Transcription
Several news items important to Tesla and future SpaceX investors dropped this weekend. First, great news for robo taxi. Tesla officially applied for an autonomous vehicle network company permit in Nevada. What's shocking is Tesla seeking approval for up to 5,000 robo taxis during the first 12 months after the permit is granted. If that isn't a sign of an intention to scale, I don't know what is. This comes as reports from the DMV in Texas that says there are now 51 vehicles registered as robo taxis there.
Second, SpaceX has announced yet another mega deal. This time, it's Google of all companies, renting compute capacity for $920 million per month. Anthropic and Google are now paying SpaceX a combined $2.17 billion per month for compute capacity. That's a revenue run rate of 26 billion per year if it's not terminated beforehand. Of the Mag 7, Google was the one you think would not need to rent compute. And Elon Musk predicted this last year when he posted his strategy was to buy a ton of GPUs.
Third, big whales are buying Tesla stock. Dwan Yongpin, also known as the Chinese Warren Buffett, has bought nearly 1.3 billion in Tesla. He's been buying since the first quarter. Dwan was previously a skeptic of Elon, but now has had a change of heart. Similarly, JP Morgan, famously at war with Elon and who has had a permanent bare position for years, has also now upgraded their price target from $145 to $475, a massive 230% increase. No doubt it's got something to do with being included in the SpaceX IPO. And Morgan Stanley is also now back in the game, also doing a complete reversal by buying 1.26 billion worth of Tesla stock in the first quarter. Big money is pouring into Tesla.
We got Jeff Lutz here with us today. He's an exs supply chain sea level executive from Motorola, Google, Lenovo. He's currently running his own consulting firm serving mega cap tech in supply chain design and manufacturing. Welcome Jeeoff.
>> Uh heyert. Yeah, a lot of news just came out over the weekend. Uh just like a super bullish news flow and I just it it feels like these milestones are just getting closer and closer. A new week comes in. So just looking forward to going through these. There's a lot of lot of things that just flipped on Wall Street and and as well as uh fundamentally.
>> Well, the question I'm going to ask you and we'll get to it is is the Tesla buying the stock buying from the big whales. Are they doing it because of SpaceX or is it because of Tesla potential 6 months coming up? Uh, one of the big signs is robo taxi. A lot of people are pretty disappointed with the progress. We're pretty well in June now. June 22nd was the big launch date of Robo Taxi last year in Austin and today it's not as uh you know widespread and as many cars as people had hoped within a year but this is really good sign here. Uh over the weekend Tesla officially applied for an autonomous vehicle network company permit in Nevada seeking approval for up to 5,000 robo taxis during the first 12 months after the permit is granted. The filing covers Clark County, including Harry Reid International Airport and Henderson Executive Airport, according to a new public notice from the Nevada Transport Authority, Jeff 5,000. I mean, is it just, hey, go ahead and shoot for the largest number or do you think this actually has, you know, real intentions of that many?
>> No, you wouldn't shoot for the highest number. And I've dealt with regulatory before in many different aspects. That's the last thing you want to do is just put a high number in and and rush through the process because what could happen is is it could cause more scrutiny uh on the number and and just more back and forth. You you want to go in with the most you think you're going to do, but also uh something that isn't going to just cause all kinds of um holdups uh during the approval process. To me, this is representative of the kind of scale that Tesla's going for in robo taxi. Yes, we know the difference between a permit submission and reality. We know how many cars are on the road today in Texas. But this this to me and this is over the first year. This really starts to to me really shows the the relative comp to I mean the the the highest uh robo taxi vendor today. Whimo has I think 3,700 cars across the nation across the entire country. And so this says two things. One is Tesla has the economics to to do this to put up this capital to get this fleet out there and also says that those economics will work very quickly cuz what you would wouldn't want to do is you wouldn't want to put a bunch of stuff out there that doesn't have a time to break even that's relatively quick. So this tells me that they can get profitable very quickly. They have a very high ceiling on the number of vehicles that they can put in a specific area and the economics work for them. And I think this is this is what's holding other robo taxi vendors back. They would put more cars out, but there's only so many people that are going to that are going to call these rides at $3 to $5 an hour, you know, $8, $10 an hour. There's only so many of those that they're going to do. And there's only so many of those vehicles that they can actually fabricate and get put out on the road because they're quite frankly they're losing money per ride. So if you take their the competitive unit economics that's limiting the number of cars and you take Tesla's unit economics, they're going for a much bigger number in a smaller concentrated area. I I this was very surprising to me to see actually that number that size going for this permit submission and it was is also very encouraging.
