Tesla's Future: Large Investors Bullish, TSLA Stock on the Rise

Large investors, including Ron Baron, have high conviction in Tesla's future despite the establishment's opposition, and there is potential for Tesla's stock price to increase as more money enters the market 

Questions to inspire discussion

• Who are the preferred fund managers with a big Tesla exposure?

  —Ron Baron, Kathy Wood, Gary Black, and Real Meet C are the preferred fund managers with a big Tesla exposure, and their current exposure in their flagship funds is discussed in the video.

• What is the current asset under management for Kevin's fund?

  —Kevin's asset under management has decreased to 37.5 million due to Tesla stock being down, as discussed in the video.

• What is the number one position in two different funds?

  —Tesla is the number one position in two different funds, with one fund initially having diversification guidelines that were changed to allow Tesla to rise to 36%.

• What are the potential financial catalysts for Tesla?

  —There are potential financial catalysts and rating upgrades overdue for Tesla, as discussed in the video.

• What changes are being made at Tesla in terms of AI and supercomputing?

  —Elon Musk is making changes at Tesla, including the firing of a Dojo employee, in order to achieve big goals quickly and ensure that everyone is fully committed to their job, as discussed in the video. 

Key Insights

• 📊 Ron Baron is the preferred fund manager with a big Tesla exposure, followed by Kathy Wood, Gary Black, and Real Meet C.
• 📉 Baron partner fund initially had Tesla at close to 50% of their portfolio, but has since trimmed their holdings due to taking gains at a higher price.
• 📈 Large investors are maxing out their positions in Tesla, showing high conviction in the company's future.
• 📊 A comparison of Tesla and RK's growth over the last five years shows interesting trends.
• 📈 Baron Partners Fund outperformed everyone over the last five years, with a 200% performance, while others fell down and were miserable.
• 📉 The Establishment has decided to be against Elon against X against Tesla so that also incorporates obviously journalists and that incorporates as well rating agencies.
• 📈 There's still a lot of money on the sidelines that will want to get back into stock, potentially driving Tesla's stock price up.
• 🚗 Tesla is working to replace Nvidia on the network and training side with Dojo, which is a significant move in the AI space.

