Warren Buffett's perspective on Tesla's full self-driving technology and its potential impact on reducing accidents raises questions about the future of the insurance industry and the overall societal benefits
Questions to inspire discussion
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What is Warren Buffett's perspective on Tesla's full self-driving technology?
—Warren Buffett believes that Tesla's full self-driving technology could reduce accidents by 50%, which would be bad for insurance company volumes but good for society.
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How will Tesla's autonomous driving goal impact Geico?
—If autonomous cars significantly reduce accidents, insurance rates will fall, impacting Geico's revenues and margins.
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Will Warren Buffett buy Tesla stock?
—There is speculation about whether Buffett will buy Tesla stock, but he has expressed concerns about the impact of autonomy on insurance and repair costs.
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What is the potential impact of automated driving on society?
—The impact of automated driving on society will be significant, with rapid improvement in intelligence and cost structure, potentially saving lives and reducing insurance costs.
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Why is Warren Buffett hesitant about investing in Tesla?
—Warren Buffett is hesitant about Tesla stock due to concerns about the impact of autonomy on insurance and repair costs, but he has previously invested in technology companies like Apple.
Key Insights
- 🚗 Warren Buffett's surprising answer about Tesla's full self-driving reducing accidents by 50% being bad for insurance companies but good for society raises questions about the future of the industry.
- 🚗 Tesla has engineered their vehicles to have the lowest cost in terms of autonomy solutions, greatly reducing the probability of causing a collision.
- 🚗 Tesla's technology may reduce accidents, but the repair cost of each accident has skyrocketed, potentially impacting the overall cost.
- 🚗 Tesla's FSD miles are estimated to hit 2 billion before the annual meeting, raising questions about the likelihood of saving fatalities and insurance costs.
- 🤯 Warren Buffett finds it hard to fathom the impact of preventing 10 people from being in crashes in just a few weeks, stating that you can't put a price on it.
- 💰 Starting small for Warren Buffett could easily mean a 10 billion dollar position in Tesla.
#Tesla
XMentions: @herbertong @theJeffLutz @HabitatsDigital @R6Alex @FutureAza
Clips
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00:00 📈 Warren Buffett discusses the potential impact of Tesla's autonomous driving on insurance companies and society, speculating on whether he will buy Tesla stock.
- Warren Buffett's response to the potential impact of Tesla's full self-driving on Geico insurance was that it could reduce accidents by 50%, which would be bad for insurance company volumes but good for society, and there is speculation about whether Buffett will buy Tesla stock.
- Warren Buffett was asked about the potential financial effects of Tesla's autonomous driving goal on Geico, and he explained that if autonomous cars significantly reduce accidents, insurance rates will fall, impacting Geico's revenues and margins.
- Tesla stock and Warren Buffett's thoughts on insurance and society.
- Ralph Nader has significantly reduced the number of people killed per 100 million passenger miles driven, and during the pandemic, people drove fewer miles but more dangerously.
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04:49 🚗 Tesla's autonomous driving and insurance solutions could lower costs for drivers, while the company has engineered their vehicles to be low cost and reduce the probability of collisions.
- Tesla has a lot of data from its sensors and is likely to bundle autonomous driving and insurance solutions, which could lead to lower costs for drivers.
- Repair costs for vehicles with more technology are increasing, but it's important to be cautious and not make broad assumptions.
- Tesla has engineered their vehicles to be low cost and with autonomy solutions to greatly reduce the probability of collisions.
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07:23 📈 Tesla's FSD software is improving, and Warren Buffett should consider hedging against potential impact on his core businesses.
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08:50 📉 Berkshire Hathaway executives skeptical of Tesla's accident reduction claims, focus on reducing repair costs and incident rates through modular design and legislation, Warren Buffett expresses concern about Tesla's stock and discusses potential for unbox model to improve repairability.
- Berkshire Hathaway executives are skeptical about Tesla's claim that their technology reduces accidents, as they believe the repair costs for each accident have skyrocketed, and they are unsure if the total number of accidents has decreased as much as Tesla claims.
- Companies, including Tesla, are focused on reducing cost per repair and incident rates in multiple industries, such as consumer electronics, through modular design and legislation.
- The right to repair movement is pushing manufacturers to make their products more repairable, and the cost per repair for self-driving computers and other components in vehicles may not necessarily increase in a straight line.
- Tesla is focusing on modular assembly and repair processes to reduce incident rates and ultimately lower repair costs.
- Warren Buffett expressed concern about Tesla's stock and discussed the potential for the unbox model to improve repairability.
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13:26 🚗 Tesla's FSD has crossed 1.5 billion miles, preventing 7 crashes per day and potentially saving one life every week, with significant impact on society and cost structure.
- Tesla has crossed 1.5 billion FSD miles and will hit 2 billion before the annual meeting, which is significant in terms of saving fatalities and insurance costs.
- Supervised FSD is preventing seven crashes per day, potentially saving one life every week, and it's hard to put a price on the value of that.
- The impact of automated driving on society will be significant, with rapid improvement in intelligence and cost structure.
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16:16 📈 Elon Musk suggests Warren Buffett should invest in Tesla as a hedge on his oil and gas holdings and to take advantage of the increasing value of full self-driving and robotaxi technology.
- There are still open issues and more work to do regarding Tesla stock and it is not legal to set it and jump in the back seat.
- The speaker discusses the potential for significant improvement in Tesla's next release and whether Warren Buffett should invest in Tesla.
- Elon Musk suggests that Warren Buffett should invest in Tesla as a hedge on his oil and gas holdings and to take advantage of the increasing value of full self-driving and robotaxi technology.
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19:11 📈 Warren Buffett may consider investing in Tesla as a hedge against declining industries, despite concerns about autonomy and volatility.
- Warren Buffett may consider investing in Tesla as a hedge against declining industries, despite his current focus on safety and buybacks in Apple.
- Warren Buffett is unlikely to invest in Tesla due to concerns about the impact of autonomy on insurance and repair costs, but he previously said he would never invest in technology and ended up investing in Apple.
- Warren Buffett invested in Tesla because of their large cash reserves and potential for future profits, despite the volatility and competition in the market.
- Warren Buffett is hesitant about Tesla stock, but the company has made significant advancements in the EV industry and battery electric storage.
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23:19 📈 Warren Buffett may consider investing in Tesla as a small hedge against other business risks.
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Duration: 0:24:29
Publication Date: 2024-05-07T19:17:26Z
WatchUrl:https://www.youtube.com/watch?v=KMyAdOybEGE
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