Tesla Producing 5,000 Model 3 per Week, Let's Talk About It… [live]

(chill music) – Hello and welcome everyone to Teslanomics Live This is the show where we take a look at the latest Tesla news from the week that has passed We do it live because, well, as you’ll see today, things change very quickly in the world of Tesla I’m your host, Ben Sullins, and typically, this lasts about an hour And then we do a big Q&a section at the end If you wanna be a part of that, you need to be on our email list, which you can join for free at Teslanomics.co/join So, thank you for everyone joining me on Crowdcast, on Patrion, on Facebook, on YouTube, all the inter webs and all the places Today is definitely shaping up to be quite a big news day, and in fact, the first, the main story, may take the majority of the time So, we’ll see kinda how it goes here Before I get into that, I do wanna mention something fun that we’re doing This is a yearly event that we host called Teslacon I’m usually the host of it and the moderator, and I bring on other folks that have YouTube channels related to renewable energy, to Tesla specifically, or anything kind of in that realm This year we’re doing it on November 17th of 2018 And it’s gonna be from 9:00 AM to about 5:30 PM Pacific Standard Time That’ll be, basically, an all day event, just back to back, to back, to back, live sessions with some of your favorite creators Tickets are $100, and we’re limiting it to a hundred people, because otherwise, things can get kinda just out of hand So, some of the featured speakers there, if you’re unfamiliar, just kinda wanna run through this Last year we were very gracious, or he was very gracious to give us an hour of his time, that was Mr. Robert Llewellyn, who has a fantastic show on YouTube called the Fully Charged Show He also has another host who helps him from time to time, Johnny is his name, and they both do a fantastic job, and have been doing it for quite a while now We’ll also be having the Model 3 Owners Club with Trevor Page, and we have Jesse and Zac from Now You Know, Saul Lopez from Spain gives us a really great European perspective on things and has a really kinda deep knowledge in this space Ryan McCaffrey, who many of you know is the host of the Ride the Lightening Podcast, one of my favorite shows to listen to, usually Monday mornings while I’m at the gym to make sure I didn’t miss any of the news from the week that has passed And Galileo Russel, who has been just absolutely blowing up here on YouTube He was the guy, if you recall, that when Elon went to YouTube to talk on the latest earnings call, he was the one that was there and was able to ask all those questions So, the idea is that it’s a live event and you get to interact with people directly It’s not like watching the video after or even how you’re on the comment section and thousands of people are there It’s very limited and that’s why it costs as much as it does and also we’re limiting it so that way you can have a more direct interaction If you’re familiar with Crowdcast and how that works, that’s essentially the same experience So, you can join from anywhere You don’t have to buy tickets to come to California or anything, like another event And as soon as the events are over, you can watch them in person So, there’s my plug for Teslacon I hope you guys join us there Tickets are selling rather quickly, so make sure to go get your invite, if you’re interested in that You can go do that at teslacon.online Okay, so without further ado, let’s just bust right into the biggest story, and this is gonna be absolutely nuts This is that a Model 3 tidal wave is coming And I was thinking about the title of that for a second The idea is that the Model 3 is actually now going to be proliferating kinda all of the different markets in North America, hopefully Europe, and Australia, and Asia soon after This all started last week with an email that Elon had sent saying that the bears, the Goldman Sachs analysts in particularly, the people that are kinda shorting Tesla, that don’t really think it’s gonna do well, that they have a rude awakening And this was kind of alluding to some production goals that they had previously set, and kind of what was going on there Now, if you have been paying attention to the news today, you know where this story’s headed, but I wanna add some more color to this,

because then Elon later tweeted something that was interesting He said, “7,000 cars in 7 days, love the Tesla team.” I thought that was pretty funny, and then actually the CEO of Ford was kind of trolling him I believe he said something like, “7,000 cars in the past 4 hours, “fine, fair enough.” I think it’s fun I think that’s cool I don’t really hate on him for any of that At least it was from a company that hasn’t went bankrupt This morning, we saw some additional tweets alluding to some really awesome Tesla stuff This coming from the main Tesla account, some photos of folks outside of the factory working on the Model 3 saying 1 team, and in fact this photo of this Model 3 5K club, this was leaked on Twitter previously, from an employee and then taken back down And then these are just great photos of the folks that are really making this transition to sustainable energy a reality So, cheers to you guys Thank you for all the hard work that you do Every time I visit the factory, several of you guys come up to me, say hi Please do that anytime you see me or anyone else out there, because I personally do wanna thank you for what you’re doing because I think it’s incredibly important So the official news, the official numbers to come out, are here in this press release, and it is pretty amazing So, let me just recap this for you here, and I’ll kinda just show you the photo of these guys and kinda read through the numbers, ’cause that’s far more interesting So, the last week of Q2, the last 7 days, which actually just ended on Sunday, 5,031 Model 3s, and 1,913, so nineteen hundred and thirteen, SNX in the last seven days of Q2 Huge numbers This is what Elon was talking about when he said that 7,000 cars in seven days, which isn’t exactly right, but it’s pretty dang close Now, the GA4, general assembly 4, the new line that they built out in the tents outside, accounted for around 20% of the Model 3s that they made And they also stated that they’re hoping to get the Model 3 production up to 6,000 by the end of next month Now, I’m not sure if that means that we’re talking about August, or if they meant at the end of July, because I assume most of this was written beforehand, so I don’t know So either late July or late August, we’re looking at 6,000 Model 3s per week, which is a pretty astounding number for something that still is very new in what they’ve been doing Now, in Q2 they delivered 40,740 vehicles, 18,440 of which were Model 3, 10,000, just under 11,000 were Model S, and just over 11,000 were Model X Now, this is interesting, and I’ll talk about what this potentially means down the road because this could have some major implications regarding the tax situation So, with the next bit that I thought was really interesting here was that they said the Model 3 reservation count at the end of Q2 still stood at roughly 420,000 That is a giant number And the reason I am so kind of excited or interested about that is because there were some reports I don’t know where they got their data I don’t know what they were thinking that 25-30% of reservation holders canceled their reservation and that was gonna be the downfall of Tesla Well, yeah, it’s the rude awakening that I think Elon was alluding to that they still have a giant number of reservations and they’re producing cars at a really strong clip Now, they also stated that the dual motor all wheel drive performance cars will be available in stores shortly So, if I am able to go do a test drive in one of those vehicles, I will absolutely do that and share that with you guys Tesla, if any of you guys are watching and you’re gonna offer this up to any folks that share this kind of stuff on YouTube, keep me in mind I would love to come check that out You know my number This is great news This is fantastic news Tesla absolutely crushed it in Q2 The earning call I think is still probably a month away Usually they’re about a month later And then we’ll get a better picture of the financials, and kinda what’s going on with that But yeah, they did it They really did it So now we are at the tipping point, I believe, where the Model 3, you’re gonna start to see beautiful, amazing electric cars proliferate the streets of most big cities in the U.S., some in Canada, potentially some in Mexico, and then hopefully next year we’ll start to see

