What is the story of Tesla right now?

 

What is the story of Tesla right now?

tesla is a car manufacturer first, and for the foreseeable future, they

need to continue to be successful at manufacturing cars.

And that's a platform for them to do additional amazing things.

You have a dynamic driving. They are the most advanced play player

in the world on supervised autonomous driving.

 There is a very

long term like over-the-horizon goalpost of being able to do robotaxi, which is a

much more still challenging thing to to get to

very uncertain. So and so the opportunity to develop

human humanoid robots on the on the same technology platform as FSD and these

things will take years, whichever way you look at it.

And we know Elon Musk is very impatient, wants to accelerate that momentum, but

it's going to take years. And in the meantime we also need Tesla

to see that Tesla is still going to be a very successful get manufacturers being

able over time to stabilize pricing, to continue to gain share with the products

they have in the market today and then in the next two or three years

to be able to ramp a large volume lower price points platform to continue to

grow sustainably. And all of that should deliver revenue

growth and margin expansion. And that's really like the near-term.

And the longer term is, yes, the birds and robotics.

It was a loaded question, but you did give me one sentence just without full

stops of punctuation. That's okay.

The reason I ask it is I'm trying to understand in the moment the downward

pressure on the stock. And I don't think it's got much to do

with the proxy. So of all the headlines of the last four

days, which was of most interest to upper.

Of the last few days, the most important headlines I've heard.

Well, you know, the most important thing over the last few days was actually to

digest well, the headlines of last week. And so we found like we read a Reuters

report was ready to be canceled and things like that.

And we've had, like, you know, hints and indications from Milano's and from this

chief designer that the military is putting up

concerns. And so the most important breakthrough

earlier this week was this understanding that probably what's happening to the at

best now is at best is going to prioritize designing

the things a robotaxi in Austin for now. Because anyway the mother to we'll need

to wait for Mexico to ramp in millions of units.

And Mexico is still two, three years away.

And so in the meantime, what you're seeing, only a quarter of a million

Mother TOS in Austin doesn't really help.

It's like a very, very little help. And so my my educated guess is that Elon

understood that. And so, okay, let's go all in on

Robotaxi. Let's get the platform out.

Let's have a small place on which we can try trial, test, improve the technology,

and then let's get back to the mobility to a bit later.

So hopefully next week when the company reports, we get a bit more clarity on

that. So that's why there is a big thing of

the last 48 hours. I like the fact that you give us your

reasoning, your interpretation, Pierre, give us your reasoning on whether the

stock should be down by a third so far this year.

Yes. So if you look at the potential of the

company in the long run, that's a nonsense.

Tesla makes electric cars. Electric cars remain.

I think the future of cars. And nobody owners can make electric cars

as good as Tesla and as cost efficiently.

And if anything, this gap is widening. I just took delivery of my new model

three, The Highlander. Like the progress they say is making it

doing great and very cost efficient cars is still mind blowing.

So I think it's still a very powerful companion.

The stock is vastly undervalued if it gets it's in the long run.

In terms of short term developments, I have a lot of sympathy for where the

stock is going. It has been going in the last three

months because Tesla has been hitting a wall in terms of growth, has been forced

to reduce pricing. Looks like it's finding themselves in a

situation where they were raising increasing production faster than demand

could could increase. So they have to reset the bar and it's

not going to happen over a few weeks. We still have a lot of inventories.

Pricing is still low. Demand is still not enough to

comfortably absorb the production today. So we will need some time to get this

back on track. And of course, the stock reacting to

that is the way the market works. And yes, I have sympathy for that.

Tesla is at the low point is between two growth trajectories continues to work on

longtail moonshots like the Droid in there

in Robotaxi and and in the meantime the next couple of years are going to beyears of recovery. So ahead of that, things are stillquickening. That makes sense to me, even if I woulddisagree with that blatantly with the valuation implied.