Rip Tesla Cybercab.

There's major news out regarding Tesla's

Cyber Cab. Yeah, the robo taxi vehicle

that has no steering wheel or foot

pedals and is supposed to be Tesla's

flagship robo taxi. And the major news

is that it's probably about to get a

steering wheel and a foot pedals. Now, I

know a lot of people are like, "Wait,

what? What's the point of that?" This is

both a pro and a con. We are going to

talk about this in detail. I'm going to

break down all of this regarding my

thoughts on this. You know me, I'm me

Kevin. I've been covering Tesla since

2017. I'm going to give you the

unvarnished opinion on exactly what it

means that this vehicle right here is

probably going to get a steering wheel

in the front. Beautiful suicide doors,

beautiful coloring. Love the hub caps.

The trunk space is amazing. The light

bar is epic. Like so much about this

vehicle is freaking awesome. Like I want

one, but we have some practical

realities that we need to discuss. In

this video, we are also going to break

down what Nvidia just announced

regarding their Hyperion platform. Now,

this is also a big deal, but because

I've already talked about Nvidia in a

prior video, literally the very video

before I posted this one, I'm going to

save the Nvidia Hyperion discussion

towards the end of this video, so we can

just focus on Tesla. So, what's the

news? Well, the news is that yes, Tesla

is signaling that the Cyber Cab might

actually get a steering wheel. Now,

there have been leaked photos

circulating around on X about

potentially the vehicle also getting

mirrors on the side. Now, this is

obviously just a mockup, but there are

images of the vehicle driving around

with mirrors and the not so fancy hubs.

And this is making people wonder, is

this going to be Tesla's release for

potentially that $25,000 vehicle or a

Model 2? And I have mixed emotions about

this. I want to be really transparent.

I'm very excited about a lowerc cost

vehicle, but I think a twodoor two seat

vehicle is an absolute idiotic kiss of

death. And I apologize for the

bluntness. I I I seriously I really

apologize for that. I think honestly

that's one of the reasons we have three

to four thousand people joining every

morning in the Alpha Report live streams

because when I give it to you straight

in the Alpha Report live streams and I

give you the catalyst for the day, how

to trade the day, recommendations on the

day, obviously not as personalized

advice but as sort of hey here's what's

going on, what you got to know for the

day and what setups to watch for when

you're trading options or otherwise. I

think that's why people join. Remember

you could potentially get a tax write

off. Use coupon code Schumer Siesta.

Coupon code expires for this. You get

all the course uh the courses, the trade

alerts, every alpha report every

morning. You get it all in a one-time

payment. Go check that out at

meetke.com. But I think that's why

people come because they just want the

unvarnished opinion. And so here's the

reality. Twodoor vehicles don't sell

well. We have to know this. The Camaro

is a twodoor vehicle that has four

seats. It peaked at 80,000 vehicles per

year of volume. That is not good. The

Mustang is a twodoor four seat vehicle.

It sold at peak 160,000 vehicles per

year in 2005 and 6. That is not good,

especially since we're now down 75% on

that production at just 44,000 vehicles

per year as of 2024. That's horrible.

Those are twodoor

seat vehicles. Now what happens if we

potentially take the cyber cab and we

take a cyber cab that is a twodoor

twos seat vehicle and we potentially

turn this vehicle into that $25,000

vehicle that we start selling. Well

folks I will introduce to you the Mazda

Miata. Yeah, the Miata with the flashing

lights in the front and the little, you

know, eyelashes people put on them. You

know how many vehicles the Miata

actually sold on a regular basis? And

this isn't to dump on the Miata. It's

just to be factual about sales numbers.

The Miata sold, wait for it, never more

than 20,000 units per year. And lately,

it's only been selling 8 to 9,000 units

a year. This is not functional. So, as

much as I want to see Tesla mass

manufactured vehicles, the statistics

tell us the twodoor vehicles in America

don't work. Now, maybe we can get it to

work in Europe. But let's be real,

America is Tesla's market. This is an

America first market, and I want to see

Giga Texas printing, okay? I want

Americanmade cars in America, not

subject to tariffs, printing in Texas

cuz we got the facility, but we're not

utilizing Texas entirely. So, in my

opinion, and then we're going to get

into some Nvidia and some other facts.

