Basically, I’m talking about these newer company, not the ones like Ford and BMW and stuff, because, you know, they’ve done stuff in that regard. But these newer ones, like they don’t have factories, they haven’t got production lines and stuff.

00:25:28:24 – 00:25:43:08
Subaan
And that’s the part that’s the make or break point anyone can make. A prototype is basically what know, Musk says. And I suppose it makes sense you can make a minimal, minimal, minimum, viable product pretty easily. But then scaling that is where all the issues come out.

00:25:43:20 – 00:25:58:08
Subaan
And that’s why Tesla have now mastered the art of creating factories, creating the machine that makes the machine that makes their product right, and making these factories to have super streamline production lines and stuff. But these production lines are also modular.

00:25:58:08 – 00:26:13:18
Subaan
That’s the thing with Tesla that’s actually insane is there’s no like Geely Model would by yearly model up. It’s just continuous if you buy, if you order a Model S, like now, but then order a Model S 33 months later, it will probably be slightly different.

00:26:13:19 – 00:26:29:00
Subaan
It’ll probably have slightly new trim or some bolts will be in different positions. And so because they iterating on the production line as soon as one improvement comes in, whether you need to cut costs or improve efficiency or something, they will make that improvement instantly, as quickly as possible on the production line.

00:26:29:05 – 00:26:41:07
Subaan
So just the next batch of cars will just be slightly different. So some people find that annoying because they can’t just buy the latest because as soon as they buy theirs, brand new couple of months down, there’s a slight iteration.

00:26:41:14 – 00:26:53:10
Subaan
It will probably be minor. And though they’ll have the big refreshes every couple of months or every, you know, every year or whatever, but they’re all those minor improves. Oh man, I wish I had the always. And it’s like, you know, with phones, right?

00:26:53:10 – 00:27:06:22
Subaan
Every year, every six months is new and better. They’re doing that with cars, whereas usually you don’t usually get that. Mm hmm. So that’s something that’s actually insane about having a mass produced production line like that and being able to iterate on the spot.

00:27:07:01 – 00:27:20:24
Subaan
It’s like. And they just listen to feedback. You know, Sandy Munro, I think I’ve mentioned him before, be like considered the like godfather of car engineering and stuff. Best consultant in that regard. And he broke down. He always break down bricks, huh?

00:27:21:06 – 00:27:34:23
Subaan
Yeah. So yeah, he was really high up in Ford. But then because they weren’t doing what he wanted to in terms of like innovating in technology and engineering and making the improvements, he says were useful in terms of making the production more efficient and engineering better and stuff.

00:27:35:04 – 00:27:47:00
Subaan
That’s why he ended up leaving aside his own consulting firm and whatnot in terms of engineering. He just break down a Model three and something like, you know, the screw. You know, this screw isn’t needed or you can change this around military like a couple of months later.

00:27:47:01 – 00:27:57:09
Subaan
That screw isn’t there, right? And then it’s like, you think, Oh, like, it’s not that much, but it’ll be one screw, right? They have to buy millions of those. So that’s obviously certain cost, even if it’s like half a penny per screw.

00:27:57:14 – 00:28:08:07
Subaan
But the storage costs, transport costs. Yeah, someone having to input another point of failure, it makes a huge difference on difference, on margins and stuff like just at that scale.

00:28:08:09 – 00:28:21:09
Dan
Imagine it’s like when you know when you are writing an essay and you have like final version, one final version to, it’s like they’re having the I bet they keep their like formula page version, but now there must be hundreds of different.

00:28:21:09 – 00:28:21:20
Dan
Yeah, it’s.

00:28:21:20 – 00:28:22:18
Subaan
Just it’s a nonstop.

00:28:22:18 – 00:28:25:14
Dan
Process. Can look at updates. 74 Yeah, we can say.

00:28:25:21 – 00:28:43:06
Subaan
It’s just because this is the whole mindset behind us is just don’t stop improving, right? Not even for a couple of months. Just just keep going. Keep. Improving on the spot, which is why it just seems, at least in my mind, I can’t see any other company like that that can overtake them, at least in the next

00:28:43:06 – 00:29:06:07
Subaan
ten years. And I suppose that another thing that’s worth mentioning that really does show off the agility of Tesla as a company and their production line, and everything is a fact about the chip shortage that the global chip shortage, you know, every single company, basically anything that requires a microchip for your fridge requires a microchip in some

00:29:06:07 – 00:29:21:02
Subaan
kind of way. Anything that runs on electricity probably has microchips ambitions, a worldwide shortage because, you know, in 2020, everyone thought the war was going to end, basically. But that didn’t happen. And then there was a massive ramp up in terms of technology usage and all of that stuff.