Jeeoff, you've done this before. Uh when you submit a permit like this for some authority, in this case the uh business and industry Nevada transportation authority, do you think that Tesla would already kind of you know have felt them ahead of time got them to say, "Hey, what if I approve 5,000 or if I threw 2,000? Would you how would you guys react? Would he already kind of know or
>> No, there's there should be conversations happening uh in advance. It doesn't necessarily mean that there's an explicit conversation about certain factors, but likely they wouldn't put a number in there that they think they could not get approved.
>> And there is there is also some time element to it being over the first year and of course if something goes ary you know I think what Tesla has done over this last 6 months is shown that they're very judicious and very careful with the rollout and I actually think that that's going to be part of the submission uh that's going to be part of the evidence for the submission is is the Nitsa data and how well they're actually performing.
>> Yeah. And if you're a regulator in Nevada and you've got high cost issues, you've got you've got, you know, these really peak these huge peak demand cycles that occur during these conferences, events, and and and holidays. This is this is the perfect solution, a lowcost solution that can scale quickly. Mhm. Yeah. They probably are what is it June and so they July they have six months of data now and which is so far submissions to NITS it's looking like u there's very few major accidents in fact if anything it's minor if in fact it's zero that is the best data to present to them. Uh, it looks like that in Texas, Texas DMV data is saying that Tesla Robbo taxi LLC added four more Model Y and now the registered fleet is 51 vehicles. Yeah, that's how we know.
>> Yeah.
>> By the way, uh, the robo taxi tracker that we've been using for a while, um, Evan, the the guy in charge of it, he was hired,
>> Ethan Yeah. he was hired by Tesla. And so he actually publicly told folks that you know you can't he's not been updating he cannot update it u uh for the next several months until past August when he might in he's just for the summer intern I think he is.
>> So just FYI that data that we're seeing robo taxi tracker may not be as accurate as as it used to be or it would never was accurate but you know being kept up to date and so forth.
>> Okay. Uh other news quickly quickly here. Robo taxi demo is now expected in August according to reports and I think that even um Fron was interviewed over the weekend at the Tesla takeover in Austria and he had said that it's coming soon. Tesla has pushed the nextG Roadster demo to August. Uh that might make sense according to the information. What do you think about this? It makes sense because it's after the June um IPO. Maybe that's when they'll want to do it. Well, I they're not supposed to be connected, but there's a lot of catalysts that are coming up for Tesla and this I think this permit submission to Nevada was a a nice signal to start that off. It looks like we're starting to add a few vehicles in Texas, but that's that's not a meaningful number uh yet. But it looks like we're getting very close. If you just look at it, like again, this is like to me any product ramp up that you're doing. When you're getting all of your factories set up, you're getting material put into the factories. To me, that's these robo taxies that are being deployed and parked in all these various cities. And then you're hiring people for the factories. I view that each of these cities as its own little factory. and you're you're hiring people. You look on the job boards, there's Tesla's hiring hundreds of people for robo taxi management type positions to manage these fleets uh across the country and assume across the world. So to me, this is all part of a a roll out of a the the production of a product. And to this is this is what it looks like to me. It looks very similar to it. It's funded. The requisitions are funded. They're posted. The job postings are in the system, everything's funded, and which to me the funding would be cut off if the engine if the engineering team said, "Hey, look, I don't have a solution that's going to get there." Finance would come in right away and pull those requisitions. That's not happening. So, to me, this is a setup. The Roadster in in August is part of a number of different catalysts that are just building up for Tesla. So you have the roll out of robo taxi. You have potentially a Model Y introduction in in North America. You've got the reveal of Optimus. You have the Roadster uh reveal. And to these are these these milestones are both they hit the economics of the company like the ramp up of robo taxi but and then with the roadster optimist reveals they're they're really showing the extents of of the uh of of the tech that is available at Tesla but it's also in combination with SpaceX. Roadster is a SpaceX and Tesla product. It's mostly a Tesla product with some SpaceX tech in it. Optimus is a Tesla product with a SpaceX brain in it. So, there's a lot of these these milestones coming up. And then you've got there's some great uh video footage this morning uh from SE um who who published the an aerials of of the Houston factory for the mega block and it looks like the exterior of that factory is done for mega block mega pack production in Houston. That's going to be a 50 gawatt hour factory. Looks like the exterior is done and now they have to of course facilitize and and and install the capex inside. We don't know what's going on inside. they may be they may be very far along. So you have that milestone coming up for the energy side. So you just have a lot of catalyst building cyber cab roadster robo taxi rollout model y l optimus reveal uh mega block uh factory startup. There's a lot of catalyst building up for Tesla uh just on its own. So I think when we start hearing about what these analysts and they're starting to pile in, I mean these things every day, every day that goes by is a day that these catalysts get closer.
