Several news items important to Tesla

and future SpaceX investors dropped this

weekend. First, great news for robo

taxi. Tesla officially applied for an

autonomous vehicle network company

permit in Nevada. What's shocking is

Tesla seeking approval for up to 5,000

robo taxis during the first 12 months

after the permit is granted. If that

isn't a sign of an intention to scale, I

don't know what is. This comes as

reports from the DMV in Texas that says

there are now 51 vehicles registered as

robo taxis there. Second, SpaceX has

announced yet another mega deal. This

time, it's Google of all companies,

renting compute capacity for $920

million per month. Anthropic and Google

are now paying SpaceX a combined $2.17

billion per month for compute capacity.

That's a revenue run rate of 26 billion

per year if it's not terminated

beforehand. Of the Mag 7, Google was the

one you think would not need to rent

compute. And Elon Musk predicted this

last year when he posted his strategy

was to buy a ton of GPUs. Third, big

whales are buying Tesla stock. Dwan

Yongpin, also known as the Chinese

Warren Buffett, has bought nearly 1.3

billion in Tesla. He's been buying since

the first quarter. Dwan was previously a

skeptic of Elon, but now has had a

change of heart. Similarly, JP Morgan,

famously at war with Elon and who has

had a permanent bare position for years,

has also now upgraded their price target

from $145 to $475, a massive 230%

increase. No doubt it's got something to

do with being included in the SpaceX

IPO. And Morgan Stanley is also now back

in the game, also doing a complete

reversal by buying 1.26 billion worth of

Tesla stock in the first quarter. Big

money is pouring into Tesla. We got Jeff

Lutz here with us today. He's an exs

supply chain sea level executive from

Motorola, Google, Lenovo. He's currently

running his own consulting firm serving

mega cap tech in supply chain design and

manufacturing. Welcome Jeeoff.

>> Uh heyert. Yeah, a lot of news just came

out over the weekend. Uh just like a

super bullish news flow and I just it it

feels like these milestones are just

getting closer and closer. A new week

comes in. So just looking forward to

going through these. There's a lot of

lot of things that just flipped on Wall

Street and and as well as uh

fundamentally.

>> Well, the question I'm going to ask you

and we'll get to it is is the Tesla

buying the stock buying from the big

whales. Are they doing it because of

SpaceX or is it because of Tesla

potential 6 months coming up? Uh, one of

the big signs is robo taxi. A lot of

people are pretty disappointed with the

progress. We're pretty well in June now.

June 22nd was the big launch date of

Robo Taxi last year in Austin and today

it's not as uh you know widespread and

as many cars as people had hoped within

a year but this is really good sign

here. Uh over the weekend Tesla

officially applied for an autonomous

vehicle network company permit in Nevada

seeking approval for up to 5,000 robo

taxis during the first 12 months after

the permit is granted. The filing covers

Clark County, including Harry Reid

International Airport and Henderson

Executive Airport, according to a new

public notice from the Nevada Transport

Authority, Jeff 5,000.

I mean, is it just, hey, go ahead and

shoot for the largest number or do you

think this actually has, you know, real

intentions of that many?

>> No, you wouldn't shoot for the highest

number. And I've dealt with regulatory

before in many different aspects. That's

the last thing you want to do is just

put a high number in and and rush

through the process because what could

happen is is it could cause more

scrutiny uh on the number and and just

more back and forth. You you want to go

in with the most you think you're going

to do, but also uh something that isn't

going to just cause all kinds of um

holdups uh during the approval process.

To me, this is representative of the

kind of scale that Tesla's going for in

robo taxi. Yes, we know the difference

between a permit submission and reality.

We know how many cars are on the road

today in Texas. But this this to me and

this is over the first year. This really

starts to to me really shows the the

relative comp to I mean the the the

highest

uh robo taxi vendor today. Whimo has I

think 3,700 cars across the nation

across the entire country. And so this

says two things. One is Tesla has the

economics to to do this to put up this

capital to get this fleet out there and

also says that those economics will work

very quickly cuz what you would wouldn't

want to do is you wouldn't want to put a

bunch of stuff out there that doesn't

have a time to break even that's

relatively quick. So this tells me that

they can get profitable very quickly.