those kind of outside of the U.S. more And to me, that’s so important because this is where they start to become mainstream, the halo effect that gas cars have starts to get removed, and so every one of you that are getting your car, you are going to be an ambassador for Tesla now You may not realize it, but this is actually where the name Tesla Time comes from because people are gonna ask you questions, and those questions may seem really kind of strange because you’ve been in this space for a while, but most people out there don’t even have a clue that Teslas are all electric They think, “oh, they’re electric and they take gas? “How do they get that? What is the range? “What’s the performance?” So, I’m gonna put it on you guys that once you get your car, you are gonna be like what I’ve been doing for a little while now and what a lot of other folks have, being these kind of ambassadors and helping spread this knowledge, so get ready All the people that have emailed me about reserving your cars and you just got your cars, congratulations to all of you. I’m super excited That leads us into the next part of this same story is that Tesla has now opened up the Model 3 invites to all remaining reservation holders I even saw my friend Saul in Spain get his invite, which I think he’s passing off, because he’s not gonna be able to get it But anyways, this is all great signs Now with that, you do have to put in a nonrefundable $2,500 deposit Remember, the original $1,000 was just the reservation, which is fully refundable, still to this day Then, you have the $2,500 nonrefundable deposit This is when now you are actually buying the car, right? You’re putting in the reservation So, if you guys haven’t done that, you probably should check your Tesla accounts, if you didn’t get the email, all those kinds of things, because it appears to be open to everyone Now, they did change some of the pricing, and this relates to the dual motor and performance models, and also the dual motor gets a new badging It actually gets something on the back that will say that So the pricing, as I got it, was that the all-wheel drive and performance versions are now kind of ala carte, meaning you don’t have to just pay the $78,000 and get everything You don’t have to get the carbon fiber spoiler, the 20 inch wheels and all that You can kind of add those things in So, if you have an open reservation, you should be able to go log in and see all these details, but just to summarize, there’s a new color, obsidian black, which is awesome because apparently that should be a lot better than the solid black Then white and red are now $1,500 versus $1,000, and I believe that’s just related to the amount of paint that goes into it that kinda finishes better overall A performance upgrade, which is optional, is $5,000 and this includes aluminum pedals and a spoiler, which I don’t know, I think the spoiler’s kind of cool $5,000 seems ridiculous to me And white interior is 1.5 thousand dollars, 1,500 bucks So, if you have a reservation, you should be able to go check this out I’ve not updated the calculator on the website yet There have been a lot things going on and a lot of stuff to keep up with so I haven’t had time, and these are kinda significant changes, it’s not just like adding a new option or something So, I’ll get to more of that Now, one of the things that this has stirred up is some confusion, and I’ve got a lot of emails from you guys about this where we’re not sure if because you put the $2,500 down, if that means you’re getting your car in four to six weeks, or if you are still going to have to wait Some people, and I’ll bring this up on Reddit here, posted saying that they were able to get their configuration to their VIN within 24 hours, even though it said three to five months originally So, I think a lot of the stuff depends on what area you’re at and what options you choose, but the initial estimate of three to five months it appears, at least from this one anecdote, is not necessarily gonna be how long you wait But friends of mine that have reserved said, “Hey, it still shows that “I’m kind of confused, like what’s going on?” So yeah, interesting stuff happening and if you have a reservation, definitely go check it out and hopefully you did it before the July 1 deadline because now you’re actually gonna have to pay more for the premium internet If you’re on my email list or follow me on any of these places, you probably got hit up multiple times by me because I thought that was a really important date for you to know Now, all of this begs the question, have they hit the 200 thousandth car delivered in the United States? So let’s recap where we were just a couple weeks ago when I started talking about this First, is where were they at the end of the last quarter? Now, the difficult thing about these numbers, and I just wanna preface this, is that Tesla doesn’t actually say how many cars

they’ve delivered in each region, they only say overall, so we have to kind of back into it and estimate and the guys over at InsideEVs do a great job of looking at actual VIN registrations and those kind of things So, going back to Q1 they were at, according to InsideEVs, 175, just about 176,000 So, that’s a lot, right? And they delivered 40,000 in Q2, so depending on how many of those were actual in the U.S., then they could have hit that in Q2, which I think would probably be considered a disaster So, let’s just hope that that wasn’t the case Let’s hope that they didn’t actually hit that 200,000 mark delivered in Q2 because then that would mean the phase out would start earlier and that a lot of you, even though they’re producing these at a really high amount, a lot of you would not be getting that tax credit, especially if you’re waiting for the standard edition But just to recap how it goes here in this link, this’ll be in the description after the video posts, that once they hit the 200 thousandth car that they’ve delivered, any car that was delivered within that quarter and the following will get the full tax credit So, in our case scenario here that we’re looking at, we’re hoping that that was Q3 today, or yesterday, and Q4 Then it drops by 50%, so it’ll be down to 3,750 for 2019 Q1 and Q2 Still not bad and if you’re ordering the cheaper version, you’re still getting, I would say, good value, your money’s going to good use, in terms of what you’re getting for a Model 3 with that discount Then it drops to 1,875 for basically second half of next year and then in 2020 it’s gone, that’s it So, that’s kind of how that works and the really big question is, did they actually hit that number? Because 40,000 cars on top of the 175,000, and all these things, there’s some margin of error here They may have done it, which I think would be sad That would really suck So hopefully they were able to not do that and I’m sure we’ll hear more about it at the earnings call when folks get to ask those questions, unless Elon or somebody else gives us an update before then, but I don’t anticipate that Also, for the record, there is a webpage on the IRS website here in the U.S., but it doesn’t show this It doesn’t actually state how many Tesla has produced So, it’s up in the air how far along they actually are Related to this, a new bill was just introduced in the U.S to lift this vehicle cap on the EV tax credit Now, I won’t talk too long about this, but there have been some other efforts here from different utilities, energy providers, that want this gone because they want more people to have electric vehicles, drives up demand This one was an amendment to the Internal Revenue Code of 1986 to extend certain tax credits related to electric cars and for other purposes Now, it’s from Jared Huffman, who’s a Democrat from California, Jackie Rosen, who’s a Democrat from Nevada, and Jeff Merkley, a Democrat from Oregon And there was one more, Peter Welch is the one that actually introduced it, a Democrat from Vermont Great, but we’re talking Democrats in a completely Republican controlled Congress and White House Don’t know if it’s gonna go anywhere I hope it does, but the people that would likely benefit would be GM and Tesla because they’re the ones that are close to hitting this and with the populist kind of view of the White House right now, maybe they’ll go for it, I don’t know I think it makes sense, but I have different motivations I’m curious what you guys thing about that Now, last question on this is what does this mean for the remainder of the year? So, I have my little Model 3 ramp here, and I’ve already plugged in the numbers regarding the original that we got 1,000 per week back in January and now we’re at over 5,000 per week, as of yesterday So we’re looking, if those numbers are true, and this model, it’s not exactly right, ’cause they had some stoppages and it’s not a perfect ramp as it goes, but just using a log growth curve, which is what this model’s based on, I didn’t just make this up This is actual math here And a peak of 6,000 vehicles This is the hardest part is how many vehicles can they actually produce with those two lines there, GA3 and GA4 in Fremont, so I’m putting it at 6,000 I still think it’s gonna be hard for them to produce more than that They’re upwards, using this data, they’re over 225,000 Model 3s produced in 2018, which is unreal, and then the question becomes how many of those will get delivered and all that