In my opinion, what we need is a $25,000

paired down Model 3 cloth. Pair it down

just like you just paired down the Model

Y. Strip the battery size down so you

don't cannibalize some of your other

more expensive vehicle offerings. And

you know what? for all Teslas, include

FSD.

I know I'm pouring acid on so many

people's eyeballs right now, but let's

be real, a 10% take rate on FSD isn't

worth it. When instead, you should be

branding the best competitor to ever

exist to what? The Toyota Corolla. You

will never see another Toyota Corolla

sell if you do this $25,000

paired down Model 3. Call it a Model 2.

Four seats, maybe even five with the

little, you know, bitc you know what in

the middle back four vehicle paired down

model 3 cloth seats. Yeah. Advertise

this to kids for their 16th birthday.

Mommy and daddy, you want the safest car

in the world? Comes included with FSD,

the best damn technology that exists on

the road today. You will sell these cars

like hotcakes. And now all of a sudden

you actually get numbers on the road.

You get the factories cranking and you

prove that American manufacturing can

actually stand a chance in the face of

Chinese competition. The only reason

we're not all driving Chinese cars is

frankly because of protectionist

measures to some extent like tariffs.

And that don't confuse as a way of

suggesting that tariffs are good. It is

simply a way of saying that it's the

only reason we're not all driving

Chinese cars. Okay. Now, Robin today,

she pitched it. She pitched that there's

a possibility because of regulatory

constraints, we're going to have to put

a steering wheel and maybe even pedals

or mirrors into the Cyber Cat. Fine. But

if this ends up being the more

affordable electric vehicle that we

could then massproduce in large volumes,

fine. Maybe I'm okay with that as long

as we eventually get to the bridge of

full self-driving. However, this is

where we actually when we start

understanding what's going on with

machine learning. We start running into

some real problems for Tesla's full

self-driving capabilities. And I think

I've started to realize why Elon is so

anti-lidar.

And I'm going to explain that in just a

moment. I just want to shout out though

those of you who have been investing in

Reinvest or House Hack. This is my

startup. We're just about to launch our

artificial intelligence alpha release

and then of course over the next year we

have a massive roadmap for this. Uh and

we're really really really excited with

what we can pull off with this. This is

obviously a private investment that's

open to nonacredited investors. It

yields 5% plus 100% of the upside in the

stock through conversion uh is is when

you get the yield, the yield is paid out

monthly. Obviously, if you're thinking

about investing into what we're doing

here, we couldn't be more excited. You

could go to reinvest.co

or go to househack.com. It'll just

redirect there. It's the same company.

Read the offering circular because this

video can't be a solicitation. But you

can see our development phases and our

road maps that are coming throughout the

next 12 months. And we could not be more

excited to hopefully get this launched

here in November, but it'll definitely

be in this quarter where we get to start

launching this and we'll start signing

up users and we'll go for a public

release uh in the first quarter of next

year. So, we'll start with course

members. Another reason, I guess, to

join the course membership. Uh, but

anyway, this is so exciting and I just

want to shout out that we've just

crossed what is probably going to be the

highest level of fundraising we have had

all year for House Hack/reinst, you

know, an actual like real estate AI

company that's backed by actual real

estate. Uh, and and our valuation, I

think, is like, you know, if if we got

reevaluated, I I I think we'll be we

would be way higher. I might be the

biased CEO, though, so take that with a

grain of salt. But I'm really excited.

Like I'm investing more money this year.

Super excited. But what I want you to

think about is we've been studying

artificial intelligence so much. Not

only just studying it, but actually

running Blackwell chips that I'm looking

at artificial intelligence with a lens

now that I think really applies to

Tesla. And I think I figured out and

this is my sussing as to why Elon

doesn't like LiDAR. So, let's hit that.

And again, thank you to those of you uh

investing in uh Houseack and Reinvest.

We will put your money to a great use

and really appreciate your support. So,

remember to read those disclosures

obviously uh at uh reinvest.co or

househack.com.

Same company. Uh we're just doing a DBA

because we want to take any kind of AI

profits we make and guess what? reinvest

them into, you guessed it, real estate.

