Welcome to electrified it’s your host dylan loomis, happy friday to everybody, a real quick. Thank you to my two newest patrons. As of last night, i appreciate you guys, but getting right into it today, there’s actually a lot to get through, starting with adam jonas, who at one point was the laughing stock of the tesla analyst. He had a 10 price target for tesla stock pre split, but it seems as though he has put in some time to actually learn the fundamentals of the company and here’s. What he has to say in real quick rpoo is just average revenue per unit, so think sas or software as a service which is going to be a major deal for tesla. So look david, it’s more than just unit times price. If you put your henry ford hat on, you know, 100 year old, pat it’s unit times price, and then you needed to have big shares in markets like germany and france and china and that’s great. But you know the market’s different. We think the opportunity is an installed base. Tesla has about 1.3 million cars on the surface of the earth. We have that going to 40 million cars by the end of the decade. You put an rpoo of anything on that on 40 million cars, 50, 100 bucks or 200 bucks a month. You don’t even need full autonomy and you start getting. You know many many tens of billions of recurring software revenue, um, very, very high margin.
You know 60. 70 percent type margin that’s the kind of stuff. If i talk to my my tech team, katie huberty who’s been on your program many times that’s. What transformed apple, for example, um to uh a a relatively cheap company at 20 or 25 times even dollar, whatever trading app. So that moment, hasn’t happened yet for tesla tesla’s still covered by auto analysts that probably shouldn’t be covering it, and when you let the tech community get a hold and see the software opportunity, that’s that’s what i’m channeling it’s not yes, the units are important, but you Don’T need to have half the chinese market to be to get the software revenue so two main takeaways here, one tesla doesn’t even need true, full self driving to be here to have awesome software as a service sales that, by the way, are going to be very High margins, potentially in the 60 to 70 range and two, while everyone is hyper, focused on deliveries and the revenue that will come from the sale of the vehicle, many people are sleeping on the fact that there is going to be additional revenue streams. This rpu figure, and even if it’s, 50 to 100 per car and in 10 years tesla, does have between 30 and 50 million cars on the road. You can do the simple math that’s a big number for a very high margin software as a service sales figure. So adam jonas might be getting closer to that group of tesla analysts that we can actually listen to and maybe learn something from the pierre farragues.
The gene monsters the dan knives adam jonas, doing much better, and some big news here, alex shared the model y, can now be ordered in germany with a delivery date set for september. As you can see, the configurator is up and running, and these will indeed be coming from tesla china, as, of course, gegeberlin is not yet ready for deliveries in september and, as you can see, drive tesla. Canada did some recon work and all of these countries are listed as having configurators for the model y up and running. So, as you can see, every country on this list will be getting the model y here, probably sometime this fall or winter now they did say. Deliveries of the model y to europe should provide a big boost to tesla’s, quarterly and annually delivery volumes. But i somewhat disagree with this because i really just think instead of these model y’s being delivered in china, they will now be delivered into europe. Really this isn’t going to somehow increase their production capacity out of nowhere, it’s just going to change where these vehicles are being delivered, and the big takeaway for me here is that tesla is confident with their model y production rates and the scaling of that at tesla. China, meaning they have enough capacity to now open up the model y orders for some places in europe, ahead of the gigabilin opening later this year, and just real quick updating our chart with the model 3 ny breakdown for june china deliveries, it was 21 500 model.
Threes and 11 600 model wise pretty much in line with the main numbers as well, and this export number of 5000 for june that was most likely all model 3s. I couldn’t find anything if there were any model y’s that snuck out in june. It seems as though the first model wise to be exported from china will be happening in quarter three real quick. I want to tell you guys why i chose to partner with squarespace. Ever since i was 16, i knew i had an entrepreneurial gene. I’Ve honestly tried countless online platforms for different business ventures and squarespace is the most feature rich and easy to use platform out there to help you start a business or create an online presence for your passions. You can engage your audience using squarespace email campaigns and making sure the aesthetic matches your website could not be easier. Of course, all websites you create will be optimized for mobile, which i can tell you right now is a major benefit. Squarespace also has super useful seo tools to help. You rank your web page and, as i’ve said before, i would not be a youtuber today without the power of seo head to squarespace.com for a free trial, and when you see the power of the platform, go to squarespace.com electrified or use coupon code electrified to save 10 off your first purchase of a website or domain, this was a tweet that elon happened to like from world of engineering.
