Can Tesla survive the crisis with only Shanghai Gigafactory?

[@andrasbiro3007]

Actually, Tesla is going to be just fine, in fact, it's going to grow it's market share, while everyone else will suffer and many will go bankrupt. GM and Ford are going to be the first to go down. Here are the reasons: 1. Tesla have plenty of cash to survive for a long time even with zero income. They will probably keep going at full tilt, spending money as fast as they can on innovation and production capacity. 2. Tesla is highly vertically integrated, which allows them to restart production much faster. 3. Gigafactory 3 in Shanghai has already restarted, and runs at full capacity. And Tesla is already expanding it significantly. 4. Tesla sells premium cars for more wealthy people.Those people are generally much less hurt by a recession, so they will keep buying cars. 5. Tesla has a backlog anyway, so even with less demand they are going to be fine. 6. The Model Y just came out and it targets the largest market segment in the US. Even with a fraction of the normal demand they will sell everything they make for years. 7. The Cybertruck has a 4 year long backlog. Even if most of it disappears (it won't), that's still plenty enough. 8. People don't buy Tesla for environmental reasons, they buy Tesla because those are the best cars in the world by far. 9. GM and Ford on the other hand likely see even sharper drop in demand that they saw in recent years. They also have huge debts and little profit. And Tesla is coming for their only remaining cash cow, the pickup truck. 10. Almost forgot about the energy products. Those are likely to sell even more, as there won't be money to fix the failing grid. If you want electricity, you'll have to make it yourself.

[@carloherrmann653]

Agree on all points. It is China and outstanding cash position that will be calling most of the big shots/moves in 2020.

[@cbromley562]

Good overview. Point 8 is slightly off in our case...we bought because it is a very good car, and also for environmental and sustainability reasons. We shouldn’t underestimate the impact on our health, due to fossil fuels.

[@andrasbiro3007]

@@cbromley562 Yes, the environment and health is very important, but for most people that's just a nice bonus, not the top priority when they buy a Tesla. And that's a good thing, because unfortunately it's way much harder to sell environmental protection than a good car.

[@mikeblack6953]

If Tesla has so much money (even with zero income), what was the big push to get workers back to work at the Fremont factory. Challenging the stay at home order from the area, as though he knows better than the medical professionals, sounds like somebody else we all know.

[@bujin5455]

Great video, but they don't have $10b in cash (5:10) it's more like $8.5B. I like your comment about founder CEOs at 5:41. Since Tesla operates in China, they probably saw this situation coming, and Elon well remembers how painful 2008 was, and I'm sure he wanted to avoid that. Which is why they reversed themselves after saying they weren't going to sell any stock.

[@qinby1182]

ALL large companies operate in China.... well more or less... GM build more and sell more cars in China than in the USA.

[@qinby1182]

@Ziggi Mon As usual seeking alpha FUD and word salad. Been saying TESLA will go broke for 8 years straight

[@cbromley562]

@Ziggi Mon Hello Ziggi. I see you’re trolling this site too.

[@JS-ob2xt]

6:15 is that the sound of a spoon on a plate I hear in the background?

[@Tymeshifter]

I hope people will consider the total cost of ownership and depreciation even more closely in the near future and gravitate toward Tesla. That'd be the unexpected outcome of the current crisis.

[@vvattup]

On the other hand maybe mass transit use will decline. What if people avoid mass transit and opt for individual electric mobility as protection from contagious diseases, known and unknown. Gas stations can be avoided by driving an EV. Gasoline station pump handles are a petri-dish of yuck. Tesla may do very well.

[@yahikotendo5631]

"why is it important now for Tesla to preserve cash" *Tesla donates a bunch of ventilators* "😐😐😐😐😐"

[@ignorasmus]

A "bunch" of ventilators would barely be worth a couple of those robots on the assembly lines. Those ventilators will end up saving lives of a several bunches of potential buyers or investors. Even if the benefactors do not end up supporting Tesla directly or indirectly, helping out in the time of global crisis is still the right thing to do.

[@GroovyVideo2]

Tesla is going to do Well - Home Energy products will sell even better now - Being able to Fill Up car at home Importance will be visible once gas stations start closing down - Adding in Solar Roof makes since and will add to sales - Tesla products will clearly make people safer - This will help Solar panel industry in general - Knowing you have electricity is Good feeling - I have solar for 4 years - wrote this post using photons from the sun - Nice

[@qinby1182]

Well apart from the fact TESLA have 8.5 billion in cash and a 3 billion credit line, Shanghai factory financed. Q1 TESLA will have produced around 95.000 cars, 2nd 3rd best quarter EVER, a YoY increase of 23% If TESLA are closed for 1 month in Q2 the Q2 numbers will be around the 100.000 number anyway. The question is if demand gets hit, this nobody knows although TESLA did have a large backlog so it should be much better of than ANY other auto manufacturer. My guess is the result of this is just slowing down expansion by 3-6 months but it all comes down to if sales take a hit, auto sales are down 30%-40% in march...

