Tesla SCAM 馃敟 How Tesla Stock Grew 740% in just 2 years ? | Tesla Business Case Study - YouTube

Channel: Aditya Saini

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Tesla's valuation has recently crossed 1 trillion dollars,
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Which pushed the net worth of Elon Musk to more than 300 billion dollars.
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But the question arises here is that the company whose stock was only on 178 dollars till June 2019,
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And was falling down continuously,
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What the hell happened only in two years that the stock of the same company is trading at more than 1200 dollars today?
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So the question arises that is Tesla a scam or they are doing something so crazy that we common people can't see that?
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Year 2019 was a very bad year for Tesla as they were facing production issues in their model 3, even their deliveries were delayed as well.
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And also they were not even close to the price tag of 35 thousand dollars promised by them to their customers.
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Tesla booked a loss of 702 million dollars in the first quarter of 2019,
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And not only this, even one of most important employees of company left the company as well,
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And that employee was JB Straubel.
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JB was Tesla's chief technology officer,
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But most importantly, JB was the guy who designed Tesla's superior battery technology.
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And not only this, the time at which Tesla was facing all these problems on that same time CEO of General motors did an announcement,
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That they have planned to bring more electric vehicles in this world than Tesla till 2025.
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And not only this, great companies like Ford, Volkswagen are also going to enter in the market of electric vehicles.
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And they will target bottom of the pyramid i.e, the segment where market of affordable electric vehicles exist.
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But despite all these things, what the hell Tesla did due to which their stock increased by 704% in just 2 years,
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And competing with them is way more far, none of the companies is nearby Tesla in today's date.
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So, if you study balance sheet of Tesla then you will get to know that major portion of Tesla's profit use to come from Sale of regulatory credit till 2021.
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And that's why even today 90% people consider that Tesla is a very over valued company whose strong business model doesn't exist.
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But the reality is that the business model of Tesla is so powerful,
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That the profit to be earned by Tesla in upcoming 10 years will be greater than the profit made by Ford, GM & Volkswagen in their previous 100 years.
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Question arises that how Tesla will do all these things?
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Understand this thing very carefully,
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This whole industry is Automobile industry whose major players are Ford, GM, & Volkswagen who are leading market right now.
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But there is a player here only whose name is Tesla, but Tesla is working only on 30% of automobile industry.
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Question arises that what is it's other 70%?
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So, answer of that 70% is Tech.
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Actually, Tesla is not an Automobile company.
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Major portion of company runs as a Tech company.
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Now, this feels unbelievable in listening because most of the people know Tesla company as a Car company only.
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They don't know even know the real business of Tesla.
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So, it's answer is hidden in s-adoption curve and now how it works?
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So look, whenever a new innovation takes place in market so people start adopting that thing in s-curve.
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Now why so? Look I will make you understand through an example.
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In 1985, a great company of America AT&T hired Mackenzie & asked him
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To predict how many peoples might be using wireless phones in this world 15 years later i.e, till 2000's.
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So you know what figures he gave to them?
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9 lakh people.
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But the reality is that in 2000, then total cell phone users in this world were 10 crore 90 lakh people.
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I know that you might be thinking now that there's a huge difference in 9 lakh & 10 crores 90 lakh.
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So, how all this difference is being created?
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So look, understand this thing very carefully.
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This happens because whenever any innovation takes place in market then people take much time to adjust to it.
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In it's starting very few people adapt to it then that graph starts increasing slowly slowly,
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But as the graph rises, demand of those products starts to rise as well in the market.
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And rest of the people who work in that market are able to see things,
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And at that time they start making those products and bring into the market & this same has happened with Electric vehicles.
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So if we look into market of smartphones, then Apple took the most late entry in it
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But if we see in today's date, then Apple is a worldwide market leader. But why like this?
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So it's answer is Product survey ecosystem.
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So where all the players of market sold smartphones to people, there Apple sold a whole ecosystem.
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But do you know that Tesla is even more smarter than Apple?
