DeepSeek "DeepSh*t" - Musk, Trump, and Panic.

should you buy the dip that happened in

yesterday's stock market and get back

into those chip stocks or add to those

chip stocks that just utterly tanked

yesterday what are the reactions of

people like Sam Alman Nvidia Elon Musk

Donald Trump what kind of new tariffs

are we now expecting including

potentially an Iron Dome and some other

executive orders will cover from Trump

we'll cover all of this related to deep

seek as well as what the popular

arguments are now remember yesterday we

had a reaction day and we're going to go

through today what the popular opinions

are now after people have had some time

to digest everything about deep seek so

we're going to look was this an

overreaction is this a buying

opportunity is this a real problem we'll

analyze it all we also I quickly will'll

get it out of the way I want to talk

about the micro strategy shelf uh and

some price action and then we'll also

have an update on the Tesla Optimus

towards the end of the video along with

our typical d Daily Wealth on today's me

Kevin report news that

makes uh so uh first micro strategy

yesterday uh they uh they issued an

update on their shelf offering it's

actually very interesting if you look at

it because what the Shelf offering shows

you is that they had over the period of

January 1 to January 26th spent about $

1.1 billion in cash to buy another

10,000 Bitcoin for a cost of about

$15.5 th000 per for Bitcoin uh and uh

they they had another 4.35 billion of

shares available for

issuance as of the morning of the 27th

in my opinion micro strategy actually

fell as much as 8% yesterday because

they sold stock to raise cash and then

they bought Bitcoin and as Bitcoin went

up because they hold you know over

470,000 Bitcoin as Bitcoin bottomed

around 2 p.m. so did micro strategy with

big buys coming in at 3 p.m. micro

strategy also following up I kind of

think it's interesting to look at some

people look at it and say oh my gosh how

much longer can they keep basically

selling Bitcoin for two times what it's

worth by selling their stock other

people buying it but then of course you

have the debate around oh but they have

software technology other people say oh

but they're losing money anyway it's an

interesting thing to pay attention to

but maybe not quite as interesting as

the potential that Elon Musk is pooping

bricks when it comes to deep seek yeah

we got to go into this one in detail and

look this is going to be entertaining

today's my birthday by the way so I'm

excited for the entertainment of a

birthday 33 we have uh meet Kevin coupon

code going for uh anybody who wants any

of the courses on building your wealth

trumponomics trade alerts lifetime

access to the course member live streams

check it out over at Meek kevin.com

we'll keep the pit short because it's

the birthday let's talk about Elon mus

pooping absolute breaks so xai raised

billion in May at a $24 billion

valuation uh and then they ended up

raising another 6 billion after that uh

I'm sorry another $5 billion at a $50

billion valuation in November so in

other words the valuation doubled and

they raised roughly the same amount of

money and they have about 100,000 h100s

that they use to train Gro the systems

called Colossus some say that Elon could

be really really quiet about deep seek

on purpose because he's freaking out

that the valuation at xai just got

reamed now I don't know that necessarily

this is true so what I wanted to do was

get some hints from what Elon Musk is

essentially up to on Twitter or x uh and

what I found was that Elon Musk didn't

actually tweet very much he at one point

expressed to Jade about uh potentially

uh this Chinese firm running deep seek

the hedge fund having a bunch of h100s

in other words suggesting that they

didn't train this on the older uh lesser

chips they trained them on h100s they

have a lot of and that's fine the

reality is whether they used h100s or

some older versions of chips that

doesn't actually matter as much for this

situation and you'll find that's true in

just a moment as we go through H that

that that may not have anything to do

with what's going on here but here were

some of his actual replies so look at

this and then help me understand what

you think he's up to so what do we have

here he retweeted jack dorsy saying open

source everything okay that's

interesting because xai doesn't open

source their uh Gro huh but retweets

that everything should be open sourced

okay then he trolls Jim Kramer on

nvidia's collapse because Jim Kramer

ended up tweeting on the 22nd that

nvidia's basically been trading sideways

and it's setting up for a breakout and

then Elon Musk yesterday wrote no

kidding you obviously trolling given

that in video was down 15 plus%

yesterday then the only person that Elon

Musk actually replied to about deep seek

was this guy Gavin Barker now Gavin

Barker in his message says that grock

looms large and he basically talks about

how amazing grock is and St tuned for

grock 3 because in a few weeks it'll be

epic and it'll be so good that it might

be able to cure cancer well that's a

very nice thing to say about elon's Gro

to which of course Elon replied this is

the only deep seek related like directly

related to deep seek reply I could find

Elon goes interesting analysis best I've

seen H okay so the best analysis you've

