One Alternative to Tesla Going Private [live]

One Alternative to Tesla Going Private [live]


(groovy music) – Hello and welcome everyone
to Teslanomics live. This is the show where
we break down the latest Tesla news for you from
the week that has past. We do it live because,
well, as you’ll see today, and as you see most Monday’s, there’s some big stuff
that usually comes out just before we get started. And that is no different today. So, we’ll run through this and
we’ll run through the news, and then we’ll jump into a Q&A on the end, which is hosted on Crowdcast. That’s just a different platform which has a really cool voting feature on the questions. And we limit it so that
way the questions don’t get out of hand. So, if you wanna be a part of that, if you wanna join the community
and really participate in these discussions at
the end, the Q&A section, go get on our email list
at teslanomics.co/join. And then on Monday’s,
before we do the live show we’ll actually send out an
invite and then you’ll be in. So, without further ado,
let’s just right in. And the first thing I
actually wanna mention just before we go too
far is that we only got two days left in the
giveaway for my signature black wall connector from Tesla. So, I won this from the referral program. It has Elon’s signature etched on it, and it is matte black. This isn’t something that you can buy. This isn’t something that is available for purchase anywhere else. Because, I don’t know,
I just don’t need it in my garage, and I think
it’d be fun to give it to one of you. I am raffling it off here. And so, it doesn’t cost anything to enter. You will be responsible for shipping. And it is kind of a big box that’s heavy, so just keep that in mind. But also, you know, this
thing is normally $500 bucks, the version that isn’t
the etched black one. And the one I have is
the 24 foot long cable. So, go check it out. Enter to win. All you have to do is
subscribe on YouTube. And if you already are a
subscriber, that’s fine. Just go ahead there and click the button, and do the thing. The main way that you can
win is by referring friends. And so what you do is you get a link after you sign up for this, and then you will be able
to have other people sign up using that link. And then you get triple the entries for every person that enters. Then they get a link as
well, et cetera, et cetera. So, go check it out. You can enter to win this
signature black wall connector at teslanomics.co/bwc. And, two days left, so next
Monday I’ll be announcing the winning, and good luck. Okay, so obviously the biggest story, if you haven’t heard, is
about Tesla going private. And there is so much to unpack here, and this is gonna be
pretty much the majority of our show today. But, I just wanna kind of run through the events that’s have
occurred, where we’re at today, and then kind of give you some other ideas and some other thoughts
that I have about that. Okay, so first in this
letter that Elon posted on the Tesla blog here on tesla.com/blog, he made some good about the
idea behind going private. And let me just recap what
that is essentially for you. So, when you go public
you essentially allow retail investors and
institutional investors, basically people that aren’t a part of your company to buy ownership, shares, percentages of your company’s assets. And then as your company
does well and those assets with the value of them improve, you also make money. All right, that’s the general idea. And with that, because you are now essentially taking in
outside money from people that don’t have any
insight to what’s going on internally in the company,
what your strategy is, they only, they’re essentially outsiders, there are lots of laws
in the U.S. that try to protect them from any kind of nefarious or malicious intent, or kind of scams or anything like that. So, when you’re a public
company you are beholden to a whole set of regulations
that you wouldn’t be beholden to if you were
a privately held company. So, there are a lot of very
large privately held companies. The ones that you probably
wouldn’t normally think of. And so Elon kind of highlighted that in this piece when he said, “Being a publicly traded company “can be a major distraction.” so there’s kind of, the
way I think of it is there’s a lot of overhead when it comes to being a public company. You have to have earnings calls, and there’s a lot more accounting stuff you have to go through. And you need auditors, and you need other compliance measures. I mean, things that you
probably wouldn’t even think of. If you’re familiar at all there’s a thing called Sarbanes Oxley, which effects your IT department almost by doubling the
amount of people you need. For example, in a small company
that maybe just a start-up or whatever, and definitely
not publicly held or anything like that,
you can have somebody that writes code for your software, for your app, for your
website, or whatever, also be the person that deploys that code, and actually puts it into
production so other people can see it and use it. Well, if you are public
company and you are adhering to this Sarbanes Oxley regulations, then those have to be separate people. Because, there is the
idea that maybe the person writing the code can
manipulate the software, whatever the other products are, and without any other checks and balances, which could then hurt the company. Which would the hurt
your outside investors. Remember, these laws are there to protect people from internal bad
practices, let’s say. So, he’s very true, he’s
correct when he’s saying it’s a major distraction. There is a lot of additional things that you have to take into account. Elon goes on to state that it subjects the company to quarterly earnings cycle, thereby compromising long term strategy. And finally, as Tesla is the
most shorted stock of all time, being public makes them
the target of attack. And yeah, that’s very true. You can see on this page here essentially, let me zoom in a little bit. The amount of folks, the short interest, so a short interest the way, I won’t get into how it exactly works, but you’re essentially
betting against the company because when the stock price goes down, you can then call that and make money on the kind of the profit,
the difference there. The amount that you put
your short interest at versus what you sold it at. And so, if that goes down, you make money. If it goes up you lose money. And so, this was one of the things, so essentially what he’s
saying, and he’s very correct, that people have, and this
according to Investopedia here, over eight billion dollars
invested against Tesla, hoping that Tesla fails. And so these folks that have that money have a very large financial interest in seeing them fail. I won’t get into where that comes from and all those kind of things. It doesn’t matter. The point is that there
are people out there with a lot of money and a lot of power that want Tesla to fail. Now, if you’re a privately held company, they may still want you to fail, but they aren’t betting against
you in a financial manner. So, it kind of changes that relationship. It changes that dynamic. The big oil companies
may lobby against you, things like that, whatever. But, in any regard they’re not gonna like be out money. So, I guess the intensity of it, they don’t have any skin in the game in that sense. So, there’s that. There’s that to consider. So, the next thing that I thought of when I was digging into this, is that it reminded me of
an email that Elon had sent to Space X employees about
taking the company public. And I’m just gonna read the
