Cathie Wood's Destructive Response on Tesla Stock.

fantastic stock picks and talk about

Kathy Woods Tesla thesis how it Stacks

up against the competitors how to hedge

your investment in Tesla we'll talk

about all that and more in this video

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we gotta talk about a Tesla we got to

talk about not only what Kathy Wood says

regarding Tesla or price Target on Tesla

but we got to talk about is she

interested in byd and why is she

interested in byd are they even remotely

interested in automation what kind of

cost curve reductions are we looking at

is it just batteries or is there

something else to pay attention to as

well and has Elon Musk liked any of

Kevin's tweets yesterday well I kind of

gave that away yes

follow me on Twitter to find out which

one actually uh no I'll just show it to

you on screen right here it's kind of

cool I like it woke up to it this

morning so Elon Musk collect your Tweet

government should never limit the

potential of anyone to equalize

privilege government should help those

who were dealt a worse hand example

given don't be like California

specifically Culver City removing honors

classes because not everyone is

represented instead invest in more

education for those following behind yes

yes great tweet oh wait I'm just

complimenting myself I'm sorry anyway

follow me on Twitter at realmeetkevin

and make sure to follow me on Instagram

where I'm posting a lot of stories of

our real estate travels including

yesterday we won't be making a video out

of that content because it was more of a

family day but you get to see some of

the houses we're looking at so check

that out as well as the flash sale on

the programs on building your wealth

link down below which is linked to Tesla

investor day which is coming up on a

March 1st my thesis by the way on Tesla

investor day if you haven't yet seen it

make sure to type into YouTube meet

Kevin Tesla is bankrupting the

competition Tesla investor Day preview

gives you some pretty cool insights

about the potential for what the model 2

might actually be and it might be a lot

more obvious than it seems so watch that

video but for now let's listen to Kathy

and respond her Flagship strategy which

which is ark-k Tesla is our largest

holding but if you look at ARK Q which

is our autonomous

um our autonomous technology and robotic

strategy we also own other names like

byd in China and etchpang and a little

Neo as well now uh why uh do we think uh

EVS are the place to be well

we are analyzing Battery Technology but

more important drive train

technology which includes batteries and

if you look at the cost curves

associated with drivetrains what you'll

see is that for every cumulative

doubling in the number of electric

vehicles uh sold produced and sold cost

declined by roughly 28 percent uh and it

seems as though

keep that in mind for a moment if let's

say

a drivetrain costs a thousand bucks once

you produce twice as many so let's say

Tesla goes from a million vehicles to 2

million vehicles or any Electric Vehicle

Manufacturer she's basically saying that

thousand bucks is now potentially only

going to cost uh let's say 28 Minus so

720 dollars great that's fantastic now

remember the battery day or the investor

day goal is to potentially show how the

next master plan 3 MP3 can reduce costs

all costs by 50 percent for cost of

goods sold of electric vehicles at Tesla

of course she's broadly talking about

just specifically EV Drive trains and

how those cost declines are so rapid

something that you're not seeing in ice

Vehicles those have already reached

essentially their their bottom in costs

like you're not making internal

combustion engines cheaper they've

already hit they're they're low so to

speak and if anything their their longer

term cost has started to Trend up

because of just the inflationary impetus

that we've been going through but

anyways Eddie the total cost of

ownership of an electric vehicle is

lower than that of a gas powered vehicle

which means uh which which helps us

understand why last year electric

vehicle sales globally were I believe it

was 62 or 64 percent while gas powered

vehicles were down about seven percent

globally so the electric vehicle shift

is underway consumers want electric

vehicles a total cost of ownership

cheaper so last year there were 7.7 a

million electric vehicles uh sold around

the world we think that number is going

to 60 million in the next five years now

the consensus estimated that it is that

it's going to only 20 million so there's

still a big gap between think about that

that's a 3X she's suggesting in where we

are and where the consensus view is that

60 million We Believe will account for

75 percent roughly of all vehicles sold

in five years so electric vehicles very

important now many people focused on

Asia say wait a minute byd is winning

here and if you look at last year's

sales byd sales if you look at hybrids

and Battery electric vehicles they were

up 211 percent to roughly 1.8 million

units whereas Tesla's vehicle sales were

only up 40 percent and so the question

from Asia is well isn't bydia byd ahead

of the game here

uh you might say yes based on those

statistics but if you take out High by

the way this is a uh a counter to

Charlie Munger right Charlie Munger is

like ah byd is going so great so this is

basically without saying it Kathy would

directly responding to Charlie Munger

now because of where I paused here she's

basically saying if you take out hybrids

here we go hybrid vehicles and we think

hybrid is is going away hybrid is two

systems in one much more complicated

much more costly uh and you look on that

basis byd's a pure battery electric

vehicle sales last year were 900 000

whereas Teslas were 1.4 million around

the world but electric is not the whole