seen is the one that basically says

grock's going to cure cancer got it okay

and then AI spelled as AJ will be

everywhere except uh small little detail

Gavin Barker is also a reportedly large

investor in xai and a hedge fund manager

and he's been pumping up Gro for many

months oops it's kind of interesting so

this has a lot of people sort of putting

together this thesis that elon's been

pretty dead quiet on deep seek I mean

other than throwing Jade around what

chips they're using which really doesn't

matter making fun of Jim Kramer which

everybody does and then pumping up an

investor in xai he basically hasn't said

anything which is interesting because

most of the time you hear Elon Musk say

something like oh no no that's fake news

or that's a scam or something I actually

think Elon has looked at this model and

gone damn they actually did something

great with a lot

less are we wasting money on Nvidia

chips that's my take now that becomes

very very important for deep seek

because remember deep seek is all about

reducing the cost of either training or

even inference now that becomes

important that'll be a debate we'll talk

about in a moment but if companies led

by people like Elon Musk start going

dang we now have too many h100s or too

many chips we don't need this many chips

they're not going to dump these chips or

sell them they'll make do with what they

they have they'll figure something out

to do with them but they'll certainly be

thinking about how to become more

efficient in fact that's exactly what

Sam Alman said see Sam Alman actually

called the model impressive and then

went out of his way to say hey by the

way don't worry we've got some cool

announcements coming up including uh you

know basically more you know we'll be

working on making things more efficient

ourselves as well take a look at this

deep seek R1 is an impressive model it's

an open source model he could have

easily bagged on deep seek Sam Alman so

could Elon Musk but they're not the big

leaders in AI are telling you crap this

is this is actually really good deep

seek is an impressive model particularly

around what they're able to deliver for

the price we will obviously deliver much

better models and it's also invigorating

to have a new competitor so we'll pull

up some releases it's sort of implying

like don't worry we' we've got you know

things in the bag so to speak ready to

release but mostly we're excited to

continue to execute our research road

map and believe more compute is more

important now than ever before sure this

is one of the arguments we're going to

break down is more compute going to be

required now after deep seek than before

but fascinatingly you actually end up

also having Donald Trump then chime in

and say hey this is actually very uh

much a wake-up call to Americans we are

behind uh some VCS call this the Sputnik

moment where Russia was basically 10

years ahead of us in their lunar program

of course we did land on the Moon and

they didn't but anyway uh it was a

wakeup call and it was like wow okay

yeah other countries can actually get

ahead of us and so Donald Trump is like

hey this is a wakeup call we all should

figure out how to learn what we can here

and get better uh oh and uh by the way

Donald Trump ends up saying hey a lot of

companies will end up saving billions of

dollars this is great news so Trump

actually sees it from a typical sort of

like almost real estate developer where

he's like hey if you could save money

why spend more money like let's stupid

proof it for a moment if you have 500

nails and you get a permit or you only

need or want one house and you need 100

nails to build the house obviously I'm

oversimplifying here right are you going

to use more than 100

Nails maybe you'll use 110 because you

dropped a few right and obviously I'm

making up the numbers right but you'll

have about 400 extra Nails it's sort of

like having extra usage available to you

on chat GPT like are you really burning

through all of your AI usage that's

available right now let's say an

innovation comes along in construction

and it just takes five nails to build

your house together well I mean that's

wonderful you've just saved uh 95 nails

now you have an extra

495 nails and so then a lot of people

wonder like oh well that's great that

means people can build houses cheaper so

nail manufacturing will go up and I'm

like huh nail manufacturing AKA chip

development is going to go up because we

need fewer of them man this just sounds

Topsy Turvy and then I realize no the

only way nail manufacturing is going to

go up if all of a sudden there's a step

up in the Innovation that makes me want

now five times as many houses in other

words more artificial intelligence so

this is where we have to ask ourselves

is artificial intelligence going to

create somehow more demand

because all of a sudden it's better or

it's more Innovative or it could do more

for less if we could increase the demand

side then then yes we'll manufacture

more Nails we'll manufacture more chips

but if the demand stays the same so just

keep that very clear if demand stays

constant and cost goes down and we don't

need more demand because we're not

demand constrain there is no price

elasticity then then what ends up

happening is the people like on musk who

were buying the chips they just save

