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[00:00:04] Doug McIntyre: Tesla had another down month in Europe. It’s probably a string that may have happened every month this year, but this is a lot. The European Car Manufacturers Association, down almost 41% from May last year.
[00:00:22] Doug McIntyre: it’s an indication that there is no recovery in sight for Tesla, as their weakening in their home market, the United States, their market, share went below I think 50% for the first time ever in the first quarter. And in China, the world’s largest EV market, they’re really taking a beating from the local guys.
[00:00:46] Doug McIntyre: Yeah. Oh yeah. Led by BYD (NYSE: BYD | CVS Price Prediction). But, BYD and some of these guys, they’ve started a price war. I mean, this is, they’re finding each other now in China. Yeah. Well, and that means they’re fighting Tesla. So if Tesla wants to be in the mix, they’ve gotta bring their prices down. Otherwise they end up being the highest price guys in what has become a, multi-car company market with people cutting prices.
[00:01:12] Doug McIntyre: So I don’t like. Tesla in China. I don’t like it in Europe. I don’t like it in the United States. the early reports about the RoboTax in Austin is that, they’re, malfunctioning. There’s a video of one driving backwards down the road. if the play is, don’t worry about that.
[00:01:33] Doug McIntyre: It should fit in well in Austin. Yeah. Listen, the argument for the stock is, don’t worry about car sales. We’re not a car company. Worry about ai. Because we are an AI company, we can take all of our Teslas and we can load them up with self-driving by doing the over air, the air, software. The problem with that is multifold. One of them is that the regulations for self-driving vehicles are not national regulations.
[00:02:02] Doug McIntyre: Exactly. I can’t walk through the door with an approval from the National Highway Transportation Safety, guys, and say, I’ve got a national approval. I can now sell this and download it into every Tesla I’ve already sold. They’ve gotta do this fight city to city and then some cases state to state. So let’s say you do have the best product, and that’s not, with Waymo and those guys out there, there’s no guarantee that’s true.
[00:02:32] Doug McIntyre: Oh, absolutely. Getting into the marketplace with this is not gonna be easy, even if you have a very good product.
[00:02:38] Lee Jackson: Yeah, I know. And it, the concept of the self-driving, personal vehicle like that, it, it’s a great concept because, I mean, I. there’s a million people coming out of bars at two o’clock in the morning that will welcome this with open arms, as will the police.
[00:02:58] Lee Jackson: so it, it’s gonna have a big impact at some point, but the question is how long will it take to work the bugs out?
[00:03:06] Doug McIntyre: Yeah. And will Tesla be the company that works them out? Right, right. I think if you’re a Tesla shareholder, your big question isn’t, can Tesla do this? They can, it may not happen tomorrow.
[00:03:18] Doug McIntyre: The question is how many other people can do it in China, at least the word is that the Chinese companies are ahead of Tesla right now in that market. Yeah. But they, their ability to collect data there, particularly through some Chinese partners, like the search engine guys is pretty good. Tesla state is almost on its own, which means that, again, in China, their big problem is that the EV companies are really good at what they do.
[00:03:48] Lee Jackson: Yeah. And again, there’s so much ranker and, everything involved in with Musk and all this stuff that, I know that’s been part of the whole issue, Oh, sure. just the people’s, the 360 on Musk where he was the, hero of the left and, this and that is gonna save the world with EVs.
[00:04:11] Lee Jackson: but I think it’s hurt him bad and I think his time away, SpaceX is having some issues, right? Time they launch a rocket, it blows up, There’s some issues that if he can just smooth them out and get back to having, and as we were talking earlier and bringing up that, if he could just come up with that reasonable middle market vehicle.
[00:04:32] Lee Jackson: That would just be a huge home run in the United States that, they could go 500 miles.
[00:04:37] Doug McIntyre: Listen, if he comes out with a $25,000 EV that has a range of 500 miles, he’s really back in the front of the industry. Oh, absolutely. The problem right now is that because of his image, the fact he doesn’t have a cheap car, the fact that people are worried about the RoboTax, the, stock is still compared to other car companies, expensive.
[00:04:58] Doug McIntyre: He’s sort of got all these, he’s got a lot of hurdles he has to overcome.
[00:05:01] Lee Jackson: Yeah, he does. And it’s gonna be interesting to see. I mean, he’s pulled out of, he’s pulled out tailspins before, but he’s got a lot on his plate right now. And it’s gonna be interesting to see if he’s gonna need a real game changer.
[00:05:15] Lee Jackson: But, every time, even, with the initial reports of the Austin test, the stock was up big. and I think a lot of that is short covering because I think people were just leaning on the shares all through the whole Doge thing and then leaning on him even more when the, blow up with Trump.
[00:05:34] Lee Jackson: So, I mean, if he can clear that off of his, dance floor and get back to what he does best, I think they will be back and they’ll be back in a big way.
[00:05:46] Doug McIntyre: Look, it’s a little speculative, but right now I would list it as a buy.
[00:05:51] Lee Jackson: Yeah, yeah, yeah. it’s come in a bunch and it rallied off the April lows, strong.
[00:05:58] Lee Jackson: But yeah, I think it’s still kind of a, maybe not a strong buy, but still a, it’s probably still a buy at this area.
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