story here in fact from our point of

view when it comes to Tesla uh

autonomous autonom their autonomous

strategy autonomous taxi platforms is

much more important than their electric

vehicle strategy in our view our fifteen

hundred dollar price target for Tesla

it's roughly it's a little over two

hundred dollars now but our fifteen

hundred dollar price Target in five

years is two-thirds because of

autonomous and when we listen to byd We

do not hear autonomous as a strategy

that by the way my opinion

huge Boon for which company

no no I know you're saying Tesla I know

you're saying Tesla it's okay

Nvidia seriously huge huge Boon for

NVIDIA there now I I don't want to come

across this like hyping in video right

now because the darn thing ran so much

after earnings because all they did was

talk about Ai and it's like

like I want to buy more Nvidia I don't

want you guys to pump it on this sad I

understand AI is important don't get me

wrong Kathy is going to talk about it as

well okay like yes but like most

companies have already been using Ai and

developing AI they've just not really

been talking about it since chat jpt and

now everybody's like don't worry we too

are working on our yeah yes yes I too am

working on AI with our company house

hack okay like it's not that big of a

deal

apparently everybody thinks it's a big

deal but no Nvidia why because when the

companies realize they're behind like

Mercedes who only fixes about I think

it's 17 of their recalls via over their

the air updates uh companies like

Mercedes what do they do well they

realize they're way behind on autonomy

so as you can see here in the Nvidia

earnings call and I'll just summarize it

here but basically what you see with oh

it's 17 uh what you see with Mercedes is

Mercedes going to companies like Nvidia

for their autonomous uh and automotive

technology whether it's the systems on

chips or or whatever uh the gpus for the

the neural Nets the the AI basically for

for your driving uh and observation uh

whatever I think Nvidia is actually a

big winner of Automotive companies

falling behind Tesla I think a lot of

people I mean look at it this way Toyota

Mr Toyota from Toyota is like oh no

hybrids are the way hybrids are the way

that's the future that guy gets fired

for reiterating that hybrids are the

future and he's part of the silent

majority it's fired now you get somebody

else who's coming in what's he saying

EVs

and it's true like the electric vehicles

are the future so so pure EV platforms

coming soon for for Toyota finally

finally they're getting with it but look

at that that's like five or six years

behind when they should have made that

realization they should have made that

realization back in 17 or 18. now you've

got companies that are like yeah we

Toyota is another one of them by the way

oh we don't need autonomy we just need

adaptive cruise control or whatever you

know like I drove a pretty much a brand

new Sprinter van yesterday Sprinter vans

by the way absolutely beautiful

fantastic cars I cannot wait until Tesla

makes a sprinter van and I know that

Elon Musk has a place in his heart for

the Sprinter van I think they're just

probably too large to Giga cast yet and

they got to Kind of Perfect the model

before they get to larger ones I don't

know that's my hope and that's the

excuse I'm giving I just hope by 2030 I

get a sprinter event from a Tesla and

that's because I want the autonomy I'm

driving in this thing and it sucks it

sucks I'm sitting there for like 90

minutes and I have to hold the steering

wheel okay I know that sounds terribly

first world but my point of that

argument is once you drive every day and

you technically don't drive because

you're on full self driving you're just

sort of supervising how do you go back

you don't but the Legacy companies are

so far behind they're like including byd

and not investing in autonomy like Kathy

Wood says they're going to be forced to

dive into

autonomy and they're not going to have

the time to develop it themselves so

what are they going to do they're going

to go to a company like Nvidia or you

know mobileye which which you know

Intel's spinning off so or whatever

wherever they can find it I'm not saying

Nvidia is the only player but I am

saying

if you kind of want to hedge to Tesla's

autonomy Nvidia is actually a very

interesting play anyways keep going

we hear it more with x-pang but again

they from a unit volume point of view

are far behind byd and Tesla so that's

how we're looking at the world right now

I think when you're talking about

electric vehicles you're not talking

just about drivetrain the drive train

strategies

um I think the companies that are going

to win as I mentioned before are not

focused only on electric they're focused

on autonomous which means they are

focused on three of our major Innovation

platforms first

robotics autonomous vehicles are robots

second energy storage they will be

electric because the total cost of

ownership now for vehicles is uh lower

for electric than gas powered and three

artificial intelligence so these are

three major black platforms artificial

intelligence will power these autonomous

electric vehicles and we believe that

Tesla from a thought leadership point of

view is leading the charge so to speak

in this uh in this movement towards

autonomous electric vehicles and just in

in terms of your fragmentation point

you know the the five thousand dollar

Vehicles if you look at the range and

performance of those Vehicles there's no

comparison to a Tesla Model 3. the range

is very limited the power is very

limited so you really do have to adjust

uh when you're talking about price for

range and performance which is what we

do and well most people do but there are

some people who are so convinced that

Elon Musk is an evil man that they don't

