Hey everybody Rob Maurer here and today we are primarily talking about how Tesla has recently been completely taking over the total valuation of the

U.S. automotive market.

One of the themes we have been discussing over the last couple of weeks is how all this stress

on in the macro environment actually improves Tesla's competitive position.

The thought process here is that the financial challenge that this probable recession places

on other automakers will cause them to reduce any investment

that doesn't have a super quick return on investment and unfortunately electric

vehicle development falls into that category. The other point that I would make on

that is that every single day that goes by

Tesla is iterating and improving on their product making it more compelling to the

market and as the leader in electric vehicles Tesla is the benchmark for any of

these projects from other automakers.

As Tesla advances and as that benchmark becomes more and more difficult to meet,

it becomes more and more difficult to show positive return on investment in the forecasts for projects in the electric vehicle space.

Think about the model three and the model why, for example.

If you are building a competing electric vehicle and it's going to be a normal sedan and you want to do any sort of significant

volume let's say in the six figure range you're going to need to have a vehicle that is

competitive with the model three if it's not close you're not going to get to that

volume and you're not going to be able to

actually even build a forecast that shows a positive return on investment and if you

can't build that forecast well you're not going to do that project so Tesla

already made it hard enough with the model three and then we introduced the model why and now okay well

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