WAIT To Buy NEW Tesla Model 3 and Y | It's Coming Back

Summary

The transcript covers the latest Tesla news. Key points include Tesla hitting a major California sales milestone with 1 in 8 cars sold being a Tesla; considerations around when to buy a Tesla given potential new models and tax credit eligibility; Tesla's $500M investment into their AI Dojo supercomputer system which Elon calls a 'long shot'; warnings from Elon about Chinese automakers like BYD poised to 'demolish most other car companies'; and updates on the upcoming Rivian R2 SUV and Acura ZDX pricing and specs as luxury EV competition heats up.

Takeaways

• 😲 Tesla captured 21.4% of all new car sales in California in 2023, with the Model 3 and Y as bestsellers in their classes
• 😎 With increasing EV options, Tesla's market share dropped from 71% to 60.5% in California, showing the rise of competition
• ⏳ It may be worth waiting for Tesla's next battery and model refreshes before buying, due to potential tax credit changes
• 🚀 Tesla plans to build a new LFP battery factory with CATL machines in Nevada, likely to help Model 3 qualify for tax credits
• 😕 Elon Musk called Tesla's Dojo supercomputer a 'long shot', though they just announced a $500M investment into it
• 😨 Elon Musk expects Chinese automakers like BYD to 'demolish most other car companies' globally without trade barriers
• 👍 BYD's cheapest EV in China costs just $11,400 currently, showing the extreme competition Tesla faces on affordability
• 🤔 Rivian may reveal its cheaper R2 electric SUV soon, expected to start around $40-50k and compete with the Model Y
• 🔋 Acura revealed its first EV the ZDX will start at $64,500 when it arrives later in 2023, featuring GM's Ultium platform
• 🚘 Porsche unveiled the electric Macan SUV with up to 630hp and 382mi range, competing directly with Tesla's Model X

Q & A

What milestone did Tesla recently hit for sales in California?

Tesla captured 21.4% of all new car sales in California in 2023. Additionally, 1 out of every 8 cars sold in the state was a Tesla.

How much market share did Tesla lose in the California EV market over the past year?

While Tesla's sales grew by 24.6% year-over-year, their share of the California EV market dropped from 71% to 60.5% due to greater availability of competing EVs.

Why might someone want to wait before buying the next Tesla Model Y?

Tesla may soon upgrade the Model Y to match the new Model 3's features. Also, waiting could allow Tesla to qualify the Model 3 for tax credits again, making the Model Y effectively cheaper.

What is Tesla building at their Gigafactory in Nevada?

Tesla is building a small LFP battery cell factory using CATL equipment. This could help them scale up 4680 production and potentially make LFP cells for vehicles like the Model 3.

What did Elon Musk say about the chances of success for Tesla's Dojo supercomputer project?

Elon said he would think of Dojo as a 'long shot' that's not a high probability given the scale of investment required to be competitive in AI.

Why does Tesla see Chinese automakers as big competitors globally?

Elon said Chinese automakers will likely 'demolish most other car companies' globally if trade barriers are not established due to their rapid growth and very affordable EVs.

When might Rivian reveal details about their upcoming R2 SUV?

Rivian submitted a request to use public space in Laguna Beach for an R2 launch event in March, suggesting reveal details may come very soon.

How much will the base trim of Acura's first EV, the ZDX, cost?

The base trim of the ZDX will start at $54,500 when it arrives later in 2023.

What is the expected EPA range for Porsche's new electric Macan SUV?

Porsche has not released EPA range estimates yet, but the Macan has a WLTP estimated range up to 381 miles for the base trim.

How fast can Porsche's new electric Macan SUV charge?

The Macan supports charging at up to 270kW, which can charge 10-80% in 21 minutes thanks to its 800V electrical architecture.

Outlines

00:00

📈 Tesla Hits Huge California Sales Milestone and Could Predict Future

Tesla has hit a milestone with 1 in 8 cars sold in California being a Tesla in 2023. Electric vehicles made up 21.4% of new car sales. The Model 3 and Model Y lead their classes in sales. As California continues to transition to EVs, we may see similar statistics emerge across the country, especially when Tesla releases their lower cost $25,000 car.

05:00

🤔 Deciding When to Buy a Tesla With Model 3 and Model Y Differences

The Model 3 will have major updates soon, raising questions around when the Model Y may see similar changes. However tax credits currently apply to the Model Y but not the Model 3 due to battery sourcing rules, creating odd pricing where the Model Y is cheaper. Tesla is expanding Gigafactory Nevada to improve Model 3 tax credit eligibility.