They have a very high ceiling on the

number of vehicles that they can put in

a specific area and the economics work

for them. And I think this is this is

what's holding other robo taxi vendors

back. They would put more cars out, but

there's only so many people that are

going to that are going to call these

rides at $3 to $5 an hour, you know, $8,

$10 an hour. There's only so many of

those that they're going to do. And

there's only so many of those vehicles

that they can actually fabricate and get

put out on the road because they're

quite frankly they're losing money per

ride. So if you take their the

competitive unit economics that's

limiting the number of cars and you take

Tesla's unit economics, they're going

for a much bigger number in a smaller

concentrated area. I I this was very

surprising to me to see actually that

number that size going for this permit

submission and it was is also very

encouraging.

Jeeoff, you've done this before. Uh when

you submit a permit like this for some

authority, in this case the uh business

and industry Nevada transportation

authority, do you think that Tesla would

already kind of you know have felt them

ahead of time got them to say, "Hey,

what if I approve 5,000 or if I threw

2,000? Would you how would you guys

react? Would he already kind of know or

No,

>> there's there should be conversations

happening uh in advance. It doesn't

necessarily mean that there's an

explicit conversation about certain

factors, but likely they wouldn't put a

number in there that they think they

could not get approved. Um

>> and there is there is also some time

element to it being over the first year

and of course if something goes ary you

know I think what Tesla has done over

this last 6 months is shown that they're

very judicious and very careful with the

rollout and I actually think that that's

going to be part of the submission

uh that's going to be part of the

evidence for the submission is is the

Nitsa data and how well they're actually

performing.

>> Yeah. And if you're a regulator in

Nevada and you've got high cost issues,

you've got you've got, you know, these

really peak these huge peak demand

cycles that occur during these

conferences, events, and and and

holidays. This is this is the perfect

solution, a lowcost solution that can

scale quickly. Mhm. Yeah. They probably

are what is it June and so they July

they have six months of data now and

which is so far submissions to NITS it's

looking like u there's very few major

accidents in fact if anything it's minor

if in fact it's zero that is the best

data to present to them. Uh, it looks

like that in Texas, Texas DMV data is

saying that Tesla Robbo taxi LLC added

four more Model Y and now the registered

fleet is 51 vehicles. Yeah, that's how

we know.

>> Yeah.

>> By the way, uh, the robo taxi tracker

that we've been using for a while, um,

Evan, the the guy in charge of it, he

was hired,

>> Ethan Yeah. he was hired by Tesla. And

so he actually publicly told folks that

you know you can't he's not been

updating he cannot update it u uh for

the next several months until past

August when he might in he's just for

the summer intern I think he is.

>> So just FYI that data that we're seeing

robo taxi tracker may not be as accurate

as as it used to be or it would never

was accurate but you know being kept up

to date and so forth.

>> Okay. Uh other news quickly quickly

here. Robo taxi demo is now expected in

August according to reports and I think

that even um Fron was interviewed over

the weekend at the Tesla takeover in

Austria and he had said that it's coming

soon. Tesla has pushed the nextG

Roadster demo to August. Uh that might

make sense according to the information.

What do you think about this? It makes

sense because it's after the June um

IPO. Maybe that's when they'll want to

do it.

