Name: Most People Have No Idea What’s About To Happen To Tesla Stock
Uploaded: 2025-07-24T19:07:49.000Z
Duration: 18 min 51 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Gerund

Elon Musk tried everything possible to make sure that the big beautiful bill is not going to pass the senate, but he failed.

To-infinitive

Because this big beautiful bill has all the potential to destroy the Tesla as a company.

Future simple

In a few years from now, maybe we will look back at Tesla as if Tesla didn't exist at all.

And if you think that I am exaggerating, here in this video, I am gonna explain to you why the big beautiful bill is going to crash the Tesla stock.

So before you jump into conclusions and write down in the comments below, you understand nothing, please just watch the video, I am gonna explain everything.

You see, Tesla is one of the largest companies in the world, not just in the United States, at a valuation of around a trillion dollars.

And part of the reason that Elon is one of the richest people, if not the richest person in the world, is because he holds 13% of the company.

And if Tesla worth a trillion dollars, then it's 130 billion dollars.

But at its peak, Tesla used to worth somewhere around 1.2 to 1.3 trillion dollars.

And to understand how the big beautiful bill is going to impact Tesla overall, you have to understand how Tesla works.

Now a lot of people think that, oh Tesla this huge company that simply sells electrical cars.

But Tesla is very deeply dependent on the government of the United States.

And without the help of the government, Tesla wouldn't be such a valuable company or the most valuable car company in the world.

And Elon wouldn't be the wealthiest person in the world with a valuation of a net worth of 400 billion dollars, potentially going to a trillion dollars by 2027.

Now I can tell you for a fact that's not happening, forget Elon trillionaire the next 3 to 4 years, or at least for as long as Trump is the president.

Because Trump now did everything possible to crush Tesla and crush Elon's net worth.

So how exactly Tesla works as a business?

One of the things that helped Tesla a lot is back in 2010 when United States introduced EV tax credits.

And that basically means that every single person who is going to buy Tesla can receive 7500 dollars tax credit.

So imagine you are making, let's say 70K dollars.

And at the end of the year, you have to pay 9K dollars in taxes.

But what if the government is going to tell you, listen, if you go and buy an electrical car company, you can avoid 7500 dollars in taxes.

And then you look around and Tesla is the only car company that produces electrical cars.

So you go and buy a Tesla of let's say for 50K dollars.

And instead of paying 9K dollars in taxes, you deduct 7500 dollars and you pay the final tax of 1500 dollars.

The government was literally losing billions of dollars every single year for Tesla to keep growing and continue their sales.

Is that because Tesla is deeply involved with the government?

The US government simply wanted this industry to grow.

And one of the tools that the government has at its disposal is to change the incentives.

And since most people are driven by profits, especially when you have a corporation, then by giving tax incentives, you're encouraging people to buy electrical cars and not gasoline cars.

Maybe not everybody is going to do that, but a lot of people would certainly do that.

But the problem is that there was a cap at 200,000 cars, which means that if you sell more than 200,000 cars a year, you're no longer eligible for tax credit.

Because at this level, you're profiting from economies of scale.

And you have brought the cost per car to such a level where your business is sustainable.

The point of the tax incentives is to incentivize those corporations to invest in this industry rather than other industries.

The second part of it is that the government has also decided to introduce zero-emission vehicle regulatory credits.

So the focus of the government over the last 10 to 20 years was that we're having a climate change problem.

We have to incentivize auto brands to start producing more EVs instead of gasoline cars.

You don't want to pollute the air in your city.

So they came out with a system that they called credit requirement system.

The point of the system is that for every car that you are going to produce that is going to be electrical, you will receive a certain amount of credits.

And every single car company has to achieve or have to meet a certain threshold.

Let's say that it's 10,000 credits every single year.

If you do not meet that threshold, you will have to pay a huge fine to the government.

So if you want to avoid that fine, take that money, invest it back into your factories and start producing EVs.