first paragraph of this because, and if you didn’t know, Space X, one of Elon’s other companies,
is not a public company. This was in June of 2013
when Elon sent something to everyone at the company. He said, “Per my recent comments, “I am increasingly concerned
about Space X going public “before the Mars Transport
System is in place. “Creating the technology
needed to establish “life on Mars is and has
been the fundamental goal “of Space X. “If being a public company
diminishes that likelihood “then we should not do
so until Mars is secure. “This is something that I
am open to reconsidering, “but given my experiences
with Tesla and Solar City,” ’cause if you remember, he was
on the board of Solar City. “I am hesitant to foist
being public on Space x, “especially given the long
term nature of our mission.” So, that’s kind of the same idea here that with Tesla they are in a
kind of a long term strategy. They wanna transition us
to more sustainable forms of energy, which isn’t
something that happens in a quarterly cycle. So, what if they went public, what if they went private? So, here is another
article from Investopedia, which is pretty good. I’ll like to all these down there. And this guy Jake Frankenfield
said that acquisition can create significant financial gain for shareholders and CEOs
while the reduced regulatory and reporting requirements
private companies face can free up time and money
to focus on long term goals. So, that makes sense, right. That’s exactly what Elon’s looking for is more focus on the long term, less of these distractions,
less of these requirements, as well as it can actually
make it profitable for a lot of folks. Now, in the piece he went
on to lay out exactly how this may happen, or
what they’ve stated so far. And there’s four points here. The first one is that
shareholders would have the option to stay investors, or be
bought out at $420 per share, which is a 20% premium
over the Q2 earnings amount when the bell rand for Q2. This second point is
that all Tesla employees would remain shareholders
with the right and ability to sell shares and exercise their options. The third point, Tesla
and Space X would remain separate entities, but
Tesla’s structure would look very similar to that of Space X, and shareholders and employee shareholders would have the option to buy
or sell stock every six months. Now, Elon, his stake in
the company would remain pretty much the same. He owns 20% now, and that
would remain the same after this move. One thing to note about that too, and Elon has talked
about this a little bit, is that the number people
are pointing out there $70 billion, how much it would
actually cost to buy Tesla at $420, that’s assuming that everyone would sell their shares. But, if all employees are remaining and probably a large
chunk of retail investors, non-employees, are remaining,
and the big investors, the institutional guys, them as well, and Elon, the number really dwindles down. I mean, Elon has 20% already, so boom you’re down 20% from that. And then everyone else, I mean who knows, maybe you’re down 60, 70%. So, the actually amount
of money it would take to buy them out is far less
than it may seem on the surface. And that was an interesting
point that I wanted to mention because you’ll see these
headline numbers out there. And I don’t think anyone
has an exact figure yet because you don’t know who
would keep their shares and who wouldn’t. But, it’s certainly, there’s
gonna be folks who wanna make it more bombastic, more sensational than it really is. Now, the question, the
immediate analogy in my head was about having see this before. And so there is definitely
a parallel here with Dell. And if you’re not familiar,
Dell, they make computers, and servers, all kinds
of stuff, cloud storage, and all these different things. Michael Dell himself
is a similar character kind of like Elon that
is extremely successful, very, very early billionaire
I think in his 20s. So, anyways, they went public back in, I mean jeez, I don’t even know when they went public originally. But, they went private in October 2013 at 24.9 billion, so just about 25 billion. Then, they went public again
five years later in July of this year. And they’re now valued
between 61 and 70 billion. So, within those five years they doubled, almost tripled the value of the company. Which sounds great, right. They were able to do
exactly what Elon said that he wants to do with Tesla, which was to focus more on the long term, get rid of some of these
distractions, grow. Now, the fascinating thing
is that there was a study out recently which
looked at the tax returns and operating performance
of more than 300 companies that had gone private
between 1995 and 2007. The authors of the
study then compared them to a carefully selected
sample of similar companies that had remained public. On average over the three
years after going private, the private companies performed no better than the public ones. Why might private companies
not have outperformed comparable public ones? We can only speculate of course, but one theory which traced
to a now famous 1986 article by Michael Jensen, now
an emeritus professor at Harvard Business School, is that being a public company
imposes a helpful discipline. Without that, he argued,
companies might foolishly invest in projects at
below the cost of capital. So, I wanted to bring that up. And that was a quote from
that first piece there on Market Watch. And the thing that is
interesting to me about this is that I think that’s
okay if the company, if Tesla goes private, and
then three years later, five years later, they go public again. Which Elon has stated that
when they’re in a more mature phase of their company
that that might make sense. If they do that, and they basically would
have performed the same as a public company in that timeframe, I think that’s a win. Because it probably means
that they also were able to achieve much more in
terms of their goals, and get further along this
path of transitioning us to a more sustainable form of energy. And so if they’re able to
do that and basically lose zero value, don’t get behind, versus what it would have been publicly, then I think that’s a win for them. So, this definitely
makes me favor this idea. Now, Elon this morning
posted another update on the Tesla blog about the
idea of taking Tesla private. And the thing, I’ll
bullet point it for you, but, and I’ll put a link
to it if you guys haven’t read it already. The biggest things I got
outta here because apparently there were reports that Elon
after tweeting funding secured, about the actual buy
out, when he did that, he may have crossed a
line and broken a law because he didn’t notify the
board in advance, et cetera. And there were all these
kind of different things. And he goes into detail
in this post about that. The main thing I got
out of it was that the funding comes from Saudi Arabia. Now, they have more than enough money to buy out Tesla, as you could imagine. And they themselves are
looking to switch away from their dependence on oil, which obviously has been ginormous, and is essentially where
the majority of the oil in the world comes from. However, having a singular buyer like that and then having them, of
course they would want seats on the board. And they would want more
influence on the company. A lot of that stuff to me is concerning. It certainly should be, and
nothing to do with Saudi Arabia specifically, but just the fact
that you would only have one purchaser here instead of
having several which then could give you varied opinions, varied interests that would compete, and seemingly give you the best result. So, definitely just having
