To the benefit of TSLA shareholders and clean air Covid has ramped up demand for BEV faster than the market predicted.

The EU, CA, and governments worldwide are calling for limits on ICE car sales.

The Limiting Factor is raw materials for batteries.

Tesla has sorted it out.

They have a kitchen sink strategy to do more with less (tabless), recycle (redwood), and diversify higher end battery materials for high performance cars and lower mix for stationary.

The major miners are not getting the cap ex to expand to meet the demand of the growing EV market. They could be floated capital or purchased outright by a company the size of Tesla.

Production efficiency will continue to cut Tesla’s price, including economy of scale (Wright’s Law), cell to pack, and dry electrode coatings. However, battery materials will continue to be a larger cost concern.

Tesla is well positioned to handle this, as is low kilowatt low range electric vehicles (see FUV). Legacy auto is going to have a wide range of problems, by the time they figure EV production they will not be competitive, innovative, invested in batteries which is limiting factor

Meanwhile Tesla is running their own race (no way else to put it) with the knowledge of the limiting factor - working on autonomy which asks less cars to do more per battery.

Tesla’s main focus is modern factory, machine production and automation, along with autonomy.

So what you have is Wall Street focused obsessively on more vehicles sold, while Tesla is in a race with themselves to sell less.

Lean & Mean battery technology, factory efficiency, and autonomy are Tesla’s core business.

You don’t need to follow quarterly numbers obsessively, these are seasonal and will be up with a rising tide. Follow the technology, the limiting factor.

When people ask $TSLA worth current share price I say yes and would posit each of these is a megacap S&P 500 company.

-FSD (Changes Civilization)
-Giga Tera Factory (Automation Robotics Efficiency)
-Battery Technology (Lithium Nickel Magnesium Cobalt Iron)
-Solar & Storage

Just recapping some basic chit here, this format is the limiting factor so I am doing a podcast to talk Tesla but really any disruptive and innovative change of this decade.

More will change in the next 10 years than the last 20. They’ve led up to this, Covid was a springboard.