[@carloherrmann653]

What could the effect on Tesla stock price this coming week ... dip (to $450) or another unexplained surge!!

[@pebre79]

Tesla was battery constrained to begin with, so maybe the drop in demand wont hurt too much. Well have to see q3 and q4 numbers. Time will tell

[@ColinGregg13]

Another great episode. 👍

[@fundingsecured7072]

great video and thank you for being nun-biased.

[@jedidjakor]

Better days coming soon.

[@jedidjakor]

Also, I would like to add that i find your work impressive. Well done and thank you for sharing.

[@andrasbiro3007]

@Ziggi Mon Not really. Ford is cutting their electric car program, because they don't have money. Audi likely will be in similar situation. Also Tesla makes far better electric cars than anyone else.

[@gazlives]

Tesla in a precarious position? you are clueless. this is a massive opportunity to increase market share. duh!

[@testbild9652]

additionally Giga Berlin is still being build...

[@mikeblack6953]

Oh sure, the Shanghai factory will keep his cash flowing. It will make more cars than the U.S factory and have more buyers, although Tesla may be looking at quality issues with a hastily built factory with new workers and a new battery cell supplier.

[@MiyuruWeerarathna]

Seriously? Even Ferrari, Fiat, Land Rover factories are shutting down. And you’re just overtraining this issue with Tesla stuff shutting down. Wow.

[@jerry3790]

Because this is a Elon/Space/Tesla focused channel

[@hornetluca]

0:47 That's _Superga_ in Turin. A couple of km where I live 👍🏻

[@KrustyKlown]

Tesla will be FINE, since they reloaded TONS of FREE cash with a secondary sold at $760 a share!!.. just before stock lost 1/2 its value, brilliant!

[@kylecramer8489]

Good topic 👍

[@kofManKan]

Cash is king? Not really. BAILOUTs man, they're all the rage.

[@samuelgomola9097]

I see one issue here, it will be biggest global crisis but it is in controlled manner. As soon as we overcome novel coronavirus we should increase economy very fast. Like now we switching off and after some time we turm the switch on. Also this is called by specialists V type of crisis, steep decrease some time in low mode and after that steep increase to pre-crisis level. Governments around the world trying to help small and medium businesses to prevent unemployment.

[@georgestewart8414]

You don't see Tesla's cars sitting outside in large parking spaces waiting for buyers.

[@kulkarniprabhanjan]

In Recent G20 video summit Indian PM Modi said it is very important to keep people in the center of this crisis and ita resolution. What is important the Tesla engineers or Tesla Quarter profit/loss etc?

[@yggdrasil9039]

All automakers are going to suffer for the reasons you state. The difference with Tesla is that they don't have the kinds of debt levels that the legacy auto makers have. Toyota, VW, Ford and GM all have massive debt.

[@Benoit-Pierre]

0:44 : LOL. Your graph shows a large part for Germany. «France » ? Sorry ? How do you spell that word ?

[@TheRoadfarmer]

I must have missed the other videos where you were wondering if GM Ford and others would survive this economic slow down.... Just another bash Tesla video from you. We get it. You hate Elon

[@JasonPurkiss]

Thanks for answering one of my burning questions :) I dont even own a Tesla but if Corona messes this up for us all i will be most sad :(

[@jedidjakor]

Jason Purkiss bought some more today. It was a bargain :-)

[@AshikJonathan]

tesla's seen so much you can't do this can't do that sayings

[@chadleach6009]

It will be worse when Shanghai closes again.

[@elliottcarson1248]

Why? China will probably be first to recover.

[@chadleach6009]

@@elliottcarson1248 why would they be? China is the epicenter for where the virus formed and it took the ccp months before any action was taken. If the virus was able to spread around the globe in those months then is most likely has spread to every nook and cranny of china as well.

[@papercrease7308]

@@chadleach6009 months? Your mistaken the western world for China right? "If the virus was able to spread around the globe in those months then is most likely has spread to every nook and cranny of china as well." Unlike "the globe", China did lockdown the city when number was still low and test people then isolated them. Lower R0 change A LOT

[@chadleach6009]

@@papercrease7308 We have evidence from early November of an extensive outbreak in Wuhan China, no action was taken by China until late December and early January. Not only did the ccp cause the virus but due to their bungling of it's containment it was allowed to spread around the globe. The big question is how many are dead or dying under the rule of a communist regime the tried to cover up this whole thing to begin with.

