ugh tesla

now we get to talk about Tesla Elon Musk

what are confess things some

flip-flopping from Elon Musk what's

going on with the FTC we got to set

something straight so first things first

a Tesla is apparently now being

investigated because apparently in some

cases steering wheels are falling off

according to the associate press this is

like music to the ears of all the Elon

Musk and Tesla haters I've never heard

of this before but then again my

anecdote doesn't really matter but it is

something that is making news this

morning as well as the U.S

investigation investigation probe I

guess I should say into model wise look

you're almost always going to have these

sort of Investigations this whole recall

about loose bolts on 3000 models tiny

percentage obviously of of the Tesla

Fleet of about 4 million Vehicles so

we're not trying to explain it away

obviously quality control is something

that Tesla's obviously been having to

deal with regularly we could say It's

Growing Pains for Tesla hopefully newer

models don't continue to have these

issues they're going to have to be

things we pay attention to but we we

don't want to spend too much time just

talking about recalls because they are

what they are when you have physical

recalls guess what so does every other

auto manufacturer except the reality is

99 well that's like 98.9 percent of uh

according to forms of all Tesla recalls

are solved by an over-the-air update

which Rivals like the next best company

for recalls that are being done over the

air at like 30 percent so Tesla's Miles

Ahead here but uh let's talk about uh

the FTC elon's flip flop on Twitter and

then also what Arc invest has to say uh

I'm uh going to pop open Arc invest

piece right here on Tesla investor day

and Atasha is arcanvas EV analyst and uh

she provides you know sort of a

reiteration of some of the things that

we've already known I just want to give

a sort of a brief summary of what arc's

position here is they don't give us any

kind of financial projections or changes

to their models they still have this

fifteen hundred dollar price Target get

for Tesla but it's worth looking at some

of their commentary here so they write

despite mixed reviews of Tesla's

investor day Tasha found no shortage and

Sam found no shortages of important and

exciting news we believe Tesla shared

more profound news than a product

prototype the road map for continuous

cost declines associated with scaling

production now this is fair they did

exactly that this was really a how we're

going to get our cost reductions

presentation right very fair very fair

argument first it will produce 100 of

its controllers of the next gen vehicle

second it'll switch to a 48 battery a 48

volt battery architecture that should

reduce power loss by 16 fold that's

basically the heat transmission through

cabling inside the cars when you go to a

higher voltages away from 12 volt you

can you basically have less heat loss on

wiring okay this is actually why Europe

uses the 240 volt system as opposed to

120. got it third it will use local

ethernet connectors to reduce complexity

and wire harnesses maybe that that's

what the Optimus is essentially in the

future going to plug in unplug whatever

then you've got electrical architecture

changes the parallel assembly or a

process we've talked about that before

reducing Wasted Time Manufacturing

Footprints then they talk about and this

was interesting this is sort of the

newer information that I got from Arc

here what I enjoy here is they talk

about how waymo and Chevy Cruze really

have each attained one million miles

cumulatively with no one behind the

wheel on public roads and that sounds

like a lot right one million miles uh

driven on roads but take a listen to

this Tesla's Fleet currently drives more

than 120 miles per day well that's all

vehicles okay that doesn't matter so

much but in total we have 100 million

miles in full self-driving with its most

advanced driver assistance now it's

unclear if they mean 100 million in

total for FSD or if they mean 100

million of that 120 per day I'm going to

say 100 million in total because quite

frankly I think a lot of people who

drive Teslas don't actually use the FSD

mostly because it's kind of annoying

because if you pick up your phone it

just yells at you and it's like better

to just have it off however I do have

FSD and I will say if I it you know if

you're actually like capable of paying

attention to the car it's phenomenal to

just have it running on FSD either way

if waymo and and Cruz each at the moment

according to Arc have a million miles

driven on on essentially full self

driving in Tesla's at 100 million I mean

we they're basically yeah here it is

Tesla vehicles have traveled 100x the

cumulative miles and have collected 50

000 times the data according to our

research data will be critical in the

race to create a scale and a fully

autonomous taxi service in short Tesla's

vertical integration seems to have given

the company an edge that may take its

less integrated competitors years if

ever to replicate now uh Elon Musk

yesterday in his presentation with

Morgan Stanley talked about how

basically Tesla investors are

potentially misunderstanding the total

addressable market for Tesla that it's

not just cars it's software it's

basically providing Hardware with

software style margins now we don't want

to be redundant but but basically test

Tesla could basically give away vehicles

in the future and still have somewhere

around a 25 to 30 percent margin on

their Hardware solely because of

software margins that are close to

basically approaching a limit of 100

