Tesla's price cuts are coming from a position of strength: EMJ Capital's Jackson

FOR IN TODAY’S REPORT? YOU HEARD FROM AN ANALYST AND A STRATEGIST NOW YOU’LL HEAR FROM A SHAREHOLDER. ERIC JACKSON IS WITH US. HOW YOU FEELING? I KNOW THE STOCK IS UP THIS YEAR, BUT NOW WHAT >> MOST PEOPLE ARE SAYING PRICE CUTS ARE COMING FROM A POSITION OF WEAKNESS. I SEE IT AS A POSITION OF STRENGTH CHINA IS A SPECIAL CASE MARKET, VERY COMPETITIVE THE REST OF THE WORLD, TESLA IS WAY AHEAD OF EVERYONE ELSE IN TERMS OF EVs EVEN THOUGH MORE EVs ARE COMING, I SENSE NO PALPABLE INTEREST IN THE REGULAR JOE WHO IS

HOLDING OFF PURCHASING AN EV BECAUSE THEY CAN’T WAIT TO GET THEIR HANDS ON AN EV FROM GM OR FORD TESLA IS A WELL-KNOWN BRAND. MUSK SEES CUTTING PRICES AS A WAY TO KEEP AHEAD OF THE GAME, TO KEEP THE BOOT ON THE THROATS OF THESE COMPETITORS TO THE POINT WHERE THEY WON’T BE ABLE TO COMPETE AND THEY’LL LOSE A LOT OF MONEY IN THE PROCESS. >> SIX TIMES AND COUNTING? EVEN IVES WHO YOU SAY YOU AGREE WITH SAYS THEY MAY NOT BE DONE AND THEY LIKELY AREN’T. >> IF YOU LOOK AT THE BIG MAJOR PRICE

CUT THEY DID IN JANUARY, JANUARY 13th, THERE WAS A HUGE SPIKE IN APP DOWNLOADS FOR TESLA AND GOOGLE SEARCHES FOR TESLA ON THAT DAY ANY

TIME THEY’VE DONE A SEARCH, THE DOWNLOADS HAVE INCREASED ALL THIS QUARTER, Q1, THE AVERAGE APP DOWNLOADS AND SEARCHES ARE ABOUT DOUBLE OF WHAT THEY WERE FOR ALL OF 2022 IT’S ABOUT TRIPLE OF WHAT IT WAS IN 2020. TO ME THAT SAYS THE MORE TIME GOES ON, THE MORE DELIVERIES THERE ARE, THE MORE INTEREST THERE IS IN TESLA. THERE’S STILL PENT UP DEMAND IF PEOPLE ARE SPIKING TO CHECK OUT WHAT THEY

CAN BUY THE LATEST TESLA FOR WITH THESE PRICE CUTS. THAT’S A POSITIVE. >> WHY AREN’T DELIVERIES GOING UP AS PRICES CONTINUE TO COME DOWN >> WELL, Q1 DELIVERIES WERE A RECORD. >> I’M TALKING ABOUT FORECASTS FOR THE ENTIRE YEAR. IT’S NOT LIKE WE’RE CUTTING PRICES WE WANT TO BE MORE COMPETITIVE DEMAND HASN’T WANED, YET, WE’RE NOT TAKING OUR OVERALL ESTIMATES UP FOR HOW MANY CARS WE’LL DELIVER THIS YEAR. IS THERE A DISCONNECT? >> THE DISCONNECT IS WE WERE SUPPOSED TO DO 1.8 THIS YEAR I DON’T THINK A LOT OF ANALYSTS BUY WE’LL SEE THAT BIG

OF AN INCREASE THE SURPRISE COULD BE COMING IN AT THAT NUMBER OR BEATING THAT NUMBER THAT’S GOING TO BE A PLEASANT SURPRISE I THINK DELIVERIES IS THE KEY, SCOTT. YOU KNOW, THE GROSS MARGIN IS A BID OF A SIDE SHOW JUST LIKE FOR NETFLIX IT’S ABOUT PAID SUBS. THERE’S LOTS OF METRICS YOU CAN POINT TO IF THEY GET TO DELIVERY NUMBERS, WHETHER 20%, 22% OR 17%, IT’S CARS IN DRIVEWAYS. IT’S LIFETIME CUSTOMERS SIGNED UP IT’S UPSELLING FOLKS TO THINGS LIKE FSD, SELF-DRIVING AND WHERE THEY’LL MAKE IT BACK UP. >> WHAT ABOUT BROADER TECH IT’S ALL

PLAYS INTO A SIMILAR STORY OF SECTORS RUN SO MUCH TO START THE YEAR HOW ARE YOU THINKING ABOUT IT NOW? >> I CAN’T THINK OF A TIME IN THE PAST WHEN THE NASDAQ HAS BEEN UP I15% AND SO MANY PEOPLE ARE DOWN RIGHT BEARS IT’S BEEN A CRAZY YEAR EVEN NOW WE’VE HAD THIS RUN AND PEOPLE SAY IT’S AN EXCUSE TO GET OUT OF IT. THIS IS GOING TO BE THE THIRD TECH SEASON IN A ROW STARTING YESTERDAY WITH NETFLIX WHERE PEOPLE ARE THINKING THAT TECH EARNINGS ARE GOING TO BE AWFUL THEY WEREN’T FOR THE

LAST TWO. WE’LL SEE ABOUT THIS YEAR. I THINK TECH IS GOING TO CONTINUE TO SHOW RESILIENCE. THE U.S. DOLLAR HAS WEAKENED THAT’S A MAJOR TAIL WIND FOR MICROSOFT, APPLE, META AMAZON IS COMING OFF TWO BAD QUARTERS IN A ROW. I DOUBT THEY’LL DO IT THREE TIMES IN A ROW I THINK IT’S MORE LIKELY THEY’LL BE SUCCESSFUL THERE. YOU HAD A STAT ON ABOUT HOW ALL BIG TECH ACCOUNT