Well, I they're not supposed to be

connected, but there's a lot of

catalysts that are coming up for Tesla

and this I think this permit submission

to Nevada was a a nice signal to start

that off. It looks like we're starting

to add a few vehicles in Texas, but

that's that's not a meaningful number uh

yet. But it looks like we're getting

very close. If you just look at it, like

again, this is like to me any product

ramp up that you're doing. When you're

getting all of your factories set up,

you're getting material put into the

factories. To me, that's these robo

taxies that are being deployed and

parked in all these various cities. And

then you're hiring people for the

factories. I view that each of these

cities as its own little factory. and

you're you're hiring people. You look on

the job boards, there's Tesla's hiring

hundreds of people for robo taxi

management type positions to manage

these fleets uh across the country and

assume across the world. So to me, this

is all part of a a roll out of a the the

production of a product. And to this is

this is what it looks like to me. It

looks very similar to it. It's funded.

The requisitions are funded. They're

posted. The job postings are in the

system, everything's funded, and which

to me the funding would be cut off if

the engine if the engineering team said,

"Hey, look, I don't have a solution

that's going to get there." Finance

would come in right away and pull those

requisitions. That's not happening. So,

to me, this is a setup. The Roadster in

in August is part of a number of

different catalysts that are just

building up for Tesla. So you have the

roll out of robo taxi. You have

potentially a Model Y introduction in in

North America. You've got the reveal of

Optimus. You have the Roadster uh

reveal. And to these are these these

milestones are both they hit the

economics of the company like the ramp

up of robo taxi but and then with the

roadster optimist reveals they're

they're really showing the extents of of

the uh of of the tech that is available

at Tesla but it's also in combination

with SpaceX. Roadster is a SpaceX and

Tesla product. It's mostly a Tesla

product with some SpaceX tech in it.

Optimus is a Tesla product with a SpaceX

brain in it. So, there's a lot of these

these milestones coming up. And then

you've got there's some great uh video

footage this morning uh from

SE

um who who published the an aerials of

of the Houston factory for the mega

block and it looks like the exterior of

that factory is done for mega block mega

pack production in Houston. That's going

to be a 50 gawatt hour factory. Looks

like the exterior is done and now they

have to of course facilitize and and and

install the capex inside. We don't know

what's going on inside. they may be they

may be very far along. So you have that

milestone coming up for the energy side.

So you just have a lot of catalyst

building cyber cab roadster robo taxi

rollout model y l optimus reveal uh mega

block uh factory startup. There's a lot

of catalyst building up for Tesla uh

just on its own. So I think when we

start hearing about what these analysts

and they're starting to pile in, I mean

these things every day, every day that

goes by is a day that these catalysts

get closer.

>> Yeah.

>> One more thing. Sorry, one quick thing.

Q2 looks to be

really strong. I mean, every indication

we're getting on every monthly delivery

metric, it looks like net net and some

countries are lower, but most countries

are a lot higher in deliveries. looks

like it's a net 28% higher through May

of auto deliveries and then you had this

slow uh energy in Q1. So there may be a

big Q2. Anyway, Q2 is another catalyst

that we'll hear about in the third week

of July. So you have a lot of things

coming over the next call it four to

eight weeks.

>> Yeah. Uh SpaceX and Tesla are definitely

intertwined. Imagine if something

happened with Tesla that would impact if

something happened with Tesla's robo

taxi that would impact the SpaceX IPO.

Maybe that was one reason. We had a deep

discussion about this at our last Cyber

Balls on Friday. Uh so SpaceX, good list

by the way. Thank you for that great

list of the things that are coming up.

SpaceX quietly amended their S1 and

there's another mega deal. My god.

Google is apparently a new customer of

SpaceX AI. They're paying $920 million a

month, almost a billion dollars every

month from October 2026 to June 2029 at

three years. But of course, Elon had

already made me mentioned before he

wants both anthropic and Google deals to

have an easy out. You can terminate

either party can terminate the agreement

within 90 days notice because I think

Elon is saying, "Well, maybe we might

need it. Kick them out." But $920

million, that's huge. The question, of

course, is why would of all companies of

the MAG7, Google's the one that you

would say would not need this? Um, this

is the filing, the amendment. They just

keep doing these amendments to the, uh,

this is amendment number two to the S1.