There’ll be some hiccups along the way, I’m sure But in any event, this is shaping up to be an absolute monster quarter for Tesla Q3 is going to be just way above and beyond any of the previous quarters, in terms of revenue, in terms of production, all that amazing stuff And then Q4 also will be probably even better So 2018 is really kind of the Tesla coming out party where they are, and as I think Elon even stated, they’re like a legit automaker now, and hopefully that means that they’re able to become profitable, which would be an even bigger blow to the people betting against them, and a bigger boost of confidence for the folks like myself and others that are owners that are looking to them to succeed So, curious what you guys think about this Leave me a comment down below, hit me up on Twitter Teslanomicsco or Facebook It’s quite interesting and man, wow, great, great news today coming out of Fremont, so good stuff, good stuff This next story I wanna talk about comes to us from Elon’s Twitter account, surprise, surprise, and this tweet is about the pickup truck So, he went to Twitter on the 26th at 11 AM, which is not a typical time for him, saying, “What would you guys like to see in the next pickup truck?” Well this is the Tesla pickup truck and he tweeted a bunch of stuff down here, and I’ll kind of summarize all that for you, and I’m just gonna show you what the actual truck looks like, and it looks like this So, I’ll read you all the specs here And a lot of these are just quotes directly from Elon All-wheel drive with crazy torque and dynamic suspension Power outlets with 240 volts to power tools all day long Adjustable suspension for different roads This would be a standard option, he stated Very strong roof that exceeds NHTSA, National Highway Traffic and Safety Administration, standards By the way, the Model S actually broke the testing machine that it was so strong, so no surprise there It’ll have parallel park, like self-parallel park automatically, like the self-parking thing Interesting and not something I expected 360 degree cameras. Sonar Rear and front lockers for offroading, thanks to a question from my buddy Zach over at JerryRigEverything And it should float which goes without saying Not sure about that, but okay And will have a 4 to 500 mile range, and it will also allow the driver to log their activity, which is great for work trucks where the Department of Transportation will wanna know how long they’re working, what they’re doing, et cetera Their guys suggested that there would be some kind of interface that would say I was doing this and click start, stop, whatever, and you can kinda just have a log book right there And it will look like a truck, and it will be able to fit Andre the Giant, according to Elon I’m not sure what to make of this Here is the image that they showed us at the semi-truck unveiling As someone that was there, I believe most of us were confused by this It looks like the semi-truck with some kind of ginormous bed I don’t think it looks good. I don’t like this Frans, if you’re listening, we need to work on this one man But, I am thrilled that they’re doing this I am thrilled that this is a real thing that’s happening So, there’s more to come and I think a lot of people when they see this are gonna be really, really excited I think the stock even jumped during this time And this is one of those things where it all makes sense ’cause, in fact, these trucks are, we sell more trucks like this in the U.S than a lot of these other vehicles I think Bob Lutz was even the one that said it that we electrified the wrong cars first We went after the small little cars, which not many people really want anyway, instead of the big gas guzzlers So, I’m excited about this I hope it doesn’t look like what we’re seeing on the screen right here, but all of these stats are just amazing So, I’m very, very curious what you guys think about it, and if you’re looking for one I know a lot of people that say when they do it, I’m ordering one So, I’m curious if you’re one of those folks Hit me up on Twitter and let me know Next story we’re gonna talk about something that I actually have prepared for you guys kind of in a different It’s a question I’ve got a lot of and I wanted to do a little video on it, but instead of doing a whole production video of fitting it into the schedule with everything else, I just wanted to do it here So, hopefully you guys will kind of bear with me here and hopefully find it valuable So, the story is that, or the question I get is,

what is the cheapest Tesla? And I wanna go through this and just kind of explain it the way I see it and hopefully we’ll have some data to look at as well There’s sort of a hierarchy of how you can buy a Tesla There’s new, and you can get a custom build where you actually can pick out every single little option that they have and choose it exactly how you want Those take a little bit longer and they cost a little bit more Or you can buy new from inventory Now, this is a vehicle that’s already been made, and this vehicle, it’s sitting there and it’s ready to go, so you’ll get it sooner And typically, these are floor models as well, so you may get 10, 15, maybe even a 20% discount off of what that car would be new Now, it’ll have some miles on it from maybe test drives or things like that, but in any event, it’s already been made, it’s ready to go, so you won’t be able to pick exactly all the options, but you may find one that really fits what you want anyways Now, the other option is to go used There are two types of used There’s the certified pre-owned, which come from Tesla directly, and then you have the third party ones This is just you buying it from another person So, I went and did some research on this is the kind of hierarchy and then I looked at what are the actual different models you can buy Just a recap, if you guys are completely unfamiliar, you have the Model S, the flagship sedan, full size sedan; the Model 3, technically a midsized sedan, but more the size of like a BMW 3 series; and then the Model X, which is like a smaller SUV I know people say it’s a full-size SUV, ’cause the interior storage, it qualifies as that, but really it’s quite small when you look at it compared to, say, a Tahoe or something like that So those are your models Those are the actual cars that Tesla sells that you can buy They also have other ones coming out, but this is currently what they offer Now, if we take a look at the new side of it, the Model S, brand new, the cheapest one you can buy is 74,500 The Model 3 currently is 49,000, because you have to buy the long range battery and the premium upgrades And then the Model X, the cheapest one you can buy right now is 79,500 These are all USD Now, interestingly enough, when I went to go price out the new inventory and I was gonna just get some sample values for you to see kind of the difference in price There are none available on the website So, obviously the Model 3, there’s no such thing as new inventory yet They’re still backed up, backlogged extremely, as you heard earlier, over 400,000 reservations still outstanding But the Model S and Model X, usually there is new inventory, but if you go on the website right now, it’s gone It’s completely gone, so I’m not sure what’s going on They may be taking these off to do some refreshes, to do some other stuff I’m not quite sure, but very, very interesting when I was looking Generally, as I mentioned, you can find these for 10 to 15% cheaper, sometimes a bit more, but that’s kind of what you’re looking at for a brand new Tesla Now, if you go used, this is gonna vary, but you can get a certified pre-owned, from Tesla, Model S for 41,000 And I looked, the cheapest one I could find used third party within 100 miles of San Diego, your mileage may vary there, 53,000 Then the Model 3, there are no certified pre-owned yet from Tesla, there will be one day, but there are some third party used, which I found the cheapest one at 51,000, again, within 100 miles of San Diego Now, on Model X side, it’s quite a different story The used CPO from Tesla is $98,000, which is crazy expensive You, in fact, could buy a cheaper one new And I think that’s just because the big difference between a lot of these is that the Model X, when it came out, it had autopilot from the beginning These older Model S’s, some of them don’t have autopilot, so there’s like a big distinction there, and they can’t be retrofitted, so it’s one of those things where they definitely have a disparity in the price where the Model X’s all basically the same, so used one or new one, they’re very, very similar And then the used third party I saw for the Model X was 76,000, so actually pretty reasonable But again, you get a new one for just about that price So, when it comes down to it, what is the winner? What is the cheapest Tesla you can actually buy? Well, it is a used Model S Here is the one from the website that I just looked up It’s a Model S 85, which has pretty decent range, I would say, and 71,000 miles, it’s not nothing, but these cars’ batteries are looking at about 3 to 400,000 miles before they have significant degradation, and it’s $42,000 That’s a great deal And I can tell you I own a 2013 Model S I love it People say, and Elon even talks about it, “Oh, there’s a big difference between