do that and it's so weird I feel so

terrible about it but there's someone in

my family who is such a person I still

love them I'll still have beer with them

whatever just say

it's crazy and uh I do believe that

Tesla has for a given price the best

range and performance of any car on the

market today

one of the things I could say David

sorry

um

that we're not just talking about uh

Battery Technology Drive trains when

we're talking about autonomous we're

talking as I mentioned before about

robots energy storage artificial

intelligence and we're talking about

software as a service so over-the-air

software updates I got my um I bought my

first model 3 in 2018 I have never taken

it in for service I have never been to

any station I don't have to go to a gas

station okay warning do not ride with

Kathy her tires are probably bald

kidding that's obviously different than

service but it's like

that that's important so think about

that how much in the way of costs uh and

convenience I have been saved over these

last five years the most important

variable uh we believe in this new AI

age is

um proprietary data and I I think uh if

we're looking for killer apps you know a

lot of people are trying to compare this

to the early days of the internet and we

didn't know during the early days of the

internet that it was the apps on top of

the internet that were going to Garner

all of the economics the social networks

of course and

um and today what we believe people are

missing is that the big winners are

going to be those companies that not

only have the right AI expertise but

also have the right domain expertise if

you thought if you talk about life

sciences and multi-omics DNA RNA

proteins methylation you've got to have

domain expertise and understand that but

even beyond that you have to have your

own data so we think uh that AI is going

to cause one of the most profound

productivity increases in the history

this by the way is very similar to what

Brett Whitten who's obviously also at

ARC uh mentioned in the interview with

me uh which I mean you again you should

watch that interview uh it's uh just

type into YouTube meet Kevin Arc invest

and you should see it Brett Whitton

phenomenal examples of that productivity

increase that AI could do in your life

where maybe that AI isn't separate on

like chat GPT but it's like built in to

your Excel spreadsheet or your email or

or your text messages or or whatever and

it makes your life so much easier I mean

I just want to give a like a simple

simple super easy example of something

that already exists today that makes my

life easier is like if I want to say

like uh if somebody's like oh where are

you on an iPhone I can just type I'm

here and then it shows up you press the

little button it's like current location

boom it already does that for me think

about that just like on steroids right

with with what uh where technology can

go in terms of understanding what we're

trying to do and then simplifying Our

Lives it's really incredible which we're

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have you there let's keep going of of

the world and so you have to as you're

looking at investing you you must look

at companies and how they're harnessing

AI to lower their cost structures that's

the first killer app and that other

companies that have proprietary data

like Tesla we'll go back to uh Tesla it

has more it has collected over the last

five to seven years the highest number

of real world

driving miles uh in the world in fact it

has probably collected more miles uh by

an order of magnitude than all of the

other Auto and tech companies around the

world and that's why we think it is in

the pole position to develop and win at

the autonomous taxi platform uh strategy

the first company to to get from point A

to point B most safely and quickly is

probably going to win so we're looking

at a lot of winner take most

opportunities in this new AI world and

the winner take most as I mentioned

before is based on bringing in the right

AI expertise the right domain expertise

for your own businesses and the highest

quality and biggest pools of data upon

which to train AI in our flat yeah

that's a really good point the training

of AI as well you need it's not just

having the machine or or some data it's

having a lot of data and that's probably

the hardest part of AI and that's where

she's suggesting Tesla's clearly a

leader and it's it's a I think a

fantastic response to Charlie Munger and

and makes me quite excited for seeing

what's coming up on investor day again

watch my video on investor day but just

to give you a little preview personally

I think it's very possible that the

model 2 or whatever that people think is

going to be announced investor day I

could be wrong but I wouldn't be

surprised if it's actually that 25 000

car is actually the model 3. in other

words here's how we can make the model 3

cost fifty percent less to produce and

sell it for twenty four thousand six

hundred ninety bucks whatever they

choose and actually have

an affordable car that's amazing in

other words not going down to a two-door

car or not going down to a limited range

car to get to 25k which is generally

what people expect with a two a model

two I've also been a believer that in

the future a smaller car like that would

come out I do think a car like that

makes probably sense for the Chinese

markets but I've adapted my vision and I

agree with Brett Whitten from arc when

he told me in person that the likelihood

of a smaller car like that being popular

in the United States is very low because

as Americans we buy a car for that that

edge case scenario not for our everyday

scenario so I thought that was uh really

incredible but anyway we'll see that'll

be fantastic very cool perspective here

from uh Kathy on uh on on Tesla and the

autonomy