People's misconceptions of electric vehicles never cease to amaze me!
Last night my mother-in-law was telling me about a conversation she overhead at work. She led with "I never really know when to jump into the conversation, but this was crazy."
She said two ladies were talking about EVs and said "I just don't understand why people would buy one. The batteries are super expensive and hard to get and did you know all of the batteries were made at the same time so can you imagine how expensive and hard to get replacements for when they all go bad at the same time???"
We sat around the table and shared a good laugh at just how preposterous this is.
-All batteries were made at the same time??? There are MILLIONS of electric vehicles, you think they made all of those batteries at the exact same time and have just held them until they could go into vehicles over the past 10-15 years???
-All going bad at the same time??? Everyone's driving habits are incredibly different. EVEN IF batteries all went bad at the same mile mark, that timeline would vary greatly from one owner/driver to the next.
-Super expensive??? Sure, they aren't cheap. But have you prices out a engine or transmission replacement today? As battery prices lower and repair rates / cost increase, battery vs. engine replacements are getting incredibly close to price parity.
-Why would anyone want to buy one??? Oh boy, that answer would require a novel in and of itself!
To say EV education is needed is an incredible understatement!
BREAKING: Elon Musk (@elonmusk) blasts @JoeBiden's @WhiteHouse, writes, "Let’s not forget the White House giving Tesla the cold shoulder, excluding us from the EV summit and crediting GM with “leading the electric car revolution” in the same quarter that they delivered 26 electric cars (not a typo) and Tesla delivered 300 thousand."
$TSLA bulls should reduce their expectations that $TSLA volumes can grow at +50% per year. I am at +37% vol growth in 2023 and +37% growth in 2024. WS is at +37% in 2023 and +22% in 2024. And apparently @MartinViecha head of $TSLA IR recently advised investors that TSLA “is now in an intermediate low-growth period,” at a recent Deutsche Bank auto conference with institutional investors. 35-40% volume growth still translates to 35-40% EPS growth, which justifies a 60x-70x 2024 P/E ($240-$280 PT) at a normal megacap growth 2024 PEG of 1.7x.
41 days.
41 days since my mom left planet earth.
Today, it was dad's turn. A high school teacher for over *50 years* improving and enriching countless lives.
Good-bye, Dad. I'll see you whenever I look in the mirror, or close my eyes.
Jerry Hill
4/16/1939 - 4/4/2023