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Musk's Record Earnings and massive Tesla plant in Indonesia · Elon Musk Podcast

• 0:00
  Hi everybody, welcome back to the Elon Musk podcast.
• 0:03
  The notable bet by Elon Musk, the CEO of Tesla, amplifies
• 0:07
  sales and profits by slashing the price tag on its products.
• 0:10
  Seemed to display ambiguous results.
• 0:13
  The electric vehicle giant not only marked the sales surge in
• 0:16
  the second quarter of the year, but also managed to exceed Wall
• 0:19
  Street's net income forecasts. However, the certible decline of
• 0:22
  the company's profit margin caused apprehension and Tesla
• 0:26
  shares underwent A wavering ride in After hours trading and with
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  the details of the financial records disclosed, Tesla, known
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  for its line of electric vehicles, solar products and
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  energy storage solutions, posted a net income of $2.7 billion for
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  the April and June quarter, registering a 20% growth over
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  the previous year. Now earnings per share followed
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  the trend with an increment of 20%, reaching $0.78, in line
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  with Generally accepted Accounting principles or GAAP.
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  Now the revenue figures were equally impressive, showing a
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  47% jump to a substantial $24.93 billion.
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  Yet a majority of analysts direct their attention to a more
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  specialized metric of profit used by Tesla, a method that
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  emits expenses linked to stock based compensation.
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  Using this measurement, Tesla's net income soared to $3.15
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  billion or $0.91 per share, remarkably overshooting average
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  analyst predictions of $0.80 per share as provided by Fact set.
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  This came as a surprise to some experts who'd predicted an
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  income fall resulting from the company's price reduction
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  strategy. Tesla share prices displayed
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  uncertainty post earnings report lingering around $292.00 in
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  after hours trading before slipping over 4% as company
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  executives conducted a conference call with analysts.
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  And earlier this month, on June 2nd, Tesla announced vigorous
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  vehicle delivery statistics, an 83% increase compared to the
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  same period last year. This leap was credited to
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  consecutive price cuts on its four electric vehicle models.
• 1:58
  Records indicate the sale of 466,140 vehicles globally from
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  April to June, almost doubling the 254,695 units sold in the
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  corresponding period the previous year.
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  These transactions predominantly involved Tesla, celebrated Model
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  3 sedans and Model Y crossover SU v's.
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  Yet the financial summary conveyed conflicting indicators
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  concerning Tesla's ability to elevate sales without
• 2:26
  compromising its profit margins, a challenge that's been a focal
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  point for observers. A Tesla's operating margin, a
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  gauge of sales conversion into pretax profits, dipped to 9.6%
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  in the second quarter, a steep fall from 14.6% a year ago, and
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  a parallel decline was also detected in the preceding
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  quarter. Musk's discourse with analysts
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  likewise underscored his satisfaction with Tesla's
• 2:50
  performance amid economic volatility and high interest
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  rates. He was also eager to discuss
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  forthcoming ventures like the company's full self driving
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  software in a machine learning system named Dojo, intended to
• 3:03
  refine self driving capabilities.
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  Musk has been talking about the cyber truck to a futuristic
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  pickup, announcing that the first vehicle had already rolled
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  off the assembly line with intentions to deliver by year's
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  end. Despite Musk's optimism,
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  analysts expressed skepticism about the cyber trucks
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  availability in the near term. Competitors like Ford have
• 3:23
  already released more traditional electric pickups,
• 3:25
  such as the Ford F-150 Lightning, casting further
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  doubts on Tesla. Now analyst Seth Goldstein from
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  Morningstar Research shared his perspective on this.
• 3:36
  He said. I don't think we'll see any
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  meaningful volumes, certainly not this year, not even next
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  year. Maybe we're looking more into
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  20252627 until we see them. And there's also a potential for
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  Tesla to do big things in Indonesia.
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  After an extended 2 1/2 hour meeting in San Francisco on
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  August 3rd, expectations are growing that Elon Musk may
• 4:00
  invest in Indonesia's electric vehicle supply chain, Whoever
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  was as a prizing announcement for Indonesia when Malaysia was
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  chosen as Tesla Inc Southeast Asia base.
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  The meeting's length lasting twice as long as anticipated,
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  means at the significance of the ongoing discussions between Musk
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  and Indonesian officials, including Maritime Affairs and
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  Investment Coordinator, Minister.
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  In contrast to prior public missteps for Indonesian
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  authorities were criticized for making early claims regarding
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  Musk's intentions in the country, This time, the
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  negotiation team has been reticent about the outcome.