that is a bit of a concern. And one of the things that was interesting is that Elon actually said
that going back almost two years, the Saudi Arabian
Sovereign Wealth Fund has approached me multiple times
about taking Tesla private. They first met with me
at the beginning of 2017 to express this interest
because of the important need to diversify away from oil. They then held several
additional meetings with me over the next year to
reiterate this interest, and tried to move forward with
it going private transaction. Obviously the Saudi
Sovereign Fund has more than enough capital needed to
execute on such a transaction. So, yeah, I mean, this
is crazy and interesting. I’m not sure how I feel about it. I am just more concerned
that you would have just a single buyer versus a myriad of them, or different investment
funds, things like that. I don’t know what the
interests are, those things. Obviously Elon seems to
think that it’s a good idea, otherwise he wouldn’t ne
publicly stating these things. Yeah, you know, all of this
leads me to think though that there might be another option. And I don’t know how real this is yet, but I wanted to bring
this up because I think this is something that we
should have in our ethos when we think about companies doing this. Because I do think it’s
noble what they companies are trying to do when they
are trying to go private. I think it makes a lot of sense. This is the long term stock exchange. And if you’ve not heard of this, that’s totally fine because
it’s not that big yet. I think it’s just barely growing. I don’t even know how far along they are. But this was found, excuse me, this was founded by Eric Ries, who if you’re a start up, a tech person, you definitely know as the
author of The Lean Startup, sort of like a gospel
for a lot of companies in the last five or six years. And the idea behind this
long term stock exchange is essentially what Elon wants, and what I think a lot of folks want. Is that the problem with the
market as we know it today is it forces companies
into being short sited. This is why there are things
like layoffs every quarter at some companies, where it’s
kind of standard procedure. Oh, we need to make our quarterly goals. Let’s just lay off 10,000
people, ruin peoples lives, decimate a town, I don’t care, as long as I get more money
and I get fatter and richer. That’s kind of the really negative side of what the quarterly reporting and quarterly cycles look like. And so, the idea behind he
long term stock exchange is to kind of get rid of all that. And they, if I’ve got it correctly, operate essentially on a 10 year cycle. So, there are kind of
some main points here and on this post on
medium one of the folks, a manager here, Lydia
Dal goes through this. And I’ll just kind of talk
a little bit about them. One is that there’s long term voting. And the idea here is that
long term shareholders should have a greater day
in corporate governance than short term shareholders, right. Makes a whole lot of sense. So, as the company runs
through the 10 year reporting cycle essentially. They’ll have a greater interest in it than if they were just on a quarterly. Or they can buy or sell at any time. They also have long term disclosures, so companies should be
evaluated on progress against their long term strategy. Long term investors should
have the information they need to make this evaluation. Then they go on to say
that the compensation should also be based on long term. Let me see here. Long term executive
compensation, there you go. Executive compensation
should be aligned with the company’s long term performance again. We’re looking at the 10 year span, not the quarterly one,
which we kind of have now. Which is very common for
executive compensation to have quarterly or annual goals. The long term board, so the company’s board of directors should
have explicit oversight of the long term strategy and performance, directors compensation should be aligned with long term performance. And we have long term stakeholders. So, long term focused
companies should consider a broader group of stakeholders. So, I’ll put this link in there. If you wanna dig in deeper
this is as I mentioned the long term stock exchange. This to me is one interesting alternative that if Elon hasn’t seen yet, I would encourage them to
do so, do their diligence, see if it makes sense. I have no stake in this at all, other than I think that
they would be great for this kind of thing to exist. I’m just not sure if this is the right one or something else. But, I love where this is going. I love this idea. Now, the stock as of right
now is up just a little bit on the day. Still up quite a bit from the end of Q2. And so we’ll see how
this plays out long term. So, let me know what you
guys think about that. I think that there’s a big
opportunity there for folks in this space in the long
term stock exchange idea to help a lot of companies get
away from those distractions, focus on long term goals, create a healthier economy honestly, that isn’t so short sighted
in what their thoughts are. So, let me know that you
guys think about that. And yeah, hang on to your butts
’cause it’s gonna be a ride. Okay, next thing I wanna talk about, this is a big one. This may change things here
on the channel some time soon. I’m not sure when, but I’ve
been thinking about this for a long time. I wanna help people, right. So, if you don’t know, my
background is in data science. I’ve spent about 20 years
working in the field before I started doing other things. So, those other things
were in fact teaching data science online. You can go on pluralsite.com, or Lynda.com, which is
now LinkedIn Learning, and in you can find, I
have 26 online courses on all kinds of different
things related to data science. Whether it be programming
in a specific language to analyzing different
stuff in big data systems, to just creating big presentations that use data to tell a story. All these kind of different things. So, that was really my focus
before I started the channel here at Teslanomics. This all came about because I loved Tesla and I was doing some data analysis on it, and that seemed to work. You guys seemed to enjoy
my perspective on things which is routed in data science. And I use the term data
science in the broadest sense of the field of work, not
necessarily like a specific role, like a data scientist
doing a specific thing. But, the broad sense of
using data to gain insights into something and make better decisions, and effect change. So, I did those courses
for those companies, and they worked well. It was great. I have literally like five
to seven thousand people taking my courses every single month. And those have generated a good amount of residual income for me. They’ve given me a lot of
freedom here to do this stuff. But, I’ve come to point where
I want to do more with that. I want to help people actually
get a job in data science. Because, what I see out
there, what I see when I look at data science training and
all these different locations, isn’t something that I am satisfied with that it will actually get you that job. I think that there’s a lot
of skill based training, things that teach you a
specific skill that you want, but I haven’t found
something that actually gives you an idea about
what skills are necessary, and which ones you really should focus on, and which ones are maybe
a little bit niche, and you may like, and may work, but not necessarily core. And then once you get that job, how do you actually succeed? What is it like to work