As you can see, the timeline is down here and it has to do with the installed wind power in terms of megawatts all the way up to the present time. So i thought this was interesting and, as you can see right now, china is dominating the usa. Is in second and then we have germany in third, a quick anecdote from jain shanghai. He said over 100 china made model y standard range which literally just went live, were ordered yesterday at this one showroom in shanghai. So, like everyone is saying, it seems that the demand for the standard range model y is going to be through the roof. Many of the younger buyers were looking for this price point, and now they have it. We also got a 5 000 price increase on the model, s long range and the model x long range. So, as you can see the way back machine as of july 5th, the model s long range was 79.9 and now today, it’s 84.9, hence the 5 000 and then the model x back on july 5th was 89.99 and right now, it’s, 94. 990.. Once again, my guess is that the demand is very strong for these vehicles and it’s been really interesting to me how the model x has kind of faded into oblivion, especially in terms of the media cycle. This is something that you would think. Elon is aware of, and he would like tweet something about the model x just to get people talking about it again, i’m sure the sales are going to be just fine, but still interesting.
Nonetheless, and another quick anecdote, tesla is sending out model y emails to reservation holders and it will have the hepa filter and the bio weapon defense mode, which is definitely great news. A quick tweet from elon, bitcoin and eth are pursuing a multi layer transaction system, but the base layer rate is slow and transaction costs are high. I could talk about this for a long time, but i won’t get into it but i’m, just showing you that he is still working on doge and he said there is merit in maximizing the base layer, transaction rate and minimizing transaction cost with exchanges acting as the De facto secondary layer so as mentioned, maybe i’ll start talking more about the stuff over on patreon, because honestly, i’m, too busy with other projects to upload on my crypto channel at the moment. But just a quick fyi elon is clearly still interested in making doge work and elon also confirmed that saturday or friday night at midnight. California time is when the fsd v9 beta should be released. So yes, this week not next week – and i was tweeting yesterday about how elon needs to stop putting timelines on the fsd and then he replied later to omar’s blog saying i can sometimes be optimistic about schedules. You don’t say so a pretty cool story here. So hiro mizuno, who is on tesla’s board, shared that major league sensation. Shohai otani chose the model x as his first car now this is actually a much bigger deal than you might.
First think. If you don’t know anything about baseball, this dude is an absolute stud. So he’s a two way: player he’s a pitcher he’s very good, but he also has incredible: hitting power he’s actually going to be in the home, run derby. This monday july 12th so check that out, if you’re not doing anything, he also has almost a million followers on instagram, and many famous people in the sports world are actually commenting on him. As you can see, jj watt is saying it feels like a lot of people are talking about shohei, but still nowhere near enough. People are talking about him. What he’s doing in baseball is insane and the headline here jaws are dropping as his teammates share their stories about his legendary power. Mike trout, one of the best players in the league says he can hit line to line stupid power to see him hit in colorado. Obviously, with them balls during the derby is gon na be, must see tv and some more comments from teammates and other players with regard to his batting practice, stupid and absolute joke. The most power i’ve ever been around so, like i said this dude is a big deal and him rolling around in a black model x is a big deal, especially when it comes to marketing. In here is your free advertising tesla? So electric has obtained a tesla lithium extraction patents. So, of course we heard a little bit about this at battery day, but we didn’t really get any detail.