10:01

😲 Chinese Automakers Like BYD Posing Major Threats

Elon Musk sees Chinese automakers, especially BYD, as very competitive globally based on their growth, low prices and expansion plans. He expects them to significantly challenge other automakers worldwide unless trade barriers are erected. Tesla fell behind BYD for top global EV sales spot in 2022.

15:02

🔋 Tesla Investing Further into Dojo Supercomputer and AI

Despite delays and setbacks, Tesla plans a $500 million investment into a new Dojo supercomputer cluster to bolster their AI and self-driving tech. However, Elon noted it's a long shot with low probability of success, so they're diversifying chips for AI, using Nvidia and AMD hardware as well.

Keywords

💡Tesla

Tesla is an American electric vehicle and clean energy company founded by Elon Musk. The video discusses several updates related to Tesla's business, including sales milestones, future products, competition with other EV makers like BYD, and investments in AI/technology.

💡California car sales

The video reports that 1 in 8 new cars sold in California in 2023 were Teslas. This shows the rapid growth and popularity of Tesla's vehicles in a major market. It also signals the overall rise of EVs, now making up over 20% of California sales.

💡model 3

The Tesla Model 3 is Tesla's most affordable and bestselling electric sedan. The video states it is the top-selling passenger car in California, outselling mainstream sedans like the Toyota Camry.

💡Tax credits

The US federal tax credit provides incentives for purchasing EVs, but Tesla models have phased out from eligibility. However, the video suggests Tesla may restore credits by producing LFP batteries, allowing a $7,500 discount.

💡LFP batteries

LFP stands for lithium iron phosphate batteries. The video says Tesla will open a small LFP production facility with CATL equipment to make batteries for products like Megapacks. This may also help the Model 3 qualify again for tax credits if Tesla uses LFP cells.

💡Dojo supercomputer

Dojo is Tesla's proprietary AI supercomputer, designed to train neural networks for autonomous driving. The video covers Tesla's new $500M investment in Dojo hardware, even as Elon Musk downplays expectations by calling it a "long shot".

💡BYD

BYD is a major Chinese EV maker that surpassed Tesla in global sales last year. The video discusses how BYD and other Chinese automakers pose rising competitive threats with very affordable model offerings.

💡Rivian R2

Rivian is an American EV startup. The video mentions they will reveal their lower-cost R2 electric SUV soon, expected to start around $50,000. This could compete with Tesla's Model Y in the crucial mid-size SUV segment.

💡Acura ZDX

The Acura ZDX is a new all-electric SUV from Honda's luxury brand. The video overviews its pricing, performance specs and charging capabilities as Acura enters the high-end EV market to compete with Tesla.

💡Porsche Macan EV

Porsche has unveiled its new all-electric Macan SUV. The video highlights its premium features and capabilities including range, acceleration, charging speed, and price positioning against Tesla models like the Model X.

Highlights

Tesla hit a major sales milestone in California, capturing 21.4% of new car sales in the state

The Model 3 and Model Y are the top 2 bestselling vehicles in their classes in California

Tesla may build a new LFP battery factory with CATL machines in Nevada to help the Model 3 qualify for tax credits again

Tesla announced a $500 million investment to build a new supercomputer cluster for their AI training system Dojo in New York

Elon Musk said he considers Dojo a "long shot" given the low probability of success, so they're hedging bets by investing in Nvidia and AMD chips too

BYD and other Chinese automakers are Tesla's most competitive opponents right now with their rapid growth and affordable EVs

Tesla may need to introduce a $25,000 EV soon to compete with BYD's $11,400 Seagull EV

Rivian may reveal details about their upcoming affordable R2 SUV at an event in March

The Acura ZDX electric SUV will start at $54,500 when deliveries begin later this year

Porsche revealed their electric Macan SUV with up to 630 horsepower and 367 miles of range

The base Macan EV will start at $88,900 while the high performance Turbo trim starts at $153,500

The Macan EV will charge 10-80% in just 21 minutes and tow up to 4,000 pounds

Tesla captured 60.5% of California's BEV market in 2022, down from 71% due to more competition

Tesla needs to scale up qualifying battery production in the US to help vehicles qualify for tax credits

Tesla is recognizing the massive investment needed to stay competitive in AI, spending billions across hardware and programs