money like Donald Trump himself said

they save money so less people are

buying the chips fewer people are buying

the chips because they don't need as

many of the chips now this is all

incredibly important because again your

industry leaders aren't calling deep

seek a scam or a sop in fact even Nvidia

is applauding deep seek coming out with

a statement saying hey this is exactly

what our chips are designed to do

they're designed to bring efficiencies

into artificial intelligence so the

world can benefit hey they're taking the

high road in the day that their stock

was down

16.9% so no doubt here that deep seek is

real it's an open- Source model Elon

Musk isn't calling it a scam Nvidia

isn't calling it a scam Sam aldman isn't

calling it a scam uh you know Sergey o

over at um Microsoft isn't calling it a

scap so far everybody's arguing this is

impressive now what happens is the next

phase which is questionable the next

phase is okay who benefits where can we

go make money in the stock market as a

result of this and that's something that

we have to pay attention to because if

you look at it at least over this last

seven days take a peek what we have here

in Google search Trends you've actually

got deep sea outperforming chat GPT you

could really see that moment right here

where deep SE comes out and and takes

over GPT in just really the last day now

we'll watch this but let's understand

some of the arguments that go

into what's next for deep seek oh and

also quick note some people were asking

me about micro strategy and SD

STK that's the preferred offering for

certain people uh mostly institutions

and some retail I guess that they favor

or whatever that's not out yet that's

expected to price at the end of the

month anyway all right so

let's talk about the first big popular

argument so the one of the popular

arguments right now is chips are used

for inference not training and so all

people on the internet today are

freaking out because uh you know deep

seek makes it cheaper to train but wait

a minute you know we need chips for

training so don't worry if it's cheaper

to train we'll have more models demand

will go up and then we'll end up using

more chips because we want more

inference but this runs into a really

big problem there's the problem of

locality and this is actually where as I

mentioned on Friday as I mentioned on

Saturday and as I mentioned in

yesterday's Alpha report and the me

Kevin report apple is a style of a

winner here now this is where things get

really fascinating look at this chart

this chart shows you what it takes to

run different distillations of R1 on a

local computer now what's very important

to know is that the full-sized model is

671 billion parameters but one of deep

seeks Innovations is that you don't

actually have to run the full model for

inference in fact you only need to be

capable of running the 32 billion

parameter model and when you run a query

this is the innovation of R1 it selects

which 32 billion parameter segment of

the model to use so that way you're not

using the entire model you're just using

a portion of the model and it's the

portion that you need now I can run a 32

billion perimeter model with four Nvidia

490s I literally have those in this

house people are daisy chaining four or

five uh Mac minis together to run the 32

billion parameter model so the point

here is that deep seek actually has a

huge innovation in oh my gosh we don't

need to run the whole model we could

just parse out the section we need which

means compute required to run these

models is substantially lower than we've

ever thought before now we're not yet

where I could run the 32 billion

parameter model on my phone but I could

run the 8 billion parameter model on my

Mac I could daisy chain a couple

computers together and I could run the

14 billion parameter model and if and

and I could run a lighter version on my

phone soon enough though we will

probably have powerful enough phones and

we already have powerful enough

computers to run substantial versions of

these but soon enough my take is our

phones will be powerful enough to

locally run our own private version of

R1 and that I think is where people are

missing the boat people make the

argument in popular you know popularism

right now that the populist argument is

oh demand for NVIDIA chips is going to

go up because more people are going to

end up using AI I well first of all

nothing has changed on the demand curve

okay the innovation has not changed and

and I think that's what like drives me

nuts and I was talking about this

yesterday with course members is I was

with course members yesterday I drew

this like crappy drawing out I'm like

look AI used to be called neural Nets in

2018 then in 20123 we had the chat GPT

moment and all of a sudden you know we

got oh my gosh 3.5 and then we got four

uh you know 40 and this was great this

was a good Leap Forward in sort of chat

Bots which basically I call Universal

def def like I

drew a Define button here because I'm

like chat Bots are going to be as

ubiquitous and as much of a commodity as

a dictionary like do you really care if

you're using Mariam Webster or

dictionary.com 99.9% of people with the

exception of garans do not care what

dictionary like it's it doesn't just

give me a dictionary I just need to

define a word okay that's basically chat

