Tesla Talk With Co-Host Robert Orfino

TRE 103 | Tesla Model 3

 

Who would not want a Tesla Model 3? This car is simply one of the best the industry has to offer. Gone were the days when people would shun Teslas because of their low mileage, as Tesla takes efficiency to new heights with their superior battery technology. In this episode, guest co-host Robert Orfino of Mr. Texas Real Estate joins Jason Bible as they extol the virtues of this magnificent vehicle and how it can potentially revolutionize the automobile industry by redefining energy efficiency. Listen as they also talk about shorting in the stock market, the anti-success mindset, Star Wars, and more.

Listen to the podcast here:

Tesla Talk With Co-Host Robert Orfino

We’re going to have a little fun for this segment. This is where we’re going to talk a little about Star Wars, Mandalorian streaming services, all that good pop culture stuff. Have you watched the finale? That’s why we’re talking to them about this. 

The spoilers, people, if you have not watched the last episode of the season for the Mandalorian, we’re going to break it for you. I noticed they upped the cute factor for Baby Yoda. They’re coming out of the tunnel and that general is shooting him with the TIE fighter. He looks over at Baby Yoda. He’s like, “Do the hand thing,” and he starts doing it and Baby Yoda starts waving.

That’s the meme, it’s everywhere. “Do the hand thing.” Carl Weathers is doing well. 

That whole cast is fantastic.

Finally, we get to see his face. He took the helmet off there. It was a good episode. 

What’d you think of the black lightsaber? There’s only been one other.

It’s the Darksaber. They believe that’s it. 

The Mandalorian had it before.

He’s collecting them. This Grand Moff here is trying to create his empire. If he gets a Force-using Yoda, I’m not sure he’s a dark side guy, but if he can bring him over to control and have all these neat toys. When his stormtroopers came, they’re all clean and white. They’re the real deal. He’s keeping order. 

That black saber was awesome. The only other time you see it is a Mandalorian has it. I remember watching that from Clone Wars. That was a cool episode. They sound different too. This sound super cool. The black lightsaber, which was neat. At the beginning of the episode when the two stormtroopers snatched the Baby Yoda. They’re sitting there chatting like two dudes who normally talk and then they start shooting at that thing in the ground because the joke is stormtroopers can’t hit anything. Shaking the pistol and like, “What is wrong with this thing?” This is funny because that’s typical military stuff. It doesn’t work like it’s supposed to and it was funny.

That was Taika Waititi, the guy who did Thor Ragnarok. That was funny. When the same scene when they’re sitting there and he shot a bunch of his men. 

This isn’t a good time.

He killed one of the commanding officers who interrupted him while he was speaking.

I’m not going to interrupt him. That was good too. The first half of that episode was that stuff. I’m like, “This is good.” Because you know that is exactly what happens. The stormtroopers are sitting there and like, “We don’t know, we’re not going to interrupt him. He shot one of his officers.” It was funny.

Going back to The Rise of Skywalker, someone made an observation that I thought was, “If they give me 30 seconds more of hint on that, I’d be impressed with the movie.” 

What’s that?

Finn, the former Stormtrooper. J.J. Abrams the director confirmed that what he was trying to tell Ray, “I got to tell you something,” was that he is Force-sensitive. 

Is he?

By all accounts, the Tesla Model 3 is one of the best cars ever made. Click To Tweet

Yes. A couple of times he’s like, “Yes, I know she’s okay.” He’s in tune with her. He meets all these other former stormtroopers. They said that they’re former stormtroopers because the training didn’t take because they’re also Force-sensitive, which could be the next bunch of Jedis.

You’ve got to bring balance. You got to have some more Jedis running around.

I’ve been watching a lot of reviews on it. I don’t know what was going on in that whole arena with all those people. Were they real? 

What was that all about?

I don’t know either. My original thought was, “These are all the parents to everyone who’s working on the ship.” They’re all like Sith and dark side worshipers. They’ve gone out here for the last 30 years and produced a whole other army. There are all the parents. They start building 1,000 ships, there’s what? A million, five million people working on these things. It’s like, “They must be all the parents.” That’s it. The realization that your parents are devil worshipers. Someone’s got to be the cook on the Destroyers.

