Tesla China Shipments Expected to Slump Again

All the price cuts around the world is not enough to save Tesla for its second consecutive quarter of a slump. Is that what we expect? Yeah, a price elasticity I guess is, is the the focus today and just how much there there is left there for, for Tesla. I think there are some real doubts just based on on the numbers that we did see, you know, in the lead up to June, there were real signs of slowdown in in China that that you know sort of you know carried over from the first quarter of the year. Also in Europe, a really sort of of bleak results that you saw reported from from the industry bodies where where Tesla did not have a good first couple of months of the quarter so. You know, I'm the last quarterly earnings call, we did hear from Elon Musk say that he thought. The second quarter would be much better. I think on a sequential basis. There is an expectation that we will see greater sales from the first relative to the first quarter. But that's, you know kind of par for the course and what you would expect. The first quarter is always seasonally slower for automakers. So I do think that the company will have sort of real questions to answer in terms of, you know, what exactly is going on with demand and how soon can they get newer and more affordable, affordable models to market. It feels like sometimes we care about this Craig and other times we don't and we want to live on the Elon Musk dream of robo taxis. And robots there, Manas Manis is ready for that world. But it does feel like there's been more analysts coming out and saying this. I talked with, I talked with Tom Noranian of RBC last week, who said that the driving force of Tesla's valuation and for him this makes sense is robo taxis. Barrett is also out with the notes saying that they're all looking to the August 8th robo taxi unveiling event. So how much does this drive Tesla, especially if we're going to get some weaker numbers coming in? Yeah, I think it does drive them from a financial perspective and and earnings. But it's it is very important to acknowledge that that doesn't necessarily always matter with the retail crowd that is, is, you know, fervently behind Elon Musk, as as evidenced by the vote just, you know, a couple of weeks back on his pay package. Despite all of the issues that the company, you know, has had of late, they they remain firmly, you know, in his camp. And I think his ability to sell investors on this sort of, you know, next dream or dreams is really what, you know, it sort of speaks to why the the stock, you know, it has done what it's done. And we saw. You know, yesterday Wells Fargo come out with a very bearish note about, you know, sort of the outlook for Tesla this quarter. And you know, the, the stock nevertheless went up 6% and and really for no sort of material reason, I think people are looking ahead. To the robo taxi unveiling in August, but I think it's important to to remember and keep in mind that you know, robo taxis are something that you know, this company has talked about going back to 2016. And actually executing them is is a whole nother matter.