[laughter] So anyway, all right, let's

talk uh Tesla here. So what's really

exciting about Tesla is obviously Tesla

has a visiononbased model. This is very

much in contrast to what Nvidia is

doing, which is this sort of horizontal

scaling. And the best way to talk about

Tesla here is just to lead with Nvidia.

So Nvidia just announced that their next

iteration of their drive platform is

going to be the Nvidia drive Hyperion

platform. Now, for years I've been

saying that nobody is paying attention

to this and frankly it's understandable.

The drive platform represents the

automotive platform represents, you

know, one out of $80 that Nvidia makes.

So, it's totally understandable. But

that said, Nvidia can basically

plugandplay FSD for all manufacturers

eventually. Now, they really haven't

achieved this really well yet. Now, you

see this at some companies that have

been able to integrate it, like

Mercedes, and there are some good videos

out there that you can actually see that

are autodubbed. You could get there's a

link to this video in the Meet Kevin app

under the data tab, and you could see

yourself or you could just type this in.

This is like an autodubbed video here.

But here's basically somebody driving on

the highway at about 90 km, and they're

actually purposefully showing themselves

recording this level three technology

and they're purposefully not looking at

the road. They're doing that to really

show off Mercedes. I mean, this video

has like 3,000 views. They're really

doing this on purpose to I mean, I

should like it. They're doing this to

show off that this is an Nvidia based

platform built into Mercedes that

Mercedes didn't go out to build. They

just plugandplayed Nvidia software. And

because it's so good in certain at the

moment, more likely geoence locations,

which is obviously really annoying. Uh,

you don't have to look at the road,

which is cool. You don't have to hold

the steering wheel. You don't have to

look at the road. Awesome. Because we're

getting to those higher levels of

regulatory authority, which is great.

That's unfortunately where Tesla is

going to hit roadblocks almost always,

regulatory authority. Even though Elon

believes we can achieve full

self-driving with a vision-based only

system or a vision only system, LiDAR

and what Nvidia does are like the little

bandages or the rubber stamps that

regulators love seeing when it comes to

approving full self-driving technology.

Like when they look at Whimos, I mean,

you literally had people rallying in

Boston today, the city council to ban

autonomous vehicles. It's literally

called the Labor United against Whimo

rally to try to convince the city

council to ban autonomous vehicles. It's

crazy. The way you get people to become

more accepting of autonomous vehicles

outside of us in the Tesla community,

because we know how good FSD is. It's

not perfect, but it's very good. Is you

slap on all these sensors and LARs and

then you need an architecture to tie it

all together.

And see, unfortunately for Tesla, that's

what Nvidia's architecture does. See,

Nvidia's Hyperion 10 platform is

basically a system on a chip with

Blackwell architecture that makes

vehicles capable of integrating data

from all sources like LAR, radar,

ultrasonics, etc. into any vehicle.

Now, Tesla's hardware is not necessarily

worse or incapable of doing that. It's

just there's no software architecture to

integrate data from anything other than

these vision sensors. That makes Tesla's

hardware not worse. It just makes it

different. It's catered and designed

towards a vision-based system. Okay. So,

regulatory, that makes it really hard to

just bolt on LAR. And this is where I

kind of put my AI hat on with the AI

training and and building that we've

been doing, not just at Reinvest AI, but

the studying that I've been doing around

artificial intelligence. And I actually

think that one of the reasons Elon has

been has sort of like dug himself into

this no LAR hole is not because they

won't use LAR. They do. They recognize

the benefits of LAR. In fact, you will

see Teslas with LAR attached to them in

offline training environments. And let

me explain why you see that. So, if I

type in lidar Tesla, we'll probably find

a picture here somewhere of uh maybe

not. Uh I was thinking I'd find one on X

of of a Tesla with a Tesla with LAR

stopped. Yeah, you do. Here's an

example, right? So, here's a Tesla

charging with sort of a LAR rack on top,

right? Tesla with LAR rig spotted in

South Park Meadows. Okay, whatever. And

somebody puts a little vomit emoji.

Whatever. These are for offline training

purposes where you don't need the

real-time fusion that Nvidia's

architecture excels at. So put in like

English and simple words when you're

training offline you don't need speed.