Uh, I'm sure there's more to come. They

want to kind of build up the news prior

to Friday. This is a big one. So

combined, Anthropic and Google are

paying 2.17 billion a month. Now if you

do a revenue reneion

a year, fourth of Tesla just like that

uh big money and then this guy was

saying wait Google's paying SpaceX 920

million per month for GPUs. Google the

company that builds its own TPUs that

runs one of the largest cloud

infrastructures on Earth is renting

110,000 Nvidia GPUs from a rocket

company. I'm not sure how to make out of

this. Google's the one that should have

been able to do this. Should be the one

to rent things out and uh and then um

Elon Yeah. So Elon knew that this was

coming. I'll get there shortly. But

what's your reaction to this uh Google

announcement as a customer?

>> My reaction is is the reactions are

strange. They're not renting GPUs from

Nvidia. Let's be very clear. And Google

doesn't make TPUs. Broadcom makes TPUs.

Google designs TPUs. It's important. And

the reason it's important is

te SpaceX a XAI and SpaceX call it

SpaceX now Elon and his SpaceX team they

started this flywheel by taking chips

from off of TSMC's doc who makes the

chips for Nvidia and building out their

coherent clusters to be bigger and

building them out faster than anybody

else does it. And so when you every time

I see these deals come through, I'm

like, everybody's looking at the revenue

and I'm looking at the revenue, too. But

what I'm looking at is, wow, the

utilization of their cluster is going to

go through the roof because you've got

two of the two of the top two or three

frontier model providers in the world

are want as much of your capacity as you

want to give them. So the utilization,

the fixed cost absorption is going to go

through the roof, which is good. The

utilization is going to go through the

roof. And SpaceX, their costs are their

costs per token are just going to go

down, down, down. So this flywheel is

turning because Elon and his team can go

from these disparent chips and system

components that are all over the world

and build it out into a coherent cluster

faster than anybody else running it at

appears to be a lower cost. These

companies have like they said with

Google, these companies have options.

They didn't have to do this. And it

looks like there could be some other

things connected to these deals as well,

which is like, look, if you make these

terrestrial deals with me on capacity

and you help drive up my utilization,

then maybe I'll I'll I'll give you an

early ticket to space when cuz right now

I have the only vehicle that's getting

data centers into space on, you know,

accur accurately and something you can

depend on. So this is a very very

powerful flywheel that is starting from

the very you know ele small elements of

the supply chain all the way to how how

much capacity Starship has and how

frequently it's going to be able to make

these trips to put data centers in space

and Google Anthropic they want to be in

the front of the line for that and it

looks like it's helping their cost per

token. Anthropic and Google have two of

the top three costs per token right now

in the world. Uh, OpenAI is up there. I

think Grock is like fourth or fifth,

maybe sixth. And then you have the

Chinese models below it. So, this helps

Anthropic. This helps uh Google's cost

per token. This helps SpaceX cost per

token. And of course, it's this huge

revenue driver. So, this is this is

brilliant. This is going to bode very

well. And when you have these businesses

that are connected,

I I I guarantee this is an early

anthropic and in and Google won an early

ticket to space-based

>> data space. Yeah, I think that's the the

right point. I'll I'll share you a

interview of this the CF uh the CFO or

the co-founder of Anthropic saying

exactly that. I think that that's a key.

My prediction is I think Microsoft is

lined up. Now, I don't know if they have

enough space in Colossus 2. Maybe they

don't, but if they did, you know, Coloss

Microsoft can't trust OpenI anymore.

They were like partners. I don't think

they are. I think they're going to feel

like they're left out. They're going to

That's going to be a huge bomb if they

come out and say, "I've got another

billion dollar per month deal

for Microsoft been there because the top

of the building says macro hard."

>> Interesting. Yeah, they're making fun of

them for that reason. But I think at the

end of the day, dude, listen, some

people are saying, why did Elon partner

with Google, right? Google was

>> it could

>> Larry Page, the guy that was e, you

know, was evil

>> and now he's giving him data center to

>> Yeah.

