I Wanted to take a quick second to explain why I personally believe that Tesla stock is headed to the absolute moon. or maybe I should say Mars because of Elon But you get the point I Want to explain another reason why I am personally bullish on Tesla Now historically I talked about the Robo Taxi Network I've talked about global penetration and I've also talked about the popularity of Tesla as exclusively an EV brand and really, it's that final note that I want to explain because we have some new information on it. Unless you've been living under a rock, you probably know that Tesla is already the world's most popular EV brand. and in this video I Want to explain why it's going to be putting more distance between its number one position and whoever is all the way down in number two.

And to support my case, this was just reported by Bloomberg Tesla prices now rival average Us cars after billions in Cuts Elon Musk's latest round of price reductions brings EES to a new level of price dis parity and they're also driving a wedge between investors. Now for the latter part, talking about the difference of opinion in Tesla investors. Well, of course we got to get into that drama. So I'll be explaining that.

but for the first part talking about price parody kind of makes me chuckle when I first started making videos about Tesla Circ 2020 2021 I Remember at that point everyone was projecting forward of like is it even possible will Tesla will EES in the general sense ever hit price parody talking about the cost of batteries and the raw Commodities to make it possible a lot of people said no and obviously that would hinder the overall percentage of EVS representing total Global Auto Sales But now with the steps forward, not only in technology, but also because of assistance from not only the US government, but various World governments. we're kind of seeing parody now. It's crazy to see how rapidly that actually happened when there was a lot of naysayers in fact, a couple years ago saying it was impossible. Anyway, here are the details of what you need to know for right now: Tesla's top selling EVS will now compete directly with gasoline cars on price.

After the latest round of price reductions, the lower price could cost a company up to $1.2 billion a year. So obviously that last part is why there's drama amongst the investors of Tesla The supporters of Tesla Is it a good decision is a bad decision. But for that first part, hey, the price parity I Think that that's going to open up the market the average consumer to be like, well, if it's the exact same cause and the pitch is that one of them makes you feel a little bit better morally of what you're doing for the planet I Would expect the percentage of EV sales to obviously follow suit, but hey, that's just my opinion. At $39,000 the base model 3 sedan now costs 88.7k less than the average amount paid for a car or truck in the US The starting price for a model y SUV is 3.7k below the average auto price of roughly 48,000 Tesla Started cutting prices at the start of the Year twisting the screws on Legacy Auto automakers that were already struggling to make EVS profitably.

In all reality, that's where Tesla really sets itself apart from its competitors. It's in the lower cost and the higher efficiency of the actual autom making process. Anyway, back to the actual price: Cuts There's two camps when it comes to this decision. You have one side obviously thinking it's smart and it's going to propel the business and the stock to the next level.

And then you have another. Camp Thinking that maybe this money could be best spent elsewhere according to one of the supporters. Arch Invest Now the fun part of cost declines life after price parody. There is no reason why battery costs or EVS should halt their price declines at Price parity.

The product can continue to cost less or it continues to sit in the same price segment and performance improves. This statement pretty much relates to what I just alluded to. If you were a consumer and you were looking at two different vehicles and they're the exact same price, but one of them on the surface level has more of the moral argument of hey, this is better for the planet Of course you would expect a lot of people, maybe not everyone to really like that decision. Before this people were like, well, okay, I might spend more, but it is good for the planet.

but now that kind of wishy-washy attitude of like, well, I'm spending more money kind of quickly disappearing and as we go forward, if it continues to improve in terms of price going even lower all of a sudden, we have an option relative to another one that's now cheaper and you get to say that hey, better for the environment Now with that being said, now not everyone who supports Tesla is necessarily supporting this decision. Gary Black Managing Partner at the Future Fund said last week's changes alone will cost Tesla $1.2 billion a year starting in 2024. Amazes me that Tesla Uber Bulls are trying to spend last night's price Cuts As a positive, we would prefer Tesla use long-term advertising investment to educate internal Combustion engine owners to go EV rather than price Cuts I understand what Gary Black is trying to say but I think the price parody alone when people are looking at the price tags will be a compelling enough case. but obviously those are just my own thoughts, my own opinions.

I Would love to get your thoughts and your opinions in a comment below, but I do have some other facts and figures that I want to share with you. The Model 3 starting price is now 6.5k less than the cheapest BMW 3 Series which is often seen as Tesla's sedan most direct gasoline powered competitor. Adding in a 7.5k federal EV Incentive and fuel saving puts the cost of ownership on par with a 2024. Toyota Corolla Tesla has also dropped the price of its higher-end Vehicles the model S fullsize sedan and the model X3 row SUV, both of which are their cheapest ever compared to the US average transaction price in September.

The Benchmark price for a new vehicle in the US was roughly between $47 and $48,000 So in my humble opinion, this is another piece of information that is reinforcing my personal opinion in the bullish thesis of Tesla at least in the long term. Obviously, in the short term there could be a lot of volatility, but I'm talking 1 2 three decades at least from the point that I'm filming this video. Obviously, as I stated, these are my own opinions and I would love to get your thoughts in a comment below. Do you think I'm reading the situation properly or do you think I'm missing something? That's pretty important here I Hope you enjoyed the video I Appreciate your time I'll catch you in the next one.

Have a beautiful day.