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  However, a source with knowledge of the matter did state that
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  Musk and his team were openly discussing their thoughts on
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  Tesla and SpaceX. The latter had previously been
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  offered an Equatorial launch site on Biak Island, north of
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  Pao. India's official comment about
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  the meeting centered and a potential partnership with
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  SpaceX subsidiary Starlink, known for providing affordable
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  Internet access to over 60 countries via thousands of small
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  satellites. The health minister, who also
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  attended the meeting, emphasize the importance of Starlink
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  services for connecting schools and health clinics in remote
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  areas of eastern Indonesia, particularly in Maluku and
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  Papaw. The Internet provider services
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  have also proven vital in countries like Ukraine, where it
• 5:19
  facilitates communication in areas affected by conflict.
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  Although not stated in the official release, inside sources
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  have indicated discussions surrounding an automotive
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  investment of at least a billion dollars.
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  The realization of this investment may hinge on the
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  Indonesian government's willingness to offer significant
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  concessions, which had been a sticking point in past
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  negotiations. A source familiar with the
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  matter expressed the problem as being on Indonesia's side, as
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  they have not yet allowed Musk the flexibility he seeks.
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  The agreement on any concessions will require not only the
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  president's approval but likely also parliamentary consent,
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  mirroring the process followed in significant contrast in the
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  past, such as with giant Freeport Mcmoran copper and
• 6:02
  Gold. Legal experts have suggested
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  that previous agreements, which locked in details like tax rates
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  and vendor selection, that serve as a model for test this
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  contract, providing stability against sudden policy changes.
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  Now, with China having a significant present in
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  Indonesia's local nickel industry, analysts believe the
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  government is especially eager to secure Musk's investment to
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  balance influence and promote development in the region.
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  Revelations about plans for a possible Musk visit to Indonesia
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  next month and a conclusion by year's end have increased
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  anticipation. The detailed examination of
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  locations and other critical considerations by Tesla is
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  expected to be the final steps before a firm decision.
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  The President of Indonesians aspirations create a
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  full-fledged EV production line in Indonesia encompassing raw
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  material, smelting and battery and vehicle Manufacturing faces
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  swiftly nearing window of opportunity.
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  Despite the three-year effort to attract Musk to Indonesia, talks
• 7:00
  broke down last year amid speculation that the
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  entrepreneur was discouraged by Indonesia's complex regulations
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  and conditions. The news of Tesla setting up a
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  regional office in Malaysia, coupled with tarifffree imports
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  of Tesla's latest models added to Indonesia's concerns.
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  Now Indonesia's progress in EV manufacturing has been slow,
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  partly due to local government regulations on recent
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  reassurances from Investment Minister regarding an 8.9
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  billion integrated EV battery plant in Central Java have not
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  entirely Adelaide fears related to regulatory issues.
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  Despite multiple meetings in a high profile visit to Spacex's
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  Tesla complex, Indonesian officials have faced challenges
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  in convincing Musk there were complaints that Musk's demands
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  were excessive and that Tesla needed to align with domestic
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  investment guidelines. The government's insistence on
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  EV investors partnering with a state-run Indonesia battery
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  corporation, the IBC, has reportedly deterred Musk.
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  The IBC, comprising several key Indonesian firms, is a partner
• 8:03
  in a large LG LEDs Consortium multi Phase project that began
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  with a $1.1 billion battery cell plan.
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  The Musk investment in Indonesia would undeniably elevate the
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  nation's EV industry. Last year, Tesla had signed
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  contracts worth about $5 billion for lithium battery materials
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  from facilities in nickel rich eastern Indonesia.
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  This recent meeting in San Francisco signifies an essential
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  phase in the ongoing discussions between Tesla and the Indonesian
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  government. And while the outcomes remain
• 8:34
  carefully guarded, the potential collaboration on various fronts
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  including Starlink and the EV industry and market
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  transformative moment for Indonesia and Asia, balancing
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  the demands of one of the world's wealthiest entrepreneurs
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  in the country's regulations and strategic interests will require
• 8:50
  finesse and determination. Thank you very much for
• 8:53
  listening to the show today. O if you could do me a favor and
• 8:55
  hit the follow or subscribe button on whatever podcast
• 8:58
  latform that you're on right, I'd greatly appreciate it.
• 9:01
  Take care of yourselves at each other and I'll see you in the
• 9:03
  next one.