>> Right. to eliminate.

>> Yeah, you're right. It it doesn't as

long as each company feels that there's

a benefit, it's ethical,

uh, that they'll make a deal. They

don't. They'll let bygones be rock.

SpaceX and Open AI may make a deal.

Don't don't scoff.

>> I don't know about that one. Okay, that

you're pushing it there. You're pushing

it. All right. Okay. So, uh Elon knew

that this was happening. Look at this.

September of 2025. So, that was like uh

you know, eight months, whatever ago. He

said, "Buy a shitload of GPU. Step two,

I don't know, but step three, I know

I'll profit. I'll know I'll profit." And

this guy said, "Xi master plan was right

under a nose all along." Elon, this is

his post at the time. Elon said,

"Hardware is hard. Hardware is hard.

Hiding in plain sight." The strategy was

always hiding in plain sight. Um, you

know, so it's not just buying, like you

said earlier, it's not just buying the

chips. It's actually creating a coherent

data center. And that's that's that's

why these guys are struggling and the

cost and utilization all that that

you're talking about.

>> By the way, it's the same it's the same

playbook for robo taxi

>> the the the cost structure of Tesla robo

taxis and allow them to drive up really

high utilization and where Uber can't do

that. They won't be able to compete with

the cost structure. It's it's not only

the cost per vehicle and the cost of you

know cleaning and so forth. those in

unit economics it's the it's the rate of

fixed cost absorption and this same

playbook is is going to play out in robo

taxi

>> yeah okay operations cost all right uh

you mentioned earlier that you you one

of the suspicions you have is that these

guys are lining up because they want

first dibs if one space data centers

become a thing and that's true so

anthropic the uh Daniela Amod president

and co-founder of anthropic I think

she's the sister of

>> Dara Dario. Thank you. Anthropic is

interested in SpaceX data centers in

space. According to her, Thropic

expressed preliminary interest in using

potential SpaceX data centers in space.

Uh while playing down the near-term

timeline, she doesn't think that you'll

be able to do it until 2027, which

actually in our in our to-do list in

2027. That's kind of earlier. I thought

it was 2028 or even longer than that.

Let's listen to what she said. next

year.

>> SpaceX Anthropic expressed preliminary

interest in using potential data centers

in space. Uh what do you think about

that? Is that a reality? And how far out

are we from that?

>> I don't think that data centers in space

are something that will be uh will be on

our our to-do list in in 2027. But I you

know, I will say AI is the field that

has surprised me the most. It's probably

surprised the world the most in terms of

just what new things are possible are

made possible by the advent of this

technology. So, um, no immediate

immediate plans for, uh, for working

with the astronauts to to get Space

Center, uh, data centers going, but you

never know.

>> Oh, okay. So, she actually it's the

opposite of what I I guess what I was

thinking. She said, "No plans doing it."

Uh, I certainly won't be thinking about

it's not on our to-do list in 2027.

>> It's not ready, so it's it's fine. And

it's in a couple years out, but the get

in in supply chain there's things like

for example this lithography equipment

to make chips. There's things that you

have to reserve three and 5 years in

advance. And don't think that these

companies, back to our previous

discussion, aren't going to be lining up

to get a ticket on Starship. Don't don't

think that that's not going to happen.

And don't think that that's not going to

be tied to a bunch of deals. hardware is

Elon has has taken this capability in

hardware and manufacturing and turned it

around into a massive competitive moat.

This is why Teslas are made profitable.

This is why robo taxis are going to

scale faster including of course FSD and

Tesla's endtoend approach. But it

Tesla's hardware approach

it which is the same you know ethos

inside of SpaceX

that is creating a tremendous moat for

both of these companies

uh that just these other these other

companies that are purely just have

these pure software skills that are

dabbling like Enthropic Anthropic is

hiring chip designers. They've got a

team. Open AAI's got a team. Like

they're trying to get into it. they're

trying to do the hardware side of this.

