Elon Musk Just Revealed INSANE Tesla Announcement in Exclusive Interview
In this full length interview from December, 2022 Elon Musk reveals some insane details about Telsa and the future.
If you want to keep demand constant, and if you want to increase demand, you have to decrease the price of the car further. Those are just, I, this is like econ 1 0 1 stuff. So that’s, that’s the situation we have. It’s kind of blown my mind that the Fed has raised rates so high, uh, they’re just dealing with old information.
Um, and it’s, it’s like basically like the economy right now is like a car, you know, driving around on a cliff side. And, uh, the, the Fed is driving it by looking at the rear, rear view view mirror. In fact, it’s not even looking at the rear view mirror. It’s looking at a video taken of, of the outta the rear view mirror.
That’s like three months old . So obviously this is not a good way to drive a car in a, in a windy cliff road. Um, so they’re just very old school tra traditional, um, and. And, and, and, and I think we’re in for a hard landing. Uh, that’s, that’s based on the, it’s, yeah. Um, like I said, yeah, you have to think like, like for argument sake, if like, if, if, if, if you have a risky rate like that, that is higher than the return on the s and.
which is, which obviously has fluctuations. Why would anyone have. , I mean, we are buying bonds, we’re buying preferred. We’re, you know, at 11, 12% yields, you know, you can buy the T flow. Everyone on here, there’s ETFs, they’re floating rate instruments you can easily earn, you know, high single digits, double digit return in very low risk securities today.
So I a hundred percent agree with you. Why would you buy residual interest equity securities? In risky companies, I hundred percent agree with, with your thought process in an environment like this. Now, we don’t expect rates to stay here forever, but it’s a good question, right? Everyone should ask themselves.
Yeah. I mean the, the, the, the, the E Exactly. And so, so Lang probably what’s gonna happen, um, it sounds like based on the third signalings they’ll. Uh, raced by another 50 basis points next month. Uh, and then my guess is though, again, this is, it’s not like I have a hot line to Jerome Powell. You know, if somebody knows Jerome Powell, please tell him to stop.
Insane. I feel like you could get him on the phone if you really wanted. I think so. At this point, um, is he allowed to talk to me? Sure. Twitter, pretty talk to business leaders. Totally. Let’s get the set up. Let’s do it on Twitter spaces. That would be a conversation that be sick. Elon versus the Fed on Twitter.
Twitter’s valuation would pop on that too, right? You’d get a whole new batch of listen listeners. Well, the whole, the whole market, you know. Uh, but like, like I said, the thing that to appreciate about, like, uh, interest rate increases is, is the double whammy effect of if you’re looking at, at a stock price is higher interest rates will.
Uh, profitability of, of any company selling something that is dependent on the price of debt. Um, like cuz cars are bought with leases and loans, so, uh, people look at their monthly payment and so you, you have basically, uh, uh, demand slash profitability issue with higher interest rates, and then on which, which then re reduce the profitability.
Obvious. and then in general, the, the valuation of EQ of all equities drops with the increase in the real interest rate. That’s the double whammy effect that I’m talking about. Um, now, now the, the, this, this will not last forever. They’ll, they’ll, I mean, I don’t know. Hopefully they’ll see like, okay, this, they’ve gone too far, and then start lowering the rate.
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