Welcome to Electrified, it's your host, Dylan Umis, quick shout out to my newest patron, Tariya W. Thank you for choosing to support the channel. The information put out a piece on Tesla's Robotaxi, but the only thing that was noteworthy at the end they said Greg Raikal, formerly Tesla's VP of production, said that the asset light approach was the original plan when it comes to Robotaxi's asset light, meaning Tesla had more of a focus on the actual customer fleet and enabling that for Robotaxi's rather than Tesla building its huge fleet that it then keeps internally for the Robotaxi network.
Of course, we know Tesla has plans to do both, but Greg did say Tesla does not need to invest in a fleet and customers can also win when they're not using the car. He said, kind of makes sense when you think of how little of the time cars are actually used. The asset light strategy does have some benefits not dealing with maintenance, charging, inventory, but that move also gives up one of the biggest benefits of Tesla having its own Robotaxi fleet in-house and that's of course keeping all of the profits those cars generate. Also, as we've come to know with Tesla, just because that was the original plan does not mean things have not changed since then. But in the future when we learn more about it, if Tesla has more of an emphasis on selling these Robotaxi's to customers rather than keeping them to put on the fleet itself, we'll know there was some truth to this one.
A Philips Securities Analyst has downgraded Tesla stock to a sell with a $135 price target. As always, the why for me is more important and they cited minimal commentary from Tesla's management to dispel near-term concerns. And just as we said on the video right after the Q2 call, its clear Wall Street is still heavily focused on Tesla's auto gross margin X credit whether we like it or not. He said Tesla's management spent almost no time dispelling concerns over its stalling auto business. For what it's worth, this Jonathan Wu from Philips Securities, the Tesla stock analyst, is actually in the top 8% of the nearly 9,000 Wall Street analysts on tip ranks. His success rate and average return are both actually very good. And listen, long term focusing on that one line item does feel like missing the forest for the trees but we have to remember Wall Street is looking roughly 6-12 months ahead. These fund managers have to send out reports to their investors, sometimes quarterly, definitely annually and they have to talk about their performance. Translation, buying and hold for 5-10 years is a lot harder and more complicated for the big money than it is for the retail investor. It's the same narrative that Gary Black has been sharing, Wall Street wanted answers for the short term the next 6-12 months and they just did not get them.
In a new Tesla stock note from Adam Jonas, he pointed out how Tesla's services and other line item is growing as a percentage of overall revenue. In quarter 2, it came in at 10.2% and he said we note these services revenues should largely grow in line with the growth of Tesla's installed car population which we forecast rises to 24 million by 2030. More importantly, they're expecting Tesla to have a 24% compound annual growth rate for the next 7 years. Tesla's China-sourced revenues accounted for 18.2% of total revenues in the second quarter. For the second quarter, from a percentage standpoint, this number was the lowest dating back to the third quarter of 2021. I think it's a bit misleading to label that as Tesla China's sales have peaked, at least from a volume perspective, maybe from an overall revenue percentage perspective. But as Tesla continues to expand into new markets outside of China, naturally that percentage revenue number will come down. But if you're rooting for Tesla to be less reliant on sales in China, it's headed the right direction.
Tesla confirmed the features for the upcoming summer software release 2024.26, rolling out soon, TM. You can celebrate because Amazon Music and YouTube Music are both confirmed as native apps. Parental controls like setting the maximum speed limit, reducing acceleration to chill, and enabling curfew notifications if the car is driven past 11pm. Searching in the navigation bar will now display those sub destinations like specific terminals at the airport. Tapping on the temperature will allow you to view additional weather forecast details and you'll see an indicator for poor air quality in the status bar.
And we've already talked about the rest of these, but the last two they do now offer FSD supervised for MCU1 vehicles. And in the US they're offering Tesla mic support. That's because in the shop they now have a karaoke mic for $215 and you get two pretty good sized microphones for the car. On the hardware 3 drama I just want to highlight Fred Lambert is now adding to the fire saying the chances of Tesla delivering on hardware 3 achieving FSD appears slim. Other people are saying Tesla has already decided to leave hardware 3 customers in the dust. Look, it's only been a couple of days that hardware 4 vehicles have had 12.5 now. If that turns into a few weeks and a few months we can revisit the conversation. But for now as tough as it may be, if you have hardware 3 I would encourage you to hang tight and just be patient.