It's not going to be easy. And you can't

just do hardware. You've got to you've

got to really have a competitive

advantage cuz if you just do it and you

get something out there, you may erase

that that margin you were paying to an

Nvidia or whatever. But it's not in the

end, you're not going to have an

advantage because they're going to be

able to move faster. You're going to

have to do something that they cannot

do. That's why the size of terraab and

the collocation of terraab and and

everything that's inside of a terapab is

so unique to like what a TSMC fab is

like. When Elon takes these things on,

he approaches them in a different more

holistic manner than than just doing

what Terraab is not another TSMC.

teraf yeah you know this this concept of

hardware expertise and experience takes

years and then it shows up and here just

one more point about SpaceX then we're

going to talk Tesla stock you know this

is another example you know you're

you're you're competing against LLM

which is a software intelligent AGIS and

then Elon says okay you need the

hardware so I'm gonna buy this data

center so I'm gonna get it up sooner I'm

gonna buy more than everyone else now

they're renting out to the other players

the came and then all of a sudden the

revenue comes like that. And that's my

point that people were not even thinking

that these revenue were existing and now

they're $26 billion per year if it was

if it was a full year run rate just like

that. And you know Rob Mer said remember

a couple weeks ago when everyone was

saying a 100x price per sales was crazy

for SpaceX and all of a sudden in just a

couple weeks it's now like 39x. Shows

how dumb that type of analysis is. And I

think that's the same kind of you know

fallacy with Tesla.

Now Tesla's has taken four years. So

people are you know given yes you're

right it has taken a long time but at

some point all of the preparation the

infrastructure the it's not just the

cars the operational that they're

working on and you pointed out it's

going to show up and it's going to show

up and it's going to be scale and then

it's like that all of a sudden massive

revenue massive earnings. So

>> put a pin in something Herbert one

before we jump into the next topic

because the other side of this debate is

Elon and SpaceX built out too much

compute. Grock is not good enough

>> and does not need the compute and

therefore he's got to go sell it.

>> First off, he's not selling this compute

for pennies on the dollar. He is getting

a very good rate for for what he's for

what he's selling. Second, if you you

have to be literate and you have to read

the even the the short contractual terms

that are put out. He's he gives a le a

90day or less notice that he could pull

the capacity back.

>> This is totally a utilization play. This

is going to take SpaceX cost per token

way down and he can pull the capacity

within 90 days. You can't get Nvidia

chips. If you put an order in, you are

not getting Nvidia hardware within 90

days. Much less are you then receiving

that hardware and building a new data

center. So Elon has given himself the

the flexibility in his company the

flexibility to turn on and off this

leased out capacity faster than the

other companies or his company can get

chips and then certainly faster than

they could actually build out a new data

center. So tell me who's actually in

control if he can do that inside of the

lead time for the actual physical

hardware to be made. Who's actually in

control? So this take and this take is

out all over CNBC and it's all over uh

traditional coastal media is oh Grock

isn't good enough. He doesn't need the

compute. He overbuilt it. So now he's

selling it. But if you look at the

contractual terms, he is totally in

control of this and both financially and

to to take the capacity back for himself

when his next, you know, multi- trillion

models parameter models are ready.

>> And yeah, it's a good reminder that

there Grock is running seven models on

Colossus 2. So it's not like uh they're

using all of it, but they're already

running seven. One of them is 1.5

trillion, which is more than everyone

else. So, it's crazy. He just overbuilt

like significantly. And then wait till

he uses it. Wait till they use it. Then

you're talking about a magnitude

difference in intelligence. All right,

let's go back to Tesla. Uh big whales

are buying Tesla. Now, you can say

they're buying it because they're

preparing for robo taxi scale next year.

You went through a massive long list of

all these great milestones that are

coming in the next six months. Or they

could buying it because they want to be

in good graces with Elon for SpaceX IPO.

make a lot of money that way and

certainly Morgan Stanley JP Morgan I

would put in that category but this guy

Dwan Yungpin he's considered to be the

Chinese Warren Buffett he's built a 1.27

billion position Tesla in a Q in Q1 um

so he owns 3.4 million shares market

value is 1.27 27 billion. It's 6.3% of

his total portfolio, fifth largest

holding overall.