>> Yeah.
>> One more thing. Sorry, one quick thing. Q2 looks to be really strong. I mean, every indication we're getting on every monthly delivery metric, it looks like net net and some countries are lower, but most countries are a lot higher in deliveries. looks like it's a net 28% higher through May of auto deliveries and then you had this slow uh energy in Q1. So there may be a big Q2. Anyway, Q2 is another catalyst that we'll hear about in the third week of July. So you have a lot of things coming over the next call it four to eight weeks.
>> Yeah. Uh SpaceX and Tesla are definitely intertwined. Imagine if something happened with Tesla that would impact if something happened with Tesla's robo taxi that would impact the SpaceX IPO. Maybe that was one reason. We had a deep discussion about this at our last Cyber Balls on Friday. Uh so SpaceX, good list by the way. Thank you for that great list of the things that are coming up. SpaceX quietly amended their S1 and there's another mega deal. My god. Google is apparently a new customer of SpaceX AI. They're paying $920 million a month, almost a billion dollars every month from October 2026 to June 2029 at three years. But of course, Elon had already made me mentioned before he wants both anthropic and Google deals to have an easy out. You can terminate either party can terminate the agreement within 90 days notice because I think Elon is saying, "Well, maybe we might need it. Kick them out." But $920 million, that's huge. The question, of course, is why would of all companies of the MAG7, Google's the one that you would say would not need this? Um, this is the filing, the amendment. They just keep doing these amendments to the, uh, this is amendment number two to the S1. Uh, I'm sure there's more to come. They want to kind of build up the news prior to Friday. This is a big one. So combined, Anthropic and Google are paying 2.17 billion a month. Now if you do a revenue reneion a year, fourth of Tesla just like that uh big money and then this guy was saying wait Google's paying SpaceX 920 million per month for GPUs. Google the company that builds its own TPUs that runs one of the largest cloud infrastructures on Earth is renting 110,000 Nvidia GPUs from a rocket company. I'm not sure how to make out of this. Google's the one that should have been able to do this. Should be the one to rent things out and uh and then um Elon Yeah. So Elon knew that this was coming. I'll get there shortly. But what's your reaction to this uh Google announcement as a customer?
