Tesla's innovative technology, leadership, and potential for high returns make it a strong investment for the next 15-20 years
Questions to inspire discussion
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What makes Tesla a strong investment?
—Tesla's innovative technology, leadership, and potential for high returns make it a strong investment for the next 15-20 years, according to billionaire Ron Baron.
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How does Tesla's vertically integrated model set them apart?
—Tesla's vertically integrated model sets them apart from other car companies, allowing them to avoid the losses that Ford experiences on every electric car they make and sell.
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What advantage does Tesla have in autonomous driving technology?
—Tesla's proprietary data and exponentially growing compute for autonomous driving will give them an insurmountable advantage, allowing them to make money from every car on the road through charging and licensing their full self-driving technology.
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What makes it difficult to forecast production ramp for Tesla?
—Forecasting production ramp for a publicly traded company like Tesla is difficult due to the slow and unpredictable nature of the production ramp, which is constrained by the least competent part out of 10,000 unique parts and processes.
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What is the potential impact of the Cybertruck on Tesla's financials?
—The Cybertruck may not have a significant impact on Tesla's financials until 2025, with predictions of 250,000 units sold and potential $3 billion in profit, while also anticipating the release of a $25,000 Tesla model.
Key insights
- 💰 Ron Baron believes Tesla will make 6-8 times return over the next 10 years and SpaceX will double in the next 3-4 years.
- 🔋 Ron Baron sees traditional gasoline car manufacturers as having stopped being innovators and focused on making money, while Tesla continues to prioritize innovation and pushing the boundaries.
- 🤖 Tesla's exponentially growing compute to train AI has created an autonomous driving advantage that is believed to be insurmountable, making self-driving technology virtually here.
- 🚗 Ron Baron predicts that every company will have no choice but to license Tesla's FSD because autonomous lives are at risk.
- 💼 It's harder to get a job at SpaceX or Tesla than it is to get into Harvard.
- 🔥 Understanding the relationship between voltage and current is crucial in reducing heating and wire thickness in electrical engineering.
- 📈 Production ramp for Tesla is difficult to forecast due to the complex and slow S curve, with 10,000 unique parts and processes.
- 🏭 "It's a level of production technology that is far in advance of any Automotive plant on Earth."
#Cybertruck #Tesla #RonBaron
Clips
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00:00 🚀 Billionaire Ron Baron thinks Tesla's Cybertruck is cool and highlights the importance of differentiation in business, with Tesla and SpaceX representing 14% of the firm's AUM and potential for high returns over the next 15-20 years due to Elon Musk's leadership and innovation.
- Billionaire Ron Baron believes Tesla's Cybertruck is incredibly cool and emphasizes the importance of differentiation in business.
- Tesla and SpaceX represent 14% of the firm's AUM, with potential for 6-8 times return in Tesla and 30-50 times return in SpaceX over the next 15-20 years.
- Tesla is a fast-growing company with a pace of innovation that is driven by Elon Musk's careful leadership and dedication to pushing earnings back into new projects like the Cybertruck.
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03:01 💡 Tesla's vertically integrated model and proprietary data for autonomous driving give them a significant advantage over other car companies, allowing them to make money from every car on the road through charging and licensing their full self-driving technology.
- Ford loses $36,000 on every electric car they make and sell, while Tesla's vertically integrated model sets them apart from other car companies.
- Tesla's proprietary data and exponentially growing compute for autonomous driving will give them an insurmountable advantage, and they will make money from every car on the road through charging and licensing their full self-driving technology.
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05:17 🚗 Tesla is leading in autonomous and electric vehicles, and other companies will have to license their software because the roads are going autonomous and electric, while dealerships don't want to sell EVs due to lower service revenue and lower commissions.
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06:37 🚀 Engineers at Tesla and SpaceX are highly sought after, with 3.5 million applicants for 30,000 jobs and a Godlike status, making it harder to get a job there than to get into Harvard.
- Tesla and SpaceX have the best engineers, with 3.5 million applicants for 30,000 jobs, making it harder to get a job there than to get into Harvard.
- Engineers at Tesla and SpaceX have a Godlike status, with the opportunity to work on innovative projects and get the attention of Elon Musk, making them highly sought after.
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08:57 🚀 Elon Musk's initiatives, such as Starlink and Tesla, are saving taxpayer money and making significant contributions to climate change, despite criticism from some people.
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10:13 🚗 Higher voltage reduces resistance losses, allowing for lighter wiring in traditional vehicles.
- Higher voltage reduces resistance losses, allowing for thinner wires and less copper in the wire harness, resulting in a lighter weight.
- Traditional vehicles have power loss due to wiring, but increasing the power supply by 4X to 48 volts reduces power loss and allows for smaller, lighter wiring.
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12:08 🚀 Tesla's production ramp is unpredictable, Cybertruck may not impact financials until 2025, with potential for 250,000 units sold and a $25,000 model release.
- Forecasting production ramp for a publicly traded company like Tesla is difficult due to the slow and unpredictable nature of the production ramp, which is constrained by the least competent part out of 10,000 unique parts and processes.
- Cybertruck may not have a significant impact on Tesla's financials until 2025, with predictions of 250,000 units sold and potential $3 billion in profit, while also anticipating the release of a $25,000 Tesla model.
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14:45 🚀 Billionaire Ron Baron talks about Tesla's advanced production technology and potential for a $25,000 car, inviting viewers to join his Discord Channel for further discussion.
- Billionaire Ron Baron discusses the advanced production technology and high volume manufacturing of a low-cost electric vehicle, stating that it will revolutionize car production.
- Billionaire Ron Baron discusses the potential for a $25,000 Tesla car and invites viewers to join his Discord Channel to further discuss the possibilities and innovations.
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