in a data organization because every company
out there, literally, this is like their biggest priority is growing their data
organization, their use of data, because they know by using
data to make better decisions they can make their customers happier. They can change the world. They can achieve their goals, which then in turn give
you great financial rewards and stuff. So, I’m doing a thing, I’m calling it the Free the Data Academy. And this is something that
I wanna share with you guys. I realize not everyone is
gonna be interested in this. But, it’s essentially a new academy where I’ll have online courses to help you get a job in
the data science field. You may not be a data scientist, you may not have a specific role yet, you may not even know where you wanna go. But, I wanna help you get
there because I have had an amazing, rewarding
career with all kinds of fun stuff and stories, and things that I’m gonna
share with you guys. So, that’s what I’m announcing today. I don’t know what it
means for this channel. Now, I’m just gonna keep
doing what I’m doing with he Teslanomics stuff. I love it. I know you guys love. So, don’t worry that things are gonna change dramatically overnight. But down the road, I may throw
some of this content in here, or I may create a new channel. I’m not quite sure yet. You can, if you’re interested in this, you can go of ftdacademy.com
right now and register. You can see the little video
here that I put together about, goes into kind of more
detail about the idea, talks about my experience and
what I want to do for you, and how I want to help you get there. And you can just register
here so when the course, our first course does go live, you will get the first
two module for free, no question asked. I just think that it’s
something that I’m guessing a lot of you guys are maybe interested in, or maybe you’re already on this path. And so, I want to share it here. You know, I don’t wanna take
away too much from the Tesla stuff I do, but I do think it’s relevant. And so, if you’re into
it, go to ftdacademy.com, register, and then soon-ish, a few weeks, maybe a month or two depending
on how everything else goes, you’ll hear a lot more about it. And I’ll bring it up on the
channel from time to time. So, hope you guys are interested in that. I’m super excited about doing it. I just really kind of got this
bug the past couple weeks, and it’s something I literally
just was gushing with information and stuff that
I wanted to write down, ’cause I wanna share it with you. And I know it’s valuable. I know that you can have a
great career in data science if you want it. And this is the idea behind this course. Ftdacademy.com, go check it out. And let me know what you guys think in the comments below. Hit me up on Twitter, wherever
you prefer to chat with me. All right, back to the Tesla stuff. The next story is interesting. This was Clay McDonald asked Elon, for those of us waiting
for the standard battery where we have all wheel drive as an option to where the Tesla main account
actually responded, yes. So, there you have it. Awesome. One question, does Elon
actually man the Tesla account? Is that what I learned from this? I’m not quite sure, but okay. And so I did update the calculator here. And I wanted to give you a way to do that. So, if you’re unfamiliar,
I have a calculator on Teslanomics.co. You just go to the calculator section, and then go to Model 3 cost calculator. I know that this isn’t fully updated. You guys have been emailing me and I’ve been trying to do it. They keep changing the options and how their configuration works. So, it’s been really hard to keep up. And also, obviously I
have all the other videos and everything else I’m doing. So, here if you wanted to, you could go and you could
see what the price would be and how it would work out. So, you have the standard
you would choose for the car, then you would choose all wheel drive. You can choose the other
options, or whatever you want. Now, it’s kind of, it’s
not fool proof right now. So, for example, you could
choose the performance package and not the performance model, et cetera. So just be cognizant of what you do. You can definitely get
erroneous results here. But then you scroll down, I did add, there’s solid black. I did add obsidian black,
and I undated the prices here to match the new pricing of the paint if you guys are unfamiliar. They’ve increased that. I feel like that’s an
incentive to buy sooner. So, here you can see. It also uses, it should
localize your tax rate and your currency. It may not be perfect but
you can just adjust those numbers if it’s not right. So, with this prices out
using the solid black I’m looking at $40,000,
kind of base price. Tax is $3,300, fees $1,000, so $44,300. I just punched some basic
loan figures for you. Five years, 3.25%, with
a $2,500 down payment. Then you go through and
enter your driving habits, what your commute is like each way. And, I’m sorry, total, and
your price per kilowatt hour, this is also defaulted for
folks in the U.S. I believe. I don’t know if I have it for
the other countries or not. But, you can just punch it in there, and then you choose how you drive because this does effect your efficiency. And then you multiply
those things to figure out essentially what it’s like. Then you have your insurance, and then of course in the incentives. Now the incentives, now you’ll notice, don’t actually subtract the cost in terms of the monthly payment, because you’ll still have to finance it. But the final price will be reduced. So, just how that works, right, ’cause at least I haven’t
seen any incentives for Teslas that reduced
the purchase price. Because otherwise you
still have to finance it and then you still have to pay for it. So, then you click see results. You can sign up for the
email list if you want to, if not you’re fine. But then, there you have it, essentially what it would cost. This is the base model, solid black, no added upgrades, anything like that, $35,000 plus all wheel drive, the $5,000, and there you go. Using these parameters
it’d be $935 a month. You can extend that loan amount and kind of recalculate that if you want. And this tells you your
monthly cost estimate, your charging cost, your insurance, your total monthly cost. The actual loan payment would be $755, but the charging and
insurance added up to $935. So, that’s kind of the break down there. I updated that. I still do need to fix and
add in some other options, like I don’t have white interior on here. But that will be coming. I’ve got some other stuff going on, and so I’ll get to it soon. I will, but it’s just a
matter of finding the time. Cool, let me know what
you guys think about that. I hope it’s helpful. I hope you, and let me
know if you actually are gonna do that. By the way, I do have
data now of 71,000 people, in fact let me just show this here. I think I can just bring
it over to this screen and show it. Yeah, let’s do that, okay. Cool, let’s try this. So, I was crunching the data just before, and I was hoping to present it, but whatever, here you go. So, on that calculator I
log whatever you selected. I don’t log any personally
identifiable information or anything like that. But, it does log what your choices were. And so to date this
is, after 71,000 people have actually used that
we’re at 66% said long range, and 33.78% said standard
for the battery size. So, there you go. And I’ll kind of continue to do this out. I’ll probably do a full video on it, but I just wanted to share
what I did find there. And then for color, 38.33% say black, which is, I need to update these labels, but that’s the solid black,
