All right. So, you do about 75% or so of your manufacturing here in the US. You do a lot other uh manufacturing in Mexico and about I think 10% in Honduras.So, you're pretty well positioned also that Mexican manufacturing is covered under USMCA. What do you think this means for your business that a lot of your competitors are going to face potential tariffs, but you won't. Yes.Well, first of all, good to be on on with you. We are positioned well. We are fortunate.You know, we started about 91 years back in ...

Well, as you know, and I talked to Joe about it a week ago on this show, I really believe we got to bring manufacturing back and especially if we want to have uh stand up to China in certain instances, we got to bring chip manufacturing back. Uh just a question of the way to do it. I think that uh to some extent using tariffs on especially things that are uh defense related or national security related is important but to have the government decide it's going to take a stake in Intel and not take a stake in ...

For Elon Musk and Tesla, this represents a valuable opportunity to gain real-world foundry experience at an exceptionally low cost — something TSMC would never allow. It enables Tesla to enhance its chip design capabilities, particularly in manufacturability, while also gaining deeper manufacturing knowledge, which will give them more leverage in future negotiations with foundries. In the long run, Elon Musk's businesses will only demand more advanced chips, so acquiring core manufacturing expertise becomes ...

Summary of Tesla Inc Earnings Call Company Overview - **Company**: Tesla Inc - **Industry**: Automotive, specifically Electric Vehicles (EVs) - **Market Cap**: $1,170,279 million as of July 23, 2025 - **Stock Rating**: Overweight - **Price Target**: $410.00 Key Financial Highlights - **2Q Results**: Slight beat with Free Cash Flow (FCF) near break-even [1][2] - **Deliveries**: FY25 deliveries forecast lowered to 1.53 million, down 14.2% year-over-year [8] - **Revenue**: FY25 revenue forecast largely unchanged at $63.4 billion [8] - **Auto Gross Margin**: FY25 Auto Gross Margin (ex-ZEV credits) increased to 13.4% [8] - **Operating Margin**: FY25 GAAP Operating Margin decreased to 2.9% [8] - **EPS**: FY25 Non-GAAP diluted EPS decreased to $1.37 from $1.58 previously [8] - **Free Cash Flow**: FY25 forecasted at ~$1 billion, up from a previous burn of ~$250 million [8] Core Insights and Concerns - **Outlook Transparency**: Tesla's outlook lacks specific targets on revenues or margins, raising concerns about future performance [6] - **Robotaxi Progress**: Limited information on the current fleet size or performance, despite ambitious expansion targets [6] - **Optimus Production**: Production ramp for Optimus pushed slightly, with a target of 1 million units annually within 5 years [6] - **Market Headwinds**: Elon Musk indicated that the next few quarters may be 'rough' due to demand changes and regulatory environment [6] - **Consensus Direction**: Likely modestly lower, especially for FY26, with updated FY25 EPS 14% lower than prior forecasts [6] Changes to Estimates - **Deliveries**: FY26 deliveries forecast lowered to 1.85 million from 1.89 million [8] - **Revenue Adjustments**: FY26 revenues slightly lower due to lower deliveries [8] - **Operating Expenses**: Increased R&D and SG&A expenses impacting margins [8] - **Free Cash Flow**: FY26 forecast lowered to $2.4 billion from $5.3 billion [8] Valuation and Price Target Methodology - **Price Target Components**: - Core Tesla Auto business valued at $76/share - Network Services at $159/share - Tesla Mobility at $90/share - Energy at $68/share - Third-party supplier at $17/share [19][24] Investment Thesis - **Growth Potential**: Tesla's capabilities in physical AI, robotics, and energy storage present significant growth opportunities beyond traditional EV business [12][13] - **Market Position**: Tesla is well-positioned in data, robotics, and manufacturing, with a strong competitive edge [12][13] - **Risk Factors**: Potential risks include competition from traditional OEMs and execution risks related to factory ramps and market recognition of service opportunities [36] Additional Insights - **Analyst Sentiment**: The consensus rating distribution shows 44% Overweight, 37% Equal-weight, and 19% Underweight [27] - **Long-term Projections**: Forecasts suggest Tesla could sell 4.6 million units by 2030 with a 25% revenue CAGR [26] This summary encapsulates the key points from Tesla Inc's earnings call, highlighting financial performance, strategic insights, and market outlook.

talk some more about how retailers are dealing with some of these tariffs. Joining us this morning, FUBU founder and CEO and Shark Tank investor Damon John is with us along with CEO of supply chain company the Atlas Network, Kareem Kafuri here at Post 9. Gentlemen, good to see you both.Thanks for the time. Damon, I'll start with you. We actually have some Fed officials right now on the tape saying that the margin pressure from tariffs is still to come.I wonder if that's what you're viewing from from where y ...