“the new ones and the old ones.” I don’t know if there really is I go in and I get a new one and I drive around and yeah, it may be quicker and this and that, but it looks and feels very, very much like my 2013 model And also, if you buy a cheaper one, you can do things I can do front fascia, put better wheels on it I feel like when you have a lower price point, you can do more So, there you have it Let’s go check it out I wanna show you some of the results in where I go find these things CarGurus is a website that you can search for these kind of things, and you can just punch in the years, the zip code, the radius, et cetera, kinda what you’re looking for and they’ll show And you can see, yeah, there’s a lot of Model 3s on here You can literally go buy one right now If you wanna buy a Model S, you can do that as well You can kinda see and then you can sort it, and price it and do all that kind of stuff 48,000 These aren’t that great, in terms of the pricing there My friend Eric has a great website called teslainventory.com, which allows you to search not only your local area but all over the country, and find the actual listings from Tesla So, this is at teslainventory.com And this is where you can kinda see that the prices of the Model X is pretty insane, but if I go back to the Model S and I look for that, refresh my results, which it’s doing now Yeah, you can see So, I’m in Southern California, but this’ll actually pull from all over There’s that Model S 85, that CPO I just showed you in the presentation You can kinda see the price change and these ones are ones that you can actually buy from Tesla I think if I click this link, it’ll actually show you exactly that listing So, what’s cool about this is that if in your area, ’cause if you just go to tesla.com/used I believe it is, if you just go to tesla.com/used, it’s going to show you just those in your area, whereas this Tesla Inventory site you’ll be able to search all across different regions and stuff like that That one happens to be in my area here, but over on Tesla Inventory you can see that there’ll be other options, Texas, Dallas, stuff like that So you can kinda find them I really love Eric’s site I think he did a great job Yeah, so go check that out So, if you’re looking for third party used, like a Model 3, let’s say, then you can go to CarGurus And then if you’re looking for something certified pre-owned from Tesla, you can go to teslainventory.com I think it’s the best place to search for it The big deal there is that when you get it from Tesla, they’re going to recertify it for the warranty, so you get an additional four years on basically everything and then eight years on the battery So I think that’s probably the better bet for a Model S or Model X, but if you’re looking for a Model 3, there’s CarGurus And also, if you can get a really good deal on one from a third party, then that may be good as well I’m not gonna say don’t do it, but definitely it’s something to keep in mind Now, if you’re curious, because the Model 3 is priced similar It’s a bit more expensive than a used Model S, as you just saw, but there’s a lot of them, depending on the options, that price of the used Model S may go up, so I just wanna point you at this link and I’ll put it in the description here, the comparison between the two because I do think this is important I’ve said it, and I was saying it before we had them, and I’m saying it still, I prefer the Model S Not everyone’s gonna agree with that, but the thing people used to say is, “Oh well of course, because it’s so much more expensive.” But now that’s not true As you can see, you can get a used Model S for even cheaper than you can get a Model 3, and much faster, so I think it’s something to consider Some of the differences here, the performance, okay yeah this is gonna be Let me see if I can shrink this down for you so you can see it Yeah, the performance of the Model S is gonna be better for an insanely expensive one, but all of these cars are gonna be incredibly fast If you don’t have a Tesla or an electric car, it’s gonna be so delightful driving it because of the instant max peak torque that you get from 0 It’s crazy The range will be great There isn’t a Tesla that has bad range, except for maybe the 40 kilowatt hour battery pack from ages ago Model S gets free supercharging, used ones and new ones, if you use a referral code, which, by the way, is expiring on July 15th So, if you’re looking to get a new one of these you should definitely use a code I’ll put a link to mine in the description, you can see it at the bottom of the screen there The Model S will definitely fit more people The Model 3 is decent, but I can say from personal experience having both of these cars, the Model S, especially if you have kids, is a better ride

The cargo on the Model S is double of the Model 3 and the hatchback specifically makes a big difference if you ever need to haul anything that needs to take up that space Also, if you wanna go camping, I think it’s a better option The displays on the Model S are better, obviously, having a second one right behind there I’m not here just to bash on the Model 3, but there are definitely like a lot of benefits to having a Model S I would say the main thing that would lead me towards the Model 3 over the Model S is the size, and whether or not you want autopilot, ’cause if you buy an older Model S, it may not have autopilot I don’t really mind it, because I don’t drive a lot And then there’s also better handling in the Model 3, I think ’cause it’s smaller, kind of tighter and all that stuff So, there’s definitely a lot to consider there, but if you’re still waiting, Model 3 is super long down the road or maybe it’s too expensive for you, I think that it’s worth considering a used Model S That’s what I bought I am so thankful that I ever did, and I think it’s definitely worth something to consider So, I’ll put all links to all those things down on the description I hope that helps you guys and I hope it answers the question what is the cheapest Tesla and it gives you some guidance from someone that’s been in the space that does have, in fact, both of the kind of cars that are available Let me know what you guys think about that Hit me up on Twitter at teslanomicsco if you have any questions Also, you can reach out to me on Facebook Next, I wanna talk about some Model 3 tips and tricks And again, this is something that I just get a lot of questions about, so I wanted to go through this, because I know a lot of you are getting your cars, so I just wanna talk through kinda what I recommend This whole section here I’m gonna recommend a bunch of products and stuff, not sponsored in any way They didn’t pay me to say this These are my honest recommendations The first one is Elite Finish, who did the ceramic coating on my car and the paint correction They did a tremendous job They’re in San Diego, but they also make this stuff called Washmist, which is a waterless wash system and it’s fantastic You can wash your car virtually anywhere while you’re parked, supercharging, whatever, in about 10 to 15 minutes with a spray bottle and a towel I’ve done it multiple times It’s like what I do now You don’t waste a ton of water You don’t have to get all set up I literally keep it in my trunk I pop it out and in about 10 to 15 minutes, the car looks immaculate There is a kind of a process There’s a two step process to do it, but honestly 10 to 15 minutes your car’s looking amazing And you can start out with a set for 20 bucks, or they have this concentrate thing here, and you can get that whole thing for 100 bucks where you get 2 bottles, some towels and the concentrate, enough to last you for the entire year, easily saving you money and time and doing better for your car and the environment So definitely recommend this stuff You can go check this out at washmist.com or elitefinish.com/washmist, and I’ll put a link to that in the description So, that’s step one is caring for your vehicle Something to keep in mind, you definitely do not wanna take this to a car wash I did about $1,000 worth of damage to the paint on my car by taking it to a hands only or just using hand-wash only just one time It’s that crazy Now, I had the solid black paint, which is maybe a little bit softer, so depending on which color you get, maybe it’d be okay, but I just wouldn’t even do it I would not recommend that at all I would go, I would get something like this You can start out for 20 bucks and you’ll be just saving and just in a better situation all around So, definitely hand wash it Definitely use something like this, if not this one Next, I would say you need to figure out your charging infrastructure So, Plugshare.com, and they also have an app, is probably the best resource Now, there are other options out there, but this one, what it does is it shows you a map and let me see if I can zoom in here And it’ll show you all kind of the different charging options available So, if I go zoom in to San Diego, you can see that there are different colors and there’s different options By the way, San Diego, we just got our second supercharger opened up It’s in downtown, so super stoked on that But wherever you live, this is a fantastic resource for you, plugshare.com and I do believe they have an app Now, on the website, you can choose which options, which types of chargers to show So, for example, if you’re getting your Model 3, I don’t believe there’s a CHAdeMO adapter or a CCS I don’t know if we really have CCS in the United States anyways And then you can kind of choose what other types of chargers you wanna show The original roadster had a different plug I don’t know if you guys knew that or not, but then there’s the Nema 1450, so if you have your mobile connector, that’ll work J1772 or 1772, as people call it, this is the standard one that most public chargers use here in the U.S., the level 2 chargers Then you have the supercharger and then the Tesla charger

