Tesla’s 71% profit drop highlights major challenges for Elon Musk ahead.
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00:00There was a massive miss on the earnings, and yet the stock went up because Elon Musk is talking
00:05about a software future, which we know Tesla is certainly ahead of everyone else. And more
00:12importantly, talking about leaving Doge to pay more attention to the company. But even that,
00:18I don't know if I would necessarily bank on that. So I think unless Tesla gets through 280,
00:24because that's the area it really broke down from, I would be more hesitant for a long-term
00:29buy at this point, unless the stock really crashes, in which case if it gets closer to 150,
00:34which it can do, maybe then we can start thinking about it. Right now, I think you're in the middle
00:39of a chop fest. And again, very news sensitive, without the fundamentals, basically, to really
00:45prove that this stock has bottomed. And we know sometimes Tesla goes up in spite of poor sales
00:51or whatever, but he still has a couple of things that he can't control. Number one is China and
00:56the tariffs, right? That hasn't really been worked out. China was a big audience for Tesla. Now BYD is
01:01actually taking over in terms of sales. And number two is with Doge itself, the idea was to really
01:07cut government spending. And it hasn't really accomplished that job, nor has bringing in money
01:14from tariffs accomplished that job. So it really goes back to the consumer. Can consumers actually
01:19afford a Tesla if we head closer to recession, number one, and without the credits from the
01:25government to buy EVs, what are consumers going to do in terms of putting up that money? So I think
01:32he's got a kind of a battle to overcome here.