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Hi everybody, welcome back to 
the Elon Musk podcast. 

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Today we're going to be diving 
into some recent challenges that

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Tesla has faced in the stock 
market, which has raised 

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questions about the stability of
the EV sector as a whole. 

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And in less than two weeks, 
Tesla shares have plummeted 

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nearly 20% and this drop has had
a ripple effect casting down on 

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the future of the electric 
vehicle industry. 

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There's been a chain reaction of
concerning statements from auto 

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manufacturers, Wall Street 
analysts and key suppliers like 

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Panasonic and ON Semiconductor. 
But before we get into that, I 

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want to tell you about our 
Patreon. 

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It's the way that we can keep 
the lights on here at the show. 

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If you go to patreon.com/stage 
Zero, that's the name of our 

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studio, Stage Zero, You can help
us out and we can continue doing

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these shows every single day. 
So that again, is at 

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patreon.com/stage Zero. 
It's down in the description 

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below, too. 
So what's causing this downturn?

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Could this be a sign of slowing 
demand for electric cars or is 

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there more to the story? 
Now we're going to be unpacking 

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this issue in about 5 separate 
segments today. 

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We're going to be exploring the 
factors that are affecting Tesla

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stock in the state of the EV 
market, labor unions, and what 

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this could mean for the future 
of automotive technology. 

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Now, the downturn in Tesla stock
was initially triggered earlier 

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this month when the company 
adjusted its growth expectation 

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during its third quarter 
earnings call. 

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This surprised many investors 
and was soon followed by ominous

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statements from global 
automakers and Wall Street 

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analysts alike. 
Panasonic, a major battery 

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supplier, and ON Semiconductor, 
a key chip maker for the EV 

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industry, also issued warnings 
about the state of the market. 

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The collective alarm has cast a 
shadow not just on Tesla but 

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also on the US automotive sector
as a whole. 

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Interestingly, Morgan Stanley 
analyst Adam Jonas positive that

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the billions of dollars invested
in the EV sector could actually 

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be destroying value rather than 
creating it. 

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And while the traditional 
automotive market is also 

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struggling, mainly due to the 
high interest rates, the young 

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and vulnerable EV sector appears
to be taking the brunt of these 

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negative market effects now. 
Meanwhile, the labor union 

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situation in the United States 
is causing additional 

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disruption. 
General Motors recently struck A

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tentative deal with United Auto 
Workers union following similar 

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deals by Ford and Chrysler owned
Stellantis. 

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And while some analysts 
speculated these labor 

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negotiations could have offered 
Tesla a competitive edge, that 

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theory didn't really pan out. 
And since the labor disputes 

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began, Tesla shares have 
plummeted even more drastically 

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than those of its American 
competitors, General Motors and 

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Ford. 
Now a clear picture is emerging.

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Tesla isn't just facing a 
softening EV market, it's 

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dealing with multi front 
challenges. 

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These include labor pressures 
and supply chain issues 

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alongside the macroeconomic 
factors affecting the auto 

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industry as a whole. 
ON Semiconductor. 

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That's ON Semiconductor and 
Panasonic 2. 

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Suppliers for Tesla provided the
market with further signals that

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all might not be so well. 
An ON Semiconductor has a 

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substantial share in the 
automotive sector, supplying 

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chips to companies with a hefty 
slice of global EV sales. 

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Their disappointing forecast has
had a direct impact on Teslas 

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already shaky share prices. 
Similarly, Panasonic's reduction

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in battery production was 
underscored by lower demand for 

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Tesla's high end models in North
America. 

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And what's particularly 
noteworthy, these supplier 

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warnings essentially echoed Elon
Musk's own cautious statements 

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from earlier this month. 
He noted that the combination of

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higher for longer borrowing 
costs and slowing uptake for 

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Tesla's Model S and Model X 
could potentially lower overall 

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vehicle demand. 
And one can't discuss Tesla's 

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falling stock without looking at
the contributions of the 

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supplier such as Panasonic and 
ON Semiconductor. 

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Panasonic recently reduced its 
automotive battery production, 

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citing decreased demand for high
end EVs in North America. 

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And the ripple effect of this 
decision permeated market 

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sentiment, reinforcing existing 
concerns that Tesla premium 

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models may not be as invincible 
as once thought. 

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ON Semiconductor, a key supplier
for not just Tesla but the whole

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auto sector further dampen 
investor spirits the chip 

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makers. 
Conservative sales projections 

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revealed potential market wide 
weaknesses and the company has a

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massive footprint in the EV 
industry, providing essential 

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components to the top global EV 
manufacturers, including leading

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Chinese brands. 
Thus, when ON Semiconductor 

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speaks, the market listens, 
often with worry and Tesla's 

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stock declined was also echoed 
by the dismal performance of ON 

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Semiconductor shares, which fell
around 19%. 

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This tandem slide could signify 
that the factors affecting Tesla

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are not isolated, but 
symptomatic of an industry wide 

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issue. 
Notably, ON Semiconductors 

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products are pivotal in the 
construction of electric 

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vehicles, mainly focusing on 
power management. 

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A fall in demand for such a 
fundamental component serves as 

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a bellwether for investor 
concerns across the whole EV 

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industry. 
Interestingly, investors now 

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find themselves grappling with 
the chicken or the egg scenario.

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Did warnings from automotive 
companies like Tesla and General

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Motors catalyze on 
semiconductors? 

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Cautious outlook, or was it the 
other way around now? 

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Either way, the combined impact 
of these major players 

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introduces A sobering effect on 
the market, causing investors to

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reassess the volatility and 
future growth of the electric 

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vehicle industry. 
Now at this point, Tesla's road 

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ahead is uncertain. 
The company has lost the 

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staggering of $145 billion in 
market capitalization, and 

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investor sentiment seems to be 
growing increasingly skeptical. 

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Not just Tesla, though. 
The ripple effect is being felt 

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across the whole sector and even
among traditional automakers who

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are planning to go electric. 
Tesla remains A dominant player 

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in the EV field. 
But as this recent downturn 

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shows, no company is immune to 
market forces and economic 

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realities. 
What this means for the future 

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of Tesla in the broader EV 
market remains to be seen. 

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It looks clear in the positive, 
but the road ahead is going to 

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be far from smooth now. 
Thank you again for tuning into 

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the show today. 
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