Transcripts

today we're getting into the latest

Tesla news including why you may want to

wait for Tesla's next battery Tesla's

warnings about byd Tesla dominating

popular markets and more so let's get

into

[Music]

it first up today Tesla has hit a huge

sales milestone in California that could

be a pretty big sign of the future to

come in 2023 one of every eight cars

sold in California was a Tesla and

electric cars made up 21.4% of all new

car sales the model 3 and Y are the two

bestselling vehicles in their respective

classes as well the model 3 sold

8278 units a 61% lead over the previous

California passenger car bestseller the

Toyota Camry the model Y is the

bestselling vehicle overall having

shipped

132,50 7% market share for the year year

followed by Tesla with 133% and Honda

with

9.7% interestingly both of those other

automakers have been very slow to

introduce EV options to the US market

still while Tesla's sales have grown by

24.6% in the last year the increasing

availability of competing electric

vehicles has had an impact on them

Tesla's overall share of the Bev Market

dropped from 71% to

60.5% as a result of Greater

availability of Tesla Alternatives this

is reflected in the growth of EV sales

coming from franchised car dealerships

Tesla offers a direct to Consumer sales

model that few other automakers have

adopted still a single automaker

especially one that has only been

selling cars for 15 years managing to

capture this much of a huge market like

California is a gigantic Milestone as

the state and Country at large continue

down the path of electrification we'll

probably start to see similar statistics

coming out of other places outside of

California I'm curious to see how these

numbers will change once Tesla releases

their upcoming affordable e as well with

a hopeful $225,000 price tag and

eligibility for a full $7,500 tax credit

that could put that car nearly $10,000

cheaper than the old California

bestseller the Toyota Camry with prices

like these purchasing an EV starts

looking less like just an interesting

option for many consumers and more like

a product that is impossible to ignore

next up today the biggest question when

it comes to Tesla is when to buy one

they don't refresh their cars on any

sort of normal basis like other

companies do in fact they change stuff

throughout the year whenever it makes

sense for them to do so on the assembly

line overall Al though the big changes

only come every few years the entirely

new model 3 is about to ship in the US

so for many this raises the question as

to when the new model y will come out

the model y was designed off of the

model 3 so at some point Tesla is going

to upgrade that car to match the current

model 3 with rear display better cabin

isolation nice materials and much more

the other side of this though is tax

credits for many the tax credit is a big

factor when buying an EV and this year

for eligible cars it is available at the

point of sale meaning you can get up to7

$500 off the price of a model Y at

checkout if you qualify for the credit

all model y trims currently qualify but

if you decide that that car is a bit too

large for you the model 3 does not

qualify for anything this creates a very

odd situation where someone who

qualifies could buy a rear wheel drive

model y for

$36,900 or a rear wheeel drive model 3

for

$38,988 190 for a longrange model y or4

$5,990 for a longrange model 3 the

reason the model 3 doesn't qualify here

and this situation is as odd as it is

has to do with battery sourcing rules

got stricter this year and Tesla's model

3 batteries no longer meet the

requirements of the bill among many

other EVS essentially the only way to

make it qualify is to Source Batteries

More locally but this process takes time

we've seen Tesla shift things around in

the past to help cars qualify but as

they continue scaling they're going to

need to scale up qualifying batteries

recently we've heard about Tesla diving

in on the true expansion of their main

battery Factory Giga Nevada about a year

ago they announced $3.6 billion in new

investment at that factory scaling up

4680 production as well as semi-

production in January of this year we

saw Tesla moving forward with initial

construction or Earth moving to start

this expansion that's exciting on its

own but now a new report says that Tesla

is going to build a new lfp battery cell

Factory with catl machines in Nevada

quote the automaker plans to buy

Machinery from catl as the battery maker

is known and install it in the city of

Sparks said the people who asked not to

be identified Tesla will have full

control of the facility and cover 100%

of the costs and catl Personnel will be

uninvolved other than helping to set up

the equipment they said reportedly this

will be a small facility and it will be

used initially to make lfp cells for

Tesla Mega packs but various reports

give different details on that right

there that could rule out this helping

with the model 3 qualifying for tax

credits but Tesla is very well known to

shift things around as they make sense

they say they don't want tax credits but

of course if their car is qualified they

will make them SE and allow customers to

take that tax credit the same happens

with batteries if 4680 cells take longer

to scale than expected of course they

will change plans and we've seen them

shift things over the years I think that

here it's quite likely this process goes

very well and they find that scaling up

lfp battery cell production with catl

equipment is extremely efficient in

Nevada whatever Tesla can scale

effectively they will continue doing

China currently makes the most lfp

batteries between byd and catl and they

each Supply Tesla even with 4680 cells

expanding at gig Texas lfp isn't

expected anytime soon even though this