I don’t know what the difference would be, maybe a house that has one, and then you can choose which network So, most of ’em that I’ve found are not free Some of ’em are, and I believe even on this website there are people that will list theirs like, “Hey, if you need it, you can come charge it at my house.” So, plugshare.com is definitely a great place to go to figure out where you can charge And the reason I bring it up is because you’re gonna have to pay for supercharging if you have a Model 3, and it will generally be the cheapest option for you, other than charging at home, but if you can’t charge at home, you can use the wall outlet I just did a test, seven days just using a regular wall outlet You can go check that video out And it works actually fairly well, depending on how much you drive So, outside of that, you’re going to want to supplement that with something It’d be really difficult, I think, to survive solely on a regular wall outlet, if you can’t install one Now, if you can install a home charger, then don’t worry about any of this Install it and you’ll just be good to go You go home every night, you plug in But, in addition to that, this is a great resource for you So, that’s kinda my second tip for you is to figure out your charging infrastructure, where you’re gonna charge, how you’re gonna do it, what it might cost, and Plugshare is definitely my recommendation there Now, another one is if you wanna plan a trip, you can go to Tesla.com/trips, and this will help you actually figure it out So, if you’re, let’s say, in San Diego, and you wanna go to, let’s say, Palm Springs, you can do this get route thing, it’ll plan it out for you and it’ll show you where to charge and all these kind of things You can also see destination chargers and that So, Tesla.com/trips is a great way to do that Now, the next tip I have for you is basically on safety Now, there’s two things One, know your limits So, if you’ve never driven with autopilot, be very cautious and learn how it works and in your area, how it does specifically, pay attention, hands on the wheel, all that kind of stuff If you don’t wanna use autopilot, that’s totally fine I don’t really use it ’cause I don’t drive long distances much, so there’s that Next thing, this is like a pro tip, put your cellphone in the cellphone holder and close the lid You are much less likely to reach down and grab it when you have just one extra step, one actual, physical barrier from looking and/or touching your phone Originally, I was like why is this lid here, this is stupid Now, I am so thankful because I do feel like it actually helps me pay attention more on the road So definitely close that lid, put your phone in there That’s kinda my personal recommendation Now, the last one is about charging and how much it may cost you So, if you’ve not done this, on my website, and I’ll put a link to this here, you can just go to Teslanomics.co, look at calculators and find it down there You can actually estimate exactly how much it’s gonna cost you to charge So, I use the average electricity rate from the Energy Information Administration here in the U.S You can choose your kind of driving style and how many miles that you drive per month, and then it’ll kinda just list it out for you exactly what your cost is So, I’ll put that link in the description if you wanna just go check that out, if you’ve not done that yet, you can kind of figure out just thinking about what you might wanna pay And lastly, the last thing about the Model 3 recommendations, is about what types of things, accessories and things, you might want to buy So, I have a kit, and I’ll put a link to that, this is what I consider my Model 3 essentials kit So, on the very cheap end, a really cool cellphone holder to put your cellphone up there when you’re doing navigation, I think works fantastic It solves the problem of having to look over at the screen I don’t use it that often, but if I’m going in L.A and there’s a ton of traffic and 15 different freeways I can take, I’ll throw up Waze or Google Maps and I’ll just run it off there It works really well Also, I really love these 20 inch turbines from EV Wheel Direct You can check out the link to that there, as well as the Michelin Pilot Sport 4s, the ps4s tires, and then you can see the dual rate lowering springs that I got from Unplugged Performance, which I’m really stoked on and Washmist So, this is kinda the last setup here, if you just wanna check it out “Hey, this is like overall, like what Ben recommends “for Model 3 stuff.” I’ll put a link to that there, so you can go check it out So, that concludes the news for the day Next, I wanna jump over and get into some questions So, we’ll start with Patreon, and we’ll go to the questions The first one from William Gregory, and I’ll just take a sip of water while I read it real quick William Gregory asks, “Great to see the articles “and the coverage of the 5k milestone “that the Tesla team achieved “With the use of the tent, sprung structure, “do you think Tesla will use these more? “Not just for general assembly, but maybe “for body shops or other Tesla applications?” You know, it’s a really good question

It’s hard to say They definitely have, from reading Elon and other folks’ comments about it, they’re pretty stoked on it It seems like this is something they really were like, “Yes.” And so, I wouldn’t be surprised if they do They completely ran out of room at Fremont, that’s why they built it, so, yeah, I would not be surprised if they do We’ll see There’re probably some types of work and assembly and things that lend themselves better to that structure versus others, like the paint shop, for example, I don’t think would probably work because of how sensitive cars are during that process So, yes, and no. We’ll see Thanks for the question William And let me get over and scroll down a little bit Crafty_geek asks, “If not covered pre-Q&A, “thoughts about the free data incentive, “7-1 deadline announced right before the configurator “was opened up to North America reservations? “How much of an impact would you expect that “move to have on their Q2 numbers?” So, if you guys aren’t familiar, on 7-1, so yesterday, was the deadline to order your Tesla and not have to pay for premium internet access, an additional cost I think it’s about 100 dollars a year I think that actually made a big difference, so any type of incentive like that, or any type of thing that leads to people losing money by not ordering or something, I think all of that stuff drives sales That’s just kind of human nature So, I think it probably made a big difference in the numbers for Q2 Alright, thanks for the question, crafty And I’ve already answered your other ones there, so I’ll skip those for now And let’s go over to the Q&A on Crowdcast, once I pull that up Okay, and if you’re on Crowdcast, please make sure to go vote on the questions I’m gonna switch over to that right now There we are First question coming to us from Phil Phil asks, “Hi Ben, in your six month review “of your Model 3, you mentioned that you have “experienced an occasional but complete loss “of display on the center screen “That must have been pretty alarming “Can you tell us more about this? “Did it reboot by itself, and if so, how quickly? “Did the speed of the car change? “How often has this happened or has it now “been sorted by any software updates?” So, if you’re unfamiliar with what he’s talking about, my wife and I did a six month review of the Tesla Model 3 this past Friday I think we posted it Quick note, yep, I know it’s five months, I literally cannot be trusted to count, that’s why I use Excel and other tools to do all these calculations for me So, yep, so there you go But, the point in it, my wife mentioned that there have been a couple moments when the car, the center display essentially crashed That definitely was alarming Essentially you’re driving and it goes black Now, the way that I understand that the car is engineered, and this is probably some safety standard, something out there that people have to, it has to be this way The actual car operations, driving, like steering, accelerating, braking, those kind of things, are controlled by a different system than the center display, which has like the media, the maps, the internet connection, autopilot, all that kind of stuff So, the car kept driving fine Nothing happened, other than the screen went blank, and then it rebooted a couple seconds later I’ve also had the center display freeze and not continue to update, so my GPS location was stuck, and I’m like navigating, so I’ve actually done it where I’ve restarted it while driving because I knew that it wouldn’t affect the car’s driving ability Now, the Model S and X also this happens sometimes, far, far infrequently I think I’ve only had it happen once in the couple years I’ve had my Model S But, yeah, it’s definitely a scary moment, especially in the Model 3 because you only have the one screen, you don’t have the two screens, like in the Model S, where the other screen is controlled by a separate computer So, yeah, definitely a scary moment I think it’s only happened a couple of times, and yeah, as the software continues to improve, I’m sure it’ll happen less and less, but it is like a separate operating system, or I don’t know, the right separate network, or separate CPU, or something, so the car operations weren’t affected at all But it definitely scared the crap out of me when it happened, so yeah definitely something to These cars are controlled by technology, which just quick note, regular cars, newer like a Honda Civic or something, also controlled by technology, I didn’t know this, I was recently reading an article that’s just kinda how this stuff works, but in a regular gas powered car, when you press the gas pedal, that’s not like

