Assalamualaikum everyone. I hope you are doing well. Today is Friday, April twenty-fifth. Jamal Mubarak to everyone. We're wrapping up a big week of gains for the markets and especially for PIF. Alhamdulillah, it seems everything that we've picked has done very well. So it is a great time to be an investor, a great time to be a PIF member. And the markets rejoiced this week after it saw clear indications from the Trump administration that they were rethinking their previous approach and walking back a lot of the threats that they previously made and have appeared to take in a much more dovish stance with regards to dealing with other countries. And that's obviously very welcome. And also with regards to changing Jerome Powell, Trump appears to have understood that this would be very bad for markets. Someone must have been you know, convincing him behind the scenes that this was a really bad look and it would jeopardize people's confidence in the independence of the market. and monetary policy. So this has played out very well in the markets today. We're kind of flat with that as the markets are. Russell is down point four two percent. Dow Jones is down point two percent. S&P is up point three two percent. Nasdaq is point five four percent. If you look at Tesla, one of our major holdings is up close to ten percent. That's really the holding that I want to talk to you about today. But there is up a nice one point five percent is up. quite nicely this week. Irish energy is up close to four percent. That's welcome. And if you look at gold, it has pulled back a bit, obviously. And, you know, this I always say this, you know, I don't like investing in what is hot. I like investing in what is what is not hot, what is fundamentally sound. But investors are just feeling down about it at this current time and so if you recall I said you know when gold was at all-time highs perhaps let's not look at gold let's look at something like bitcoin which has similar arguments to be made for it that gold has uh but has not made a run yet and so we bought we bought bitcoin earlier this week and alhamdulillah that has turned out well uh bitcoin is at ninety five thousand and I think it still has still has a lot of room to run inshallah uh doge is at eighteen cents uh ethereum I don't know why you're still looking at it but it's at eighteen hundred all right so today I wanted to uh talk about um something I saw that uh you know I a youtuber uh mentioned that they sold all of their tesla stock and I just wanted to I I like looking at opposing opinions because they force you to think about the position that you've taken. And you have to be open-minded and really subject your opinions to critical interrogation. and you know listening to opposing opinions uh helps you do that so that's what we'll do in this live so the question that we want to answer is whether selling tesla at this point is a good idea their earnings reports their earnings report that came out after hours on wednesday was not too hot, but people were expecting it not to be that great. And I think a lot of it was already priced in and you saw evidence of that in the reaction that the market had post earnings, which was very positive. I do believe that also part of its performance was a function of macro improving a lot of course but also like on a day of like today it's up ten percent uh maybe shorts are getting burned and that's one of the reasons why it's up but also I think that One of the reasons it's up is because a lot of the pessimism was priced in. And now that we've gotten over that speed bump, which was Q one earnings, which a lot of investors thought would be ugly. Now that we've gotten past that, the future is looking a lot more smooth. So this is the YouTuber I'm talking about. Jeremy, he has a channel called Financial Education. I think he's a good um he's a good commenter he does his best and uh so um but in this case uh he's mentioning that uh he sold all of his Tesla and I and he um and credit to him he actually has an average cost of thirteen dollars so he had you know vision to buy Tesla when it was a lot lower. So credit to him for that. But he did decide to sell everything now. And looking at his reasons, he mentions two main themes in his reasoning. He said that the core business is which is selling automobiles. He described it as being rotten. I'm not really sure that that should be looked at as the core business. As I mentioned before on this channel, I think that it's real core business. I mean, the selling of EVs that it has been doing for years has really allowed it to reach what I think will be its future core business, which is the robo taxi, which itself will help it position itself for the real core business of Tesla, the eventual core business of Tesla, which is just general production of robots that are enhanced with artificial intelligence. And one form factor of these robots is EVs and a sort of early form of the artificial intelligence that is uh, powering these EVs or these robots, uh, is full self driving. Uh, but this is just a specific use case, but there's, if you're, if you're able to sort of use your imagination, you can see how this can be replicated into so many other fields, uh, where you have robots that are just general purpose guided by AI that can do basically anything. So he says the core business, as he sees it, of selling EVs is rotten. And they have eroding market share and slowing sales. And Tesla is a business without a purpose. And there's significant brand damage with a part-time CEO. Assalamu alaikum, Fahad. Nice to see you. This is a chart that he mentions as proof that Tesla has a rotten core business. And basically, it looks at sales volume, twenty twenty four versus twenty twenty three. And this is a very, I think, not good chart to use because it looks at the sales volume without a change, without looking at. the percentage change. It's looking at just the actual unit number change. And that is, I think, misleading because if you're like Tesla and you're doing, you know, one point seven, one point eight million in vehicles and you're down thirty seven thousand, that's