00:29:21:03 – 00:29:36:13
Subaan
And, you know, electric cars and stuff require a lot of electronic chips and just even, you know, internal combustion engine cars require microchips for all of the other stuff that’s in there as well. Just anything that has electricity running through it, basically.

00:29:36:23 – 00:29:57:21
Subaan
And Tesla’s still managed to come out on top and not really have to ramp down their production too much. Or they didn’t. It wasn’t too much of a fact. It was very hard for them to work around. But they have the in-house software, talent and engineering talent to the point that they could start getting microchips from other

00:29:57:21 – 00:30:12:03
Subaan
suppliers and rewrite some of their software on the fly to be able to integrate those new chips from different suppliers in different architectures on the fly and start taking those calls. And, you know, the functionality is still the same.

00:30:12:05 – 00:30:37:07
Subaan
So different chips, different architectures, different systems, they have to rewrite the software to incorporate those new chips or different types of chips to allow them to continue producing cars. Whereas other standard, you know, the classic automotive companies like Ford, GM, Chrysler, BMW, Volkswagen and everything, they don’t have that kind of talent in in their company that that

00:30:37:07 – 00:30:52:10
Subaan
software to be able to create that will change their software on the fly for these different modules that they just had, like cars lined up on their production line, not being able to complete those calls because they just needed to wait for those chips that they were always getting the same supply kind of thing.

00:30:52:15 – 00:31:05:23
Subaan
And because of the shortage, they couldn’t do that and they couldn’t really switch suppliers so easily. So that again just goes to show how flexible Tesla is and how they are just willing and they have the talent and that’s what they’re recruiting for, right to be able to fix these problems on the fly so that they don’t

00:31:05:23 – 00:31:23:20
Subaan
really have anything stopping them. So again, it’s just another point that really shows like how and that kind of point over the past couple of months throughout this massive, massive shortage of chips and stuff and how Tesla’s been able to adapt to it had really changed the sentiment on Tesla and how they just executing so well in

00:31:23:20 – 00:31:40:00
Subaan
all these other facets of the company and production of cars that other companies are now just really struggling with. So that’s just been the other change in sentiment alongside all of the delivery numbers and, you know, Q3 earnings recently, just being a beat on beat on beat upon expectations.

00:31:40:00 – 00:31:58:04
Subaan
So, yeah, just another thing. Just kind of pushing Tesla along in terms of the sentiment on Wall Street and just the general finance media as well. Be I’ll just leave the Tesla talk at that point for now. And let’s see if if Tesla’s it made any move, it seems to be settling around the one 118 to 120

00:31:58:04 – 00:32:20:03
Subaan
mark a peak of 1045 on the dot. So in terms of Tesla, in price, action has been pretty mad. So isn’t it just nice having those kind of days? But I’m not like my conviction hasn’t increased or decreased in Tesla because of this day, because I’m more just rooted in the front, like nothing’s changed about the company

00:32:20:07 – 00:32:25:10
Dan
. Yeah, as opposed to thing. Yeah, I get what you mean. You’ve always stuck to the same like guns when you talk.

00:32:25:10 – 00:32:27:00
Subaan
About being saying for a couple of years.

00:32:27:01 – 00:32:35:21
Dan
So let’s just hope it continues to rise. But I mean, I do have to go in a sec. I’m going for dinner with my mom. That’s the sort of thing you can’t be late for on a moral or like a moral level.

00:32:36:02 – 00:32:39:16
Dan
Yeah, so some things you can be like for these cards. Yeah.

00:32:40:09 – 00:32:45:21
Subaan
Um, but yeah, I mean, we had other things to talk about. I guess we would talk about them in a couple of days.

00:32:45:21 – 00:32:55:04
Dan
Yeah, I was well, I didn’t do it today, but usually I’m stressed like nine, how are we going to fill the half an hour? 40 Yeah, but it just happens. And today we didn’t even get to fill the agenda.

00:32:55:04 – 00:32:59:05
Dan
But that’s fine. I mean, like tomorrow or whatever, we’ll be able to get to talk about that stuff instead.

00:32:59:06 – 00:33:02:11
Subaan
Yeah, stocking up the rest of the episodes for 2021, basically.

00:33:02:11 – 00:33:09:10
Dan
Yeah, hopefully, as we said, by the end of the block, I want to be up to like the end of 2020 to, yeah, just 5050 more support.

00:33:09:11 – 00:33:13:16
Subaan
We’ll leave it there so you can get going to dinner and we’ll catch you next week.

00:33:14:01 – 00:33:17:11
Dan
We’ll leave it there. Peace, peace. Oh.

00:33:18:00 – 00:33:27:07
Subaan
That’s so super confusing. Sorry, bro. All right. I imagine is probably 1045. Can you imagine that it’s disgusting?