>> He bought Yeah, that 6% not just 1%. And

uh reported price of $371. So it's not

like it wasn't cheap, but it also

obviously it's not it wasn't expensive.

He's been buying over the last year. um

widely recognized for his highly

concentrated ultra disciplined value

investing philosophy

uh his and what makes it incred

incredible was that his complete change

of heart historically he was a vocal

skeptic of Elon he shifted his stance

after experiencing Tesla's efficacy

firsthand yeah people just don't believe

it until they try it he recently praised

the tech as truly remarkable completely

separating his personal opinion of Musk

from the objective economic and product

disruption Tesla is driving. Kudos

legendary value whale deployed this much

capital. Tesla provides massive

institutional validation for long-term

autonomy thesis.

>> That's going to make all the uh Tesla's

at too high a PE people their heads

explode. They look these these people

are seeing things and they're timing

things. You know, sometimes they get it

right, sometimes they get it wrong. But

you what you want to do is whenever

these companies are making a move, you

just want to understand why they're

doing it and kind of how big is the move

relative to their portfolio. But they're

not always right and sometimes they're

wrong. You just look at the reasons. I

heard that he took a recent FSD ride and

I think a lot of people are getting

hooked. A lot of people are getting

hooked to buy the car off of just off of

just a single FSD ride. And I could

imagine it also driving investment. I I

remember the first time I test drove a

Tesla. It it was this was over gosh 13

years ago, more than 13 years ago. And

you know, I was ordering it the same day

and I was in it was on a Saturday and I

was investing on Monday when the market

opened. It it was that meaningful of an

experience for me and just that one test

drive. And again, this was no FSD. There

was nothing at the time. It was to me it

was just the the performance and

capability of the vehicle and how it

drove. And now look where we are now 13

years later when you get in the car and

you just have to say, you know, hey

Grock, I want to go here and everything

is it's one button press and you're and

the car is driving itself. So some of

that is happening. I think there's a

there's a huge word of mouth eye opening

thing happening with FSD2 because it's

so it's so good at this point and now

other countries are experiencing it that

it's also going to drive some of this

activity.

>> Yeah. Here is his portfolio two 20

billion. This is as of Q1 19 19 stocks

and then uh Tesla is in the top five

holdings but his biggest holding is

actually Apple 36% Birkshire Hathaway

21% Nvidia 12% company called Pin Dual

Duel and then Tesla. So uh but that if

you look at the change percentage change

in portfolio in Q1 Tesla's actually

number one 6% growth in how much he

invested in that. Yeah it's good list. I

like his list. Uh, makes sense. But he

just did a complete reversal and so did

JP Morgan and Morgan Stanley. If you

guys know JP Morgan was a perma bearund

and whatever dollars hated Tesla

>> $50 car. Yeah.$145

>> for years

and now they changed. Now they've

upgraded to a buy underway to neutral

sorry but now 475. It's crazy. 145 to

475. 227% increase in there. I mean,

three major factors. I don't know where

he where this guy got this from. Um, AI

and autonomy shift, market and reality

check. Yeah, they've had it for years. I

don't think that's it. Burring the

hatchet. And we know that Jamie Diamond

just hosted Elon Musk last weekend, last

week. Uh, and actually interviewed him

and his mother. I honestly feel like

Jamie said, "Hey, can we have May Musk

here so that you know he'll like me

again?" You know, like I'm gonna be nice

to the mom. Uh but we know that and and

so so is pointing out that this price

target wasn't because oh they became

bullish all of a sudden. They they they

basically got rid of the old analyst.

They got a new analyst and the new

analyst is saying this now clearly from

my perspective it's because they want to

be part of the SpaceX IPO and so now

they're making good and trying to you

know make amends have a new analyst fix

this. Elon says fine you're part of the

IPO and that's what happened.

