Hey everybody, Rob Maur here, and today we are of course going to talk about Tesla's Battery Day presentation,

an event that we will be unpacking over the coming days, weeks, and even years.

Tesla just gave us so much information to digest, and that's going to take a lot of time.

As we can tell from the stock prices reaction today, the stock I think down 7% after hours,

and that follows a drop from earlier in the day during

trading of about 6%. But make your own opinion separate from the stock price. That should not be the

proxy for how important or how good this information was from Tesla, because the short-term reaction

is no indicator of how the stock is going to perform going forward from this. The cyber truck

event is a great example. It dropped sharply after that event, but I think we're all well aware

of what has happened the following six to nine months. So set the stock price aside and let's talk

about what Tesla actually announced today because they announced in great detail their exact plan

to become the most valuable company in the world. That plan is all about

battery production. So Tesla, of course, introduced their own battery cell, their own battery

cell production line, allowing for better performance, cheaper costs per kilowatt hour, and more

production over time, scaling to three terawatt hours of battery production in-house from Tesla by 2030. That's about 80 times

Tesla's current scale. That's 3 billion kilowatt hours per year, or enough for 40 million long-range

75-kil-watt-hour vehicle packs per year. That doesn't mean that Tesla's going to produce 40 million

vehicles per year. They are

targeting somewhere around 20 million, and then a lot of that battery production capacity is

going to go to energy storage products. But think about it this way. Right now, Tesla is

utilizing about 35 to 40 gigawatt hours per year of battery production, and at those levels, Tesla is

able to generate roughly $30 billion per year

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