I already touched on this in a bit more detail yesterday but in case you missed that video I wanted to reiterate that point today. Federal prosecutors have finally criminally charged Andrew left a well known short seller from Citroen research for manipulating the stock market and yes one of those companies was Tesla from 2018 to 2023. His hedge fund Citroen Capital was separately charged in a related civil fraud action by the SEC. The civil complaint said the fund engaged in a 20 million dollar multi-year scheme to defraud followers by publishing false and misleading statements regarding his stock trading recommendations. Andrew left brag to colleagues that some of these statements he made were especially effective at inducing retail investors to trade based on his recommendations and said it was like taking candy from a baby.
The indictment alleges that left coordinated with hedge funds to disseminate short reports and information to be posted on Twitter coordinated with hedge funds regarding the timing of the publication and enabled the hedge funds to trade in the targeted securities before the reports were disseminated. In exchange for sharing his planned announcements with the hedge funds in advance of posting them publicly the hedge funds paid left a portion of their trading profits. The justice system moves slowly though because you may have heard his name years ago when the FBI seized computers from his home in the early part of 2021. Elon has been complaining about Tesla short sellers for years saying you can't sell houses you don't own you can't sell cars you don't own but you can sell stock you don't own this is nonsense shorting is a scam legal only for vestigial reasons.
Andrew left has not been convicted of anything yet but if he is he'd face a maximum possible sentence of 25 years in prison for the securities fraud scheme alone. The unfortunate truth is he's definitely not the only one that's been shorting and distorting for Tesla stock over the last five to ten years but by and large to date these guys have gotten away with it so hopefully this is the beginning of the end of that don't misunderstand I'm not saying that short selling is going away and I'm not saying that posting disinformation about public companies is going away but hopefully people are a bit more hesitant to do those two together.
Joe Tett myer posted some pictures from Gigatexis today and one in particular stands out replying to this post bond Eggleston the senior director of the 4680 program said nice shot of the dry cathode Cybertruck I also wish that every now and then Tesla would post some of these crash testing videos that they're doing with the Cybertruck and the model wise. Heinrich Zane shared a drone flyover of Giga Nevada and he pointed out 12 Tesla semis in one place at one time. He also said he expects that between 150 and 200 Tesla semis have been built mostly slated for Pepsi and Tesla but we know a few other customers as well and that does not count the special euro semis that he believes are on a ship heading to Hanover for the IAA transport show. Right now we don't know for sure if Tesla has a special EU version of the semi but they are an exhibitor at that event in September so we'll find out soon enough and Heinrich's pointed out that concrete is now being poured for the footers at the new Tesla semi site.
On ex-Mark van der Heis said he worked at Mercedes Benz HQ at the beginning of his career. Now I went to LinkedIn to double check just no he worked at Daimler Chrysler China but it was back mostly in the 1990s either way though he said because of that I'm more and more convinced none of the big automakers will survive the next 10 years not GM not Ford not VW. They all missed the boat on EVs and FSD Roblotaxes but Waymo and Cruz you say they're light years behind using the wrong tech and cannot catch up anymore. One thing he learned at Mercedes was you could not make or even propose radical changes that was career suicide. He said he still has friends there and they don't see the disruption coming. It's their Kodak moment Kodak thought digital photography was a fad and dismissed it. I will say as we've highlighted over the past year it's starting to feel like this disruption is going to play out over decades not over just a few years and while legacy auto is in trouble they're still making profits hybrids are only going to extend that scenario especially if government incentives stick around. Personally I won't be surprised if a decade from now many of these legacy OEMs are still hanging on they'll undoubtedly look very different even Elon seems to think no matter what these US OEMs do obliteration is coming anyway.