not the new obsidian black. Then white and then
midnight, blah, blah, blah, all the way down to silver
being the least popular one. Which I actually kind of like. Kim’s Model 3 that she
has with the satin wrap and all that looks pretty stellar. So, anyways, I’ll present
more of this data here, but I mean we go 71,000 results to analyze of people configuring their
Model 3 with the calculator. So, cool data to churn through, yeah. So, stay tuned for more on that coming up. Next we have some tweets from Tesla, and I thought this was
kind of an interesting one. This was that 99% of the U.S. population is now within 150 miles
of a super charger, which is great because literally
every car should be able to go that far if it were charged up. And then, you know, you
have the super charger map which is great. If you guys haven’t seen
this I’ll put a link to it. You can go actually
find them, plan routes. I think it’s tesla.com/trips. Yep, you can actually plan this out and do stuff like that. You can choose your car
and see exactly how far it would go, where you’d stop, et cetera. So this is pretty cool. They’re really upping
their game in this front. And I just wanted to bring up some data that I actually put together
recently about this. And this was the growth of
the super charger network to kind of support this. And you can see that this
is the number of stalls has just been growing
really, really at a fast clip the past couple years. And then you can actually forecast it out, which is what I did here. You can kind of see the confidence bands and all those kind of things, and what the trend lines are. And then adding all that data in, you can essentially calculate
how much you’d have total. And it’s about double. So, it does appear that
they would likely double it within another year. So, this is just growing a tremendously, and you can kind of see. So, this little map and everything, I’ll put a link to it
down in the description if you’re curious about the growth, about my forecast model,
about how I came up that, any of those things. As always, links are in the description. Okay, last little bit
before we move to the Q&A, which I thought was interesting was this little thing about
Teslas that have been stolen have almost all been recovered. And there’s a little graph here, which I thought was quite interesting. And this makes a lot of sense. And it’s one of those things
where people would say, ’cause there were some reports
about Teslas getting stolen, and oh my God, this and that. Now, I will say that I do
suspect with the Model 3 that more and more people are gonna have their car burglarized. Like people are gonna steal
stuff from inside of it because the door is gonna be unlocked because the damn app doesn’t work. So you have to use the keycard. And if you forget the keycard, you have to lock the car. If you just walk away it won’t lock if you used the keycard to open it. So, I would not be suspect, now stealing it, these things have GPS. It’s pretty dang hard to
steal it and get away with it. So, interesting data, so I guess you know, you should I guess feel safe
that you’ll get your car back. I mean, I don’t know, maybe at this point if you get your car stolen you
probably don’t want it back. Yeah, who knows? Okay, so that wraps up the news for today. What I’m gonna do next
is hop over to Crowdcast. Actually no, I take it back. I’m gonna hop over to
Patreon and go through some of the questions. So, if you are on Crowdcast
and you want to ask a question, now would be the time. And I’m just gonna refresh Patreon, and then we’ll go right over to that. Okay, I think we are good. Let’s do it. (mouse clicking) Okay, first question from Chamburn, hello, the Gigafactory 1
is quite big even at it’s current state, which is not fully build. Why is it that the top is blank, without any markings such
as Tesla or Gigafactory. Also, where are the solar panels? When can we expect the Terafactory? Yeah, great question. I’m not quite sure why. It probably not gonna paint it
because when you’re painting something that big, it
costs a lot of money, and yeah, I believe
they are gonna cover it with solar panels, yeah,
why would they paint it to do that? That’s my guess. Thanks for the question. Next one, what happens after Tesla makes the Model S sexy, any other thing that
Tesla might venture into like heavy machinery, boats, or planes. Yeah, I think boats would
be an interesting one. I also think, I don’t know
about heavy machinery, but like construction equipment. I could see that. That would be really cool, ’cause there’s a huge market there. I don’t know about planes. I think planes, the
energy density batteries, and the weight ratio,
it’s not good enough yet. So, there you go. That’s my thoughts on that. Thanks for the question. Bridget Schmal asks, so Tesla may be going
with Saudis to privatize. Any moral dilemmas here given
what’s happening in Yemen? Also asked in Crowdcast. Okay cool. So, you know, I don’t,
it’s so hard to say, right. I don’t want to generalize. I don’t know the
political stuff behind it. I think there’s more concerns, at least for me just about
having a singular buyer, versus having multiple, which would then create
competing interests, and then seemingly
better ideas out of that. That’s my only thought. I’m not gonna dive into the
history or anything like that. I mean, you know, if
Elon thinks it’s good, then I really don’t have much of a reason to doubt that or question that. Yep, okay. Let’s go over to Crowdcast now. Okay, so for Crowdcast the first question comes to us from GrampsVB. Hi Gramps. Know you have discussed this before, however I charge my Model 3 to 170 miles, but my average daily
miles are 15 to sometimes 45 miles a day. Would it be best to charge it each night or maybe charge when the
battery gets to say 75 miles, which could be once or twice a week? You know, I don’t think
it matters to the battery that much about how often you charge it. There is kind of this old adage
of like a plugged in Tesla is a happy Tesla. And so, if you’re leaving
it gone for a week, and that kind of thing, I would just leave it plugged in. I don’t know why you’re
only charging it to 55%. I would charge it up to 80. I don’t think that anywhere
between 50 and 80 shouldn’t, from my knowledge make a difference in terms of any degradation
or anything like that. So, I wouldn’t worry too
much about those things. And just frankly, I charge
my Model 3 about once a week. So, I don’t do it that often either. Thanks for the question Gramps. Phil asks, hi Ben, I noticed
the rates for super charging is going up for those who have to pay. What I don’t understand
is that Tesla was soon to release self sustaining
charging station and thought maybe all
rights would be standardized across regions. Will this happen? That’s a great question. I hope that happens, but I unfortunately I just don’t think they’ll be there within five to seven years because
they actually don’t make very many solar panels. So, I don’t think they
can even make enough for their own use. And also if you’re making
them for your own thing and people aren’t really
making the money on that, that’s kind of a bad, until
you’re a very mature business, it’s probably not the best move. So yeah, I think it’d be down
the road before something like this happens. But, I hope it does. Thanks for the question Phil. Eric asks, hi Ben, is once
a week okay to super charge a 20118 Model S? How often is considered too much? I haven’t installed a
charger at my home yet. Yeah, you should be fine with that. You know, there was a guy that had a thing where he was charging every