>> My reaction is is the reactions are strange. They're not renting GPUs from Nvidia. Let's be very clear. And Google doesn't make TPUs. Broadcom makes TPUs. Google designs TPUs. It's important. And the reason it's important is te SpaceX a XAI and SpaceX call it SpaceX now Elon and his SpaceX team they started this flywheel by taking chips from off of TSMC's doc who makes the chips for Nvidia and building out their coherent clusters to be bigger and building them out faster than anybody else does it. And so when you every time I see these deals come through, I'm like, everybody's looking at the revenue and I'm looking at the revenue, too. But what I'm looking at is, wow, the utilization of their cluster is going to go through the roof because you've got two of the two of the top two or three frontier model providers in the world are want as much of your capacity as you want to give them. So the utilization, the fixed cost absorption is going to go through the roof, which is good. The utilization is going to go through the roof. And SpaceX, their costs are their costs per token are just going to go down, down, down. So this flywheel is turning because Elon and his team can go from these disparent chips and system components that are all over the world and build it out into a coherent cluster faster than anybody else running it at appears to be a lower cost. These companies have like they said with Google, these companies have options. They didn't have to do this. And it looks like there could be some other things connected to these deals as well, which is like, look, if you make these terrestrial deals with me on capacity and you help drive up my utilization, then maybe I'll I'll I'll give you an early ticket to space when cuz right now I have the only vehicle that's getting data centers into space on, you know, accur accurately and something you can depend on. So this is a very very powerful flywheel that is starting from the very you know ele small elements of the supply chain all the way to how how much capacity Starship has and how frequently it's going to be able to make these trips to put data centers in space and Google Anthropic they want to be in the front of the line for that and it looks like it's helping their cost per token. Anthropic and Google have two of the top three costs per token right now in the world. Uh, OpenAI is up there. I think Grock is like fourth or fifth, maybe sixth. And then you have the Chinese models below it. So, this helps Anthropic. This helps uh Google's cost per token. This helps SpaceX cost per token. And of course, it's this huge revenue driver. So, this is this is brilliant. This is going to bode very well. And when you have these businesses that are connected, I I I guarantee this is an early anthropic and in and Google an early ticket to space-based
>> data space. Yeah, I think that's the the right point. I'll I'll share you a interview of this the CF uh the CFO or the co-founder of Anthropic saying exactly that. I think that that's a key. My prediction is I think Microsoft is lined up. Now, I don't know if they have enough space in Colossus 2. Maybe they don't, but if they did, you know, Coloss Microsoft can't trust OpenI anymore. They were like partners. I don't think they are. I think they're going to feel like they're left out. They're going to That's going to be a huge bomb if they come out and say, "I've got another billion dollar per month deal for Microsoft been there because the top of the building says macro hard."
>> Interesting. Yeah, they're making fun of them for that reason. But I think at the end of the day, dude, listen, some people are saying, why did Elon partner with Google, right? Google was
>> it could
>> Larry Page, the guy that was e, you know, was evil
>> and now he's giving him data center to
>> Yeah.
>> Right. to eliminate.
>> Yeah, you're right. It it doesn't as long as each company feels that there's a benefit, it's ethical, uh, that they'll make a deal. They don't. They'll let bygones be rock. SpaceX and Open AI may make a deal. Don't don't scoff.
>> I don't know about that one. Okay, that you're pushing it there. You're pushing it. All right. Okay. So, uh Elon knew that this was happening. Look at this. September of 2025. So, that was like uh you know, eight months, whatever ago. He said, "Buy a shitload of GPU. Step two, I don't know, but step three, I know I'll profit. I'll know I'll profit." And this guy said, "Xi master plan was right under a nose all along." Elon, this is his post at the time. Elon said, "Hardware is hard. Hardware is hard. Hiding in plain sight." The strategy was always hiding in plain sight. Um, you know, so it's not just buying, like you said earlier, it's not just buying the chips. It's actually creating a coherent data center. And that's that's that's why these guys are struggling and the cost and utilization all that that you're talking about.
>> By the way, it's the same it's the same playbook for robo taxi
>> the the the cost structure of Tesla robo taxis and allow them to drive up really high utilization and where Uber can't do that. They won't be able to compete with the cost structure. It's it's not only the cost per vehicle and the cost of you know cleaning and so forth. those in unit economics it's the it's the rate of fixed cost absorption and this same playbook is is going to play out in robo taxi
>> yeah okay operations cost all right uh you mentioned earlier that you you one of the suspicions you have is that these guys are lining up because they want first dibs if one space data centers become a thing and that's true so anthropic the uh Daniela Amod president and co-founder of anthropic I think she's the sister of
>> Dara Dario. Thank you. Anthropic is interested in SpaceX data centers in space. According to her, Thropic expressed preliminary interest in using potential SpaceX data centers in space. Uh while playing down the near-term timeline, she doesn't think that you'll be able to do it until 2027, which actually in our in our to-do list in 2027. That's kind of earlier. I thought it was 2028 or even longer than that. Let's listen to what she said. next year.