You know what’s funny is I used to watch a lot of that fan fiction years ago. It was this girl who’s a total girly and she’s an X-wing fighter. There’s a whole bunch of these, but there are always these funny ones where it’s the guy that’s the cook on the Death Star. They do a whole series over. I always thought the funny stuff was always good because that happens. Everything’s serious. It’s like, “I was the cook on the Death Star and I got out before it blew up. I was not happy with what happened in Alderaan.” It’s all that silly stuff. It’s fun to see that in the universe.

Hopefully, the new Obi-Wan Kenobi. 

Ewan McGregor is good. He’s the best out of all of the movies. The way he plays that character is absolutely amazing. I can’t wait to see it because Obi-Wan is supposed to be the best swordsman ever and it’ll be a lot of fun to watch him bring that role back. I did not know that his younger brother is a fighter pilot in the Navy. His call sign is Obi-Two. I was like, “That’s wicked.” They’ve got a picture of him somewhere both of them standing in front of one of his planes, which I was like, “That’s cool.”

I saw Ewan McGregor in the interview and they’re like, “You’re Obi-Wan.” He’s like, “Yes. It’s good. Not bad.”

You get these actors that do these roles and they don’t enjoy it. The girl, she’s a model and she does all the Resident Evil movies. She’s always said like, “It’s okay. It pays the bills,” but it’s not her favorite thing to do. Ewan McGregor loves being Obi-Wan Kenobi.

He kept his lightsaber too. 

Did he?

Yes. He’s like, “I took it. It wasn’t mine. That’s my lightsaber.” 

It’s like they were not going to let him take it.

I remember the episode where they shoot it. He had a case in front of them of lightsabers and he got to pick which one he was going to use. We are big fans of Star Wars and a lot of other good stuff. From time-to-time, we’re going to talk about this on our show because real estate radio shows are boring. We want to bring it up once in a while. If you don’t want to have some fun, you want to work with us in our mastermind or come to some of our events, check out our webpage. It’s MRTXRE.com. You’ll have all our events up there and we’ll talk a little bit more about the mastermind and you could see some stuff or join us on Facebook in Mr. Texas Real Estate group.

I see Chris is on Facebook and I bet Chris’s wife is enjoying the weather. She’s Canadian. I was sitting in the driveway before we started all this. I’m looking at and there’s a layer of frost out there. I was like, “This is perfect.” It’s not super cold. It was good. We got to use all the blankets, usually thrown the wall off and as piles on the floor and the dog gets hot, he’s got to go sleep on a tile and spread out. It was good enough to have a nice little winter sleep. 

I noticed it was 37 degrees in Sugar Land and I was supposed to get up to the 60 degrees, which is perfect. I love Southern California. What does it get down to at night?

TRE 103 | Tesla Model 3
Tesla Model 3: The Tesla Model 3 uses a technology that could produce a 40% increase in battery efficiency.

 

In the winter it’ll get down to the 40 degrees. In the summertime, almost every night it’s 59, 60 degrees. 

It’s perfect because you wear long sleeves. You can wear a light jacket if you want to. During the day you can do all your run around shorts and a t-shirt and all that stuff.

The only place ceiling fans work in Southern California. You don’t need air conditioning. Jason, I heard an expression. I saw a guy in South African professor do a little talk on it and it stuck with me. He said, “We all want to be successful. We all want to have wealth.” Every study that he has done shows that people have animosity towards the successful or towards the wealthy. He posted a picture of a crashed Ferrari on Facebook and he just said, “Uh-oh.” He said the comments that came back were fiercely negative. People assuming like, “He was drunk and he probably killed someone too.” It’s like, “This is putting.” 

“What’s that guy behind that car? He’s got no idea how to drive it.” If you’ve ever driven a fast car, they’re not easy to drive.