day and it eventually got to the point where he, they
limited his ability to charge because it was just
gonna hurt the battery. You know, I would offset it with a wall, with a regular wall outlet. I did a video on it where
I actually went seven days and you’d be surprised. It’ll get you 20, 30 miles
or something overnight. So, depending on how
much you drive everyday, that might be good. You know, for me it worked. I don’t drive very much so it worked fine. So, I would just do that
just to kind of offset it. That way you’re not
really worried about it. But once a week from
everything I understand shouldn’t be too bad. Thanks for the question Eric. Seth asks, hi Ben, question for you. Based on how many cars
Tesla has produced so far, the rate that they are
currently producing at, and the timeframe given to
brand new orders of Model 3 bring very short, can
we determine the amount of the 400,000 orders
remaining that are for the standard battery. Seems like a decent amount
since Teslas now produced, et cetera, et cetera, et cetera. Yes. You know, I wouldn’t of about it that way. I think the survey data, like I just showed there, you know, out of 71,000 responses, thirty
something percent of them were for standard battery. I think surveys and things like that are the best thing to go off
of in this kind of situation. So, you might be able to
do what you’re suggesting, but honestly I think that just a bit, there’s too many unknowns
there for it to be as reliable or better
than just a basic survey. So, if somebody has more data than I do from my own tool that I built, then point me at it
’cause I’d love to see it. Thanks for the question Seth. Peter asks, Ben, would
you consider doing a show based on what platform
to use to plan charging? My 3 is scheduled to arrive any day now, and we have the basic
route for a five week trip mapped out, but it seems
cumbersome trying to charge along our planned route. There are a couple tools out there. Go look on Zach and Jessie
channel, Now You Know, because they have some that cool ones. So EV trip planner is probably
a fun one to check out. As well as obviously the Tesla website is a good one. But, there’s another website
where you can do the trips and you can find interesting
things along the way. I forget what it was called,
but it was kind of like more unknown things that you wouldn’t, like the largest ball of
twine, or something like that. So, we talked about it
at Teslacon last year, and I think they have a video on it. So, go search on them. If you can’t find it, hit me up on Twitter and maybe we can dig it up for you. Thanks Peter. Ken asks, hi Ben, is there a way as of now to program intermediate stops in the Model S navigation
system for a long trip? No. Like actually do it
yourself, I don’t think so. Like adding multiple stops,
I don’t think you can do that in the Model S. You can do it on Google Maps, which is probably better anyways. So, yeah, I would just try that. Thanks for the question Ken. Walt asks, I just had my latest
firmware update 2018.28.1, so the other day I put the car in park and my wipers started to run. I tried to screen reset, no help. I tried shutting the car down, no help. Had my wipers on auto
in the last two months, I’ve never had those problem. Got to go in and shut the wipers off. Ran the are for a while, shut the car of, then dadadadada. I’ve not heard of that happening, no. Thanks for the question Walt. Sorry if I kind of lost
you there on that one. After I have ordered my Model 3, how long do I have if I want
to add the self driving feature for $3,000 while waiting on delivery. I think you have to do
it before you order it. I could be wrong. Maybe email your sales rep, yeah. Scott asks, he Ben, I visited
my Tesla store last week and was playing around
with the touchscreen. It’s pretty amazing, but I
wish I would have had more time to familiarize self with the controls. Do you think that it might
be good idea for your Tesla to add a Model 3 touchscreen
emulator to the app along with the videos? That’d be cool. I think this would go a
long way towards speeding up the process. The only challenge is that
they change it so often. So, I don’t know. Yeah, thanks for the question Scott. Tony asks, I was speaking to a rep about picking up my delivery in California versus Kansas City, she
mentioned that I would have to pay sales tax in
California if I choose to pick it up there. That’s true. Yep, yep, there you go. Yeah, California, we’re
pretty hard core about taxes. Seth asks, just an update over here at Fort Collins, Colorado. My mom received a call to
set up a delivery appointment for her all wheel drive
Model 3, very cool. Unfortunately, since my mom’s
isn’t til September, November she had yet to sell her car and get all the other details figured out, so she asked us to postpone it for now. I just wanted to let you know
all wheel drive deliveries are coming outside of California. Cool, thanks for the update Seth. Sai asks, how long will
it take to get delivery of your Model 3 after
being assigned your VIN? It should be quick. Also, after your delivery
date is assigned, are you allowed to delay
it for a week or two later? Yes and no. Just talk to your delivery specialist. They can usually work it out with you. Crafty asks, what was the
name of the ceramic coating brand by Elite Finish used on your car? It was Sea Quarts Finest Reserve. With delivery nearing for me, time to scope out the Bay Area
detailer that can hopefully do a mild window tinting. Yeah, check out the guys at OC Detail. Also, remind me of what else you added. So, I did the lowering springs
from Unplug Performance, the one and a half inch drop. It’s a little low. I’d probably do the .9
inch drop now if I were to do it again. And I got the 20 inch
Turbine wheels from them with the Michelin Pilot Sport 4S tires. Not from them, from EV Wheel Direct. And EV Wheel Direct, also,
they just got a shipment in. So now they’re shipping
those really quick. They even have 18 inch
versions of it if you just wanna keep the
same tires and all that. So, some ideas there if you wanna upgrade your wheels and stuff. Thanks Crafty. Bridget asks, so the Saudis,
yeah, so we talked about that. Donald asked, Ben, any idea
if or when Tesla will offer a method of warning for the blind spot. Man, I hope so. I really hope so. That’s annoying. It definitely, when you’re
looking at where the cars are on the thing, on the display, it doesn’t appear that it can see anything except for the stuff like
immediately in front of you. I even have, when I’m in
autopilot guys kind of sneak in, and it doesn’t even
recognize the car is there. It’s definitely not fleshed out yet. There’s still a lot of work to be done. Thanks for the question Donald. All right, we’re gonna
call that good for the day. I hoe you guys enjoyed the show. If you’re new here and you’ve
been hanging out this long, you should probably subscribe by now. Otherwise, what are you doing here? But anyways, yeah, don’t forget, big, big thing for me that
I really wanna just focus, if you are interested
in getting a new career in data science, or if
you’re on that path already, go to ftdacademy.com and register. And then you’ll hear
from me when it’s closer to the time of actually
launching that course. I am hoping to do it in Q4 of this year, so that way you can
start the year off fresh kind of with a new career there. So, yeah, let me know what you guys think. Thanks for joining. And don’t forget, when you free the data your mind will follow. I’ll see you guys back here next time. (groovy music)