very different from a company that is that did, you know, a hundred thousand vehicles in twenty twenty four and is up forty thousand. Right. And so if you're comparing something like Honda Group, forty thousand up forty thousand in production with Tesla down thirty seven thousand. And you forget that there's like an order of magnitude difference in terms of their actual unit production and that On a percentage basis, Tesla is not down by much. in terms of sales in twenty twenty four, then you're missing what you should be actually looking at. And then also there are other obvious things that need to be taken into account, like profit margin. Obviously, Tesla has the best profit margin of any of the names that you see on this chart. Obviously, it does the most in terms of unit sales, as I mentioned, and then There's other intangibles that you might not see on this chart, like full self-driving, like average sales price, and so on. So if you look at the top ten, and this kind of illustrates my point, if you look at the top ten EV models sold in the US in the first quarter of twenty twenty five, number one and number two are Tesla Model Y and Tesla Model three. And even their Cybertruck is in the top ten. And if you look at the units sold first quarter twenty twenty five here, we're talking sixty four thousand units of Model Y, fifty two thousand units of So let's call it one hundred and ten thousand. Right. Third place. That's just for Tesla. And then you can add, you know, the Tesla Cybertruck. We're closer to one hundred twenty thousand. Third place is Ford with their Mach-E. They sold eleven thousand. so again we're talking about an order of magnitude difference here between these uh between these companies in terms of units so so if you said oh well you know ford sold you know five thousand more uh cars in q one twenty twenty five uh whereas the number of cars sold by tesla was down ten thousand well The total sales for Ford was just eleven thousand. The total sales for Tesla was close to one hundred and twenty thousand. So we're we're comparing grapes with watermelons and. And, you know, counting number of grapes versus. A number of watermelons and or, you know, difference in. Just looking at the difference in the sales and the number of units sold really doesn't tell the whole picture. And then if you look at best-selling battery-powered electric vehicles in China, Um, you can see the Tesla, this is for, right? Uh, year, Tesla model Y, uh, was a number w was in the number one spot and the BYD Seagull was in the second spot. Now, if you look at the average selling price again here, watermelons and grapes, if you look at the average selling price for the model Y it's. Plus in China. The average selling price for BYD is around, for the Seagull, it's around US dollars. So again, we're comparing watermelons with grapes. And even though we are doing that, Tesla Model Y is still, in terms of number of units sold, had the number one spot. So I don't really think the core business is rotten. I think the core business is elite. It is it is number one and so this conclusion is is I think very incorrect and then you can take this anecdote uh from this from Tesla's most recent earnings report they mentioned that they achieved record orders for a single day in the Asia Pacific region when they launched their new Model Y. This is significant given their region is the most competitive EV market and also validation of their cost structure and competitive positioning. I agree with this. And the Shanghai Model Y factory fully ramped production in six weeks. So again here, I mentioned in my initial commentary on the Tesla earnings that They were ramping up production for their new Model Y in all of their factories globally. And that definitely impacted the number of units they produced and sold. They had six weeks of that ramping up going on. And so looking at just this quarter's numbers is not going to give you an accurate picture. They also launched FSD in China without using China specific miles, meaning they have a general solution. And now we have Norway approving FSD usage in their country. And so we're seeing this FSD rolling out globally, whereas other competitors like Waymo are still geofencing cities and launching their negative gross margin service, test out their solution, which is, I think, dead on arrival. We have this general solution that, you know, and have a cost structure that is half of what Uber has, and the closest competitor is still working on a LiDAR solution that is too expensive and needs geofenced areas to operate in. Saying that core business is rotten, not seeing the FSD opportunity, I think is just short-sighted. And then it was mentioned that the percentage or the market share for the company is going down. And yes, it's true. The market share is going down. If you look at US, Canada, that's in blue. China, it's in green. Europe is in red. But... I think that this is actually a win for Tesla that, I mean, if you look at the graph of their market share, it's not really falling off a cliff. It is sloping downwards. That's correct. But the pie is getting bigger. The EV pie is getting bigger. The market is getting bigger. So again, sorry to use this analogy as much as I have, but Tesla had at one point, fifty percent of a grape. Now it has twenty five percent of a watermelon. So, I mean, yeah, the market share has gone. The percentage of the total has gone down. But the actual market itself has grown tremendously. If you look at something like China, half of new cars sold in the country are now powered by cars. batteries they're now electric vehicles um and now this is a bit uh a bit outdated the chart is and so probably the percentage is bigger now it's it's higher and so when you look at the decline in market share for china that's that green line it hasn't really gone down that much for tesla So you have the market itself exploding in size and Tesla, the company, roughly maintaining its market share. That's a win in my book. And oh, by the way, if we're talking about China, this is the most competitive EV market out there. So again, I would say I'll take that