Tesla's 'AI Transformation' Is in Focus for Analyst Dan Ives

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Watch Tesla's 'AI Transformation' Is in Focus for Analyst Dan Ives - Bloomberg on Dailymotion

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00:00Dan, how relevant is the car-making business at Tesla to this stock?

00:04And how relevant should it be?

00:07Look, I mean, it's foundational relative to, you know,

00:10obviously what they're doing in the quarter

00:12and, of course, generating cash in the business.

00:15But the reality is the future is around AI.

00:18It's around autonomous.

00:20It's around robotics.

00:22I think it's the most important chapter in the history for Musk and Tesla.

00:26So that's why Musk, now wartime CEO and obviously a new pay package.

00:30And I think that's what investors are focused on.

00:32Any sell-off here, look, we view autonomous alone

00:35as worth a trillion dollars of the story.

00:38This will, one with NVIDIA, be two of the best, you know,

00:41what I view physical AI plays in the market.

00:44Dan, I think a lot of people might agree with you

00:46that autonomous could be worth a trillion to someone.

00:49It's about whether it is for Tesla.

00:51What can you point to that demonstrates success?

00:53What are the metrics you're following that justify a valuation

00:56that this company currently carries?

00:59Yeah, first off, I mean, RoboTax, and we've seen it in Austin ourselves.

01:03You know, I think that you'll have eight to ten cities by the end of the year,

01:06and we ultimately believe 30 cities in the first half.

01:10Then you ultimately look at what's happening there,

01:12the geofence area, the safety driver getting removed.

01:15It's my view that this is all heading toward level four, right,

01:18in terms of when you think about autonomous.

01:20And what that means is no company in the world, BYD, you know,

01:26pick any name out there, will have the scale and scope to compete

01:30with Musk and Tesla when it comes to autonomous and cyber cabs.

01:34That's the future.

01:35And then Optimus, you know, I believe is going to be, you know,

01:38a key part of this story.

01:40That's how you're going to get to $3 trillion market cap

01:42in the next 12 to 18 months.

01:44But scale and competition, isn't this space, Dan,

01:46already looking very crowded?

01:47Look, I'd say, I mean, crowded in terms of Waymo being first mover advantage,

01:54but they're in, what, five cities, you know, relative to from a scale perspective.

01:58I mean, I think Tesla's going to own 80% of the autonomous market.

02:01And that's why, from an investor perspective, look, if you hate Tesla,

02:05you continue to hate it today.

02:06I get it.

02:07But the reality is that this is a golden age for Tesla looking ahead,

02:12from autonomous to robotics.

02:14And that's why you talk about November 6th,

02:17what's going to be the must-pay package,

02:18and then they're going to own, obviously, a big piece of XAI.

02:22This is now the AI transformation happening at Tesla.

02:26Cars, obviously, aren't important,

02:28but that just sets the stage for, I think, what's going to be a historical move.

02:32Well, let's talk about the pay package.

02:33Elon Musk had some very colorful language yesterday on the call

02:37when it comes to the proxy advisors for some of these institutional investors.

02:41What does he need to achieve in order to get that headline trillion-dollar pay package?

02:48Yeah.

02:48And look, and go back to, like, the first pay package,

02:51the one that's right now caught up in Delaware, like, he did everything and more.

02:55And it just comes down to, like, I agree in the fact that the biggest asset for Tesla is Musk.

03:00Musk is Tesla.

03:01Tesla is Musk.

03:02Look, you look, obviously, some of those are very ambitious in terms of, you know,

03:06where they're ultimately going to hit in terms of the targets.

03:09But I think mid to high targets are hittable.

03:11And that's why incentivize him, make him wartime CEO.

03:17That's what he's doing.

03:18That's where his laser focus, you know, versus maybe some of the, you know,

03:21dark days when he was with Trump administration, obviously, some of the brand damage.

03:26And I just think, like, betting against Musk has been the wrong move again and again.

03:31And I think that's why shareholders, overwhelmingly, will approve this.

03:35Dan, let's just stay on the pay package.

03:36What's the opposition to the pay package?

03:39What's your understanding of what it is?

03:40Beside the fact that it's absurdly large, that kind of doesn't matter.

03:43What's the opposition to it?

03:44What don't people like about it?

03:47Look, I mean, obviously, it's just, you know, the view from an excess perspective,

03:52the actual numbers, you know, why do they actually have to do this?

03:55But I think to some extent, it's investors that don't understand the Tesla story.

04:00And I think any of the core believers, any of the core followers understand that the future

04:06of Tesla lies in Musk being CEO.

04:09And I think from a pay package perspective, given the targets, set high bars.

04:14That's where you want Musk.

04:16You don't want to set low bars.

04:17And I think that's, I think the board stepped up.

04:20Robin stepped up.

04:22This is the right pay package at the right time for what's going to be what I view as

04:27the golden chapter for Tesla.

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