A day after expaying CEO said that Tesla's strategy to solve FSD wasn't going to work for level 4 he announced his company will also launch a Roblotaxi model by 2026. He said expaying will not get involved in operations regarding Roblotaxi Tesla aims to handle everything from the vehicle to operations which differs from our approach. We won't get into operations but we will work with our beloved partners to drive this revolution. After some more testing of 12.5 and continuing to read all of the feedback I felt like I needed to say today do not get complacent. I'm obviously not trying to bash 12.5 I just want to highlight the fact that it is not perfect. Devin Olson shared a clip where it drove right through a red light. It's tough to see but I'll direct your eyes on the screen to the light on the left right here is where the light goes from green to yellow so the car has plenty of space to actually slow down and break it's only going 34 miles per hour when it turns yellow but just playing the clip at regular speed you can see it rolls through a fairly solid red light and going back toward the light turned red it was right here and listen I agree that slamming on the brakes at a yellow light is most likely going to be more dangerous than going faster to get through the intersection just be aware a community member of ours and a Tesla supporter sent me this video a few weeks ago of 12.3.6
in this case he had to jump on the brakes because he said he felt like his car may have ran right through the back of that U-Haul this was from my drive earlier today in this case it's going to need to get all the way over to the left lane to make a left turn at the light there's only one lane that you can turn left from you're about to see some lane and decision it thought about getting over but it stays in this second lane and for right now the light is green my left turn signal is on and it chooses to slow down and luckily for the car the light actually turned yellow so we ended up sitting at this red light with our left turn signal on and naturally those people in that lane maybe they let us over maybe they don't so when the left arrow turned green this car was kind of trying to let us go but fsd wasn't moving so they just went so it waited for all these cars to go and I thought fsd would then make the left after this last car it started turning the wheel but then it just sat there and didn't move so I just let it do its thing the left arrow turned red then we get a green light right now and then it was going to try to make the left turn it looked like on a green light which is definitely not good from the wrong lane that scenario wasn't dangerous but I can tell you it was uncomfortable because I'm sure people around me were thinking oh great this guy in the tesla is a terrible driver you won't be able to tell from this video I was making a left turn across a few lanes and I had to slam on the accelerator because it did pull out in front of a car coming right at me if you watch the speed you can tell I immediately hit the accelerator because if I didn't it was basically creeping out in front of a car going probably 40 or 45 right at me don't misinterpret this segment I do really like 12.5 I think overall it's excellent I just want everybody to stay vigilant no matter how good the reviews out there are because in my opinion in my experience contrary to what some people are saying fsd is not actually solved
on x wemo said we're thrilled to celebrate a huge milestone over 2 million paid rider only trips completed and in case you missed it just this week alphabet announced it was going to invest another five billion dollars into wemo that will be a multi-year investment dating back to the google self-driving project days which was nearly 15 years ago that project now wemo is still a money loser some images were shared on reddit of one of the first ems cyber trucks that we've seen rivians sales chief who was only at the company for 11 months is now leaving to pursue other opportunities they did say it's not the result of any disagreement with the company he was the chief commercial officer and president of business growth and he'll continue as an employee until february 2025 umacore has delayed plans for a two billion dollar factory in ontario that was for eevee battery materials umacore has a european joint venture with vw and the reason for this delay is due to the slowdown and ongoing reviews of the investment plans by eevee manufacturers the canadian finance minister rejected a suggestion that her government's battery and eevee supply chain plan is starting to unravel if you've been following along you will have seen a number of other canadian eevee projects that are also being delayed or changed toyota now has plans to build a battery plan for eevee's in kyushu and they plan to make it a central part of its eevee supply chain and an export based to asia toyota's battery manufacturing subsidiary prime earthy the energy will operate the new site but decisions of the details like the construction schedule and investment amount are to be determined yesterday i touched on the ai valuations right now and how a lot of these companies are spending a lot of money but it's a major question when will they actually make money the information is saying based on previously undisclosed internal financial data and people in the business open ai could lose as much as five billion dollars this year at the very least something to be aware of when it comes to thinking about any tesla investment in xai again i am for an investment like that i just think we all have to have proper expectations
Tesla stock closed the day at 219 dollars and 80 cents down 20 basis points while the nazdak was up 1.03 percent. It was a lower volume day for tesla trading about 23 million shares below the average volume the past 30 days. That means Tesla stock closes the week down 11.3 percent and year to date is down 12.11 percent.
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