#Tesla #Dojo

Clips 

• 00:00 📈 Tesla's large whale investors, including Ron Baron, Kathy Wood, and others, have varying exposures in their flagship funds, with ARK Invest experiencing a significant decrease in assets and institutional investors having a lower cost factor in the Baron Partners Fund.
  • In this episode, the focus is on institutional fund managers investing in Tesla, with Alexander MZ providing a full report on the topic.
  • Ron Baron is the preferred fund manager with a big Tesla exposure, followed by Kathy Wood, Gary Black, and Real Meet C, and their current exposure in their flagship funds is discussed.
  • Kevin, Gary Black, Baron Capital, ARK Invest, Future Fund, and Real Meet Kevin have different funds with varying assets under management, with ARK Invest experiencing a significant decrease in assets.
  • Future fund is currently at its highest, with two funds making about 10.5 million, while Kevin's asset under management has decreased to 37.5 million due to Tesla stock being down.
  • Institutional investors have a lower cost factor than retail investors in the Baron Partners Fund, which is a mutual fund with less transparency and higher costs compared to ETFs, with different funds having varying sizes and concentrations in tech holdings.
  • Tesla is the number one position in two different funds, with one fund initially having diversification guidelines that were changed to allow Tesla to rise to 36%.
• 08:16 📈 Tesla's large whale investors, including Baron Partners Fund and Ark, have high conviction in the company's future, with speculation about potential stock rotations and the 10% rule still applying for institutional investors.
  • Baron Partners Fund holds 4.1 million shares of Tesla and uses leverage to play with margin and options, believing the market is going up.
  • Ark now has Tesla as its number four position with 7.5%, while the future fund of Gary has Tesla at the second position with 7%.
  • Investor has high conviction in Tesla, maxing out his fund on Tesla and not considering any other EV or car stock, with a comparison of performance to Ark K fund.
  • Tesla has outperformed RK over the past 30 years, with a 11x return compared to RK's 1.3x return in 10 years, and a chart comparison over the last 5 years.
  • Baron Partners Fund has outperformed others in the last five years, with Ark K shining in the last month, and there is speculation about whether Ark will rotate out of certain stocks as they start to climb.
  • Institutional investors heavily invested in ARK funds have clear diversification standards and do not want a highly concentrated fund in one stock, which is why the 10% rule still works in their environment.
• 16:51 📈 Investors bullish on Tesla, concerns about conflicts of interest and managing other people's money, doubts about Kathy Wood's use of the Tesla theme, and discussions about the trustworthiness of investing with meet Kevin.
  • Investors like Ron Baron and Kathy Wood are very bullish about Tesla, but there are concerns about conflicts of interest and managing other people's money while promoting the company.
  • Kathy Wood's bullishness on Tesla doesn't align with the actions of her funds, leading to doubts about her use of the Tesla theme for other purposes.
  • Gary is managing his fund and has a unique perspective on Wall Street, but the speaker believes he should have a firm for people who want to do their own trading rather than running an ETF.
  • Kevin is a consistent Tesla bull who has invested 25% of his fund into Tesla, but his YouTube persona and attention-seeking behavior may backfire.
  • The speaker discusses the trustworthiness of investing with meet Kevin and the decision to stick with a 100% position in Tesla.
  • The speaker discusses a German man who lives in Ventura and has a life story that could be a book.
• 24:07 🚀 Tesla's large whale investors have minimal impact, Elon Musk has potential financial catalysts and rating upgrades overdue, and Tesla is looking to secure a credit line and create an asset-backed security.
  • Meet Kevin is an entrepreneurial fund manager who may not fully understand his fiduciary responsibility, but has earned respect for his impact and helped save businesses during the pandemic.
  • Institutional investors like vanguards and fidelities have minimal impact on Tesla's stock, and Ross Gerber's fund, GK Kavasaki, operates under advisor shares with a miserable year.
  • Ross Gerber has been flip-flopping in his attitudes towards Elon Musk and his firm does not have 100 million in Tesla, but rather 5,000 shares.
  • Elon Musk has a lot of Tesla shares managed for clients, and there are potential financial catalysts and rating upgrades overdue for Tesla.
  • Tesla is looking to secure a credit line and create an asset-backed security to remove leases from their balance sheet and free up room for new leases.
  • The speaker discusses the anticipation of potential upgrades from rating agencies and the impact of future announcements on Tesla's stock performance.
• 34:22 🚗 Tesla is expanding its capacity and production to include a $25,000 car, with uncertainty about the location, and the new factory in Berlin will not affect car production in India.
  • The CEO has put a lid on the stock and cybertruck until he gives the all clear, but if there's a nice surprise at the delivery announcement or an improvement in conditions, the stock could see a big quarter.
  • Tesla's capacity has increased, Elon Musk is being cautious with his statements, and there are positive developments with the Gen 3 model 2 car.
  • Giga Texas, Giga Mexico, and Giga Shanghai are all expanding to produce the $25,000 car, with uncertainty about which location will be first.
  • Tesla needs to build the low-priced car at scale and geographically located where they will sell it to avoid outsized distribution costs.
  • Tesla's production output will be in Mexico, Berlin, and China, with the question of who covers India, and the production line in Berlin may need to be different due to the steering wheel being on the right.
  • Tesla's new factory in Berlin will not affect car production in India, as they will continue to produce cars in Shanghai due to duties.
• 42:46 🚗 Tesla investors and community members are recognized and appreciated, with a recommendation to subscribe to Nick Colas' newsletter for market insights.
  • Sander attended the Giga Austin event, met people he talked to online, and got Martin Vieta's autograph.
  • The speaker had a great time at a special event, got recognized, and is grateful for the community.
  • Met with employees and retail investors who purchased the Tesla truck, noticed different types of trucks with and without badges, and thanked someone for bringing them.
  • Elon Musk's early investors are being recognized and appreciated, with one person sharing a heartwarming story about how their content has helped others.
  • The speaker discusses the current state of the market and recommends subscribing to Nick Colas' daily newsletter for valuable insights.
• 48:26 📈 Tesla investors remain optimistic despite market uncertainty, with potential rate cuts by the FED and positive signs for Tesla's production and delivery numbers.
  • The State Street institutional investors risk appetite index shows a shift from high risk appetite to low risk appetite in 2022, with a brief increase in July, but now back to zero.
  • Tesla stock has fallen but there is still a lot of money on the sidelines waiting to get back into the stock market.
  • Tesla's production and delivery numbers are expected to be around 1.8 million, with potential adjustments in interest rates and job data impacting the market.
  • Economic data points are pointing towards a worsening economy, with lower job openings and pending home sales, leading to speculation about potential rate cuts by the FED in March.
  • The speaker discusses the possibility of the Federal Reserve cutting rates and the impact it could have on the market.
  • Tesla investors are seeing positive signs despite the market's uncertainty about bad news, with adjustments in FED funds futures and rate reductions, and a lot of good news coming in for Tesla.
• 56:55 🚀 Tesla's Dojo supercomputer Project Lead has left, new lead from Apple is in charge, rumors of next Generation Dojo not meeting expectations, Tesla's silicon team working to replace Nvidia, AI updates expected soon, Elon Musk making changes at Tesla, investors educated by institutional fund managers.
  • Tesla's Dojo supercomputer Project Lead Ganesh and caman has reportedly left the company, and Peter Bannon, previously at Apple, is now in charge.
  • The new Project Lead for the dojo supercomputer is a living legend in the tech industry for silicon design, and there are rumors that the next Generation Dojo may not meet performance expectations.
  • Tesla's silicon team is working quickly to replace Nvidia on the client and network side with Dojo, and updates on Tesla's AI effort are expected soon.
  • Morgan Stanley chip specialist believes Tesla will have AI in the next three to four months, and the speaker is waiting for Tesla to get credit for being an AI company.
  • Elon Musk is making changes at Tesla, including the firing of a Dojo employee, in order to achieve big goals quickly and ensure that everyone is fully committed to their job.
  • Tesla investors are educated by institutional fund managers and the speaker has created a comprehensive website for Tesla investors.

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