chemistry is great and more affordable

Elon Musk has even talked about Tesla

focusing on these cells in the future in

a very short amount of time this could

allow Tesla to expand Beyond Mega packs

and make lfp cells for the model 3 to

once again help it qualify as long as

they can Source the minerals and

materials to qualify then this could

solve that issue for them allowing the

model 3 to be purchased for as low as

many customers further into the future

as well they may find this useful for

their next gen vehicle but time will

tell what approach they will be taking

there the cybertruck is the true 4680

experiment and they will see what is

most effective they always want to be at

the Forefront of new technology but the

key is that they want it to be scalable

in the real world soon hopefully this is

the initial step to make the model 3

qualify for the tax credit once again if

you're not in a rush at all and the tax

credit is very important to you then

this could be worth the wait but battery

scaling does take a lot of time I'd

imagine it could more likely that Tesla

figures out another way to make the

model 3 qualify even before they make us

lfp battery cells but time will tell

next up today Tesla has just announced a

huge new investment into their Dojo

supercomputer system they will be

building a new $500 million

supercomputer cluster at their Factory

in Buffalo New York Dojo is the

groundbreaking supercomputer that Tesla

completely designed from scratch to help

train their AI products Dojo has had

some pretty big setbacks since it was

first announced the project has faced a

number of delays but Tesla was able to

open their first Dojo cluster last year

in recent months some of the program's

leadership has been let go from the

project raising concerns about how well

it's actually going behind the scenes

during their latest earnings call Elon

Musk made a comment that certainly puts

the whole project into a bit of

perspective he said I would think of

Dojo as a long shot it's a long shot

worth taking because the payoff is

potentially very high but it's not

something that is a high probability

given how much this project was

anticipated to significantly boost

Tesla's AI output that is definitely a

bit disappointing to hear

however it is definitely reasonable that

when working on a technology as

groundbreaking and Cutting Edge as their

AI products you may want to temper

people's expectations a bit especially

when you're Elon with a history of doing

the opposite instead Tesla is working on

approaching their supercomputer goals

from multiple angles while they boasted

that their Dojo chips would be able to

outperform other competitors they're

still investing heavily in chips from

those companies Tesla is spending

heavily on Nvidia AI processors to

continue building their traditional

supercomputer clusters and will also be

adding AMD chips to to their Hardware

Elon added that quote the table Stakes

for being competitive in AI are at least

several billion dollars per year at this

point while Tesla is spending a lot on

their Dojo project in order to remain at

the Forefront of the AI industry they

recognize the need to spend in more than

just one area I hope that Dojo is able

to deliver on Tesla's goals because it

would be such a major help to their AI

powered projects like FSD and Optimus

regardless between their investments in

third party and proprietary Tech Tesla

is working very hard to keep their lead

in AI technology next up today Chinese

automakers like byd are making huge

splashes across the globe and their

success has left Tesla a little scared

or at least realistic for the future

last year in Q4 was the first time that

Tesla fell from the leading spot in

global EV sales with byd now in first

place the Chinese automaker has made

huge gains in both China and Europe

expecting to open a new Factory in

Hungary very soon along with other new

automakers byd is massively expanding

their worldwide Presence by offering

cheap electric cars that other companies

are struggling to keep up with Tesla and

other automakers have been cutting

prices in Europe and China to stay

competitive in those markets Elon Musk

told analysts that the automakers out of

China are the most competitive car

companies in the world and that he

expects them to do very well across the

world as a result of their huge and

sudden growth the EU has considered

raising tariffs on Chinese EVS to

protect local production on the topic

Elon said quote frankly I think if there

are not trade barriers established they

will pretty much demolish most other car

companies in the world I would imagine

in a sense he still sees Tesla is a

Survivor here as they've been competing

directly in China and he sees their next

car as revolutionary in multiple aspects

but for other automakers it could be a

very big deal Tesla is at the top of EV

manufacturing and to be so blunt about

the risks posed by byd and others is

very telling about their Rising

structure in the market byd has been

having great success with their lineup

of affordable EVS that so far other

automakers have been unable to compete

with Tesla is currently working on their

next gen affordable EV but we don't have

official word on when that car will be

coming as it stands right now byd's

cheapest vehicle the seagull is

available out of China for about $11,400

a price that is almost unfathomable to

beat even for the specs of delivers for

2023 Tesla originally projected a 50%

growth rate that they fell short of by

12% a 38% increase in car deliveries is

still very impressive but the growth in

other companies are definitely eating

into Tesla's potential sales if Chinese

automakers continue their current level

of growth and don't face increased trade

barriers they really could take the EV

World by storm they already faced some