You just need to collect data. And now

you can sort of in in like a supervised

manner go hey here's you know data set

one data set two at the same moment in

time. Look you can compare these in sort

of a supervised learning manner. Okay,

let me actually simplify this. Hey,

look. Here's what the tree looks like

with LAR and here's what it looks like

with the camera. See how similar they

are? This is how you interact with the

world. You're basically creating the

world view model where then in simple

words, the model goes, "Yeah, okay. Got

it. Got it. Okay. Yeah. Yeah. Yeah.

That's that's what that is. Okay. That's

what that's supposed to look like. Okay.

Got it. It's great. It's great for

training in an offline manner, but Tesla

when it comes to realtime fusion, it

can't integrate LAR technology because

it wasn't end to end trained on LAR plus

vision. So, you've really are using LAR

here as a crutch to help it in some

scenarios get a little bit better with

vision-based systems. But for actual

vision- based inferencing, so when your

car is driving itself, which a lot of us

with FSD have, and it sees a scenario,

it's a vision-based system where it

picks up, okay, we've seen this before.

Okay, our weights, our algorithm is

weighted in certain probabilistic

manners where okay, we should in this

scenario do this. Now, those weights may

have been imputed in part because of

some of the training data from LAR, but

you're not determining where you are or

what's going on in your situation

because of LAR because you don't have

the sensor or the system architecture to

do that. So, what that means is Tesla

has an architecture that may have been

built slightly with the support of LAR,

but it has no architecture to actually

inference with LAR data. So in other

words, if you bolted on LAR right now,

Tesla would have no way of computing any

of that. Whereas the Nvidia system does

it kind of palunteers

autonomous vehicle data. Now, not a lot

of that data has been collected relative

to Tesla. Tesla's collected billions of

miles. this Palunteered style data which

Nvidia does all of these data sources

and then ties it together kind of like

Palunteer and then spits out a solution

for you that is unique to Nvidia. Nvidia

is doing this with their latest

platform. This is why Nvidia says we can

get to level four capable vehicles

rapidly. And this is why companies like

Neo, Xping, BYD, Zuks, Toyota, Mercedes,

and Volvo are all using Nvidia. Xping,

BYD, Neo, the Chinese manufacturers that

are absolutely crushing it already with

FSD style technology. Some of these Neo

videos that you see on YouTube,

phenomenal FSD style technology, mind

you, absolutely phenomenal Nvidia based.

Now, Tesla used to use Nvidia back in

2016. Now, obviously, they separated

from that, but watch a Neo uh

self-driving video. Type that Neo

self-driving into YouTube and then go

look at upload date this month, right? I

always like doing that. And then let's

just pick a video here. So, we've got uh

let's see, Neo Firefly Autonomous Mode

over highway in China. I mean, highways

aren't really that fun. I like getting

in city. So, if you could ideally get

something in the city, that would be

great. Maybe not as easy here. So, let's

just go maybe we'll go the last uh this

year here. Right. Here we go. Perfect.

Four months ago. All right. So, we're

going to activate uh presumably here the

uh Neo self-driving technology. I mean,

the vehicle is driving themselves.

They're just sort of hovering their hand

because maybe they're uncomfortable or

unfamiliar. Uh and I think they're on a

higher speed setting. No. And I'm on

normal speed. Okay. So, this is them

speeding it up.

This is pretty impressive. You got to

give Neo credit, but is it really Neo? I

mean, with that driver right next to

Look at this passing other vehicles.

Like these are the things you see on

Twitter about people like freaking out

about oh wow look how good Tesla is in

it is Neo's doing it with Nvidia

architecture that move around that

little cart trolley or whatever those

things are called. Wow. This is actually

very impressive technology and you could

go see this sort of technology just by

quickly looking on YouTube and you could

see how far we can actually get with

this onlogical data structure. Now,

that's a big word, but that's just a

fancy way of saying, "Hey, we have a lot

of data. We're going to from a lot of

different sources. We're going to find

the relationships between them. Uh, and

in the case of Nvidia, we're going to be

able to provide a Blackwell-based

architecture to string it all together

to make it make sense and provide a real

competitor to Tesla. Now, we're not

there yet, mostly because we don't have

these Chinese vehicles in America.

That's a big win for Tesla, but it's

coming. Why? Because we know Uber wants

100,000 autonomous vehicles. Uber is

going to go for the regulatory path of

least resistance. They already get

enough crap from regulators. So, they're

going to go for the most LAR and safest

system they can get. It's going to be

Nvidia based. They want 100,000

autonomous vehicles on the road by 2027.

