The Prof G Pod avatar

Dexa/The Prof G Pod

Learn more
Published Jan 30, 2023

Prof G Markets: Tesla’s Earnings Beat, Chevron’s Share Buybacks, and Elliott’s Salesforce Stake

Scott Galloway delves into Tesla's record-breaking earnings amidst rising competition, critiques Chevron's substantial share buybacks, and analyzes Elliott Management's activist involvement in Salesforce, questioning leadership focus and highlighting the economic and policy implications of corporate strategies.
Episode Highlights
Prof G Markets logo

Topics covered

Popular Clips

Questions from this episode

Episode Highlights

  • Earnings

    Tesla's latest earnings report showcases record-breaking figures, with quarterly revenues and car deliveries reaching new heights. notes that Tesla delivered 1.3 million cars, a 35% increase from the previous year, and achieved a net income of nearly $14 billion, surpassing General Motors 1. Despite these achievements, the company's gross margins fell to 24% due to price cuts, reflecting competitive pressures 1.

    Growth plus better margins equals just better market capitalization and better EBITDA.

    ---

    Scott emphasizes the importance of evaluating Tesla's current trading multiples, which remain significantly higher than other car manufacturers 2.

       

    Autonomy

    Tesla's foray into autonomous driving is marked by both promise and delay. Scott highlights that while Tesla has invested heavily in this technology, its progress has not matched initial expectations, with full autonomy still years away 3. He suggests that long-haul trucking could be the first viable application for autonomous vehicles, offering significant cost reductions and increased productivity 3.

    Autonomous driving is definitely one of those technologies where the performance has not kept pace with the promise.

    ---

    The recent delivery of 15 semi-trucks to Pepsi marks a step forward, but questions remain about Tesla's valuation and its identity as more than just a car company 2.

       

    EV Strategy

    Tesla's strategy in the electric vehicle market involves making EVs more accessible while maintaining its luxury brand image. Scott argues that the high cost of EVs has been a barrier, but Tesla's recent price cuts aim to broaden its market reach 4. He believes Tesla can maintain its luxury status by offering a range of models, similar to other car manufacturers 4.

    The problem with EV's is they were just too expensive.

    ---

    Despite these efforts, Scott remains skeptical about Tesla's stock valuation, suggesting it is still overvalued compared to its peers 2.

Related Episodes