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In fact Tesla itself want more & more players enter into the EV market because as much competition will be there, that much Tesla will earn.
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Question arises that how will Tesla do all these things?
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So answer to this is hidden in Tesla's strategy loop, so understand this thing very carefully.
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So the secret of real game of Tesla is hidden in these three things - Strategy 1, strategy 2 & checkmate move
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Now how this works?
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So first strategy of Tesla is - Value chain illusion & how it works?
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So value chain of electric vehicles business looks something like - Cars, battery packs, charging stations, dealerships & customers.
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So in this value chain itself, Tesla created a huge illusion as electric cars are waste without battery packs,
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But the batteries of electric cars can be made from only two things - No.1 Iron & No.2 Nickel.
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So Tesla in previous times and even today use to say that the most important element to make batteries of electric vehicles is Nickel,
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And it is the most powerful element and the same thing attracted all the attention of all companies towards Nickel batteries.
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Ford & General motors, in fact even Volkswagen built long term partnerships with LG & SK innovations,
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So that they can manufacture Nickel batteries and provide them.
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And here only is the biggest twist of this game,
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As competition will rise in the market of electric vehicles - manufacturing cost of their batteries will touch sky as well.
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This is because there isn't this much Nickel available in this world to fulfil the demands of all the companies.
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But interestingly it won't affect Tesla, but why it's like that?
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So there are mainly two reasons to it, First - LFP batteries
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As Tesla use these batteries which are made from iron and there is lot of iron available in this world.
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Tesla knew this from start that the available quantity of nickel is less than the available quantity of iron,
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That's why they designed all of their cars based on iron batteries only whereas cars of other competitors are designed according to nickel batteries.
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And second reason is Tesla's giga factories where their iron batteries are manufactured,
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So as their production capacity keeps increasing that much their cost of battery manufacturing will deplete.
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And then a time will arrive where companies won't be able to afford nickel batteries in the market,
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And till that time more than 50 giga factories of Tesla would have been set up.
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Now interestingly, what all those companies will do?
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They will come to Tesla & ask them to build batteries for them,
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Because till then capacity of Tesla will be so high that none other than them can make batteries cheaper to that extent.
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And Tesla know this thing very well that in upcoming times many small players will also enter into this market.
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But for them biggest issue will be their cost,
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And in this thing only Tesla will be able to help them as their capacity will be so high so they will be the one generating batteries at cheapest extent.
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So they will come to Tesla only firstly,
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So whether it's a small or a large company, against their will they need to come to Tesla only because none can provide them batteries cheaper than that.
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But the great companies like Ford, GM & Volkswagen
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They are that much great that they can easily raise fund in market & setup their own battery production units & can sideline Tesla easily.
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Well, Tesla know this thing as well & that's why Tesla designed it's second strategy i.e, Infrastructure leverage.
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Now look how powerful this strategy is, as this strategy works exactly same to razor blade strategy.
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Likewise, Gillette sells it's razors at very low cost and after that people need to buy their blades so that they can use their razors again & again,
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And in those blades, Gillette actually earns it's profit. But as Tesla is an advanced company hence their way is a bit different.
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So, Tesla's plan is that they will setup 90 thousand super charger EV stations in this world till 2025.
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But interestingly today the speed at which they are setting up their super charger EV stations,
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According to that instead of 90 thousand those people will have set up 1.5 lakh stations already by 2025,
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And there is not even a single company who can reach even nearby to this number.
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So in the upcoming time Tesla will own the greatest charging network, but Tesla is pure from it's heart
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As they have already declared for today & upcoming times that they will keep their charging stations open for even non Tesla car owners.
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Which means that even if you don't have Tesla's EV & have any other company's EV still you can go to charging station of Tesla & charge your vehicles,
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But there's a twist which that even if you have any other company's EV still it will be charged easily on the station,
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But it will charged very slowly & you will be required to pay 43% more than a Tesla EV owner.