Bots and the innovation has essentially

plateaued even the CEO of Microsoft has

said innovation plateaued he said it as

recently as December which is crazy

because I I I don't think that folks are

paying attention to this who say oh

demand is going to substantially

Skyrocket uh not only as the CEO of

Microsoft said it but I take took a a

screenshot of this here uh Ilia over

from open AI in November said that

pre-training has plateaued because

there's only one internet to train and

the largest llms already have been

trained on most of it now of course we

could use like Andre Andrew um Andre

kathri says we could use artificial

intelligence to create our own synthetic

data and then try to train off of that

but I don't know that we're there yet uh

that might be the next Innovation which

could be in 6 months 6 years or 30 years

but right now what's happening is we had

our GPT moment we've spent a lot of

money on chips and marketing deep seek

has come along to basically make this

spending look foolish and we still have

not had Innovation that's actually

increased demand that's the problem

that's the big thing that I think a lot

of people are missing in addition to

that fact that we could probably start

thinking about running these models

locally if we needed to so if we're a

small business we can now compete a

small business can very cheaply pick up

Mac minis or 490s or the soon to be

90s and run your model locally I

actually think it's a great business

idea you could set up a Consulting shop

and uh and Market hey here's your R1

local server for 15K you put the parts

together for 10 you take a 5k profit

preloading it all making it easy for

people you go sell it and Market it done

now people have local R1 and they don't

have uh privacy concerns by sending all

their data up to China or whatever model

takes uh these benefits of of scaling or

of how we're using portions of the AI to

be more efficient now this in part is

probably why apple is winning see apple

has pricing power because they have the

ecosystem you know they didn't blow

money on the llms no instead what they

did is they said hey we're just going to

keep trying to have and obviously

they're always behind but we're going to

try to have the best product that

eventually we could just run llms on

directly now the current AI they have

absolutely sucks there are memes going

around that Apple's AI is so bad that

their stock goes up when AI stocks

tank yes this is this is true right now

it definitely still sucks there's no

doubt about that but remember investing

is all about thinking about the future

and the future seems to be that running

AI locally as a commodity kind of like

you run a dictionary on your phone or

your iPad or your laptop is probably the

direction we're going and that is not a

benefit

like Nvidia is not a beneficiary of that

as much as I think people think I think

it's more the local companies the the

companies that can sell you a computer

basically they're potentially

beneficiaries now you have to be careful

with this because Apple sales like

iPhone sales in China are in a slow

cycle you're almost in a recessionary

cycle when it comes to PCS and

smartphones because sales are actually

declining so you kind of have to be

careful like oh my gosh okay I'll go all

in on Apple unless you see this as

temporary and buy the dip opportunity

the the thing is it's not just Apple

though it's zomi it's Huawei there are a

lot of competitors Samsung and they

could all be a part of that local device

provider so keep that in mind now again

uh people argue that demand is going to

go up this is this is the popular

argument I gave that nail example

because we don't really know if demand

is going to go up and even The Economist

reiterated this they said that deep

seeks Innovations suggest that The

Upfront cost of training a model may

plunge and now we're deploying more

computing power at the inference stage

when the model responds to questions the

models are able to now think or Reason

to give us better answers okay first of

all this whole reasoning thing is just

utter BS it's not reasoning what it's

doing is it's prompting for you so you

throw your question in and then it

breaks apart your question into little

prompts and it basically prompts itself

it's like an auto prompter remember in

2023 when everybody's like oh my gosh

you're going to have to become an a

prompt expert and prompt engineering is

going to be the biggest career in the

world or whatever I'm like that's bull

crap like you should not have to be a

prompt engineer and then sure enough the

reasoning models come out and they do

the prompting for you that's basically

it's not truly reasoning it's like faux

reasoning but anyway The Economist goes

on to say the the opposing forces of

Cheaper training but potentially priced

your inference have unclear impacts on

what's going to happen with compute

demand we don't know if more demand for

inference if we even have more demand

for inference is going to lead to more

chip spending if we could be so much

more efficient on the training side but

remember the economist doesn't mention

this R1 is so Innovative because it's a

cheaper to train but it's also cheaper

to infer from because again you're only

using a portion of the model you're not

running the whole

model again people are missing this