52 thoughts on “One Alternative to Tesla Going Private [live]”

  1. So how do you feel,about Saudis buying in to Tesla so they can limit its influence and jack up oil prices and control the supercharger network like a monopoly?

  2. One of my biggest arguments with Republicans is that Tesla will cut our reliance on middle eastern oil. Its the reason I a conservative have 3 volts. Its in my top 3 reasons and may be top 1 if I really dwell on it.

  3. I'd like to see Tesla take over the world in terms of transportation and Energy. I'm worried about the Saudi Idea too. Feels more like Tesla will be too influenced by an OPEC member and the largest one if I'm not mistaken. I'd like to see a collection of smaller less controversial nations help Tesla go private collectively. Saudis have 2billion in it already , isn't that enough? My opinion .

  4. Oil cartels buy tesla???? It's a Trojan horse, they WILL DESTROY TESLA …. The oil cartels have been destroying electric from day 1

  5. There is no complicated political stuff behind the genocide on Yemen by Saudi Arabia (bombings) and in part supposedly Iran (ground offense). It's just about oil and getting control over Yemen's before they start drilling it properly. Humans get in the way, genocide is needed to get to it.

    Politicians will try to make it seem complicated, but when a nation is being wiped off the faceof the Earth, a whole (historical) infrastructure leveled, and no bombs landing in Saudi Arabia, it's a one-sided genocide. No more, no less. Same for Gaza. See any bombs landing in Tel Aviv? No? Genocide by the nation whol to this day hides behind the holocaust. How's that for your daily (life) dose of irony? guess who supplies the bombs for both genocides? You have ONE guess.

  6. Hey Ben. You may have missed it. Tesla will be coming out with a fob for the Model 3. There were a few articles on it last week. Yippee. I know I'll buy a fob or two.

  7. So reminds me of Richard Branson who bought back Virgin's stock. Virgin then flourished. I applaud Elon and wish him luck..However, SA, that's a surprise..

  8. I’m a very early follower from this channel, even before it was called Teslanomics.
    Elon Musk has been doing much more harm than good to Tesla in the last 6/8 months.
    If I was an investor I would ask his resignation as CEO. What is happening, inspite of not going to happen is utterly disappointing. This just proves Tesla lives from the hype and Elon Musk is revered from being able to get funding and not from actually making money. The startup world and serious entrepreneurs should be ashamed today by what this guy is doing.

  9. I don't believe Saudi Arabia would be the only buyer. Honestly, I think Google, Apple and many billionaire investors like Thiel and Cuban would be interested in becoming part owners of Tesla in a private venture. In fact, publicly announcing this may result in a bidding war

  10. Even if it's Saudi Arabia buying the shares to go private, so many people will want to stay on board with Tesla that they won't have a majority of shares to buy. Nothing to worry about.