On the other side, you have car companies who are oversupplying the market with EVs, who are producing far more EVs than anyone else.

Let's say that they are producing so many EVs that they have actually achieved far more than the threshold of 10,000 points.

They have achieved, let's say 15,000 points.

Now this system would allow those companies to sell those extra 5,000 points to the companies that did not meet the threshold.

Tesla, for example, only manufactures EVs.

Tesla has acquired 30,000 points, while Ford did not acquire any points at all because they don't produce EVs at all.

They are going to buy 10,000 points from Tesla.

The government is basically forcing the traditional car manufacturers to either give their money to the EVs or invest back in themselves and start producing EVs.

That's the only way that the government can change the structure of the economy to force those corporations to start investing.

And since then, Tesla has earned almost 10 billion dollars by selling their credits to other car manufacturers in the US.

Because Tesla does not sell any other cars except EVs, while most of the traditional car companies in the US, such as GM and Ford, are barely investing in EVs.

But no one has helped Tesla as much as Joe Biden.

Because Joe Biden has introduced a legislation called Inflation Reduction Act.

If you pay at it a very close attention, especially at section 45X, the government wanted to boost battery production in the US because it was far behind everyone else, especially China and Europe.

So they have introduced something that have benefited Tesla more than anything else.

For every kilowatt hour that you produce, the government will pay you 45 dollars.

And that means that for every car that Tesla would produce, on average, they will receive around 3,375 dollars.

And in 2023 alone, Tesla has received something around 1.5 to 2.5 billion dollars in cash from the government of the United States because they have produced so many cars.

Imagine this is literally one of the main sources of revenue.

The government sends you a literal check of 2.5 billion dollars in 2023.

And this program is supposed to extend up until 2032.

So for the next 7 to 8 years, Tesla is supposed to receive billions of dollars from the government that would go from the taxpayers money directly into the pockets of Tesla in order for them to continue building those gigafactories across the United States.

It was a great incentive because if you know that the government will pay you so much money, you will start building batteries in the US.

And nobody builds as effectively batteries in the US as much as Tesla does that.

So if you look at the sources of revenue of Tesla, it isn't just about directly selling EVs, but it's about directly being supported by the government of the United States through different programs, by providing subsidies, by paying you billions of dollars, by creating rules that will encourage other car companies, especially traditional car companies to pay you billions of dollars.

Because if it wasn't for the government, Tesla wouldn't have earned 10 billion dollars in pure profit from other car companies simply because of the law that they have created.

But the main question is that, why would the government help Tesla so much?

And this graph perfectly illustrates that.

You see, around 20 years ago, probably 25 years ago, the Chinese government decided that we are going to focus on technologies of the future.

So if we focus on gasoline cars today, we can't compete.

We have Ford, we have GM, we have BMWs that are coming from Germany, we have Volkswagens or Porsche, we can't compete with them.

So if we want to build the greatest cars in the world, we have to focus on the future.

So they started massively investing on becoming the best and the number one on producing batteries, which is why if you look at the numbers today, or at least in 2022, 77% of all the batteries are being manufactured by China.

And the United States only manufactures around 6% of the global production.

China has a full monopoly on this industry.

And that's, by the way, part of the reason why Joe Biden introduced the Inflation Reduction Act that helped Tesla so much.

It wasn't because Joe Biden and Elon were the best friends out there.

They probably hated each other, but it was in the national interest of the United States to improve this industry, to force US companies to start investing in this field.

But for some reason, Tesla was the only company or Elon was the only person who took the best advantage out of it because they simply started massively investing in batteries.

And you can say that because Elon started investing in Tesla way before this legislation was passed back in 2006 and 2007 when Elon just joined Tesla.

And even if you look at the EV production around the world, you will instantly see that China dominates the entire industry.

The largest EV manufacturer in the world is BYD, which is a Chinese company.

Last year, they have produced around 4 million cars.