moans Ruby you know most Lebanon me
Hamas troz DJ today's discussion focuses
on a couple of items first of all the
head of Ford Motor Company was just
terminated and replaced and Elon Musk
was a big part of that
so the problem Ford has been having is
their their stock prices down 40% while
Tesla stock in the same time his triple
and Ford yes is selling many more
vehicles but they're not doing so in a
manner that portends good thing for
their future hence the change at the
helm of their firm so I'd have to say
that their lack of a clear path in terms
of how to deal with electric vehicles
moving into their space has really
affected the future that they're looking
to have GM is experiencing a similar
phenomenon but they were at least making
more of an effort to respond to the
Tesla's threat the second thing I'd like
to cover today is getting back to my
general theme that I've been focused on
which is trucks so the latest
development I'd like to cover is that
I've been focused on what's going on
with the development of the semi as well
as the light in medium duty trucks and
the relationship between receives Bend
and Tesla the first item I like the
report is that there's a company called
Hermes or in Germany I think it's Hermes
and they're a logistics company based in
Germany and they've ordered 1,500 say
Econoline sized van and that order is a
reflection of the fact that they're one
of the beta testing entities except
Mercedes has been working with I believe
the van has a 160 mile range it has the
ability to do supercharger and if you
look at the specs
on the vehicle you'll notice a lot of
similarity between what a Model X does
as well as what this vehicle also does
another develop that's occurred is that
in Japan Mercedes for a subsidiary
called luzo has now getting orders from
a test pilot location for the 18000
7-elevens in Japan the findings during
their test period was that the vehicles
were costing 40% less to operate and
what this meant is that Japan 7-eleven
because of the reduced cost of
transportation was going to be able to
start paying their truck drivers more as
a way to deal with their labor shortages
so this meant that instead of just
having higher profits or using lower
cost from their electric vehicles to
sort of beat down the competition with
lower prices they're going to leverage
it into their business in another way so
in general what this addresses is the
fact that those using and experimenting
with the light and medium duty trucks
currently are seeing somewhere between
40 and 60% cost reductions and while in
a test mode and despite there being some
range issues when you look at things
like a temperature problem etc it's
turning out to be a fairly successful
effort to move to electric for these
short-term delivery now if you look at
these two orders they're about to emerge
in the range of 5,000 units of light or
medium duty trucks for delivery it
doesn't seem like that big a deal but
what I was really stunned by is FedEx
has 47,000 vehicles and I'd assume UPS
is similar in numbers so what's going on
right now
is that there's it smells to me like
before we even get to semis
there's demand for one or two hundred
thousand like and medium-duty trucks
around the world based on the value
proposition of reducing operating costs
in half now if this is legit
once we pile on what's going to happen
with the semis when are now talking
three you know two three hundred
thousand unit demand when there's only
battery right now to cover a quarter of
that at best so I think it's going to be
interesting to see how this plays out
Tesla's response is sort of splitting
its production between testing on new
ideas like trucks as well as preparing
to deal with its own production needs be
it model threes or the Model X and Model
S but this finally answer is a big
question that's been out there which is
Elon Musk is claiming that the stock is
going to be worth ten times its current
$300 price in the next five or six years
and now that I'm seeing the kind of
demand that's out there when it comes to
batteries
I think it's legit Catholic could become
worth ten times as much if they're able
to become a significant player in
solving the battery needs of the three
to five hundred thousand trucks needed
and the multiple millions a year in
vehicles also needed to satiate demand
because of the value that scene I have
to jump out there and say I actually
think you should seriously consider
doing more trucks and less cars because
those customers don't disappear as fast
you know once they try it out and it
works because their cost reduction has a
huge impact on their businesses the one
business group that I think is going to
be hurt by Tesla and the truck is those
small firms that don't have the clout to
get in the line to get their their
electric vehicle needs met
so stay tuned thank you for watching
please like and subscribe to smack scoot
Oh classical era where this and liheap
or a whole horde AHA Fez I'm going to
take you out once again in Alexandria
Virginia with our water view
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