so my take uh is that we've got to be

very careful jumping to conclusions and

there's certainly going to be a lot more

time that goes into this but there are

other popular Arguments for example the

next popular argument is all of this is

just an

overreaction we still need chips and yes

like Bernstein wrote a big letter

they're like yes deep seek is great we

looked at the open source it's great

it's 20 to 40 times cheaper in other

words they admit that deep seek is

cheaper

and then they argue but we're still

going to need chips so please don't sell

Nvidia stock okay maybe that's true

maybe Nvidia will be fine but one

downside that I think people are

forgetting is that with the a without or

I should say with the absence of a new

innovation or a new Step Up in AI

technology what actually ends up

happening is you end up trending down

your Nvidia sales now I'm not talking

about a big plummet this is something

that takes time I think that if you were

expecting to have 30% EPS growth at

Nvidia over the next 5 years you might

actually see that slowly get written

down by analysts and then in reality

remember Nvidia sales were you know beat

estimates by two % uh last quarter you

might actually see Nvidia start missing

first they miss by 2% then they miss by

10% or then they guide lower and all of

a sudden EPS isn't growing at an average

of 30% it's growing at an average of 15%

then 10% then 5% and then oh interesting

it's starting to shrink it's not I I

don't believe that overnight people are

going to go cancel all the Nvidia orders

but I do think that this is a major

Catalyst that says we need fewer server

racks we need less energy we need fewer

chips and I think this is where if you

look at some of the other stocks that

got hit it's super micro computers got

hit well of course because if we don't

need as big a servers and we don't need

even more servers on top of what we

already have then of course super micro

is going to get hit of course Dell's

going to get hit of course arm Oracle

and Nvidia are going to get hit because

they're all beneficiaries of this

infrastructure spending continuing Sean

energy crashed like

20% other energy and uranium companies

VST ceg gev Olo they all dumped like 20%

yesterday due to the energy selloff

because markets are like okay I guess we

just don't need that much energy because

if it's local then you're running it

anyway probably don't need that much

energy because you're able to run it

locally and you don't need the high

performance computer the h100 but

honestly even if you did and went to

Blackwell remember Blackwell is 25% more

oh wait I'm sorry it's it uses 25% of

the energy so it's four times more

efficient than the

h100 so again you have this Duality

where the chips are using less energy

but now we potentially use less energy

to train but also less energy to compute

or to infer what the user wants why well

because you're only using a part of the

model that's the

Innovation now of course this is exactly

why people are saying okay well you know

uh then then sell All Tech sell all the

chips I don't know that you need to do

that you know I I never encourage sort

of panicking uh but it makes sense why

potentially the big growth estimates for

some of the chip plays could be over

another thing that to me kind of sends

the signal that you know deep seek is uh

is a big deal is yesterday DEC got hit

by a Cyber attack which has a lot of

people wondering ah did they get hit

with a Cyber attack because they're so

good that somebody's trying to take him

down I kind of think so now where else

are people going well Kathy Wood is

buying into Salesforce uh via arcg she

actually dumped Tesla to buy uh and

Palante actually to buy Salesforce

others are suggesting Adobe or docu sign

basically the software layer could be a

beneficiary uh I'm still not convinced

that the software products are that good

that uh we want them in Mass I mean

paler is pretty good but a lot of the

small business and medium business

related uh software problems or uh

products they run into the problem of

scale so they're really good at

individual tasks but when you try to

deploy them across an entire

organization they're still running into

scaling issues so it's going to be

something that we have to look for

companies to actually solve uh I think

paler has an edge there with the

government but the problem with paler is

people realize that finally uh I mean

I've been saying for two years that

Tesla and paler are like the real AI

that exists out there uh and markets

have finally adopted that thesis which

is great the stocks performed very very

well the downside is now the valuations

are very very very high now uh the

market ear they says we're they say that

overall we're in deep doodoo that we're

basically looking at

60% of the snps

29% return over the last 3 years coming

from the mag 7 and if it is true Kevin

that Nvidia earnings are going to go

down because we don't need as many nails

so to speak then remember Nvidia alone

out of those mag 7 was responsible for

25% of the return of the mag 7 and this

is where those bubble analogies come

from when very few concentrated stocks

pump up the indices what happens when

those earnings start faltering Goldman

Sachs talks about uh individuals going

into profit taking modes but potential

opportunities existing in Chinese stocks

