Elon Put $1B In a ‘Parking Meter’ and Makes 100x

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Summary

Elon Musk recently made a big announcement involving Tesla. 24/7 Wall St. contributors Douglas A. McIntyre and Lee Jackson break down what it could mean for the future of the company and the electronic car space.

Transcript

[00:00:02] Doug McIntyre: Today our friend Elon Musk announced he was gonna buy a billion dollars worth of Tesla stock. I don’t know where it is right now, but it was up 7%. So two observations. He is the richest man in the world. He has $430 billion nearly. Though I have to tell you something, it’s like me putting money into a parking meter. Okay. It’s just is, I’m sorry. It doesn’t change any of the fundamentals of the company, and we can get into that in a second. Why it’s either worth or is not what it’s worth. So, so what do you think? A billion dollars. I’m gonna say not much money.

[00:46:04] Lee Jackson: Well, I doubt if it was like he looked into his account and said, “Well, I don’t have quite enough Tesla stock. I better buy a billion more.” But I thought it was interesting because a lot of the commentary that came outta Wall Street as a result of it was analyst, you know, excited that he’s excited, you know, and I’m like, “Oh, okay, so are they selling any more cars or anything like that?” So, you know, I think it’s really a PR goodwill sort of thing, especially after the $1 trillion, you know, package. So, I don’t know.

[01:22:12] Doug McIntyre: It does not take away from the fact that there are two theories about Tesla. The first one is it’s a car company. It’s a car company, it’s worth. I dunno. Let’s say Toyota’s worth $200 billion. So Tesla right now is worth $1.1 trillion, right? So what I’m gonna do is I’m gonna give it a Toyota valuation, $250 billion. He wants us to believe, and I think that what he’s trying to signal to the world with the billion dollar purchase is that Tesla is a robotics and artificial intelligence company, which means two things. He will have the world standards.

[02:08:12] Lee Jackson: On the side?

[02:00:18] Doug McIntyre: Right, exactly. It’s a hobby. But so the first thing you’ve gotta believe is that he is gonna dominate the self-driving car business. So when I say self-driving, I mean everybody in the world, the governments, the scientists, the, you know, insurance companies have said you can go to sleep or you can get drunk while you drive this car.

[02:36:06] Lee Jackson: Exactly.

[02:36:21] Doug McIntyre: Exactly. The other one is, is that his optimist robot is going to be purchased by. Millions and millions of people to do things like, if the dog next door is barking, their kid, he can chew it off. And it doesn’t matter if it gets bitten, it could do the laundry, right? It can, it can take care of older, sicker people, but that’s the theory you have to accept, is that they can do those things, number one. And number two, that there are enough hundreds of millions of people in the world who want either the, the car, AI, or the robot AI. And, and to me, maybe he can invent ’em, but it’s like, is it an “if you build it, they will come?” We don’t know that.

[03:23:08] Lee Jackson: No, but I think, I think you’re, I think you could be onto something. What if he, he did wanna spin off the car company and, and, and separate it from, from the bots and the AI and, and all of that. And again, you know, there’s Starlink, there’s all that. There’s the, there’s the. You know, Moonshot stuff and, and going into space and Yeah, I, I think, I think you could be honest, I think they could spin off the car company from Tesla. And, you know, maybe change the name or, or keep the name but change the other name of the other. Just call it X or you know, XAI or whatever.

[03:59:01] Doug McIntyre: Well, you remember he took X formerly Twitter and merged it with his XAI, artificial intelligence company, right? So, it is now an artificial intelligence slash social media. Now, he doesn’t use effectively to get people to download Grok. His, you know, AI chat product. It still only has 3% of the global market, though. Open AI’s chat product has 80% of the market.

[04:29:06] Lee Jackson: And you gotta remember that Grok sits there ostensibly for free just on X rather than having to be separately downloaded.

[04:40:02] Doug McIntyre: Right. So. Anyway, we will keep coming back to Mr. Musk. ’cause how can you avoid it? But, listen, that’s our theory. Nice PR move.

[04:49:00] Lee Jackson: We’re gonna stick with it, but it’ll be interesting to see though. I’m gonna, I’m gonna mark this date on my calendar and say, “Doug said this, it may happen someday.”

[04:58:00] Doug McIntyre: I want you to do it.