>> SpaceX Anthropic expressed preliminary interest in using potential data centers in space. Uh what do you think about that? Is that a reality? And how far out are we from that?
>> I don't think that data centers in space are something that will be uh will be on our our to-do list in in 2027. But I you know, I will say AI is the field that has surprised me the most. It's probably surprised the world the most in terms of just what new things are possible are made possible by the advent of this technology. So, um, no immediate immediate plans for, uh, for working with the astronauts to to get Space Center, uh, data centers going, but you never know.
>> Oh, okay. So, she actually it's the opposite of what I I guess what I was thinking. She said, "No plans doing it." Uh, I certainly won't be thinking about it's not on our to-do list in 2027.
>> It's not ready, so it's it's fine. And it's in a couple years out, but the get in in supply chain there's things like for example this lithography equipment to make chips. There's things that you have to reserve three and 5 years in advance. And don't think that these companies, back to our previous discussion, aren't going to be lining up to get a ticket on Starship. Don't don't think that that's not going to happen. And don't think that that's not going to be tied to a bunch of deals. hardware is Elon has has taken this capability in hardware and manufacturing and turned it around into a massive competitive moat. This is why Teslas are made profitable. This is why robo taxis are going to scale faster including of course FSD and Tesla's endtoend approach. But it Tesla's hardware approach it which is the same you know ethos inside of SpaceX that is creating a tremendous moat for both of these companies uh that just these other these other companies that are purely just have these pure software skills that are dabbling like Enthropic Anthropic is hiring chip designers. They've got a team. Open AAI's got a team. Like they're trying to get into it. they're trying to do the hardware side of this. It's not going to be easy. And you can't just do hardware. You've got to you've got to really have a competitive advantage cuz if you just do it and you get something out there, you may erase that that margin you were paying to an Nvidia or whatever. But it's not in the end, you're not going to have an advantage because they're going to be able to move faster. You're going to have to do something that they cannot do. That's why the size of terraab and the collocation of terraab and and everything that's inside of a terapab is so unique to like what a TSMC fab is like. When Elon takes these things on, he approaches them in a different more holistic manner than than just doing what Terraab is not another TSMC. teraf yeah you know this concept of hardware expertise and experience takes years and then it shows up and here just one more point about SpaceX then we're going to talk Tesla stock you know this is another example you know you're you're competing against LLM which is a software intelligent AGIS and then Elon says okay you need the hardware so I'm gonna buy this data center so I'm gonna get it up sooner I'm gonna buy more than everyone else now they're renting out to the other players the came and then all of a sudden the revenue comes like that. And that's my point that people were not even thinking that these revenue were existing and now they're $26 billion per year if it was if it was a full year run rate just like that. And you know Rob Mer said remember a couple weeks ago when everyone was saying a 100x price per sales was crazy for SpaceX and all of a sudden in just a couple weeks it's now like 39x. Shows how dumb that type of analysis is. And I think that's the same kind of you know fallacy with Tesla. Now Tesla's has taken four years. So people are you know given yes you're right it has taken a long time but at some point all of the preparation the infrastructure the it's not just the cars the operational that they're working on and you pointed out it's going to show up and it's going to show up and it's going to be scale and then it's like that all of a sudden massive revenue massive earnings. So
>> put a pin in something Herbert one before we jump into the next topic because the other side of this debate is Elon and SpaceX built out too much compute. Grock is not good enough
>> and does not need the compute and therefore he's got to go sell it.
>> First off, he's not selling this compute for pennies on the dollar. He is getting a very good rate for for what he's for what he's selling. Second, if you you have to be literate and you have to read the even the short contractual terms that are put out. He's he gives a le a 90day or less notice that he could pull the capacity back.
>> This is totally a utilization play. This is going to take SpaceX cost per token way down and he can pull the capacity within 90 days. You can't get Nvidia chips. If you put an order in, you are not getting Nvidia hardware within 90 days. Much less are you then receiving that hardware and building a new data center. So Elon has given himself the the flexibility in his company the flexibility to turn on and off this leased out capacity faster than the other companies or his company can get chips and then certainly faster than they could actually build out a new data center. So tell me who's actually in control if he can do that inside of the lead time for the actual physical hardware to be made. Who's actually in control? So this take and this take is out all over CNBC and it's all over uh traditional coastal media is oh Grock isn't good enough. He doesn't need the compute. He overbuilt it. So now he's selling it. But if you look at the contractual terms, he is totally in control of this and both financially and to to take the capacity back for himself when his next, you know, multi- trillion models parameter models are ready.