pretty substantial tariffs in the US

that have prevented them from getting a

foothold here but if they were to change

it would immediately create some nearly

unbeatable opponents for us automakers

since byid is currently working on their

European Factory it could be difficult

for the EU to implement any major trade

restrictions on that company if Tesla

wants to remain competitive price Cuts

likely won't be enough long term they're

going to need to introduce this $225,000

EV to be a true affordable alternative

to the cheaper Chinese cars and

ultimately I'm excited to see that

happen competition is great for

consumers and while we are slowly

beginning to see automakers in the US

take on Tesla the real competition is

coming from China with Tesla being a

global company that means we see the

effects here as well part of me wonders

if the new model 3 would have even seen

a refresh in the US if it weren't

necessary for the Chinese market where

they designed it and introduced it first

we'll see how this all develops but Elon

tends to have a decent hold on what the

future looks like in this space last up

today some updates from other automakers

rivan has been teasing their long-

awaited R2 SUV for some time now and we

may finally get word on when that

vehicle is being introduced rivan is a

luxury EV maker that currently has two

vehicles on the market the r1t pickup

truck and r1s 3 row SUV the company

makes great vehicles that are among the

best Tesla competitors out there but so

far they have struggled to reach

profitability following the Tesla

business model they proved their

viability with their more expensive

models and are now branching out into

more affordable options that's where the

R2 comes in it is rivian's next gen

electric SUV that is currently

speculated to cost around $4 $3,000 to

start that will put it in line to

compete directly with the model y

especially if they meet the requirements

for the full $7,500 tax credit which

they say this car is being designed to

meet so far we've only seen hints of

this truck but now some leaked documents

suggest that it will be coming very soon

rivan submitted a request to the lagona

beach city council to use some public

space for the R2 launch event in March

on top of that in a recent rivan patent

application it looks like we got our

first sketch of that car it looks like

the exact shape we expect a smaller

version of the r1s and the lights have a

similar rivan feel but are noticeably

smaller if this car can deliver rivan's

great EV experience but in a more

affordable form factor that could be a

huge game changer for the industry for

rivan hopefully an inexpensive Mass

Market C is what is able to push them

into profitability I can't wait to find

out more details about the R2 as we

learn more and see what happens at this

event in March Acura the luxury

subdivision of Honda has just revealed

the prices of their upcoming z4x the

Brand's first fully electric vehicle in

the US coming later this spring the bass

trim of the zd4 4X will start at $64,500

this electric SUV is powered by GM's

ultium platform which is also the basis

for this car's luxury competitor the

Cadillac lric when they first announced

this vehicle Acura estimated it would

start around $660,000 so while its

starting price is a bit higher it does

offer plenty of luxury features this car

will feature a unique Google operating

system a bong and olon audio system as

well as Apple carplay and Android auto

coming standard the Dual Motor

Performance upgrade will start at

$73,500

and will output 500 horsepower have

adjustable air suspension performance-

tuned dampers and multiple driving modes

for maximum performance the vehicle will

also feature three distinct charging

packages depending on your needs they

will offer different packages of home

and mobile chargers as well as

installation credits and Evo charge

credits it features 190 KW DC fast

charging that can add 81 m in 10 minutes

via CCS although the car will also come

with a complimentary nacs adapter it is

currently expected to have a range up to

325 Mi EP

Acura and its parent company Honda have

been very slow to the EV game so I'm

interested to see how well this car

performs when it arrives later this year

over at Porsche they have finally fully

unveiled their all electric maon SUV and

it's pretty impressive this base trim

will have a max range up to 381 mil of

wltp range and can output over 400

horsepower the turbo trim will get up to

630 horsepower and can go 0 to 60 in 3.3

seconds in exchange for that performance

the range will reduce slightly down to

367 Mi but again keep in mind that's

wltp range the base trim will Top out at

136 mph while the turbo will reach 161

mph this new SUV will be the first

vehicle to debut on the 800 volt PPE

platform that they co-developed with

Audi it will support fast charging up to

27 KW which will charge its 100 KW

battery from 10 to 80% in 21 minutes the

interior is designed for driver comfort

with three available screens including

an instrument cluster and an additional

heads up display in addition to its

style and performance it also features a

roomy cargo area and a towing capacity

up to 4,000 lb all of those features

round this vehicle out to be a very

capable and versatile sport SUV the base

trim will start at

$8,800 while the turbo will bump it up

to

$15,300 essentially at this pricing it's

competing with the model X this car

offers the same quality traditionally

offered by the Porsche brand and fans

will surely love the continued quality

offered by a legacy automaker that's all

the latest Tesla news for today so in

the meantime if you want to see the

latest for Tesla hacks and a trotor

model 3 you can check out that video

linked up here or in the description

below thanks so much for watching and

I'll see you on the next one