00:00Big step back, okay, just for anyone who might be confused.
00:02There's no check written out right now for a trillion dollars.
00:05There's a major bar to clear.
00:06Just walk us through the targets that the board has now set for the CEO, Elon Musk.
00:10Let's take a step back.
00:112018, I mean, those targets, everyone's like, there's no way Tesla would hit him, and they exceeded him.
00:16So, look, I think it just comes back to when it looks at robotics and you look at autonomous,
00:23I mean, this is the most important chapter, I think, in the history for Tesla.
00:26So, you need Musk as a leader, as ultimately the key ingredient to get there.
00:32Look, you start to get to $3, $4, $5 trillion as a market cap,
00:37and also based on a lot of those sort of targets to hit, I believe it's all on the table.
00:44I mean, these are not targets that are just ridiculous.
00:48Obviously, extremely optimistic, but I think Tesla is going to be able to get there as they execute.
00:53So, let's talk about those targets, $1.5 trillion current market cap going up to $8.5 trillion over the next 10 years.
00:59That's one of the requirements, and that comes with a transformation of what this company actually is.
01:04Can you describe what the ambition is and how feasible it is to get there in the current iteration of Tesla?
01:11Sure.
01:11So, look, I think more and more, I mean, this is an AI, it's an AI story going forward.
01:16And I think the reality is, like, when it comes to autonomous and robotaxis, cybercabs,
01:21I think they're going to own 80% of the global market when it comes to autonomous.
01:25And I think that is sort of the future where, to put some numbers, let's say you're talking about a million and a half,
01:30two million vehicles per year.
01:32Okay, you start to look at what they could ultimately do, five, six, seven million when it comes to robots,
01:40when it comes to autonomous.
01:41I mean, that's, look, from a physical AI perspective, the two most important companies in the world,
01:47it's NVIDIA and it's Tesla.
01:49And that's why this was important, because Musk is ultimately really going to be the key driver to get there.
01:55And I think investors recognize that that 75% was a huge vote of confidence.
02:00And I think basically he's saying, like, you're our leader, lead us there.
02:03The commentary from the leader was interesting when he said that he wanted a big enough ownership stake in Tesla
02:09to be comfortable that the robot army he was developing didn't fall into the right hands,
02:13but not so large that he couldn't be fired if he, quote, went crazy.
02:16Why couldn't other companies involved in AI and some of the technological transformation
02:21that could lead to robot armies make the same argument?
02:24Say, we need to be in control because we don't want it to fall into the wrong hands.
02:27No, it's a great point.
02:29But look, there's only one Elon Musk.
02:30And I think there is a recognition, especially when it comes to XAI,
02:34where I think they're going to have, call it, 15%, 20% ownership.
02:36But eventually, I think XAI will be a part of Tesla.
02:40So Musk needs to have that 25% voting rights because it's his view.
02:44He needs to have control given the AI future.
02:48And look, we've seen things, OpenAI and others, in terms of issues that they've had.
02:51But I think for Musk and for Tesla, this is an important chapter relative to where they think they're going next.
02:59Dan, can we talk about what's going on right now?
03:01He sold only 750 vehicles for October in Europe, in Germany.
03:05That's less than half of what he sold last year.
03:07This is a very mature market compared to the U.S.
03:10How bleak is it out there right now for the EV demand?
03:14Look, Europe is obvious.
03:15I mean, that continues to be just really a mini disaster for them relative to from a demand perspective.
03:22Look, if you look globally, I mean, he had a very strong 3Q.
03:25I actually think there's stabilization that's happened across the board going into next year, 2 million vehicles.
03:31But the reality is, going forward, this is an AI story.
03:33I mean, you're focused on autonomous.
03:35You're focused on how many cities you're going to get into 30, 35 in the next, call it 6, 9 months.
03:41When you actually have full-scale volume production of Optimus, that's the story here for Tesla.
03:47But it all starts with Musk.
03:50You need to make sure he's CEO for the next five, six, seven years to get him there.
03:55Is there concern that he's going to go flirt again with politics?
03:58Look, and then obviously, you know, the back and forth that we've seen in politics, I think it just comes down to, like, he's learned, I think, a hard lesson in his Beltway stint.
04:08And I think the reality is, is that he's wartime CEO right now.
04:12And I think that is a recognition, whether it's Jensen, NVIDIA, whether it's Zuck at Meta, you know, obviously, Carp, Palantir.
04:20It's an arms race that's happening.
04:21And that's why, for Tesla, this is such an important part of the AI future.
04:26Meta has the product right now, though.
04:28There is some key man risk, obviously, but they have the product.
04:30Sure.
04:31NVIDIA, key man risk, sure, but they have the product.
04:34What you're describing is a different situation.
04:35You're talking about key man risk, and we've yet to develop the product, which the whole valuation, almost 90 percent of it, ultimately hinges on.
04:43Now, I know that you're super optimistic on the robotaxi business, but we're not there yet, are we?
04:47But I think we're going to be sitting here nine, 12 months from now, and you're there.
04:52In other words, I think from a volume production perspective, this is something where cyber cabs, you're actually going to have volume production.
04:59I think regulatory, you're going to have much more on the federal side rather than the state.
05:03And that's going to be clear from, I think, a regulatory perspective.
05:07Look, and that's now the goal.
05:09You talk about a trillion.
05:10Now, it's like the goal is for Musk, step by step, brick by brick, to get there.
05:15And I think he does.
05:16And I think this continues to be the most undervalued AI story in the market relative to, I think, how it's going to be viewed.
05:23That's the trillion dollar man.
05:25So we talk about the billion dollar man over at Wedbush.
05:27Congratulations.
05:28ETF, I hear, has taken in a billion.
05:30Yeah.
05:31So, you know, took in over a billion and obviously, you know, less than five months.
05:35And obviously, we've talked about it on the show.
05:36I mean, our whole view on the ETF is just a true way to play AI in terms of the IBS ETF, the 30 names.
05:43And I think that's one where investors have, you know, around the world showed confidence.
05:48So it's a huge success.
05:51I've got you up 30% since inception earlier this summer.
05:54That's not bad.
05:54Well, now that you know that you actually mentioned it, look, I mean, part of it, I mean, look.
05:58Outperforming the NASDAQ.
06:00Yeah.
06:00I mean, look, it's obviously a huge outperformance of the NASDAQ.
06:02What kind of money is it attracting right now?
06:04Where's the cash coming from?
06:04Look, I think 75, 75, 8% retail, probably, you know, a little more institutional that we're starting to see.
06:11But obviously, being easier the last month, I mean, you know, every country you see investors that own the IBS ETF.
06:16Because, look, the reality is it's a way to play AI in true the 30 names that we view in terms of chips, software, cybersecurity, and across the board.
06:27Just quickly, what's the relationship between the stocks in your coverage as a Southside analyst and the stocks that go into the ETF?
06:33Yeah.
06:33I mean, there's a good amount of names that we cover that are in there.
06:36But there's a lot of names that we don't cover that are in there.
06:38And that, look, it speaks to my view is that this is going to continue to be an evolution in terms of the AI revolution.
06:45But those that say bubble, the haters, look, we are in –
06:48Point to me.
06:49No, no, I'm saying – no.
06:51There's – the haters –
06:52Scandered around the whole room, to be honest with you, Lisa.
06:53No, but the reality is is that we are in the second, third inning of this –
06:59We're in the fourth.
07:01Of this game, not in the fourth.
07:02And it continues to be 10.30 in the AI party that started at 9 p.m.
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