They constantly need repair. There’s this whole thing in them. I don’t want to go into politics too much here, but I’m watching the political landscape and I’m like, “We have a real problem with successful people.” Given a Mayor Pete Buttigieg, a whole bunch of nonsense because he hung around with successful, rich people in a wine cellar. It’s like, “I’ve been to a wine cellar, it’s not bad.” I’m like, “That probably was a fun night.” 

One of my favorite guys to hear a talk from time-to-time is the Founder of BET. He gets on stage and he’ll say, “I’ve been poor and I’ve been rich. I picked rich every single day.” He’ll go on a complete rant. We think there’s this nobility in being poor. There’s nothing noble about being poor. You can’t help anybody. You can’t build stuff.

To me, beyond all the laws, constitution and charity, the greatest thing about the United States of America is upward mobility. You can move from one class level to the next and you’re welcomed. “These guys are successful too. Come on in. We’re all good here.” 

Got a friend of mine, he sold one of his companies for a few $100 million. He had partners and all that. It’s not like he got $100 million cash. When I was getting into real estate, he and I were hanging out one day and he said, “Come on up, there’s plenty of room up here.” Here’s the thing that most people don’t realize. He said, “There are doors of opportunity everywhere. For guys like you, before you get admitted to the club, you got to knock on the door and you have to keep knocking.” He said, “It’s not hard. You just keep knocking on the door and eventually we’ll let you in. It’s that simple.” You got to keep working at it and when you get there, you’ll get there. It’s a matter of time and how hard you want to work it. Everybody’s welcome to the club.

Everyone’s goal in 2020 is to be wealthy, successful and more net worth, the more we ask more and all those stuff. You can’t, on the other hand, be negative to that success. 

That’s a great point. There are two competing thoughts.

You cannot have two competing thoughts. You freeze. 

“I hate these guys because they’re successful, but I want to be successful. I want to be that guy.” Those competing thoughts eventually cancel each other out. We see that all the time.

A lot of people have that problem and they don’t even recognize it. We’re in masterminds and you can hear, “That guy had it easy.” He’s like, “No one has it easy.” None of this is easy. If you’re negative or have that quick negative reaction to success, whether you like them or not, is a problem. To see it out there in the politics, on Facebook or social media, even if you don’t respond to it and you have that internalized thought. You drive around a Porsche in Vegas forward is that about. You’ve got to get over that. The reaction is, “God bless you. I can’t wait to join you.” When you’re going around and you’re looking at the rich guy at the club, the successful guy in the club or the flipper and you’re trying to rip them down and you’re asking for, “It doesn’t have that money. It’s only on paper,” or this other stuff. How can you possibly be successful if your mindset is to criticize those that are successful? 

I’m convinced those that do are not. Let’s say we got a couple of people in real estate and someone starts to talk a little trash is fine, but the envious like, “Those guys aren’t doing that. There’s no way they’re doing that.” You look at that guy and you’re like, “I know you’re not successful.” I didn’t even have to look at what you’re doing. I don’t have to look at your balance sheet. You’re not successful because your attitude is an anti-success. Your attitude is the exact opposite of what you’re trying to accomplish.

We all want to be successful and wealthy, but people generally show animosity towards the successful and the wealthy. Click To Tweet

The other thing that tweaked me a little bit is there’s this post going around from the Trump fans. “Trump is a CEO of a company where 25% of its employees had been stealing for years.” 

What does that mean?

I’m like, “That is presumptuous out there.” What does it say that you believe that 25% of the people work for the federal government and stealing? It can’t be that much. Are there people? Yes, there are people, they’re everywhere. From Walmart to Herbalife to wherever people are squeezing a little bit. That post out there, it’s like, “It’s negative.” That presumption that people are stealing. It’s a cute little mean, but that’s your base. Is that’s where you’re coming from? That we project this negative on people and things around us. The government is never going to help you because they’re all thieves. 

The people that buy into that, it’s a little extreme. I’ll tell you the problem I’m having with Facebook. Maybe I’m attracting this stuff because of the algorithm, but I don’t think it’s the case. I think it’s the negative energy that produces that much more attention and you get addicted to the constant negative feedback.