>> But at the core of it the old analyst

wasn't accurate. That's to me the core

of it.

>> If if he was bearish and accurate, I

would have tremendous respect for that.

I always want to hear the bear case, but

whether you're you're bullish and not

accurate or bearish and inaccurate

and that's why he's not there. So, I

think that's I think that's actually

more of the driving case, but I I can

see these other ancillary things uh

stepping in. it they're not it's not

supposed to there's supposed to be a

wall between these things but like I I

get the story about a wall all the time.

There's a wall at the ad you know the ad

buyers for these there there's no way

that they're buying ads just to get

favor with the of course they are. So

yeah these walls really don't exist.

This is what this this this example is

showing you that the other analyst

wasn't he wasn't accurate.

Yeah. Uh it's embarrassing actually and

they just did it because I think a spite

and of course he was wrong. Uh Morgan

Sally they've also are now back in the

game and they're buying. So they've in

the Q1 again everybody's was buying in

Q1. Another $1.26 billion of capital

back into Tesla. Big money stacking

again. You know this is the thing about

uh what's happening is now institutions

own over 51% of Tesla stock. Retail,

which used to be over 50%, is now down

to 31%.

So that's it. Big money is buying Tesla

now. This is we've been waiting for

this.

>> Yeah.

>> Stock is flat.

>> Yeah.

>> I

>> retail getting scared out because of

Robbo taxi too slow, right? Like the

wrong timing for retail to get scared

out.

>> Yeah. Again, we're not giving anybody

advice what what or when to do do

things, but

uh it just looks like a table's being

set and and dinner time is like it's

it's around, you know, 6:30 7 like it's

close. We don't know exactly when dinner

is going to be called, but you can smell

it like it's close.

>> Uh but at the same time, you know,

people can do whatever they want.

There's other there's other stock

there's many other stocks like there's

so many other themes that are happening

in the market right now. uh people can

do whatever they want but uh you I mean

we're showing data both the the banks

the institutions

and these these mega hedge funds are

starting to to I don't think it's enough

by the way I don't think it's like it's

not across the board like if you look at

some of these across the board they just

look like mag seven uh these hedge funds

just holding to just a ton of mag seven

stocks but I think there's going to be

this here's where I predict is

happening. There was a shift from chips

and just mag 7 a year or so ago. And I'm

not saying those stocks are bad. They're

they're obviously doing very well. The

earnings growth is great. But then

there's clearly been a shift over the

last year to the AI AI ancillary stocks.

The stocks the companies that are

that feed power into the data center for

example and so forth. They're those are

going cooling and so forth. Those have

been going through the roof. I think the

next rotation there could be many

rotations but one is definitely into

physical AI. I think Tesla's going to be

front and center and I think the moat is

going to be very large but I think

you're going to see two things

happening. One is a shift in emphasis on

Tesla as the only public company with

tremendous physical AI assets and then

you're going to see a bunch of startups

be be go public. Uh I think that's the

other though the the next wave that's

happening in physical AI.

>> Well Jeeoff thank you for uh sharing

your time for the audience. You are the

expert in physical assets. I mean and

it's that is Elon's playbook isn't it?

It's hardware is hard and he doesn't

just do it for Tesla which is bots and

cars and people can see that and that's

why things are taking forever and

operations too by the way. It's not just

hardware and operations uh efficiency.

He's doing it for Tesla but takes so

long to show up. He's doing it for

SpaceX too and actually and he's doing

it for AI as well. People are like just

don't realize it's the same playbook.

It's pretty obvious he said but no one

can really do it. That's the difference.

And then you've got the experience to

actually uh guide us here. Thank you

Jeff. Follow him on his ex account at

the Jeffoff Lots. Thanks everybody. I've

created a website that is the most

comprehensive resource for the Tesla

investor. Please check it out. Simply go

to my website at herbalm.com.