Stalantis who who makes you know

Chrysler and Ram and these other

companies uh these other brands I should

say like Puyot uh Citron uh Opel uh

Dodge Jeep they are collaborating with

Foxcon makes iPhones or assembles the

iPhones to get this Nvidia technology in

their vehicles within the next 2 years.

So Tesla still has some time, but it

doesn't have a lot of time. And this is

why as a bottom line, I really advocate

with a 10% take rate, is it really worth

us selling FSD, or do you just include

it and make the best vehicle on the road

that you can massproduce in America with

the protectionism we have in place in

America? Now, a that's step number one,

include FSD. Number two, you got to make

a $25,000 car that has four doors and

four seats. this twodoor thing. It's

going to flop like the Cybert truck. I

own the Cybertruck and I will probably

buy a twodoor Tesla, too. I'm like I'm

I'm I feel like I'm in the cult, but I

also feel like I'm one of those rare

people in the cult who will tell you

when Tesla's doing something stupid. And

I think just slapping a wheel and

mirrors on the cyber cab is going to

flop. At $25,000, it's not a functional

vehicle.

Now, robo taxis are very functional.

Understand this. Whimo did 2.2 million

trips in California. That's 5x from last

year. Nobody talks about that because we

keep looking at the size that Tesla is

driving their robo taxi fleet. But in

terms of actual trips, Whimo is killing

it. And Whimo technically is involved in

88% fewer property damage claims, 92%

fewer injury claims per mile. Now Tesla

is going to have similar statistics with

their FSD technology. This is per the

economist. They have a great write up on

this. BU is doing 2.2 2 million

autonomous trips mostly in 16 I think

mostly Chinese cities right so like this

is happening but I think people forget

that because Tesla was trained on and

and maybe maybe it'll make more sense if

I map it out here on an iPad because

Tesla uh its entire system is based on

inferencing vision data Elon is probably

very reluctant to include or incorporate

LAR because it would essentially require

a complete rewrite of Tesla's algorithm,

which then you give up the lead. Then

you've no longer gained the lead. You've

lost the lead to Nvidia because you just

reset back and you all of the hardware 3

and hardware 4 cars out there wouldn't

be capable of using it anyway. You'd

have to replace all the hardware. So,

you'd have to replace all of the

hardware and you have to retrain all

your neural nets to include LAR. Like,

it ain't going to happen. Elon would

rather die on this hill than than do

what I just described. And here's here's

I think problematically why. So from as

much as I can get into this while

keeping it as simple as possible. I want

you to think of the AI or the FSD

algorithm. Okay? And I want you to think

of this. Let's say we have uh you know a

formula right here. Okay? And we have a

bunch of variables. So, we're going to

have x sub1, x sub2, xub3,

x sub4, xub5, and and this goes on,

right? Uh, and each of these variables

is going to have a waiting. So, we're

going to multiply this waiting by 006.

We're going to multiply this waiting by

007 67. We'll multiply this one by 0.11.

You know, we'll multiply this one by

0.01, whatever. Right? And I'm

oversimplifying this on purpose. When we

use data uh uh from outside sources, we

could either through reinforcement

learning or through another data input

also supervised uh training in some

extent we could change these weights.

That's called rewarding the algorithm.

So we can boost the weights or we can

disincentivize the algorithm by reducing

the weights. That's all this really is

is changing the weights for what the AI

or the algorithm should really be doing

in certain scenarios, right?

The problem with this is while you could

use LAR in the training scenario,

Tesla's hardware can't use it in the

inferencing scenario. So, you're going

to if you have the LAR to support the

inputs, as we see sometimes with those

LAR racks, once you take away those

inputs, you just have the algorithm and

then it's based on the vision system to

respond to what it sees. And in order to

write into this LAR from an inferencing

point of view, you pretty much have to

go, "All right, boys and girls, let's

just um unfortunately start over."

So that's what Elon does not want to do

because that right here is Tesla's moat

right now. Absent obviously robo taxi,

what they're doing in energy and and you

know, some of the other aspects, their

moat obviously is not dojo. That's not

their moat. Their moat should be mass

manufacturing,

but they're dropping the ball there by

not having a mass producible vehicle,

which sucks. Okay, their moat should be

FSD today as the best ADAS that exists.