That’s clickbait on YouTube. “I blew it up. I broke it. This guy stole from me.” Did he? Will Tesla fail? No. I’m like, “It’s all clickbait.” 

It’s all a bunch of clickbait but I’ve noticed that a lot on my Facebook page, and I’m like, “This is getting not so great.”

We’re be going to talk a little more about Tesla.

It’s time to talk a little Tesla. 

The stocks up a couple of bucks. Some shorts are getting crushed and I enjoy that.

I don’t understand the shorts. I get the general gist of it, but I don’t understand how long the short is in place for it? Do you have to pay every week, a month?

It depends on how they’ve got it set their margin calls and all that other stuff. Assured is where you’re essentially borrowing a stock and selling that stock in the future that it’s less expensive. You’ve got Tesla stock at $400 each. I borrow your shares at $400. I sell them, put the $400 in my pocket, and then in the future I hope to buy them back for less. That’s how I make my money. That’s the easiest way to explain it shortly. You can go into the derivatives market and buy options and we got put in call options. You do all stuff, but that’s what they’re betting on. They’re betting on the stock decreasing in value.

That short can be for a year, a month, 30 days? 

If you get into the options market, it depends on how long you can write that contract for it. There’s stuff in what they call the OTC market, the Over-The-Counter markets. If you go to CME, the Chicago board Mercantile Exchange, you can see all the options contracts. Typically, those are for long timber futures and all that other stuff, commodities markets. What happens is you would call your broker investment banker and say, “I want a short Tesla. How can we set up a trade-in which I can short Tesla?” That’s essential, how long that occurs?

How long do you have the pay?

It depends on how long that contract is. Is it yearlong? Is it six months? If the share price changes dramatically, they may have what’s called a Margin Call, which means you need to write a check to cover a portion of your future losses, should that stock continue to rise in value? That’s how it works for mom-and-pop out there. You’re not shorting anything. However, shorting a stock is critical. Being able to short something is the opposite. The counter side of the bet. I’ll give you a great example. When Bitcoin back in December of ‘17. When Goldman said, “We’re opening a trading desk for Bitcoin in which you can also short it.” That’s one of the reasons why it fell fast because there was no way to short Bitcoin. The Big Short, that movie was all about shorting housing. There was no way to short the housing market. In other words, to bet the other side that says, “It’s going to fail.” It’s an important piece of the marketplace.

TRE 103 | Tesla Model 3
Tesla Model 3: The Model 3 went down in price this year. This never happens in the automotive industry.

 

It sounds like Vegas to me. 

It’s very Vegas. However, you’ve got to have that ability to short something. Let me give you another example. We’re building this fund and it’s going to get pretty big at some point. When it gets large, we’re going to sit down with the CFO and say, “We need to look at the downside risk of our exposure, our portfolio. Should we set up a way that we can short, let’s say build or stock?” When the market crashes, builder stock gets inexpensive. It falls. How do we bet on that? How much should we pay for those options to protect our portfolio? As our portfolio decreases in value, so do builder stocks. However, for shorting that we’re making money on it to cover the losses on the portfolio. We are hedging. It’s a classic hedge. That’s how it works.

These guys over at Tesla had been shorting Tesla getting crushed. Here’s the other little thing that happens in the background and if you guys want to watch, I know there’s a couple of documentaries on it. The Herbalife disaster started between two billionaires and they started talking trash. Carl Icahn steps in and says, “I’m going to crush your company.” That’s exactly what he’s doing. He’s shorting it. He’s doing all crazy stuff to screw with that. There’s a lot of that stuff going on behind the scenes to Tesla. Whatever the absolute disdain they have for Elon Musk, they’re playing that little game and Elon’s not even playing the game because he doesn’t care what the stock price is. He said that multiple times, but he’s enjoying watching those guys get whipped.

He wants to bet against you. 

He loves it. I feel like there are some correlations here to some of the stuff you and I do. There are these guys out there. They have all this animosity. You’re not even playing in their little game and you’re winning.