since there're a lot with a lot of good

models moonshot AI 10cent bite Dance by

Mini Max

Alibaba many companies working Chinese

AI now I always question investing in

China mostly because I don't have the

insight into China that I feel like I do

in America but it's an interesting point

of view and a lot of people see uh some

potential in finding Chinese Investments

uh to make I personally think we'll

catch up in America and start using

segmented llms the way R1 does for

inference and also more efficient

training now uh the market year also

argues oh and Goldman says don't rush to

buy the dip both of them said that

Goldman argues that right now commodity

and trading Association stock Traders

are quote Max long and there's basically

no risk premium that you're earning if

you're investing in stocks right now so

they really question if investors start

becoming curious about artificial

intelligence capex and then leaders like

Elon Musk or Mark Zuckerberg or Serge

Bren over at Microsoft they start

pulling back spend and we're going to

have less uh we're going to have a

smaller set of earnings from the chip

related companies so be careful about

that uh Goldman says could it lead to

more spending in the long term maybe but

it could also lead to a big correction

first and when that sort of bleeds out

over time it doesn't have to be day

after day red you just kind of have to

wait to get the new estimates the

analyst updates and everything like if

Nvidia puts out a press release and says

hey by the way half of our orders just

got

cancelled markets are going to react

very quickly but it's not going to

happen today it's going to take weeks to

get this sort of

information uh so uh then we have uh

information uh we we talked about Apple

already briefly I just want to mention

that uh The Economist points out as well

that volumes and semiconductors outside

of AI PCS and smartphones still

suffering so just also keep that in mind

if you're investing in some of those

aspects the PCS and smartphone sectors

they're just not doing great right now

they still in a bit of a recessionary

environment uh UBS argues that uh

ultimately we could see innovations that

end up driving more demand for chips but

again I like to argue well show me the

Innovation because so far I've been

looking at AI Bots for the last couple

years and I feel like after 40 we didn't

get that far ahead but then again maybe

you have a different opinion I mean yeah

look we're able to like search the

internet now originally we weren't able

to do that we had dat information but

that was sort of an obvious step forward

now uh Standard Charter comes out with

uh sort of moving on if you will from uh

deep seek for a moment although what is

also kind of remarkable is deep seek did

end up coming out uh with a uh Vision

deployment model to uh compete with uh

Sora and uh mid journey and some of the

other uh image generators and people are

like how do they possibly keep coming

out with more products when they're

already dominating like this of course

that is leading to some meme circuit

ating like a picture of Sam Alman on the

phone going launch the porn Sora

anything to basically get it up I mean

get demand up but anyway let's move on a

little bit from this let's talk about

the fomc so we've got the fomc meeting

tomorrow uh there's a small indic well a

standard Charter argues that any

indication that we potentially get a

interest rate hike would end up being

very bad uh they argue that any kind of

firming in the labor market could end

end up reiterating the potential for

hikes and equities would sell off under

any indication of interest rate hikes

especially after this sort of deep- seek

moment any kind of optimism on

disinflation though would be very very

helpful to to markets so prepare for the

FED tomorrow and this is sort of a

little warning on the FED I guess uh

personally I don't think there's much of

a risk that Drome pow's going to talk

about hikes especially after the Deep

seek moment I think it's much more

likely that they're going to actually

applaud the disinflation that comes from

a deep seek moment because that's like

what Trump says hey you can all save

billions of dollars now after all the

anthropic CEO says it cost about a

billion dollars to train a model these

days if deep seek did it for 5.6 that's

great it's like pure deflation this is

actually wonderful for Jerome Powell

come on baby turn the money printer back

on we need

it then you got Donald Trump he

announced four new executive orders an

Iron Dome to protect America trans

genderism out of the military stopped

the indoctrination of our uh troops with

critical race Theory and offered full

reinstatement for those expelled due to

co uh you know refusing to get a covid

vaccine and people would be reinstated

with their former Rank and full pay he

also somewhat suggested by referring to

1887 that we used to have so much money

from collecting it from tariffs that we

were able to get by without an income

tax some people then sort of took that

and said oh my gosh he wants to get rid

of the income tax he suggested that in

the past but I think we got a long way

to go let's see how we do with some

tariffs first bassent was approved and

some people think that he's actually in

favor of some form of universal tariffs

and some say we could see tariffs as