as a win. And then finally, in terms of just to put the nail in the coffin on this core businesses rotten talk, The company, even though it reported probably its worst quarter in a very long time, it's still cash flow positive. If you look at the free cash flow year over year comps, up one hundred and twenty six percent. They generated six hundred and sixty four million in free cash flow in the last quarter after investing free cash flow. So that's after CapEx. after they invested one point five million, I'm sorry, billion dollars, one point five billion in new capital expenditures. So factories increasing capacity after one point five billion, they still had six hundred and sixty four million in free cash flow that they threw on to their cash pile that is now close to thirty seven billion. And this thirty seven billion, that's firepower that they can use uh for expansion and for these new industries that it wants to be the leader in so I would I would not classify the core business as rotten in any sense I think doing so is a big big mistake and then as it relates to brand I understand that tesla's brand has taken a hit this is very true undeniable but I go back to other companies, other products that experience damage of their brand. And I go back to the Colin Kaepernick thing where he was kneeling during the national anthem and there was a lot of brand damage to the NFL done at the time. And really, the core audience of the NFL was not happy about this at all. But if you look at the since this incident, if you look at this at the revenue growth for the NFL, it continued to grow for years afterwards. I mean, at the time, the revenue for the NFL was between ten and fifteen billion. Now it's north of twenty billion. So. Brands, even though they take damage when things like this happen, they can recover. And if the product is good, they will continue to grow. I think the product for Tesla is excellent. And even Jeremy in his video, he says, hey, I have multiple Tesla vehicles. I love the product. If the product is good, the brand can heal. And so I really think this is the time not to sell. This is the time to buy. The best thing that happens to us is from Warren Buffett. The best thing that happens to us is when a great company gets into temporary trouble. We want to buy them when they're on the operating table. And I really believe that this applies to Tesla. Perhaps it applied to Tesla before its earnings. And now people are people are buying them. bidding up the price. And so perhaps we won't get as good of a deal as we got before earnings were reported. But I really think we should be thinking about buying as opposed to selling. So that's my response to the notion that the Tesla business is rotten, that we should extrapolate from the recent earnings into the future and that um and perhaps the tesla stock is a cell so that let me go to questions very quickly and then I have to run uh yeah exactly say it uh say it says uh cell I was thinking of buying exactly my position lubna samaritan brother canada I listened to jeremy's video too I respect his opinion but I don't fully agree with him I think he's really mad at musk's new political involvement yeah I I think that that's possible I'm not really a fan of AMD. Right now, I just think that there are better opportunities. And alhamdulillah, our dividend portfolio has been doing extremely well. What do you think about Shopify? I'm not really a fan. I think it's... It can be disrupted by AI. Can you recommend any halal index funds? I did do a review of halal funds. Check it out on my YouTube channel. Do you think it might make sense to diversify more internationally? Absolutely, Osama. I think it does make sense. And we're actively looking at companies internationally. Obviously, it is hard to find international stocks that are easy, that you can easily buy and that are listed on exchanges that you have confidence in. that are not necessarily... Well, I mean, I should say this, like a lot of stocks that are on the New York Stock Exchange or the NASDAQ, for example, these are global companies. These are not, you know, beholden to necessarily the U.S. market. Obviously, the U.S. market is going to be influential in any company. But, you know, a lot of the stocks that we have in our portfolio even can be considered, you know, international stocks, even if they are listed on U.S. exchanges. So I just want to point that out. Well, I think the Inflation Reduction Act, I mean, if we're going to talk about market share, the Inflation Reduction Act is going to wipe out a lot of EV models and a lot of EV makers and impact them a lot worse than a lot harder than it will impact Tesla. So if we're talking about market share, I think Inflation Reduction Act and that going away will actually benefit Tesla in terms of solidifying its summits because Tesla has the best margins in the business. And so Tesla can take the hit of the Inflation Reduction Act going away. all these other players a lot of their models wouldn't even exist they wouldn't sell any of them without the inflation reduction act so this so that going away the training training wheels going away will actually um increase tesla's market share not decrease it so probably will work out in tesla's favor Hey, Salam, Arshad. Nice to see you. Thanks for moderating. Yahya says, Salam, brother. I don't feel like the NFL's comparison is a fair comparison. Okay. Okay. NFL brand mode is insane. Any thoughts on Argentina market? Not really excited about the Argentina market, to be honest. Yeah, I think that there are more interesting markets out there. So, yeah, it's definitely, you're going to see this as a more common theme in PIF's stock selection is that we will be going into markets that we haven't gone in before, inshallah. All right, guys, I hope you enjoyed this live. I wanted to go early so I could go to salah and know that I've done this so I don't have to hurry. And so, yeah, I hope you like this timing. Leave a like if you enjoyed this live. Become a PIF member if you haven't already. Till next time, make sure to take care of yourself. Assalamualaikum and peace be upon you all.