which is pretty remarkable now there is

also some other drama regarding Elon

Musk and Twitter specifically uh

regarding FTC Federal uh sorry FCC it

was one of them it's either the Federal

Communications Commission or the Federal

Trade Commission one of them but anyway

there are these required depositions and

audits I believe it's the FCC so I'm

going to go with that by the FCC of

Twitter because uh Twitter is under a

consent decree that has been in effect

since 2011. it was actually expanded in

2022 the degree decree basically

requires regular audits of Twitter to

make sure that people's privacy are are

being respected whether that's their

their age their email their location

data whatever well the FCC requests

apparently the FCC has pepper put with

about 350 requests and Elon is is kind

of freaking out on Twitter over them but

apparently this is pretty normal it's

the normal course of business for for a

company uh like Twitter to be dealing

with these sort of requests from uh the

FCC but Elon Musk isn't very happy so

he's kind of lashing out a little bit on

Twitter I'll show some of these tweets

here but it seems like a lot of these

lashes these these requirements are just

a normal part of the business that he

bought so it's it's potentially

difficult to say that this is just some

sort of unique incursion against Elon

and rather it probably more of just like

that's just the course of doing business

for Twitter so I don't actually think

it's really that big of a deal but Elon

Musk seems to be freaking out about that

in addition to he did flip-flop on the

guy that he was publicly bashing

yesterday yesterday he was publicly

suggesting that the individual an

individual who was fired at Twitter was

quote unquote the worst he literally

said he's the worst

and uh I basically pointed out publicly

that this individual claims he has a

disability and can't work yet can tweet

all he wants apparently Elon ended up

getting on the phone with a person

rather than listening to rumors ended up

talking to the person realizing that the

person's actually not uh as unproductive

as Elon Musk made it seem uh publicly

now the dude has gotten an insane amount

of attention online because of this uh I

mean a massive amount of attention and

so his his Twitter following has like

exploded uh now that's not to minimize

the fact that you know his his

disability was made public although I

think he's personally been public about

it before but anyway take a look at this

this is kind of the stuff you're seeing

circulate online right now the Biden

administration's casual violation of the

first amendment should shock every

journalist what's the limiting principle

and then you have these tweets like

perfectly normal for federal

investigative body to demand the mains

the names of reporters interacting with

a company and basically they're making

this this claim here yo it's the Trade

Commission oh it's the FTC oh

interesting so anyway the FTC uh also

asked the company to identify all

journalists granted access to the

company's records uh and for more

information regarding Twitter blue

subscription Services the FDC has

demanded Twitter turnover internal

Communications related to Elon Musk and

detailed informations uh information

about layouts and other business

decisions the FTC is also seeking to

depose musk in connection with the probe

uh I mean really what what yeah you know

Elon Musk complains this is a serious

attack on the Constitution by a federal

agency

uh it it really what's interesting to me

is it does seem like the FTC could

potentially be picking on Elon Musk but

then again these decrees that allow

these federal agencies to basically pick

apart Twitter existed prior to Elon

musk's ownership so I'm not sure if this

is Elon Musk just kind of being

frustrated with basically what he signed

up for and we know that Elon has a

tendency of kind of getting frustrated

online and then lashing out or or if

this is like some kind of politically

charged uh and motivated tool at

harassing Elon Musk who knows uh but

it's something that obviously we'll be

paying attention to uh over the next uh

years uh as uh as Elon continues to

progress with sort of his uh his his

Twitter uh acquisition here now

personally uh I don't care so much about

the FTC probing Twitter I mean you're

getting the same thing from Europe and

it's it's just the nature of being a

social media platform and quite frankly

I think everything should just be

relatively transparent as the Twitter

file showed more transparency is better

so uh you know personally someone of

nothing Burger in my opinion that but a

lot of people are making a big deal

about this that oh my gosh Twitter is

going to get deposed uh you know

politicians hate Elon to some degree

that might be true but I think it's a

little bit of a nothing Burger it's

going to be a headache for Elon

nonetheless but we'll see good to see

though Elon potentially you know

actually talked directly with this uh

Hallie the person uh that that he sort

of outed on Twitter and uh when it comes

to uh Tesla drama in the near term

regarding recalls

not that big of a deal in my opinion I'm

more side with what Arc suggests and and

what Elon suggests yesterday that if

you're a Tesla investor you really want

to focus on the long-term autonomous

benefits that uh electric vehicles well

specifically Teslas create now do keep

in mind

I I personally have a rule that the day

someone in my family loves Tesla is the

day that I have to sell it so I

purposefully took them uh in my car the

other day and I turned on Tesla full

self-driving in an area where I thought