soon as this weekend on Mexico Canada

maybe even China you also by the way

have Donald Trump suggesting placing

tariffs on chip manufacturers outside of

the US this would actually include

Taiwan and he argues if you don't want

tariffs build your plants in the United

States Morgan Stanley had a bit of a

piece on Optimus and they're actually

this is Adam Jonas who used to be a

Tesla bull he actually doesn't include

Optimus robots in his 2040 valuation

model because he says the Battery

Technology just isn't there that current

humanoids really only run on about 50

minutes maybe up to 2 hours of battery

time and unless you want them in a

factory plugged in all the time you're

not really getting functional humanoid

robot uh and uh therefore it's going to

be a while before we actually get these

functional now uh a lot of people think

uh and listen to rumors that Elon Musk

wants to manufacture as many as 600

Optimus robots by the end of the year uh

per week it could be possible and in

line with his goal to have a lot of

Optimus robots working in uh Tesla

factories and that might be the perfect

place for them because they could stay

plugged in but in terms of a mass Market

it does raise the question question of

when are we going to be willing to have

a robot that has to charge itself every

hour hey if it could charge itself maybe

it's not that bad just go sit on that

chair over there there's a there's a

pointy thing just sit on that pointy

thing there you'll be fine other people

uh pay a little bit of attention to

Tesla now suing the European Union about

tariffs uh Tesla uh does get tariffed a

little bit less than some of the other

Chinese makers in the European Union and

Tesla counts for 28 % of all Chinese

made uh EV Imports into the European

Union but I don't know that this lawsuit

is really going to go anywhere in my

opinion this is messaging I don't

actually think I'm not very optimistic

that they're going to succeed in this

since it is their right to implement

tariffs and Tesla has lower tariffs than

the

others but Tesla's still trying it's

probably a messaging thing uh to sort of

uh you know be Pro Tesla and uh and

anti- the EU which seems to be a pop po

argument by mus these days uh anyway the

new model y does have about 3 to 7% more

range uh front camera for better parking

and some better Lighting on the exterior

some cool light bars we are looking at a

potential consensus decline in margins

for Tesla earnings coming up looking for

about 15% on uh gross margins in Q4 that

would be down from about 15.6% in Q3

excluding those FSD deferred revenues

which those did bump their margins up

but you kind of have to parse that out

which doesn't happen on earnings day you

have to do that a couple days later when

they actually release uh their 10K or

their 10 Q anyway big things we're going

to be looking for are going to be

progress on Robo taxi development

Optimus progress battery progress

especially in the face of this uh and uh

we'll keep an eye on uh what ends up

happening we'll be covering earnings of

course the vake kind of hinted now more

officially on Jesse wat show that uh he

left Doge on good terms he's going to

divide and conquer because he wants to

run for elected office uh then we've got

to hit the dad joke of the day so Dad

joke of the day I'll start with the the

the joke portion I'm going to hit the

Daily Wealth and then we'll do the punch

line so get ready for it I think my

wife's been putting glue all over my

firearms keep that in mind let me

quickly hit the Daily Wealth Daily

Wealth for today is that there's a story

of a teacher locally here in Ventura

California who used to ask his students

every day uh sorry not every day every

year when they went to graduate

essentially to the next uh uh grade this

was about 10th grade so the students

were 15 16 years old hey what do you

want to be when you grow up as as you're

leaving and graduating from this and he

used to get answers like doctor

astronaut firefighter teacher fireman uh

software engineer mechanical engineer

pilot whatever used to get these sort of

careers that were respectable and uh and

and people look forward

to recently he said uh you know this

this has been for for decades he's been

getting answers like that so nothing

nothing new and

surprising more recently however he's

been getting answers from younger

Generations like I want to be a

billionaire and it's over and over and

over again and some people are looking

at that and wondering is social media

making us more relative than ever before

where we're constantly comparing

ourselves to others to where we're

basically never satisfied with what we

have kind of sad and it's an interesting

comparison and it really should take

give us an opportunity to look at what

we have and say we are we actually

grateful for what we have are we

grateful for the position that we're in

and what are we doing to improve our

position because we're always thinking

about Improvement uh but have we gotten

to the point of never being satisfied

and are we therefore making ourselves

miserable

interesting so now for the dad joke uh I

think my wife's been putting glue all

over my firearms she denies it but I'm

sticking to my guns do 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 PA there financial

analyst and YouTuber meet Kevin always

great to get your take