  11. So now Musk is selling Tesla to the Saudis.
    The people who behead and mutilate people in public? And according to news reports today the US backed Saudi coalition murdered 65 children on a school bus yesterday calling it a "legitimate target".
    The Tesla mask has well and truly slipped, totally unethical to sell a pioneering company like Tesla to these people.
    Money above all eh.

  12. lol it's funny with that guy talking about Yemen seeing as whatever they are doing in Yemen they are doing it with U.S. weapons and technology and with the blessing of the U.S. government

  13. Do a separate channel for the data science stuff and just do short blurbs about it here. Not a ton of crossover between the two; but I may do it.

  14. Elon stated on the earnings call him self that what limits the growth of Tesla Solar is the shortage of available electricians in the workforce and that they are actively training more them selves.

  15. I would characterize the people who are shorting Tesla as making bets that the stock will have a substantial downturn. They are not betting on Tesla's outright failure, particularly. They are not betting against the company in any broad sense. They are just playing the odds to make money.

    That said, when there's a substantial bet against a company, as there is with Tesla today, there are a lot of strong incentives to move the market in some way as to precipitate a downfall. Also, it's horribly distracting to work at a company when their stock is on the ropes.

  16. folks, the young prince of Saud want's more than oil, they want solar and are a big force of good moving forward. the oil isn't going anywhere. Saudi's like solar, China likes it, everyone loves elon.

  17. Next should not be to into boats or planes: The world first needs them to make affordable (which means cheap, not 35 000$) cars first, largely the biggest market.

  18. how about all us fanboys buy up the remaining shares preventing the arsewipes from short selling tesla lets put them in a trust fund so no one can loan them out to the manipulative shorts, hows that for an idea i might be able to get 5 shares??

  19. As a shareholder I am a little disappointed that retail investors like me will probably be shut out of investing in Tesla. But I concur to a certain extent about shorts having a powerful incentive to publicize any negative information about Tesla. I wish Elon would quit trying to run Tesla as a startup it's no longer in that phase. I admire his goal setting attitude but he can't make public predictions based on stretch goals it is somewhat misleading. If keeping Elon as the leader of the company requires it being private then take it private. I admire Elon but he has made some boneheaded mistakes.

  20. Wonderful! – I will sign up at once. As always, I love your vids. This one even more so – it oozes raw importance. Can't wait until the courses go online!

  21. I am deeply, deeply disappointed by the fundamental ignorance of geopolitics in this comment thread. Anyone who has EVER paid attention to the internal/domestic politics of Saudi Arabia would know that for a little while now, the reformists in the Saudi royal family have realized that it would be in Saudi Arabia's long-term economic benefit to cut their dependence on an increasingly finite resource (oil), from which they currently get the most of their money.

    In terms of national and internal security concerns, the reformers in the Saudi royal family has been held hostage by extremists both within the family and in Salafi and Wahabi communities, who have for a long time struck a Faustian bargain with the reformers: Give our terror groups and madrassas a big chunk of the money you get from oil, and we won't attack you or do any domestic acts of terror in Saudi Arabia.

    Reformers and longer-term thinkers in the family realize that the global oil supply is going to eventually run out, and therefore the reformers know they will have nothing to stop domestic terror attacks from their hostage-takers.

    Look at any part of Saudi Aramco's recent investment history, and read about the debates the reformers in the Saudi royal family has been having with the oil-addicted religious conservatives in and outside of their family, and ya'll will realize how stupid comments such as "Never thought Tesla would sell out to Arab oil. smh" truly is.

  22. I think Sarbanes–Oxley (Sarbox) is a waste of resources for a company whose CEO has a significant portion of his net worth invested in the company. There should be an exemption for that. The more companies we have that are run by owners, the more long range action we'll have.

    I'd also like to see executive bonuses based on the long term performance of the stock. If your options are only exercisable 3 years after they vest, the incentive to act in the long term best interest of the company is increased. So an exec might be exercising 3 years after leaving the company.

  23. Arabian oil will not last forever, hence their interest in Tesla. They need to find an alternative to oil. This is a massive potential forTesla business, think about it, the solar side of Tesla would be perfect for the Saudi climate. And that would also boost the battery side of the business. They want electric cars. And the profit that goes with these commodities. Tesla is a commodity. Elon has clicked on to this. And E gets his wish, privatisation..
    🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗🚗👍

  24. at 420, elons 22 percent is 1.5 billion .
    the Saudis 2 billion adds up to 3.5 billion .
    that means Elon only needs to have 3.5 billion to buy the company.
    all you conspiracy nuts, oil companies know the oil age is going to end.
    oil companies are scrambling to diversify. they are creating the largest solar farms in the world, outside of China
    saudis did not kill the electric car. it was only produced as a mandatory product for CA and when CA changed the rule, chevy killed the car they never wanted in the first place

  25. I would really like to know the distribution of the different models across the the states: performance vs long range vs short range base models.

  26. Surprised you are not more concerned about one of the most repressive, misogynistic regimes in the world buy a large stake in Tesla?

  27. 16:00 "nothing against Saudi Arabia in particular." Are you freaking kidding me?? The country behind a genocide in Yemen and 9/11, and a country that executes people for women's rights activism and witchcraft. There are reasons to feel a little uncomfortable giving them more control over Tesla or investing alongside them.

  28. Tesla has been just been issued a subpoena by the SEC. Musk better start pulling his pants down, cos hes about to be fucked hard with no lube.

  29. Ben, I'm liking your program more and more as we roll through Tesla's bumpy inspiring ride. I like your new idea as well as the motivation behind it. Keep it up!

  30. Hey Ben; Great video! I want Tesla go privet. I think it is the best option, hope Elon's action wont go illegal by this rule of been public!! one question for you, I am getting to upgrade to a level2 charger what the amp fuse for 240 vac?

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