Charlie Munger had harsh words about Tesla that make him look foolish.
Cathy Woods strongly disagrees with Charlie
Cathie Wood expects tech advances to alleviate US inflation, paving the way for the Federal Reserve to reduce interest rates and fuel economic growth.
The reduction of interest rates, and lower Tesla EV prices, will drive strong demand for Tesla EVs without harming its margins. Cathie thinks, because of these reasons, Tesla will crush legacy auto and competitors like BYD. Yes... Crush them indeed!
Here is what Charlie thinks about the competition between Tesla and BYD.
An important detail to keep in mind is that even though BYD sells more cars than Tesla today, it makes eight times less profit per vehicle. On average, Tesla makes $9,761 per vehicle, and BYD makes $1,190. BYD's net income profit margin in 2022 is roughly 4%. Tesla produced net profit of about $12.6 billion in 2022, for a margin of roughly 15%.
Really bad news for BYD - Rusty BYD Cars
Source: The Electric Viking YouTube
Battery only vehicles are surging in Norway while other drivetrains are going down fast, including plug-in hybrids. This bodes well for Tesla the world leader of BEVs
Cathy wood shares an important point that Charlie and Wall Street are missing.
"Charlie Munger and many on Wall Street do not understand that passing along the lower costs associated with technologically-enabled innovation, in #Tesla's case batteries and drivetrains, will cause a boom in unit demand, discrediting the Keynesian/Fed's Phillips Curve model. said Cathie Wood"
Source: Cathie Wood Twitter ID
Has Charlie Gone Mad Or Just Pumping BYD
In this video, legendary investor Charlie Munger has finally lost his mind, Tesla rumours swirl, STUNNING new data shows Tesla is SLAUGHTERING the so-called competition, plus some SHOCKING numbers from Europe show EV adoption is happening faster than anyone—including me—predicted and for the nerds, we take a look at some beautiful data showing the SURGE in global EV adoption.
60 sec short - Source: Sandy Munro Youtube
Tesla, with only four models totaly dominates BYD with its 18 EVs.
"BYD Lacks Scale. BYD needed 18 models to surpass $TSLA in units sold. Tesla’s number of models: 4. This scale per model allows Tesla to have a MUCH lower cost profile and much higher profit per car. BYD also has a shared platform between BEVs and hybrids which forces engineering compromises. Shared platform makes the product inferior vs vehicles designed from the ground up like Tesla's. Strategically BYD has gone a different route than Tesla. Having 18 models of BEVs and 18 of hybrids is a lack of leadership that hurts scale, raising costs, and lowering profits. The shared platform lowers value to the customer, creating more indifference when customers get a choice. Berkshire Hathaway hasn’t figured these factors out yet. It’s “just a car” after all. Said Bradford Ferguson on his Twitter."
Charlie Munger fails to understand production scale matters and Tesla rules scale.
Yaman says BYD is an overrated legacy automaker. That might not be an over statement. BYD sold 911,40 battery BEVs compared to the 1.314 million BEVs Tesla sold last year. BYD is definitely Tesla's number one competitor in China, but far behind.
Cathie Wood Rebukes Charlie Munger & BYD
Tesla stock is Cathie Wood's favorite stock to own. Cathie Wood just called out Charlie Munger on Tesla stock, let's dive into this Tesla stock drama as well as ARK Invest's latest thoughts on Tesla stock.
Source: Matt Pocius YouTube Channel
Tesla, by far, sold way more BEVs than any other auto company on our planet in 2022. Tesla again got the title of champ, with 18.2% share of the global BEV market.
Tom Nash provides a good observation about the Charlie's agenda
"Charlie Munger says BYD is so far ahead of Tesla in China it’s almost ridiculous, calls it his favorite stock. Meanwhile, Berkshire Hathaway reduced its holding of BYD stock by 42% since August 2022. Pay attention to actions not words folks.."
Source: Tom Nash Twitter ID
Tesla's $25K EV will Break Auto Industry & BYD
For this video Farzad analyzes the economics of owning Tesla's upcoming compact car that's likely to start somewhere around $25k base price. With investor day right around the corner and the potential unveil of this vehicle, the long-term implications of such a product are mind-blowing. He walks you through how he is thinking about it and why he believes the auto industry will break because of it.
Source: The Farzad Mesbahi Youetube
Charlie your argument is week and no where near a suitable argument.
"I'm not entitled to have an opinion on this subject unless I can state the arguments against my position better than the people who are supporting it.” — Charlie Munger."
So you said it yourself, you're not entitles to an objective opinion about Tesla.
The Gnashing of Teeth
Legacy auto has halfwittedly held on to their belief that they can catchup to the world's transition to EV autos on their own terms, and control the timeline, but this
is far from the truth. Their time on top is about to end. There will be weeping and gnashing of teeth, when Tesla starts the production of its $25K EV, this includes
BYD as well.
Comments