We had the lunch and he was like, “You know so and so he does his teaching too.” I’m like, “I don’t.” I know when I teach a class 30 people to show up. The other thing with that is then that opens up the whole world. All the conspiracy nuts go crazy. Who shorting it? Is it the guys who were taking their orders from the oil industry or from the ICE industry? The ICE automakers. Are these guys all betting against? They have to bet against but they’re hedging. Clearly, General Motors ask to bet against them. It’s not a conspiracy they absolutely have to do it. 

I’ll tell you the other thing is there’s something called Dark Trading Pools. Those happen typically offshore. You can’t find these guys taking these positions. They’ll run it through holding companies so you’ll never know.

There’s always one patsy who goes out on MSNBC. 

There was always that one guy that they trot out there and he’s like, “Yes, we’re shorting Tesla and we’re getting the kill.” We think it’s going to do X, Y, and Z. I’m like, “Whatever, good luck with that.” Go out there and short Amazon and Apple while you’re at it. That’s a great idea. I got this thing with FinTech and it’s hilarious to watch it crash and burn the Angel Investor and VC market, they were all about FinTech not too long ago and it’s getting smoked because there’s nothing there. It’s fascinating to watch. It’s fun being right. I figured that out. That was one of my goals.

I went to a lot of the crowdfunding stuff and then the crowdfunding stuff bled over into blockchain. A blockchain was also all the FinTech and I was sitting in a room, I’m like, “I am far away from where I need to be. I need to get out of this thing.” We talk about it when it comes to stocks and all that stuff. There’s so much money out there. It’s got to get placed. 

There’s so much money and the money is multiplying every single day. It’s not even through quantitative easing and all that other nonsense. It’s there. It’s growing rapidly. Where do you put the money? Where do you invest the dollars? You start looking at a company like Tesla. Here’s your choice. I want them to invest in the automobile marketplace. Who do you invest in? Who’s doing innovative stuff? God bless Toyota. Toyota and Honda are great, but are they pushing the envelope? They make great cars, they make great trucks and stuff, but who’s on that path to upset the applecart? Tesla’s the only one of any real size. There’s a bunch of small players out there and then it’s a major manufacturing, which is hard in this day and age to build something that big. Where do you put your money if you want to be in the auto sector? It’s obvious to me. The valuations that they’re using for Tesla, you’re using the wrong metrics. That’s why many guys are confused. It’s like, “Why are they worth that?” I’m like, “You don’t understand the metrics that you are using don’t work for that company.”

It’s not an automotive company. 

There’s nothing noble about being poor. You can’t help anybody; you can’t build stuff. Click To Tweet

There’s a real estate guru that’s popped back up, I’m not going to say he stole money. There’s some debate about that but misappropriated some funds. He used to have a radio show on our same network and he’s all over Facebook. He is spending some major dollars on marketing. 

When I was seventeen years old, I misappropriated $10. I was running registers at a supermarket and I had to bring a roll of quarters over to someone. The cashier gave me $10 and I put it in my pocket. I got called to help a customer right away. I walk home and I pulled $10 out of my pocket. I’m like, “What happened?” Going back the next day and said, “I took this home.”

They were like, “Okay.”

They fired me.

Did they?

Yes. They’re like, “You’re out. You misappropriated funds.” I’m like, “That’s what that means.” It was like theft because it clearly wasn’t, I made a dumb ass mistake. I’m a kid. I got canned. I was only fired from one other job. Both when I was a kid. I couldn’t get up at 5:30 in the morning. I had to open up the gas station at 6:00. I used to pump gas and change tires at a local gas station and I couldn’t get there at 6:00.

I still can’t do this schedule. I’m not a morning guy. I try to be, I’m just not. 

The funny thing is I kept telling him, I was like, “When I do get here at 6:00, there’s one customer.” That’s it. It’s the roach coach. I was like, “He’s the only guy who comes in the morning. He’s the only one from 6:00 to 7:00. There’s nobody here open at 7:00.” He’s like, “We got to open at 6:00.” The roach coach guy ratted me out one too many times. Everything else I’ve been stellar at.

More Tesla talk. Why don’t you talk about the Model 3?