Here is the detail: now this whole thing is going to be linked below but i’m going to give you the high level overview, so the abstract processes for extracting lithium from a clay, mineral and compositions thereof, the extraction process includes providing a clay mineral comprising lithium mixing. A cation source with a clay mineral performing a high energy mill of that clay, mineral and performing a liquid leech to obtain a lithium, rich leech solution. Now that probably sounds like chinese to most of you, but first things. First, so in scions a cation is an ion or a charged particle with a positive charge and an anion would have a negative charge, so cation positive, anion negative. So, as we know, the problem to date has been that the ever increasing demand for lithium ion batteries makes it necessary to explore other lithium mining in extraction sources, and so far people are actually using this lithium extraction process from clay minerals that is different than the Brine process, which i’ll explain in a second but the problem to date with this specific process from clay mining has been that the high acid consumption and complicated leech solution, purification methods also make the overall extraction process less cost effective and not environmentally friendly. So this is where tesla steps in and changes the process of this lithium extraction from the clay sources, so, basically a high level. What tesla’s process is going to do. It provides a clay mineral comprising lithium, performing a high energy mill of the clay mineral mixing that cation source with the clay mineral and that can be done before or after performing that high energy mill to form a mixture wherein the cation source comprises a cation and An anion and contacting the milled clay, material and cation source mixture with a solvent to extract the lithium from the milled clay material and from a lithium, rich leech solution.
Now, for the purposes of today’s video we’re not going to go further into the weeds on that one i’m sure jordan, at the limiting factor, will do a deep dive on that. Eventually, maybe i will too, but just not today, but this new process needs to be contrasted with the brine process, which most lithium is commercially produced from either the extraction of lithium containing salts from the underground brine reservoirs or the mining of lithium containing rocks such as Spotamine lithium production from clay sources is expected to become commercially viable. This is exactly what this tesla patent is talking about, so in order to extract lithium from brines one of the main methods to date, the salt rich waters must be first pumped to the surface, into a series of large evaporation ponds where solar evaporation occurs over a Number of months when the lithium chloride in the evaporation ponds reaches an optimum concentration, the solution is pumped to a recovery plant where extraction and filtering remove any unwanted boron or magnesium. It is then treated with sodium carbonate, thereby precipitating lithium carbonate. The lithium carbonate is then filtered and dried, so that is a super high level of the brine extraction process and, as you can see, the processing from clay is very new and several companies, other than tesla are also exploring the extraction of lithium from clay in nevada, Including american lithium and norm ventures, so, once again, if you want to go all the way into the weeds, this patent is linked below tech dash on reddit shared a tesla upgrade a bill me later option that they found in the software code.
Now the first thing that i think of is paypal if you’re not familiar, paypal has a bill me later feature which is now basically just paypal, credit, and we know somebody that used to be very involved with paypal. So this is pure speculation on my part, it might have nothing to do with paypal, but i figured hey, you know, we’ll, put it out there and see what you guys think, but the big thing here. What is this build me later for well it’s, seemingly under the headline of subscription agreement model? So could this be for the full self driving subscription service, and will it have a bill me later feature? I don’t know we’re about to find out, hopefully in the next few weeks or months or years, hopefully months in a quick note here, biden pledges to end 90 billion dollars worth of tax breaks for gas companies. At first glance, this is a rah rah. Awesome thing everybody loves to see it, but a few things. This is just a pledge. This is nothing official. Yet this 90 billion dollars of tax breaks that are supposedly going to be removed from fossil fuel companies, it’s not going to happen overnight, it’s going to happen. If, at all over the course of years, so really only time will tell once again if this is political posturing, if this is something that biden and his administration can actually get done, we really don’t know for sure, but at least the headline is great, and hopefully They can make this happen to some degree and biden said we’re, not asking them to do anything that is unfair, we’re, just not going to subsidize them anymore.
Fingers crossed this is exactly what happens but that’s all for today. Please take a second to like the video.