a mechanical thing that releases more gas There is a computer there that, based on the speed you’re going, and all this stuff makes the calculation of how much to kind of increase the horsepower and acceleration So, I wouldn’t be surprised if Teslas, in terms of those kind of things, think of your brain, you have like your reptile brain, the thing that lets you continue to breathe without thinking about it These cars are kinda designed in a similar way, and Teslas appear to be very similar to what a regular gas car is in that aspect So, yeah, hopefully it never happens again Hopefully it never happens to any of you guys, but have some comfort that it won’t affect the car’s driving, at least it didn’t in my experience Thanks for the question, Phil, and everyone for voting on it Jason asks, “Hi Ben, now that the fully autonomous package, “costing 5,000 dollars after delivery, “do you think it makes more sense now “to pay the 3,000 dollars up front?” No, not at all So, what he’s referring to, the full self-driving the FSD, as you’ll see it referred to, it used to be a just 1,000 dollar addition after, if you didn’t buy it before ordering If you bought it after ordering, now it’s an additional 2,000 dollars, so it goes from three to five, instead of three to four Yeah, I still personally believe we’re 10 to 15 years away from that stuff really being available Now, they may offer some features in advance of that, that maybe you only get if you have that option Personally, I like driving the car and I don’t drive long distances In 10 to 15 years, I would be definitely more on board with that Right now, I just think it’s so far out that it’s not worth it at all So, that’s my view Other people disagree, but yeah, there you go Thanks for the question, Jason Man, we got some seriously good votes on these questions today This is awesome Seth asks, “Hey Ben, first time joining a Crowdcast “and I find it to be an amazing way “to enjoy your weekly show.” Thank you so much “Anyways, I was wondering about something that troubled me “as my parents placed orders for their Model 3s “Do you think order prioritization is still based “on the original timing of the 1000 dollar order placement, “or did they create a new queue in order of “the 2500 dollar finalized deposits? “I feel like it should be the original one, “the 1000 dollar since they opened up the configurator “to almost every U.S deposit holder at once.” You know, I don’t know if the order has changed I would not be surprised if now it’s more of a buffet style versus a wait in line style, and what I mean by that is who was gonna get their car first It was part strategy– (faint cheering) World Cup is going on It was part strategy and it was part kind of who actually placed it in all of that, right? So, there were two factors, like if you were current as the owner, an employee, if you lived in California, all these kinds of things, then you got priority over someone else, kind of regardless of when they placed it Like, I placed mine after seeing what the car looked like, and I got my car way earlier than other people that maybe placed it that morning, but live in Australia, let’s say So, there’s definitely some strategy from Tesla’s side versus this playing a factor as well At this point, I would not be surprised if it was more just purely let’s get people the cars as quickly as we possibly can So, depending on where you live and all those kind of things, like that probably dictates it more, probably weighs more heavily And I think that makes sense to some regard because it’ll be getting the most people the best tax credit situation But hopefully when you placed your order, maybe it still plays a factor, but my guess would be that it plays, right now, what’s weighing more heavily is whether or not, where you live, and those kind of things So, yeah, that’s kinda my thoughts I really don’t know, though, so I hope your parents are able to get their cars soon Thanks for the question, Seth Thanks for joining me, I’m glad you like the experience When I first went to an event in Crowdcast, I was blown away by it and that’s why I do these It’s not free for me to host these there, but it’s definitely worth it because I think you guys enjoy it and I certainly do as well So, thanks for joining me Okay, BobbyG asks, “is it possible that Tesla has been “understating and holding back real production numbers, “stockpiling cars and playing the short sellers? “I got my invitation to configure on June 27th “along with lots of others “I was in the Tesla store early last week “and they told me I would get an invite soon “So the Tesla staff knew what was about to happen “You were spot on with them holding back “deliveries for the rebates. Your thoughts?” Yeah, it’s a good question Now we know that they have real numbers We got those this morning and we just talked through those The big question is whether or not they were able to put off that 200 thousandth car to yesterday, essentially It sounds like they may have been able to

Remember, if they were at 175 at the end of Q1, 40,000 cars delivered in Q2 That means 50% of those, just about, would have to be delivered outside of the United States to Canada It seems like a lot I know a lot of folks in Canada be getting their cars, but that seems like a high number still Yeah, it’s a tough question, man I really don’t know. I really don’t know I hope so. I hope that they were able to push it out, and I hope that they were kind of sandbagging a little bit on it But now that we know what their production numbers are, I know that there was an analyst that affected the stock a little bit today, but this is all very temporary We are definitely now through, I believe, the trough of delusionment, if you follow the technology hype cycle thing, and into a space where we’re gonna see just Tesla just become a legit, major player in the auto space Thanks for the question, Bobby Thanks for joining me, and congratulations Martin asks, “Thanks for answering this, but my Model 3 “doesn’t seem to go anywhere near 300 miles on a charge, “and I’m wondering if anyone else has the same problem? “I only charge to 80%, but it uses up “the battery quite quickly. Why?” Martin in Nashville, Tennessee So, lots of things, Martin I’ll say a couple things So, how you drive is probably the biggest factor If you’re taking advantage of that instant peak torque, and zipping around town and those kind of things, that can have a major factor and you can see that in the display itself It’ll tell you your average watt hours per mile, so you can kinda monitor that Also, there’s things like phantom drain, and all of this can be monitored via an app Let me pull it up for you Full disclosure, I am a part of this company, it’s called Tezlab, with a Z, which is the correct way to pronounce it, by the way And on there, you can see things like phantom drain, you can see some numbers right there I don’t know if that’s working for you Let me see if I can make sure, yeah So you can see the things like phantom drain, and then you can see things like recent trips, and you can kinda see your actual efficiency on those trips So, this may be the best bet for you is to go get Tezlab on your phone It’s on IOS and Android And then it will monitor the stuff for you One of the things I found in recent weeks was that my car would never get above 95 degrees fahrenheit, and that appeared to be some of this cabin overheat protection thing and that happened after a software update It’s since changed, but there definitely seems to be a thing about the car not going to sleep And I do know that the app that we make does ping the car However, we just made a change in the recent weeks that it stops pinging it once it detects that you’re kind of sleeping, that the cars not sitting there So, it’s not pinging it while it’s in idle, so that’s not it So, I think the car, I don’t know what it is It’s like checking for updates If the car doesn’t appear to be sleeping at all, which I believe causes some challenges, and so that may be why you’re getting any kind of additional phantom drain, and also just could be the efficiency, so go get Tezlab T-E-Z-L-A-B You can find it in the App Store, or in the Google Play Store, and hopefully that’ll give you some insight It’s free. Doesn’t cost you a thing You don’t have to be worried For the record, when you do have to log in with your Tesla account, but when you do, we just use that to get a token to quarry your car’s data So, we don’t ever actually save that information You’re not like really in any additional risk of security here for someone getting into your account So, don’t worry about that I’ve heard that reported online and that’s just not true Thanks for the question, Martin Congratulations on having your car Curious what you find. Let me know Next question from Rick Spencer Rick asks, “Prior to the mass invite to configure last week, “my expected delivery date was in July “Now that I’ve ordered the Model 3, the time frame “is September to November I hade a 4-1-16 reservation “Any thoughts why the delivery date “has been pushed back this much, especially now that “production goals have been met.” Well, the one thing that I’ll say is there’s that Reddit post which somebody did this and they got their VIN within 24 hours, that’s nuts I’m guessing that it will be sooner than the September to November, and that’s just based on now we know that they are producing these cars at an extreme rate So, I think that people are gonna start getting ’em much sooner Now, these estimates, just to be candid and not to bash on anyone, but I don’t have a lot of faith in a lot of this stuff that you see on the website around Oh, three to five month delivery window and all this and that I mean, it honestly is like probably somebody just saying, “Hey put this on the website.” There’s not like, I don’t believe like some sophisticated calculation algorithm running behind the scenes, looking at production numbers, looking at deliveries, coming up with an educated guess