One of my goals for 2020 is a Tesla Model 3, and this is by all accounts one of the best cars ever made. We’re curious about the battery technology. There’s supposed to be some announcement here. We’re looking to see what the battery is going to look like. They’re talking about the technology could produce a 40% increase in battery efficiency. You go from 320 to 450 miles in a Model 3 would be phenomenal. Going from 500 miles in your truck to 700 miles is a completely amazing game-changer. When a Tesla trucking get 750 miles to the charge and you’re only supposed to run 80% of that, but so what? You can get 600 miles to the charge. That’s a game-changer.

I remember when Tesla started building cars years ago. You look at the technology and like, “They only got 200 miles.” You’re seeing that technology improved by leaps and bounds because either they want to be a supplier for Tesla or Tesla is pushing the envelope themselves to keep building these cars that go further and further. They’re going to get cheaper. The Model 3 went down in price. How often does that happen in the automotive industry? It never happens in the automotive industry. Do not be surprised if we’re seeing Teslas for less than $20,000 in 5 to 7 years. 

I have great concerns about our fine state here. We’ve got to embrace this quickly. It’s illegal for Tesla to sell cars here because of the dealership franchise.

TRE 103 | Tesla Model 3
Tesla Model 3: One of the greatest things about America is upward mobility. You can absolutely move from one class level to the next and you’re welcomed.

 

I always thought the blue laws and all that were nonsense anyway. 

You can understand why but essentially what has happened was there were 13 or 16 states do not allow Tesla to sell directly to the public, which means those 13 to 16 states say, “It’s okay for you to pay.” In fact, by law, you must pay an extra 6% to 9% on every car you buy. That’s what it shakes out at the dealership. You got to buy it online and then they deliver it to you.

What funny about that is the dealership doesn’t make money on the stupid cars anyways. It’s financing and parts and the service. 

That’s where you make money. The Tesla showroom, the experience center is up off of 45 here. We can go in there and take a look at the Teslas.

They let you test drive them, don’t they? We’re going to go up there and test drive a couple. I’ve been in them a couple of times, but I’ve never driven one. 

I’ve been in the Ludicrous Mode, that crazy. We like it for one, it’s a great vehicle. Two, it becomes cost-effective quickly. Three, we’re embracing the future here. The problem is that everyone assigns everything else to it. Even Elon goes out there and talks about climate change. It’s like, “I’m not buying a Tesla for climate change. I’m buying because I’m told that the Model 3 is the greatest car ever made.”

I’m still not buying the whole climate change for a handful of reasons. We ought to have a whole show on that. 

About climate change?

We can have an interesting show on that. I don’t know if I buy that for climate change reasons.

By default, they love us in California, “These guys got Teslas. They can’t be too bad.”

It can’t be bad but then they got a truck that gets 16 miles a gallon. Everybody from California when they come to visit, they sit in that truck, they go, “This is sweet.” 

What happens is you start assigning a whole bunch of other things to it and that gets a little messy. Buy the car because you like the car. Everything that I’ve been told and everything I’ve watched says, “This is a fantastic car.” Let’s try it. It’s been on the list for a long time. I’m going to get the Model 3 and then we’ll get the trucks and it’s a technology in the batteries that explode the way they see it’s going to explode. That’s even better for us. You can do that round trip down to Corpus without having to worry about a charge would be amazing for us.

I’ll tell you the one I do like. I like the big SUV with the gull-wing doors on it. 

It’s that the Y?

That’s the X. I do like that. That’s a cool vehicle. It is not cheap. 

How can you be successful if your mindset is to criticize those who are successful? Click To Tweet

None of it is cheap. It does down. The last thing I’ll say about the dealership that was my thought is when two customers walk into the same dealership, buy the same car and can pay great differences in price and that messes things up. I don’t mind going online and ordering it and knowing what the numbers in an advanced. I’ve been playing around with that. I’m going to get the blue Model 3. We’re wrapping up the show here. Thank you for reading. Hopefully, we have entertained and put a little bit of education. I wish you have a great 2020 and if you need us for anything, (281) 401-9008.

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