Tesla Executives Face Four Key Decisions

Herbert Ong, Tesla -

Tesla Executives Face Four Key Decisions

Tesla executives are facing big decisions related to Full Self-Driving technology, potential partnerships, stock performance, new products, and manufacturing decisions 

Questions to inspire discussion

  • What decisions are Tesla executives facing?

    Tesla executives are facing decisions related to Full Self-Driving technology, potential partnerships, stock performance, new products, and manufacturing.

  • What is Elon Musk considering regarding Tesla's self-driving technology?

    Elon Musk is considering licensing Tesla's self-driving technology to other car companies, potentially allowing them to integrate it into any car for free or at cost.

  • What are investors debating about the integration timeline for FSD licensing?

    Investors are debating the integration timeline for FSD licensing, with some believing it's imminent and others questioning the feasibility.

  • What are the potential impacts of offering full self-driving for free?

    Offering full self-driving for free may raise concerns about constructing a monopoly and the need to carefully consider the integration of technology and the return on investment.

  • What are the potential partnerships Tesla is considering?

    Tesla is considering partnerships with companies like Ford, Rivian, and potentially Uber, and the impact of FSD on stock performance and the leadership team.

 

Key Insights

  • 🚗 Elon Musk's proposal to license self-driving technology to other car companies could revolutionize the auto market.
  • 🚗 Tesla's robotaxi technology may be bigger than anyone imagines, and it could be an exclusive Tesla business.
  • 🚗 The speed of improvement in Tesla's AI models is vastly different, leading to faster releases and more stable updates.
  • 🚗 Launching a $25k vehicle may initially result in low gross margins, but the ramp-up of the SAS business, energy, and Bots will help improve margins over time.
  • 🚗 The 48 volt architecture unlocks the next phase of what a Tesla looks like, making it a sports car in the shape of a truck.
  • 🚗 A world with Robo taxis everywhere would eliminate pollution and traffic congestion, making it a more desirable place to live.
  • 🚕 The management of Robo Taxis and their operation in urban areas will be a fascinating and debated topic.
  • 🚗 Older generations may struggle to let go of car ownership, while younger tech-savvy individuals embrace the idea of self-driving cars. 

 