It seems like very blanket, very basic And, in fact, I’ve talked to Tesla about this, I said, “Hey, in the configurator, it says this “On the website, it says this. What’s going on?” And they’re like, “Hmm, I don’t know. Let me look.” So, I don’t think that there is, and again, not to bash on the team that makes this stuff, but as fast as Tesla’s moving, I don’t think that those numbers, or those estimates, are that reasonable Hopefully, because now they’re producing them at such a high rate, that you’ll get your car much sooner In any event, the reason this probably happened is because the July date was probably never real in the first place So, yeah, it sucks I wish there was a better way to do it Honestly though, I think everyone is focused on just making cars and this probably is low on the priority list for them So, hopefully you get your car sooner, Rick, and hopefully you’ll be joining the Tesla family here soon Thanks for watching and thanks for the question We got some good questions today, guys This is awesome Take another hit of water Okay, from service, the question comes in, “Considering that Tesla hit the magical 5K, “what’s your take on sustaining that number? “The shorters are already pushing that this number “is irrelevant because Tesla can’t sustain it “Also, do you think that Elon should of hedged rather than upped the stakes saying 7,000 would be produced? Yeah, somebody, I forget who the analyst was, somebody moved the rating for the stock from hold to sell, probably minutes before we started the show, and then that actually caused the stock to decline today, which is shocking I think that that’ll be short-lived Even if they kind of Hail Mary’d it to hit this 5k number, the fact that they’re even close to that I think is fantastic and that they’ll get there very shortly So, I think it was maybe a milestone This was probably the first time that the team actually was able to meet one of Elon’s publicly stated goals I really think it might be I mean, every other thing I can think of, even going back to the Model X model, basically any time Elon spouts something out about a delivery date, the cost of something, whatever, it doesn’t work out that way That’s kinda like shoot for the stars, land on the moon kind of philosophy I think that it’s temporary and irrelevant, whether or not people, I mean, it’s in the short seller’s interest to hurt the stock, so there you go They have a financial incentive to spew hate and so that’s kinda what it comes down to They’re doing their job by whether or not it’s lies or clickbait, or however you wanna categorize it It’s in their financial interest and their client’s, so that’s definitely where that’s coming from I think this is a fantastic day Everyone at Tesla should be super happy Anyone that’s a fan of the company, Elon, or any of these things, I think everyone should just be elated And the team is just gonna keep crankin’ and I think they’ll get up to that 6,000 number, hopefully by the end of August I mean, it’s really just sky’s the limit from here on out Next, we’ll be talking about the next factory, when that’s gonna come online So, thanks for the question ’cause I did wanna address that Okay, looks like you got another one here The fit and finish issue with the 5k, yeah, you know, it’s hard to say I’ve not really had fit and finish issues on mine I’ve had some other technical issues and I think it’s one of those things that the cars are just getting better and better over time And when I talk to them about this, they said that literally an issue can be reported and then fixed that day, on the production line for new vehicles coming out A friend of mine was saying, “You know what? “I’m just frustrated. I’m just gonna buy a used one “I’m gonna cancel my reservation.” And I said, “No. Because the one you get is gonna be far better than this used one that’s been out there.” And they remedy it And they really take care of Model 3 folks So, I’m not too worried about it It’s an issue that all automakers have, Tesla, being a very nascent automaker, I think it’s something they’re just gonna get better on Certainly the earlier you get the car, the more issues you’re likely to have But it doesn’t appear that there’re any additional issues from this, but if you have any, of course, talk to Tesla, and they’ll hook you up Thanks for the question Tom asks, “Now that the Model 3 lines are getting “to real car company numbers, do you believe that “upper management will continue to keep all hands on deck “and continue the ramp, or begin to put more effort “into the powerwall, PV, et cetera? I don’t know about the powerwalls in the panels, those kinda are separate operations, I believe They’re still not through the worst part of it, or maybe they are through the worst part of it, but it’s gonna take a while for things to normalize out I think it’s gonna be up and down for the next few weeks, and we’ll see Maybe by the earnings call, they’ll have additional production numbers for us, something like that

I don’t think we’re gonna see an uptake in the other stuff I know JB did address this in the last earnings call, but still so long way to go on that Thanks for the question, Tom Rick asked, “Based on 40,700 deliveries in Q2, “do you think the total deliveries of the date “stayed under the 200,000 at the end of Q2?” Really hard to say, man It’s really hard to say I really hope they did, but it doesn’t give me hope That is a large number of deliveries Thanks for the question Now, I’m gonna run through these We’re over an hour and fifteen here, so I wanna make sure I respect your guys’ time Ian asks, “Hi Ben, love the show. Once Tesla technologies, “charging, supercharger network, batteries, “are fully, or mostly, developed in 10-20 years, “why will the general public still be hesitant “to make the move from gas vehicles to electric? “A lot of countries are making estimates at when “they will only allow electric vehicles, “but it seems impossible given the fact “that so many older cars are still on the road. Thanks.” Thanks for the question, Ian I challenge the assumption that you make in your question, that it will be, there will be hesitation in 10 to 20 years If you look at the Bloomberg new energy finance report from maybe six months ago, they put the tipping point where electric vehicles become mainstream, and that becomes kind of where everything is headed at 2021, which is two and a half, three years from now So, it’s one of those things where in 10 to 20 years, I see basically everything being electric Of course, there will always be gas cars, as there should be I think that we tend to think of cars, or transportation, as a single thing and it is so incredibly diverse Like the modes of transportation, the use cases for transportation, I see the majority of that shifting to electric definitely within 10 to 20 years I think we’re gonna start to see the kinda tipping point earlier than that And remember, a lot of the oil and gas companies aren’t necessarily against electric cars because they still need energy, they still need electricity, and they need to get it from somewhere So, they may be against it in the sense of refined gasoline will drop, but they’re still gonna be able to produce energy, which is still used So, I disagree with the assumption that there will be hesitation in 10 to 20 years I think it’ll be pretty commonplace I think it’ll start to shift in maybe five years So, we’ll see. We’ll obviously watch that, and then, yeah, when it comes to other people saying they’re only gonna allow electric vehicles, I don’t really know if that makes sense either I’m not really a big fan of governments, or fewer people deciding things like that I would rather them create an environment that’s competitive and the market because electric vehicles win on all merits Things like performance, things like maintenance, and all that kind of stuff, I think they’ll win out regardless of what the governments do Unless the governments specifically regulate to try to keep around these old industries, which I think is asinine I believe in a smaller form of government that shouldn’t get so involved in the markets like this So, there you go. I guess that’s my take on it Thanks for the question, Ian That’s a really good one Next, from Leo, “Hi Ben, wasn’t sure if you had “gotten my email. I got my invite to configure “last Tuesday,” long range, I think is what you’re saying, “not all-wheel drive. And on Thursday, I got an email “with the VIN” congratulations, “with my delivery “time will be Friday to next Thursday “Contrary to my confirmation email of September to November “Last week I asked if you think Tesla “will nickel and dime anything else “Well, it looks like the white and red paint “is now 1500” yep, “while the other ones besides black “are 1,000. Do you know why that is the case?” Okay, so, actually then to answer, was it Rick’s question just a minute ago, there you have it So, his estimate was September to November and got his VIN very quickly I think why the red and white paint is because the amount of work that goes into it I don’t know if they’ve changed it at all Those aren’t the most popular ones, so it affects a smaller percentage of people I posted on Twitter recently we did a study of 700 owners of Model 3s, which colors they have Midnight silver metallic was the winner Not sure, but yeah, it definitely is more of an a la carte type menu where you can pick and choose what items you want So, congratulations, Leo TeslaKen asks, “Ben, with your penchant for statistical “forecasting, if we assume that Tesla continues “to make 5,000 Model 3s a week for July “and 6,000 a week for August, along with 2,000 Model Ss “next week, what does that total revenue curve look like, “and what impact does it have on Tesla’s current “operating expenses and current debt? “Can you protect both short term profitability

