assalamu alaikum everyone I hope you are doing well today is thursday october and kind of have a slow news day today uh so we're gonna you know open the open it to the viewers to decide you know what you guys want to talk about is there anything on your mind anything happened in the last we'll take suggestions oh the tesla earnings report oh yeah I almost forgot Let's go over that. Let's go over the Tesla earnings report and talk about what came in it and why Tesla is perhaps the best reward to risk ratio that you're going to find on the market today. First, let's start with the indexes and leave a like if you enjoy these lives. And if I've ever made you any amount of money, leave a like. I would really appreciate that. Assalamu alaikum to everyone in the chat. Thank you for coming. Really appreciate it. So looking at the indexes, we did get somewhat of a recovery. It obviously looks a lot better than it did yesterday. So Dow Jones is down point four four percent, but Nasdaq is up point six eight percent. The S&P is up point one five percent. Russell two thousand is flat. The VIX is up another two percentage points. Tesla is up twenty percent. We'll talk about why it had a monster earnings report, something that really I haven't seen in a while in terms of positivity all around. There isn't anything about this company that isn't extremely impressive. Looking at the other names on our list here, things we've talked about recently, SMR is up seven point eight percent. That's that modular nuclear reactor stock. Everything else is basically flat, maybe up a little. TSM is down. Down one point three eight percent. M-Phase is up five percent. You'll recall yesterday I mentioned I did think that M-Phase was a good pickup at that price. I thought it was a decent. It's definitely a good company and it was sporting a decent valuation. Gold is up. point seven percent silver and oil basically flat btc is at sixty seven thousand six hundred we'll talk about bitcoin and why I'm super bullish on it uh doge is up just a smidge and seoul is up three point six percent seoul has been having some really strong days as of late uh so maybe we'll we'll do a deep dive into seoul soon inshallah Let's talk about Bitcoin before we go into our main topic, which is Tesla. Something very noteworthy here is iBit. This is the BlackRock Bitcoin ETF. It had one day of net inflows of three hundred seventeen million, which translates to around five thousand Bitcoin. That is quite impressive. And I do think that I was asked about manipulation, perhaps the price of Bitcoin is being manipulated by big players. I absolutely do believe that some of these ETF operators are manipulating the price of Bitcoin in order to stack Bitcoin as much as possible. But this beach ball can only be held underwater for so long. Eventually, it's going to pop. And the time for it to pop is growing nearer and nearer by the day. So in the meantime, I think this is a good opportunity to buy because I think really the direction here, generally speaking, certainly if we zoom out, the direction is up, inshallah. Now, in case you needed any more reason to FOMO into Bitcoin. There are rumors that a US state, perhaps Wyoming, will be adding Bitcoin to its state treasury, maybe even later today. So we'll see if that pans out or not. But I do think that whether or not we get something like that today or we get it in the next month or next quarter, eventually something like this will happen. And you've heard me talk many times on this channel about the debt burden that the US has. Well, that debt is denominated in dollars. And so if dollars are being inflated to no end, one way And you can print dollars at will. One way for the US government to try to pay off some of its debt would be to print dollars and buy Bitcoin with it. And then wait for Bitcoin to appreciate and then use the Bitcoin to pay off its debt. So, yeah, that's something I think that should be considered. As it relates to Tesla, let's talk about its QAnon. earnings report, and why the stock is up as much as it is following that earnings report. Congratulations to all PIF members who stuck it out through some pretty tough times with that stock. It takes a lot of patience, obviously. I said on my X account, or Practical Islamic Finance X account, that in order to build long-term wealth, you have to hold the best companies long-term. There's no way around it. You can try to time things. You can try to go in and out of stocks and try to find the fastest horse at any given time. And hopefully that works out for you. But Typically, it doesn't. Bouncing between different holdings doesn't really work out if you do it very frequently. There are some rotations that make sense, and that's what we do when we're managing our portfolios. But generally speaking, the highest conviction names you're going to have to hold on to them through some times when it might be challenging to hold on to them but if you have enough conviction and you you're regularly following the asset and making sure that your thesis holds and you have the courage of your convictions to to hold out through some really rough times and when analysts on tv are telling you that you're wrong If you're able to do that, you have days like today where the biggest investment name that you have is up twenty percent and you can pat yourself on the back for making it to a day like today. So let's talk about the highlights from their earnings report. They had, I think, perhaps one of the biggest highlights here is that operating cash flow was six point three billion in Q three. Free cash flow was two point seven billion. So after doing so, after making the capital expenditures that dwarf anyone else in the space, they still have cash flow left that they can throw on to their mountain of cash reserves. And that amount is two