Kevin O'Leary talks on Tesla, Cybertruck release, Elon Musk, work-from-home, commercial real estate

[RV_]

The transition to EVs is heating up this year as I said earlier this year. China is making moves to sell their EVs here, and in China Ford and the other manufacturers who shared that largest car market are drawing back because the Chinese and Europeans want EVs not ICE engined vehicles now, just like we are beginning to see here. In China, without the almost 25% tariff the US imposes on their cars, BYD, Nio, and several others are selling EVs for much less than our brands can sell their ICE cars. I predicted some of the ICE manufacturers may be facing bankruptcy trying to mainain a calssic stealershoip sales model.

Excerpt:

"Tesla shares higher today after Musk seemed to impress investors at the annual shareholder meeting in Austin, Texas, on Tuesday. Musk providing updates on the EV business and the heavily anticipated Cybertruck. But he also gave a crowd of investors a tough outlook for the year ahead. Let's take a listen.

 

ELON MUSK: This is going to be a challenging-- I'd say, challenging 12 months. I want to be sort of realistic about it-- that Tesla is not immune to the global economic environment. I expect things to be, just at a macroeconomic level, difficult for at least the next 12 months. Like, Tesla will get through it. And we'll do well. And I think we'll see a lot of companies actually go bankrupt.

 

BRAD SMITH: For more on Tesla and a number of investment topics, we turn to Kevin O'Leary, O'Leary Ventures' chairman, joining us here in studio. Kevin, great to see you.

 

KEVIN O'LEARY: Great to be here. Thank you.

 

BRAD SMITH: So let's discuss. Start with Tesla here, first and foremost. I mean, you think about the comments that you just heard from Elon Musk, what he had to say yesterday in a wide range of topics that he discussed. At the end of the day, this is a company that is investing heavily at the same time that many other automotive companies are investing heavily in their next leg of growth into EVs. What makes Tesla perhaps in a better position to capitalize on where that trend, where that market share that they existingly have right now, or they currently have, could serve them, could benefit this, could benefit this company at a time where they're continuing to invest?

 

KEVIN O'LEARY: Well, each quarter, including this one, there's always the speculation by the market that competition is going to erode margins, competition is going to erode share, competition is going to slow growth. And yet that has not happened. There is no company yet that's transitioned to the effectiveness and the efficiency and the productivity that Tesla has around drivetrain, around engine, around chipsets, around batteries.

 

So there's a moat around Tesla because it was the first mover, but they've maintained their share through innovation. Everybody criticized this guy for a million different reasons. But at the end of the day, when you ask somebody if you want to buy an EV, what do they want? They want a Tesla. So GM hasn't come with anything anybody wants. Porsche hasn't done it yet. I'm not saying they won't. But it hasn't happened yet.

 

Meanwhile, they gained share. They reduced price. They're getting more aggressive. They're bringing the truck. I don't see a bad story here. And it's reflected in the stock, although it's a volatile stock. But if he's saying there's headwinds economically globally, that's the same environment for every company, whether they're in the EV market or not.

 

What they've got that no one else has is a 100% focus on EV. They're not dealing with legacy engines of any kind. And so you have a much more efficient use and a much more productive company.

 

BRAD SMITH: Do you think the Cybertruck is an additive, or if I put it simple terms, boom or a bust for Tesla long term?

 

KEVIN O'LEARY: It's going to be a boom because that crazy-looking vehicle has already shown its popularity on preorders two years.

 

BRAD SMITH: Why? Why?

 

KEVIN O'LEARY: I want one. I think they're nuts. And I think it'd be a lot of fun to drive a tank because that's what it is, but now a tank where you don't have to feel guilty about it. It's an EV. But it's got a lot of room. It's a very interesting vehicle. It's got a really ugly look. Ugly is interesting. And, you know, to be honest with you, I've got investments in providers that are providing technology for that truck. And we know the demand is huge. It's huge.

Now, this issue around four wheel versus two wheel, if it comes with a two wheel first, there will still be demand for it because the truth is most people don't drive these trucks off road. But if you wanted to drive that thing off road, you could. I like it. And I think-- you know, I'm on the list to get one.

 

BRAD SMITH: Do you think it will appeal to the parts of America or more broadly internationally where there has already been a strong pickup truck market share that has been maintained?

 

KEVIN O'LEARY: Well, I love my F-150.

 

BRAD SMITH: OK.

 

KEVIN O'LEARY: And so--

 

BRAD SMITH: You would trade in your F-150 for a Cybertruck?

 

KEVIN O'LEARY: I don't know yet. First, I'll try this. And this is a bit of a hybrid on the 150. I use the 150 all the time. It's like driving your living room around. The thing is so spacious and quiet and everything else. And that's the most advanced pickup truck and the most in demand.

 

The electric vehicle of that version has not yet enticed me to switch over yet because of battery concerns, about concerns in cold weather, all kinds of other things. The one thing I really like about the story that I learned yesterday on the whole Elon thing, the margins on this truck could be really high. I mean, this is going to be-- because they've had so much efficiency in manufacturing costs since they announced the truck. They're probably picking up, you know, 10% to 12% more margin on that thing.

 

BRAD SMITH: And so at a time where consumers also are being more judicious, more discretionary, even about vehicle spends, so how is Tesla and the broader automotive landscape-- how is that shaping up in terms of the demand that's actually pulling through, going into either a Tesla storefront or a dealership and saying, yeah, I'm still going to commit to buy? Or I'm still going to get favorable enough financing terms that make this purchase make sense.

 

KEVIN O'LEARY: On the mainstream vehicles, they have cut costs several times now. They're getting competitive. But it's not just because they feel the market is soft. And it's because they would like to get more share. Remember, this company, although they've talked about advertising, hasn't spent a cent on it yet. He owns his own global network called Twitter. He's constantly promoting Tesla and SpaceX on it all the time."

 

Source with much more and the video of this transcript here:

https://finance.yahoo.com/video/kevin-oleary-talks-tesla-cybertruck-145633790.html?contentType=VIDEO