>> And yeah, it's a good reminder that there Grock is running seven models on Colossus 2. So it's not like uh they're using all of it, but they're already running seven. One of them is 1.5 trillion, which is more than everyone else. So, it's crazy. He just overbuilt like significantly. And then wait till he uses it. Wait till they use it. Then you're talking about a magnitude difference in intelligence. All right, let's go back to Tesla. Uh big whales are buying Tesla. Now, you can say they're buying it because they're preparing for robo taxi scale next year. You went through a massive long list of all these great milestones that are coming in the next six months. Or they could buying it because they want to be in good graces with Elon for SpaceX IPO. make a lot of money that way and certainly Morgan Stanley JP Morgan I would put in that category but this guy Dwan Yungpin he's considered to be the Chinese Warren Buffett he's built a 1.27 billion position Tesla in a Q in Q1 um so he owns 3.4 million shares market value is 1.27 27 billion. It's 6.3% of his total portfolio, fifth largest holding overall.
>> He bought Yeah, that 6% not just 1%. And uh reported price of $371. So it's not like it wasn't cheap, but it also obviously it's not it wasn't expensive. He's been buying over the last year. um widely recognized for his highly concentrated ultra disciplined value investing philosophy uh his and what makes it incred incredible was that his complete change of heart historically he was a vocal skeptic of Elon he shifted his stance after experiencing Tesla's efficacy firsthand yeah people just don't believe it until they try it he recently praised the tech as truly remarkable completely separating his personal opinion of Musk from the objective economic and product disruption Tesla is driving. Kudos legendary value whale deployed this much capital. Tesla provides massive institutional validation for long-term autonomy thesis.
>> That's going to make all the uh Tesla's at too high a PE people their heads explode. They look these these people are seeing things and they're timing things. You know, sometimes they get it right, sometimes they get it wrong. But you what you want to do is whenever these companies are making a move, you just want to understand why they're doing it and kind of how big is the move relative to their portfolio. But they're not always right and sometimes they're wrong. You just look at the reasons. I heard that he took a recent FSD ride and I think a lot of people are getting hooked. A lot of people are getting hooked to buy the car off of just off of just a single FSD ride. And I could imagine it also driving investment. I I remember the first time I test drove a Tesla. It it was this was over gosh 13 years ago, more than 13 years ago. And you know, I was ordering it the same day and I was in it was on a Saturday and I was investing on Monday when the market opened. It it was that meaningful of an experience for me and just that one test drive. And again, this was no FSD. There was nothing at the time. It was to me it was just the the performance and capability of the vehicle and how it drove. And now look where we are now 13 years later when you get in the car and you just have to say, you know, hey Grock, I want to go here and everything is it's one button press and you're and the car is driving itself. So some of that is happening. I think there's a there's a huge word of mouth eye opening thing happening with FSD2 because it's so it's so good at this point and now other countries are experiencing it that it's also going to drive some of this activity.
>> Yeah. Here is his portfolio two 20 billion. This is as of Q1 19 19 stocks and then uh Tesla is in the top five holdings but his biggest holding is actually Apple 36% Birkshire Hathaway 21% Nvidia 12% company called Pin Dual Duel and then Tesla. So uh but that if you look at the change percentage change in portfolio in Q1 Tesla's actually number one 6% growth in how much he invested in that. Yeah it's good list. I like his list. Uh, makes sense. But he just did a complete reversal and so did JP Morgan and Morgan Stanley. If you guys know JP Morgan was a perma bearund and whatever dollars hated Tesla
>> $50 car. Yeah.$145
>> for years and now they changed. Now they've upgraded to a buy underway to neutral sorry but now 475. It's crazy. 145 to 475. 227% increase in there. I mean, three major factors. I don't know where he where this guy got this from. Um, AI and autonomy shift, market and reality check. Yeah, they've had it for years. I don't think that's it. Burring the hatchet. And we know that Jamie Diamond just hosted Elon Musk last weekend, last week. Uh, and actually interviewed him and his mother. I honestly feel like Jamie said, "Can we have May Musk here so that you know he'll like me again?" You know, like I'm gonna be nice to the mom. Uh but we know that and and so so is pointing out that this price target wasn't because oh they became bullish all of a sudden. They they they basically got rid of the old analyst. They got a new analyst and the new analyst is saying this now clearly from my perspective it's because they want to be part of the SpaceX IPO and so now they're making good and trying to you know make amends have a new analyst fix this. Elon says fine you're part of the IPO and that's what happened.