point seven billion generated just in Q three. Now they have a. A mountain of thirty billion dollars worth of cash just sitting there that they can use for additional. Investments, additional. Operating leverage, additional manufacturing capacity. No other company has a war chest like this that is in the Tesla space. And I'm going to show you an image that I think is quite instructive when you're comparing different EV makers and where to put your dollar when investing in different pure EV maker plays. So, sorry. They mentioned a two point nine billion dollar increase in cash and investments in Q three. And so now their total cash and investments are thirty three point six billion. They increased their training. So I've mentioned before on this channel that I thought I've been asked many times about what my AI play is. And I've mentioned that, yes, looking into AI companies makes a lot of sense. But Tesla is an AI play. It is an AI company. And they've increased their training compute by over seventy five percent just in the third quarter. So they're absolutely amazing. as aggressive as you can be when it comes to investing in AI. And as I mentioned, they have the resources to do this. perhaps more than any other company and cybertruck became the third best-selling ev in q three and guess what the first two best-selling evs in the us are tesla made as well they are the model y and model three so tesla's domination is absolute in terms of the ev market in the united states they now have over two billion miles driven on their full self-driving that's supervised as of q three uh with more than fifty percent on their newest version and we'll see an image of that and how the fsd miles the number of miles is basically going parabolic and this is added advantage they did mention in the earnings call that you know the bottleneck for them at this point is finding errors and that requires a lot of time so finding the flaws in the in their full self-driving software is taking a lot of time and this further highlights how far how far ahead they are from everyone else that may be working on autonomy and how hard it is to catch up with Tesla, because it's not just about compute. It's not just about miles. It's also about how quickly can you find errors in your model? And for that, it requires time. There's no way around that. And so it's very unlikely that anyone catches up with Tesla really anytime soon. I don't wanna say their advantage is insurmountable because only our creator has such an advantage, but Tesla's advantage is as big as you can get if you're a company in a competitive marketplace. Total automotive revenues for Q three topped twenty billion more than any quarter in the last year. Energy generation and storage revenue. This is a really slept on segment in Tesla, not because of its raw sort of revenue generation. numbers and potential, but also because of their margins. And we'll talk about that in a second. So total gap gross margin for the company is right around twenty percent, by the way, which blows away the gross margins for any other uh ev maker by miles I mean if a if an ev maker has gross margins of five percent they're doing well uh where tesla is at uh twenty percent we're talking gross margins here for their energy generation and storage that business has margins north of thirty percent so energy generation and storage is their most profitable business segment and it's growing as much as capacity allows them to grow it demand for it is basically as much as they can produce which is a great position to be in. Operating margin is at ten percent. You can see here compared to Q two, Q one, Q four of twenty three or Q three of twenty three. It is higher than any of those quarters. Adjusted EBITDA margin, same thing, higher than any quarter of the last four quarters before it. So really, results that couldn't really ask for more as an investor. We net cash provided by operating activities, six point two billion capital expenditures. So they're investing three point five billion just in the last quarter in capital expenditures. Free cash flow of two point seven billion cash and cash equivalents, as we mentioned, north of thirty three billion. so revenue profitability cash all doing as good as what could hope for and there's there's other qualitative metrics and quantitative that support the outlook for this business so if we look at the artificial intelligence and the miles driven on their fsd supervised You can see that their latest version, V-Twelve, the number of miles that were driven on it, basically, fifty percent of the total miles driven on FSD. You can see the slope of this of this line is getting higher and higher basically and this makes it harder and harder for anyone to catch up really in terms of training their own FSD models and it's not impossible again it's not impossible for someone to conceivably catch up but it's it's darn near impossible now for someone to catch up at this at this point it's It's definitely a winner take most situation. And FSD is a really high margin business. And being the winner take most in that business is a great position to be in. We're talking a potential of multiple trillions of dollars in terms of adding market cap to this company just from FSD. Talking about energy generation and storage, the energy business achieved a record gross margin of thirty point five percent in Q three. Sequential increase of six percent despite lower mega pack volumes. Powerwall achieved record deployments in Q three for the second quarter in a row. Ramp of Powerwall three and the Lathrop mega factory continue successfully with Lathrop demonstrating two hundred mega mega pack production. or a forty gigawatt hour annual run rate in a single week as of Q three over one hundred thousand power walls were enrolled in virtual power plant