Key Points

• Tesla blew away their earnings, popping 20% on better than expected results
• Nvidia said that Elon Musk is way ahead on AI and no one can touch him
• No one knows more about AI and Nvidia and Tesla today
• Pay attention to ‘The Next Nvidia’ stocks that are poised to soar. Read more here. 

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[00:00:00] Doug McIntyre: Tesla (Nasdaq:TSLA) comes out very good earnings, much better than I’ve ever expected. Uh, stock goes up 20%, which I think is the most since 2008, but with Musk, you’ve always got to parse this. How much is the numbers and how much is the pitch? And to me, the problem with the pitch is the taxi, call it robo taxi, call it whatever taxi you want to call it.

[00:00:29] Doug McIntyre: Those things still have to be approved by state. Local and federal government, depending on where you’re going to drive it and everything else. If you look at the pace at which places like Waymo, which is part of Google and the self driving software business or cruise, the GM thing, getting these things approved can take years.

[00:00:49] Doug McIntyre: So the fact that Musk ends up with something that works really, really well doesn’t mean that he can put it in the cars and claim that they’re fully self driving and sell them that way.

[00:01:00] Lee Jackson: Yeah, and it’s going to have to be proven to be safe because Waymo and GM (NYSE:GM) has had this issue of some high profile crashes and stuff when in one case somebody got killed and that’s just, that’s got to be almost non existent.

[00:01:15] Lee Jackson: Yeah. For for big federal state and local approval on something like this to think about those numbers is and and You know if it was a lot of other ceos, I would almost question some of the numbers But I mean he he’ll be able to show it you know when when he puts out the books and they’ll have to look at the books and Uh, the thing that was so incredible is the the day of the big draft in uh, tesla stock number one shorts Just got absolutely I did billions of dollars in losses and the increase in market cap for Tesla was greater than the entire market cap of GM and Ford.

[00:01:58] Lee Jackson: Oh

[00:01:58] Doug McIntyre: God. Yes. Probably, probably even more than that. I think at this point, Tesla may be back to where it has a market cap. That’s more than The market cap of all of the major global manufacturers.

[00:02:13] Lee Jackson: So, uh, well, they, they’ve proven over and over and over and over there, the gold standard and nobody has the wherewithal or the pockets, or to be frank with you, the, the technology to outdo, um, Tesla.

[00:02:27] Lee Jackson: I mean, if it was ever going to happen, it would be from. GM, Ford (NYSE: F), Volkswagen, you know, somebody of that size and they haven’t been able to do it.

[00:02:38] Doug McIntyre: Well, the people at Nvidia (Nasdaq: NDVA) said recently that, uh, Musk was way ahead in auto AI. Came right out and said it. So if, if you think that that’s a reasonable, uh, if you think that they’re reasonably smart about AI, which I think they are, they’re telling the world that Musk is.

[00:03:01] Doug McIntyre: Is miles out in front of this. So again, if you’re looking at Tesla, I think you can assume that he is miles out in front when it comes to the use of AI. In the cars. He’s also collected billions of miles of data. You know, he’s collected this. It now sits in this huge AI repository. So that means that the rate limiting step now for the next move in Tesla is regulation, and I think people need to understand that Tesla now has a regulation hurdle to me much more than they have a technology hurdle by far.

[00:03:40] Lee Jackson: No, absolutely. In fact, Jamie Dimon said recently that the biggest threat to business is all, you know, for all intents and purposes, Dimon’s a Democrat and he’s never, you know, shied away from that. But he said regulation is the biggest issue because it’s become absurd that there is so many agencies. that basically, I mean, the politicians don’t run the government, non elected bureaucrats do, and they’ve created just, it’s ridiculous.

[00:04:10] Lee Jackson: I mean, of course we want regulation to keep things safe and not hurt the environment and things of that nature. But it’s become so prohibitive to so many companies, especially smarter or smaller startups, that it’s just ridiculous.

[00:04:25] Doug McIntyre: Yeah, well, I think based on what Musk has said, he will probably in 18 months be able to step back onto the stage, show the fully operational robo cab, taxi, whatever you want.

[00:04:41] Doug McIntyre: And he better be able to say that he has a very. Wide acceptance among regulators, because otherwise people are just going to say, it’s beautiful. It works well, but you can’t drive it anywhere. Yeah.

[00:04:57] Lee Jackson: Yeah. And it’s going to have to be unequivocally safe. So, you know, I, but you know, if anybody can figure out it’s him and I think it’ll be interesting to see, uh, since he has become, you know, again, he was always like Jamie Dimon, a Democrat, and he’s, Kind of changed his thought process.

[00:05:16] Lee Jackson: So he’s probably looking at it from a business standpoint as well.

 

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