>> But at the core of it the old analyst wasn't accurate. That's to me the core of it.
>> If if he was bearish and accurate, I would have tremendous respect for that. I always want to hear the bear case, but whether you're you're bullish and not accurate or bearish and inaccurate and that's why he's not there. So, I think that's I think that's actually more of the driving case, but I I can see these other ancillary things uh stepping in. it they're not it's not supposed to there's supposed to be a wall between these things but like I I get the story about a wall all the time. There's a wall at the ad you know the ad buyers for these there there's no way that they're buying ads just to get favor with the of course they are. So yeah these walls really don't exist. This is what this this example is showing you that the other analyst wasn't he wasn't accurate. Yeah. Uh it's embarrassing actually and they just did it because I think a spite and of course he was wrong. Uh Morgan Sally they've also are now back in the game and they're buying. So they've in the Q1 again everybody's was buying in Q1. Another $1.26 billion of capital back into Tesla. Big money stacking again. You know this is the thing about uh what's happening is now institutions own over 51% of Tesla stock. Retail, which used to be over 50%, is now down to 31%. So that's it. Big money is buying Tesla now. This is we've been waiting for this.
>> Yeah.
>> Stock is flat.
>> Yeah.
>> I
>> retail getting scared out because of Robbo taxi too slow, right? Like the wrong timing for retail to get scared out.
>> Yeah. Again, we're not giving anybody advice what or when to do do things, but uh it just looks like a table's being set and and dinner time is like it's it's around, you know, 6:30 7 like it's close. We don't know exactly when dinner is going to be called, but you can smell it like it's close.
>> Uh but at the same time, you know, people can do whatever they want. There's other there's many other stocks like there's so many other themes that are happening in the market right now. uh people can do whatever they want but uh you I mean we're showing data both the the banks the institutions and these these mega hedge funds are starting to to I don't think it's enough by the way I don't think it's like it's not across the board like if you look at some of these across the board they just look like mag seven uh these hedge funds just holding to just a ton of mag seven stocks but I think there's going to be this here's where I predict is happening. There was a shift from chips and just mag 7 a year or so ago. And I'm not saying those stocks are bad. They're they're obviously doing very well. The earnings growth is great. But then there's clearly been a shift over the last year to the AI AI ancillary stocks. The stocks the companies that are that feed power into the data center for example and so forth. They're those are going cooling and so forth. Those have been going through the roof. I think the next rotation there could be many rotations but one is definitely into physical AI. I think Tesla's going to be front and center and I think the moat is going to be very large but I think you're going to see two things happening. One is a shift in emphasis on Tesla as the only public company with tremendous physical AI assets and then you're going to see a bunch of startups be be go public. Uh I think that's the other though the the next wave that's happening in physical AI.
>> Well Jeeoff thank you for uh sharing your time for the audience. You are the expert in physical assets. I mean and it's that is Elon's playbook isn't it? It's hardware is hard and he doesn't just do it for Tesla which is bots and cars and people can see that and that's why things are taking forever and operations too by the way. It's not just hardware and operations uh efficiency. He's doing it for Tesla but takes so long to show up. He's doing it for SpaceX too and actually and he's doing it for AI as well. People are like just don't realize it's the same playbook. It's pretty obvious he said but no one can really do it. That's the difference. And then you've got the experience to actually uh guide us here. Thank you Jeff. Follow him on his ex account at the Jeffoff Lots. Thanks everybody. I've created a website that is the most comprehensive resource for the Tesla investor. Please check it out. Simply go to my website at herbalm.com.