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Now why this thing will work for Tesla? So reason behind it is - High pressure environment.
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So look, whenever you go inside any movie hall then you might have noticed that food is very expensive there,
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But have you ever imagined that how do people pay money for such expensive food?
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So reason behind it is - High pressure environment.
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Whatever money you will ask for from a customer in a high pressure environment, he/she will pay
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And most of the customers either won't buy it at all or will buy it surely.
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Similarly, Tesla created a high environment pressure on roadside. How?
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So look, whenever you are on a road you have a time constraint as people need to go office & reach on time,
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None is having this much time that they will spend 20-25 minutes extra to charge their cars.
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And using this thing very smartly, Tesla planned out all these things but such business moves work only in high pressure environment.
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I know, many of you guys will say that what's the need to go on Tesla's station for charging, instead charge anywhere else.
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But still you will charge on Tesla's station only & reason behind it is that capacity at other charging stations is of 50 Kilowatts,
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But the capacity of super charger stations of Tesla is of 250 Kilowatts.
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So look, if you need 5 mins to charge on their stations and if you charge the same on non Tesla stations then you will need 25 mins, such a massive gap.
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And as I said, there's a high pressure environment on roads so there will not be any guy who will waste 25 mins instead of 5 mins.
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So Tesla's main profit will be coming from these four things,
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No.1 - Car sales, No.2 - Battery pack sales,
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No.3 - Super charger stations because Tesla will be owning biggest charging network of this world,
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No.4 - Technology patents.
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Tesla is such an advanced company that their technology will be used by many other companies,
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But all these things will happen when anyone will buy Tesla's vehicles, what if I choose any other car?
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But you won't even do that. Why? So it's answer is hidden in the checkmate move of Tesla.
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So look, whether you buy any car but indirectly you will become customer of Tesla anyhow, not because of battery packs & charging stations.
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But because of artificial intelligence. So Elon Musk is having a very powerful thing which other companies don't have.
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Name of that thing is Interlinkage of technologies as Elon Musk owns another company whose name is Starlink.
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So job of Starlink is to provide high speed internet connectivity through satellites throughout this whole world.
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Now interestingly, all the vehicles of Tesla & their software are designed in such a way,
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It's AI is made in such a way that it will link itself directly to Starlink, now what's it's advantage?
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So look, Starlink will be such a powerful network that it will directly provide data in vehicles of Tesla in such a speed,
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That Tesla's artificial intelligence will get very smarter.
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Because artificial intelligence works only on data,
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And if anyone know how machine learning works then they will get to know that how much powerful thing Tesla is building in upcoming times.
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Now Elon Musk isn't any superhuman, in today's date due to his social media presence he markets all his companies easily.
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But what about the future? And that's why Tesla built a complete strategy of lifetime free advertising. Now how will this work?
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So for an example you are a non Tesla owner & you have electric vehicle of any other company not Tesla,
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And you go to charge it, so very first you won't find other charging stations easily as compared to tesla's charging stations,
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Now if you want to do charging on Tesla's stations then first of all you will require to download app of Tesla,
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Then you will need to book your slot & then need to stand there and get charging of your vehicle done,
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Which will be slow and you need to pay 43% extra money as well.
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Slow charging & 43% expensive that too in a high pressure environment.
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All these things will incline people very much that they should buy a Tesla vehicle itself.
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But if you don't buy Tesla's vehicle, still you now know Tesla because you will need to charge your vehicle on their station only,
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And that's why Tesla gets free advertising.
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High speed production, super charging network & artificial intelligence,
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All these things will earn so much money for Tesla that in upcoming times,
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Even if Tesla sell their vehicles at half prices than their competitors still they will be profitable.
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And so because Tesla don't want to sell vehicles, instead it want to control whole ecosystem of electric vehicles.
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How Facebook which is now Meta, will control your life in upcoming times?
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Well if you want to know this then you can watch right side video,
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But if you want to know secret business strategies of OYO, then don't forget to watch left side video.