“and long term when income pays off borrowed debt.” Yeah, I could. I could spend probably a ton of time doing that, but by the time I do, we’ll probably have an earnings call from Tesla with official guidance on it Basic numbers, and I’ve done some videos on this already, looking at 5,000 Model 3s per week with an average price of 50,000 dollars, it’s 250 million dollars per week on that one line alone That’s just absolutely nuts They’re making money now The question, I think, is about profitability and that goes into expenses and kind of how that works And also, you have different things, different areas of profitability, operational profitability, from the actual cost of making the vehicles and stuff like that From things like investments and stuff, like new factories, et cetera And then you have your financing, paying back your debt and interest on it and stuff like that So, I would say it’s very difficult, but they’re projecting Q3 and Q4 somewhere in there that they would actually be profitable I think making a ton of cars like this goes a long way to solve for that And again, the biggest thing I got out of the numbers from today was that it’s still 420,000 reservations strong So, whatever fake news bullshit that you may have heard that there were people canceling their reservations Wrong. That’s completely false And now we have evidence from them to show that So, appreciate the question, TeslaKen Probably not gonna go too deep into it because I’m just gonna wait for the earnings call If we have really unanswered questions after the earnings call from Tesla, then maybe I’ll dig into it So, thanks for watching James ask, “Hi Ben, will the Model 3 have the ability “to have a roof top carrier or rear lightweight hitch “for a bike rack?” Yes, there is a thing called a, I forget what it’s called, I’m sorry, it’s like a suction cup mount for the top People are already using that My friend, Kim, who has a channel called LikeTesla, sent me some photos the other day Looks awesome, go check that out And I believe that people have this no bolt install hitch, as well So, yeah, some of those things are already out there Go check it out. Thanks for the question, James Seth asks, “Another question, would you consider going “for the SpaceX option package if you crowdfunded “the extra cost and every contributor at a certain level “could test drive it if we are down there “Is it cool with you? I would absolutely adore this.” So, what he’s talking to is the Roadster, and the SpaceX options package, which has rockets I don’t know what to think about that, man I mean, we don’t even know what the price is I don’t even know, yeah, maybe We’ll keep it open. We’ll find out Thanks for watching and thanks for the question Teslafan asks, “Hi Ben, we are thinking of getting “the Model Y. When do you think the Model Y “will arrive in Europe? Just to help you, “the Model 3 will arrive in early 2019.” Phew, this is a big question So, first off, thanks for joining from Switzerland I’ve never been there, but I do wanna go ’cause I think I have fun in Europe whenever I go Model Y, I think will start to see reservations maybe this year, production will be maybe late 2020, and then Europe, maybe 2022. Rough guess Yeah, thanks for watching We’ll obviously cover it as we get more info Larry asks, “Aloha, I ordered my Model 3 performance “dual motor last week. I’m stoked.” Sweet, me too “While doing so, I didn’t see the white seat options, “so I ordered the black Also, I would like white seats “but would like to leave the wood on the dash “Don’t like the white ceramic strip.” Oh, I didn’t see that they had that “Makes me think of toilet bowls.” Mahalo to you too, Larry Congratulations on your order I know that you can get some aftermarket white seats, as well Kim over at LikeTesla just did the video, or just showed the video where they got theirs So, go check that out Ron asks, “Hi Ben, I can’t believe I ordered “performance all-wheel drive for the only fact “of a one second reduction in acceleration “up to 60 miles per hour “But I’m fairly certain hardware and software “are upgraded. What do you think about electric “motors and the tech involved on performance upgrade? “Congrats on San Diego on the special deal on CA rebate.” Yeah, so, and what you’re referring to, I believe, is the SDG&E, if you guys aren’t aware if you’re in San Diego, I believe you can get a 500 dollar credit on your bill For me, I have solar, so it doesn’t really do me any good ’cause I’m running a negative balance with them Yeah, so, electric motors, okay, so for the performance model, I believe that it’s gonna have a bigger motor That’s usually what the case is and maybe some software unlocked kind of things Yeah, I think electric motors are clearly better options in terms of efficiency of propulsion If you don’t believe my ’cause I’m not an engineer in that regard, as you shouldn’t, you should be skeptical, go check out Jason Fenske at Engineering Explained He talks about it. He just did a great video talking about why he sees the future of transportation as electric and he is the authority in it, I’ll just put it that way to say it lightly Thanks for the question, Ron, and thanks for the comment BioTech asks, “Can you explain all the bad press

“on the 5,000 mark? Looks like they made the mark, “but still bashing Tesla…” Okay, back to what it is These people have a financial incentive to them and their clients to spread fake news and shit on Tesla in any way that they possibly can because that’s how they make money for them and their clients No big surprise that they’re doing some stuff like that In what is objectively an amazing milestone for Tesla and for the team and for electric vehicles in the world, so screw them Nate asks, “The 7,500 tax credit still is not clear to me “So many places explain it differently.” Yeah, so I just did it, or I just covered it today, I’ll put a link to that in the description Let me see if you have a question here 2,500 California rebates still good “Would I only get the tax credit if I had to pay “at the end of the year?” No. Okay, so quick, when people say you have to owe that much in taxes, what they’re talking about is a tax liability So, if you have a regular job where you work for a company and you get a paycheck, when you get that paycheck, you are also paying some percentage of the money, the wages, to the federal government and to the state government and there’s probably other little taxes and stuff like that that go into it, depending on where you live And the employer also has to pay that And so, you’re already paying taxes, but typically what happens is at the end of the year, what you pay on your regular paycheck adds up over the year, and at the end of the year, you add in additional deductions, maybe you had a kid, maybe you bought some solar panels and you get a deduction there, whatever the case may be, and so you typically get money back because you ended up paying, giving the government more money in taxes than they actually deserve So, that’s where you get a refund from Now, that is kind of a separate issue, right? If you’ve paid more than 7,500 dollars in taxes throughout the year, then you will be able to take advantage of the credit because it will essentially take that off, then all the money you paid plus any other deductions you’ll all get back the following year So, it doesn’t reduce the cost of the vehicle, but it will increase a return that you’ll get Now, if you don’t make enough money to have paid a 7,500 dollar tax credit, I question whether or not a 50 to 60,000 dollar car is right for you, but if you do, then you will be able to take advantage of it So, that’s what they mean by that You can look at your taxes from last year and look at your total tax liability, and that will tell you whether or not you’ll be able to take advantage of it I know it’s kinda confusing, but I think I did a video on it and if not, maybe probably some other folks did as well So, there you go. Thanks for the question, Nate Man, we are going a long one today I’m gonna take two more questions and then we’ll call it “Hi Ben, would you/Jen consider trading Tez “for a red Model 3 Performance if your subscribers “chipped in to subsidize your cost difference?” You know, I don’t know, man I’m really leaning towards getting rid of the 3 and going with the X Although, on the other hand, I’m hoping to pay off the S and maybe Tez the 3 this year and then I wouldn’t have any debt, so that’d be nice Yeah, I don’t know You know guys, if you wanna help support, go to Teslanomics.co/patreon, you can get added benefits, backstage access, all kinds of fun stuff like that Yeah, I wouldn’t worry about that, but I appreciate the gesture there Alright, last question I apologize if I didn’t get to yours We’re going on an hour and a half here “Hi Ben, thanks for what you do on this channel “My question is do you think the Model 3s “delivered were lower than expected because they “were trying to maximize the tax incentives?” You know, I don’t know, that’s a good question Like, I definitely think that they held off on delivering some and so, yeah, I guess I’m gonna say yes Yeah, the number that they delivered was 40,000, yeah, so, interesting Yes, I’m gonna go with yes I expect Q3 we’ll see just bananas numbers Numbers that are just through the roof Alright guys, thank you so much for everyone that has joined me here today I really, really enjoy doing this show This is a big part of my week is preparing here, so I hope that showed, and I hope you guys got value out of it If you’re new here, consider subscribing, click that bell to get notified I covered a lot of stuff today, so what I like to do is I like to chop those up into individual segments and post them throughout the week, that way if you missed any of it or if you didn’t want to watch this entire hour and a half long broadcast, you can just get the pieces that you’re interested in And then on Fridays, I have more fun, vlog, or some kind of random experiment or something video So, stay tuned this Friday for some really interesting stuff about the new Tesla Roadster