the car would be facing some challenges

and so it was dusk uh it was uh you know

basically turning night time and we're

we're coming up on a stop sign one lane

road in each Direction on a bridge and

we have to turn left there's a yield in

front of us stop sign to our right and

we have to turn left

and I I had a suspicion this would be a

challenging intersection at that time of

day it's handled it perfectly fine

before but that person was in the

passenger seat they're not a big fan of

Elon so I throw it on full self-driving

yeah as we get to that stop sign the

course stops uh sort of creeps forward

waits for its turn it has a little thing

that pops up that says waiting for my

turn and uh and then it goes

unfortunately when it goes it it nearly

drives us right into the curb because it

took too much of a turn it went at the

appropriate time but I had to take over

to prevent hitting the curb I don't know

if eight would have stopped I don't know

because I didn't want to take that

chance

but but what was more important was that

obviously as as someone who drives FSD I

know it's 90 good but there's still

those five to ten percent Edge scenarios

where it's like yeah it does stupid

things like you have to pay attention

right like when I'm on a one-lane road

going against oncoming traffic I hold

the wheel because I'm like I don't know

if this thing's gonna try to kill me and

eat over it's never done that before but

I I still like that's the kind of

caution that I think beta tester should

uh should exhibit when they're driving

FSC but anyway when it nearly ran into

the curb the individual says yep see

nope nowhere near close I would never

trust this system with my life a lot of

work to do Tesla sucks this is why I

would never invest in Tesla and I'm

sticking with Toyota uh and and to me I

actually smiled because I'm like

this is the point of being at The

Cutting Edge of technology is that it's

it's not perfect yet right that being 90

there is actually such an achievement

but the world does not realize how far

Tesla has already come ahead of the

competition and again my rule of thumb

is not to convince that person to love

Tesla it's because when that person

finally realizes that Tesla is is so

phenomenal and why would you ever drive

any other vehicle in a Tesla that's

going to be Peak Euphoria for Tesla and

that's going to be my exit for Tesla is

when that person becomes a Tesla Fanboy

I know we've reached the top

but we are clearly nowhere near there so

I report this story uh honored to say

we're nowhere near the top

uh so so anyway I I that makes me very

very happy

hopefully it makes you happy as well uh

in other news Volkswagen is putting on

hold the expansion of their Eastern

battery plant in Europe Eastern European

battery plan because they're waiting to

potentially and now likely receiving 10

billion euros of incentives from the

United States government to instead

build that battery plant in America the

EV incentive war is real and I'm ending

this sort of EV discussion here by

saying if you want if you liked the

stimulus check uh era of 2020 you're

going to love the stimulus checks that

are being distributed to electric

vehicle manufacturers battery

manufacturers and Chip companies because

the more the United States does it the

more Europe does it Europe now losing a

Volkswagen factory to the United States

dude they are going to turn the money

printers on to get Volkswagen to also

build a new battery Factory in Europe

and the more we get that kind of stuff

the more steamy checks are going to

electric vehicle companies to propel the

the goal of green Energy Right but it's

not just Europe and the United States

fighting it's also China is also

massively incentivizing the EV sector so

I think it's very fascinating and of

course as if On Cue I was literally

thinking it I should have said something

because I knew it was going to happen

but as if On Cue Here Comes Steve

commodity Steve battery plant gonna need

metal

I was thinking it before he said it I'm

like I know this is gonna wake Steve up

he's gonna put his coffee down and go oh

you're not wrong Steve

copper will be the big Winger winner and

you don't think battery medals are going

to stay elevated with all these

incentives all right Steve all right all

right

uh you're not wrong you're you're not

you're not wrong uh you know we it's

going to take a massive increase in

Supply just to keep uh Metals even

stable so you're right about that see

see my argument is that we're we'll have

a massive increase in supply of these

but you're right a massive increase in

Supply with a massive increase in demand

could just create stability for electric

vehicle style Commodities right whether

that's lithium or nickel or Cobalt or

copper or whatever you're not wrong

about that uh you know the generally the

idea is oh more Supply the prices would

come down but then again if demand is

also exponentially Rising maybe we just

sort of stair step up and those prices

stay eleven okay all right all right but

anyway the incense Steve is an OJ I love

Steve I actually I I when I hire people

I tell them

I do not need another Kevin I don't need

people telling me stuff that I already

think because then you just create more

confirmation bias I like people around

like my favorite people to hang out with

are people who have different opinions

like Steve

uh mostly because I I like actually

today I'm going to Puerto Rico I fly to

Puerto Rico in like two hours uh because

uh tentatively I'm gonna go visit Peter

Schiff you're going to meet him in

person and then go yo Peter

we're different