[@natsidruk86]

What do you mean 250 000 cars per year if they make 5000 a week. 5000 a week for 52 weeks will be over 1 million

[@tarakhossain9320]

Nope it will be 260,000

[@abcdxx1059]

Newtown spotted 😒🤦

[@natsidruk86]

@@abcdxx1059 why don't you lecture us then

[@rsmadhu1]

Wrong time at wrong place

[@tananga1523]

Every company should leave China as soon as possible

[@paulweninger8018]

why?

[@swaggery]

@@paulweninger8018 Bad for business. On top of the well known issue of intellectual property theft, their lies has greatly contributed towards crashing the global economy. Expect their to be minority of angry consumers for anybody that does business there. And other governments may penalize any company that does business over there soon until there are major reforms by the CCP.

[@andrasbiro3007]

Except China is still the biggest market in the world, and growing. 5x bigger population than the US. Maybe it's no longer worth manufacturing there for export, but serving the local market locally is still a good idea.

[@andrasbiro3007]

@@swaggery That's called racism. Yes, china could have handled the outbreak better, but they still did far better than many other countries, including the US of fucking A. Do you remember how Trump handled the problem only a few weeks ago? He said it's a hoax, and it won't affect the country. That could have been just the usual stupidity, but now we know from leaked documents that they knew very well how serious the virus is and choose to lie about it. Meanwhile republican senators started selling their stocks. And if there's a country badly needing radical reforms, that's the US.

[@wifine1951]

Short term thinking with a company with long term thinking. Useless video

[@134kramanikraje6]

Make vid on fuel cell vehicles

[@staph8022]

Kramanik Raje waste of time... dont do it

[@SixDasher]

Dead end technology

[@preethamani7833]

First comment!

[@LeoN-wc9od]

Tesla might want to say goodbye to Shanghai factory. Not so in a distant future, CCP will nationalize it.

[@andrasbiro3007]

Not going to happen. China needs the knowhow Tesla brings to the country much more than the factory itself. Anything they can steel from Tesla will be deprecated before they can use it.

[@izoyt]

who in the world would buy stocks of the company which doesn't make any profit for years?

[@jamespollock11]

Uh...people who became rich buying Amazon stock shares, which bottomed at $5.

[@andrasbiro3007]

Those who look forward instead of backward. ark-invest.com/research/tesla-price-target

[@nunobartolo2908]

Let’s face it Teslas are just toys

[@andrasbiro3007]

Or in reality they are the best cars you can buy.

[@Walterp60]

Fastest, most economical, fun to drive, easiest, safest, quietest, car I've ever driven. And doesn't pollute the streets my children walk along.

[@sukhmaidickoff]

When will Tesla Motors begin to earn money? Next year? The year after that? Or do we have to wait even one more year after that? What is the company´s accumulated income deficit over the last 5 years? 5-6 bill. USD? So they made a 5-6 bill. USD deficit over a time span where there weren´t even any real competitors to Teslas cars? Good luck Tesla, when GM, VW, Mercedes and Toyota start bringing electric cars on the market in a larger scale, your deficits will become even bigger. I just cannot believe that people can´t see how deeply overrated this company is - and it is only because of the charisma of Elon Musk that people get fooled by this.

[@yisabc1]

ok a lot of the reasons they didnt make money were due to huge , expensive investments in building the factories which they now have. their model 3 launched only a year or two ago. and now their model y just launched which should be very sucessfull.

[@andrasbiro3007]

You are regurgitating talking points from several years ago. At least try to be fresh. 1. Tesla has over $8B in cash and just started to be profitable. "Income deficit" is not a thing. 2. Tesla spent a metric fuckton of money on factories, infrastructure and innovation. Right now they are building two new Gigafactories and a third one is coming soon. 3. The so called competition is coming for years, but never seems to actually arrive. According to all experts Tesla is at least 5 years ahead of anyone else. And look at the production volumes. Tesla built 360,000 cars last year, and planned over 500K for this year. Nobody else even plans to build EVs on that scale for several years. 4. Ford and GM are likely to go bankrupt this year. They were in bad shape even before the recession. Even the CEO of Volkswagen admits that they are far behind Tesla. Toyota doesn't even believe in electric cars. kzbin.info/www/bejne/Y5-yi4WKepxoq6M They are already dead. 5. The Model Y just came out with cutting edge manufacturing technologies. And the Cybertruck will be even more advanced. 6. Actually there's only one true car manufacturer, and that's Tesla. Everyone else outsourced almost everything, and pretty much just doing final assembly. That was a good strategy 20 years ago, but now it's a huge flaw. 7. Tesla is far more than just a car company. They also make solar panels, batteries (for homes, businesses and even utilities), and most importantly, software. Do you have any idea how much full self driving technology worth? Trillions easily. And Tesla has way over 5 year lead in this. Plus they are close to having 1 million cars with full self driving hardware built in. When the software is ready, they push it out with an over-the-air update, and instantly have 1 million robotaxies. Btw. still only Tesla can update their cars remotely.