Okay, maybe it's not 100% a Whimo yet,

but it's like 99% A Whimo. And you could

have it now for free for $25,000. Then

all of a sudden, you would have your FSD

mode. Then you would have your mass

manufacturing mode. They would print

money and you could print your way

to that fleet of Optimus robots, which

will probably still be a decade away.

That's not saying I'm not optimistic

about humanoids. It's just time-wise,

it's going to take a lot longer than

people think. So, unfortunately,

as more people wake up to this, it's

probably just better for Nvidia because

nobody prices this into Nvidia. Now, is

it all a bubble that's going to come

crashing down someday? OF COURSE. I

mean, I just made a, you know, wild uh,

you know, alpha report post to everybody

in the Meet Kevin membership and I

talked about the reality of what the

econom where the economy is right now

and my expectations for how long do we

kind of keep like pumping the bubble and

like when it transitions like will it

transition, right? We talked about all

that. Uh, and it's also set up for

Jerome Powell tomorrow. Jerome Powell.

Um,

but but the fact here of this video is

not to just talk about Tesla or Nvidia.

It's I think and hopefully to provide

the perspective to you as maybe a Tesla

investor or an Nvidia investor that

my opinion and I could be wrong. Tesla

should do the following. One,

mass manufacture a four-door 4 seat car

ASAP. Okay. Uh number two, free FSD. A

10% take rate sucks. Okay, a 10% take

rate. And don't get me wrong, I get it.

Okay, $8,000 times a 10% take rate on

200,000 2 million vehicles. So 200,000

vehicles, that's that's pretty good. I

mean, what is that here? 200

uh 200,000 vehicles times, call it

$8,000, not including the tax. That's

still 1.6 billion, which probably

represents about, you know, 10% of

Tesla's free cash flow. I get it. But I

think if you mass manufacture cars and

you can become the world's bestselling

car and you actually get back to the

goal of trying to sell 10 million

vehicles, your cash flow is going to be

way higher

because you're basically building that

into the margin of the vehicle, right?

Unless he doesn't think he can do it

with an electric vehicle. Maybe they're

just too expensive and and we sort of

miss the boat without tax credits. Fine.

But a twodoor

cyber cab, I mean, it'll sell better

than the Miata, but it's still going to

sell like crap because the functionality

is just going to suck.

So mass manufacturer the free FSD the

cyber cab uh should not be mass

manufactured unless uh we have

uh robo taxis. In that case I'm actually

a fan of you mass manufacturing them

because obviously you could operate them

yourself or you could lease them to

other people to operate. I think other

people should operate them because

eventually the margins on driving people

around are going to suck. Okay. Uh then

the fourth thing to understand is no one

prices in Nvidia's success in uh FSD

which is just bullish Nvidia. I mean

it's just like it's it's cherry. It's a

real cherry on top uh for an arc the I

mean basically think black it's the

blackwell of FSDs.

It's what it is. Uh, and um, and yeah, I

mean, bottom line here, you know, I know

there there are threats here from Robin

that Elon's gonna step down if his comp

doesn't go through. I highly doubt that.

You know, Tesla's his baby. He's not

going anywhere. His comp will probably

pass, though, and I do see that as

bullish in the near term. Just like I

said in my Tesla video yesterday, I go

Tesla's probably going to run through

the comp plan because people are bullish

about this. And I mean, if you look at

the market, you can see Tesla's up

another 1.8%, 8% up 26 basis points in

the overnight. It'll probably keep

going.

We'll talk more about this in the alpha

report uh tomorrow. Uh but uh you know,

would it make sense for Tesla to have a

little bit of a breather because of the

run that it's already had? Of course,

these are all short-term discussions we

can talk about on a day-by-day basis.

Longer term though, these are problems

for Tesla and and I'd love to see Tesla

actually address them. Anyway, thanks so

much for watching this. Go check out the

courses at mekevin.com. Check out my uh

real estate startup at reinvest.co or

househack.com. Goes to the same place.

It's the same company. And we'll see you

all in the next one. Thanks so much.

Goodbye and good luck.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Praat there, financial analyst and

YouTuber. Meet Kevin. Always great to

get [music] your take.