#Cyberbulls

X Mentions: @herbertong @TeslaBoomerMama,@theJeffLutz 

Clips 

  • 00:00 🚗 Tesla executives have big decisions to make about FSD, Elon's mistake with the compact car, Giga India, and q1 earnings, including the possibility of licensing self-driving technology to other car companies.
    • Tesla executives have to make decisions about the business model for FSD, Elon's mistake with the compact car, Giga India, and q1 earnings preview.
    • The speaker reaffirms their conviction in Tesla, deciding to invest more money into the company rather than diversifying, and also reflects on the rollout of FSD.
    • The speaker expresses renewed conviction in the success of Robo-Taxis and discusses the importance of finding balance and conviction in decision-making.
    • Elon Musk discussed the possibility of licensing Tesla's self-driving technology to other car companies, allowing them to integrate it into any car for free or at cost, with the car owner paying for the full self-driving capability, and potentially leveraging supercharger deals for partners.
    • Investors are debating the integration timeline for FSD licensing, with some believing it's imminent and others questioning the feasibility.
    • The speaker discusses the importance of driving adoption and the potential risks of providing freebies in deals, emphasizing the need to carefully consider the integration of technology and the return on investment.
  • 07:11 🚗 Tesla executives are considering strategic decisions related to partnerships, technology sharing, business model changes, and consumer satisfaction in the context of FSD licensing and Robo taxi fleets.
    • Partnerships with Tesla need to have early investment, a win-win approach, and a focus on the entire margin picture to ensure a successful and mutually beneficial deal.
    • Tesla executives need to consider the rate of improvement, cost structure, and economic model of their solutions, as well as the strategy for driving significant adoption of their products, particularly in the context of robotaxi technology.
    • Tesla executives are considering giving away their strategic technology for free to other companies, but there may be resistance and they may need to provide compensation for their efforts.
    • Tesla executives are considering decisions related to negotiations, acquiring users for free, changing the business model, and potentially offering full self-driving for free to avoid accusations of constructing a monopoly.
    • Tesla executives need to consider factors such as competitive perspective, R&D effort, risk sharing, and revenue acceleration in their decision-making process.
    • Consumers and OEMs need to determine the value and profitability of FSD licensing and Robo taxi fleets, while ensuring consumer satisfaction.
  • 17:54 🚗 Tesla executives are considering potential partnerships with companies like Ford and Rivian, as well as the impact of Full Self-Driving on stock performance and the leadership team.
    • Tesla executives are considering a partner announcement this year, with some believing it is 100% likely to happen.
    • German OEMs are behind Tesla in terms of technology and may need to partner with Tesla for FSD, while Ford may also be a potential partner despite their current focus on EVs.
    • Tesla executives are considering the attractiveness of partnering with Ford or Rivian, and the impact of FSD on stock performance and the leadership team.
    • Tesla executives need to make decisions about the progress of their system, the focus on electric and self-driving vehicles, and potential partnerships with companies like Uber.
    • Tesla executives need to make decisions about the pace of improvement, the release of new features, and the timing of the build of the compact car.
    • Tesla executives decided to delay the production of the robo taxi and compact car in 2020 due to high input prices, lack of technology, and supply chain issues, in order to avoid compromising the quality of the vehicles and maximize utilization in the future.
  • 30:48 🚗 Tesla executives need to prioritize Cybertruck, plan for new products, and address stock performance and manufacturing decisions.
    • Elon Musk's decision to prioritize the Cybertruck over the affordable mass market car was strategic and necessary for the development of key technologies and the future of Tesla's business model.
    • Tesla executives need to make decisions about the tech developed for the CT, scaling factories, satisfying demand, justifying price changes, and addressing the phases of all.
    • The debate should focus on whether decisions can be pulled in and debated with all associated facts, rather than nitpicking past decisions made by executives.
    • Tesla executives need to plan ahead for the launch of new products, focus on the company's AI capabilities, and consider the impact of launching a lower-cost vehicle on gross margins and operating margins.
    • Tesla's Q1 earnings are expected on April 23rd, with the stock experiencing a significant drop and then a sudden increase, leading to speculation about the reasons behind the stock's behavior.
    • Tesla executives have to make decisions about manufacturing right-hand drive vehicles in Germany, the performance of the stock, and the impact of short-term options.
  • 45:48 🚗 Tesla executives are considering the impact of FSD and major investors, discussing stock price, volatility, supply and demand issues, and potential softness in demand for certain products.
    • Tesla executives are considering the impact of FSD on the market and the influence of major investors like AR and Kathy Wood.
    • Tesla executives are discussing the stock price, short sellers, and the sentiment shift in trading patterns.
    • Tesla executives need to address volatility, supply and demand issues, and provide a clear path forward during the earnings call.
    • Tesla may have supply issues and potential softness in demand for certain products, but the Cyber truck and Model 3 have strong demand and could have prevented a miss in shipments if produced at a higher scale.
    • Investors need to analyze data and make decisions about their investments, considering the volatility of the stock price and the forward PE of the company.
    • The speaker discusses Tesla executives' decisions regarding stock price and earnings.
  • 53:46 🚗 Tesla executives have big decisions to make regarding FSD, Cyber truck, Tesla semi, and upcoming earnings call, including potential impact on Elon Musk's compensation package and jurisdiction change to Texas.
    • Tesla's 48 volt architecture unlocks the next phase of what a Tesla looks like, and the focus should not be on catching the lowest share price.
    • Tesla executives have big decisions to make regarding FSD, Cyber truck, Tesla semi, and upcoming earnings call.
    • Tesla executives are waiting for the proxy, which may include Elon Musk's 2024 compensation package and could impact the upcoming earnings call.
    • Elon Musk has made Tesla's earnings calls unpredictable, and it will be interesting to see if they can articulate their path forward and address any potential surprises.
    • Tesla executives have to make decisions regarding the reelection of Kimbell and Mr. Murdoch, the compensation package, potential appeals, and the impact of the 2018 case.
    • Tesla may be considering moving its jurisdiction from Delaware to Texas and introducing a second share class, which could impact Elon Musk's compensation package, leading to potential delays and decisions on shareholder meetings.
  • 01:04:17 🚗 Tesla executives are facing big decisions regarding Elon Musk's voting power, shareholder support, production in Giga Berlin for India, and potential deals for robotex and a $25,000 car.
    • Elon Musk is grateful for the support and is concerned about not having voting power to influence Tesla.
    • Shareholders showed exceptional support for Elon Musk, with 22 million shares pledged in just four days, urging Tesla's board to give him his money.
    • Tesla executives mobilized quickly in response to anti-capitalistic opposition, and will need support again in the future.
    • Tesla is rumored to be starting production of right-hand drive cars in Giga Berlin to export to India in response to India's slashed import tax rate on certain electric vehicles.
    • India's announcement of Community notes on X is just a small first step, and Mark Spiegel's comments on it are idiotic.
    • Tesla is planning to produce the robotex and a $25,000 car in India, and the terms of the deal are likely to be very favorable for Tesla, extending beyond just auto manufacturing.
  • 01:12:55 🚗 Tesla executives need to make decisions about asset utilization, parking regulations, and the potential impact of autonomous vehicles on urban development, as robo taxis could eliminate the need for car ownership and reduce pollution.
    • Robo taxis would eliminate the need for car ownership, reduce pollution, and ease traffic congestion in cities.
    • The speaker discusses the convenience of using car-sharing services instead of owning a car, especially in suburban areas, and mentions using Uber as a cost-effective alternative when their car is in the shop.
    • Lower prices will lead to increased adoption of electric vehicles, with a focus on fleet management and the transition from big cities to suburban areas.
    • Tesla executives need to make decisions about asset utilization, parking regulations, and the potential impact of autonomous vehicles on urban development.
    • People may have difficulty imagining a future with robot taxis, but the work-from-home period during the pandemic has helped people see the potential benefits of not needing to own a car.
    • The future of car ownership and driving may be tougher for older individuals, while younger, tech-savvy individuals are more open to the idea of autonomous vehicles.

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Duration: 1:20:7

Publication Date: 2024-04-06T01:18:28Z

WatchUrl: https://www.youtube.com/watch?v=TOpm4ivkvSU

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