programs delivering additional financial value to owners while providing much needed support to the grid during periods of stress the Shanghai factory remains on track to begin shipping mega packs in Q one of twenty twenty five so we'll get added capacity in Q one of twenty twenty five and In terms of their plans for new products, they did give us some additional information. So plans for new vehicles, including more affordable models, remain on track for start of production in the first half of twenty twenty five. So there's that catalyst. In addition to the fact that lower interest rates really positively impact vehicle sales. And so we have that catalyst that currently the market is pricing in almost a seventy percent chance of getting a fifty base point cut by the end of the year. So we have that catalyst. We have additional catalysts in the form of additional capacity for their mega pack production with the Shanghai factory, uh, in Q one, uh, in Q one of, or the first half of, uh, twenty, uh, twenty-five and, uh, more affordable models, new vehicles. So additional products that will come online, uh, in the next few quarters. In addition to the progress that they're making on things like Optimus Robot, they mentioned that currently they thought that their humanoid robot was by far the most advanced worldwide. And they mentioned that it was the most advanced by a long shot. So that's exciting as well. So a lot of catalysts here for this company. On a macro level, the environment is going to be more friendly. On a sort of company-wide level, we're getting closer and closer to the release of new capacity and new products. So I think it's going to be an exciting, for Tesla shareholders. So some of the images that they included, global EV market share continues to grow. Don't listen to people who are saying that it has stalled. It's not. The rate of growth may have a decrease, but it's still growing. Here you have estimated lifecycle emissions of gas cars versus Robotaxi. You can see the advantage there. Pictures of the Robotaxi, their vacuum cleaner with wheels. Their hand, they mentioned it was very human-like at this point. They produced their seven millionth car not too long ago. The semi-factory and demand for Tesla semis has exceeded all their expectations, at least as per what they reported yesterday on their earnings call. And basically, this is a situation where they can basically sell as many as they can produce. And so construction continues on the semi-factory. So I think... you know all signals are go for this company and I'm glad that you know we have it in our portfolio and I think that it makes a lot of sense to to have this as a as a core position uh definitely not financial advice but I'm just telling you how I think about this uh so with that let's take some question questions um Yeah, thank you, Abdul. Let's make the likes go through the roof. I really appreciate that. Invite others to subscribe. Yeah, let's get to sixty K. That would be great. Walaikum salam, chocolate. Nice to see you. Rashad, please talk about BTC, not this other crypto that we won't mention. OK, we'll do. Khaled says, Salam, I'm up twenty percent here today. Jazakallah. Any comments about the BRICS summit? Yeah, I think the world headed towards a multipolar state is probably a positive. I don't I'm not really bullish on. On a lot of the BRICS countries, I think they have really big problems. But yeah, I think that a multipolar world is more healthy than just having one dominant force. What is this? As-salamu alaykum wa rahmatullahi wa barakatuh. Taskeen says, never got into crypto because of the capital gains taxes in Canada. Really thinking about it now. Yeah, man, Canada. I mean, what's going on in Canada? That seems like a not optimally run government over there. Niznaz. As-salamu alaykum wa rahmatullahi wa barakatuh. Just wanted to drop in, enjoying your lives. Well, I'm glad you're enjoying them and thanks for dropping in. How do you see Elon handling Tesla and have an office in Washington? Do you think Tesla stock will be punished if he can't multitask? Well, if anyone can multitask, it is Elon. He has proved that. He has many companies that he has run successfully. Shortly after the Robotaxi event, there were catching spaceships out of the sky with giant metal chopsticks. So I think he's capable of managing. As that says, please give a broker for US stock trading. I think Robinhood, Charles Schwab, Fidelity, M-Line Finance, these are all good options. Do you think Tesla is now out of buy range? Well, if you check our watch list, you'll know. So do check our watch list. We have a buy below and sell above price. We'll have more, inshallah, on the Dallas meetup later this week, bismillah. I will make dua for you, Sheikh Adnan. If there's anything specifically that you'd like to make dua for, let me know. Dr. Boss says, with a huge move up for Tesla today, do you expect it to move upwards over the next years? Considering, well, I'm glad you asked for the next years because that's easier than asking over the next day or week. Over the next years, yeah, absolutely. I think that... There's still a X left in this stock over a long enough time horizon, obviously. So I'm from Dubai. Do you rely on trading for your day-to-day expenses, brother? I would rather not go into my day-to-day budget, but I appreciate your curiosity. Do leave a like if you enjoyed this live. I'd really appreciate that. Subscribe if you are not a subscriber yet. Tell your friends, your family, hey, there's a free source of... great investment insights on YouTube. You got to be part of the community. And yeah, do them a favor. Do, you know, sadaqah jari for the people you care about. Tell them about PIF. And until next time, make sure to take care of yourself. Assalamualaikum and peace be upon you all.