And we do believe it's the biggest AI opportunity in the world today. So Kathy Wood just said that Tesla is the greatest AI opportunity of our lifetime. Let's watch the clip. Uh, the probably the stock that you've had to talk about to CNBC and everyone else more than any other stock ever.

It's without doubt I'm guessing here I think it's Tesla Kathy and one of the criticisms is your concentration of holding of that stock NOW last time I looked I Think you thought it was a base case in our minimum scenario of something like 1400 bucks per share as well. And we know you're a big fan. But given what you just said about um, the undervalued undervaluation of innovation more generally, is it just not the case that I mean look, we know it's a fantastic company and we know you've done brilliantly, well out of it, and you've backed it all the way through. But but given the pricing of it now compared to the rivals who are really innovating as you say, people are innovating a lot quicker.

Uh, than they had previously. Is the disparity between Tesla and the rest of the auto sector globally? Is it just too much? Um, so are we are in print. Our price Target is two thousand dollars and that's a a 2027 um price? Target Uh, so we think it has miles to go. It has.

it has just started. Uh, and we do believe it's the biggest AI opportunity in the world today. Uh, the uh. autonomous taxi platform opportunity is going to be a winner.

Take most opportunity. So the first company that gets uh people from point A to point B the fastest and the safest is probably going to be the biggest winner in the space in the United States We Believe Tesla's in the pole position. And what's so interesting about Autonomous Taxi Platform is the margin structure. The margin structure is uh compared to EVS which are in the 20 to 30 percent gross profit margin range.

Uh, the profit margin of autonomous taxi platforms are Sas-like software as a service like so eighty percent plus. So we believe that Tesla will have a blended margin in the next five to ten years in the 50 to 60 perhaps higher range. Again, this is an the biggest AI project in the world right now and we think it's incredibly undervalued. Kathy Are you worried about the Chinese Evie makers getting in the way? I mean the Europeans already launched an investigation into subsidies from those Chinese automakers? Are you worried that they're also going to go after? say the dominant U.S market position and prove a real challenge to some of those traditional players in the states.

I think EVS Generally yes, will, and especially companies that are focused only on EVS Um, they're probably writing down the cost curve of electric vehicles and are going to be able to cut prices much like Tesla is doing. Many people when they see Tesla cutting prices, they say, oh, that's terrible. They must be losing a lot of business otherwise they wouldn't be pricing this way. No.

Elon has always promised that he would pass along cost savings to Consumers and if the consumer is feeling a a bit, uh, weak right now or has lost some confidence, those lower prices are making a difference. In fact, we've heard that the waiting time now for the Model Y has actually increased by several months. Look, you can say what you want about Kathy Wood You can say she got a lot of calls wrong, but when it comes to Tesla This lady was always ahead of the curve and she still is. She just talked about a few things we have to cover here.

She was talking about the fact that Tesla is the greatest AI opportunity of her lifetime. She was talking about the winner takes all or take most approach and she was talking about the margins and she was talking about how Tesla is so far ahead. It's not even the question of who's going to win this race. Now look let me explain what I mean here.

You know how in the nature films there's this: Lion of the Pride and the Lion of the Pride is the only male that gets to mate with the females of the pride. the rest of the males they get to watch. This is the same thing that's going to happen with full self-driving autonomy. Robo Taxis Somebody's gonna be the king lion.

Somebody's going to be the alpha male who gets to mate with all the females and the rest of them are gonna watch. Which is exactly what she's talking about here. now. Look, the example comes from the jungle.

but the rules of nature are very, very simple. If you have the best technology and you have the best R D and the best deployment, you're going to win this race. Now what she's talking about is very interesting. In the beginning, she was talking about the fact that she has a two thousand dollar price target for Tesla for 2027..

I Think she's referring to the more bullish price Target she has because in the clip a few days ago she was saying fourteen hundred dollars I think that was the medium case. Now, whether it's 1400 or 2000, it doesn't really matter because she was actually bouncing off a lot of the BS that was coming from the panel. For example, within the questions that she was asked, the panelists said that the rivals are getting better and catching up with Tesla Now he was talking about AI which is even crazier to me to say than Automobiles and EVS or whatever and call it with AI Who's catching up with Tesla We just made a video a few days ago showing you how nobody's catching up with Tesla and AI generative AI Who? GM with a 34 million highway miles? No City miles whatsoever Who Waymo Byd who self-admittedly are not playing this game, not trying to develop FSD Nvidia that supports software that's being used by Pony AI With 8 million miles versus Tesla At this point, they probably have what 170? 180 million miles and they're generating a million miles every single day on highways and roads on back roads. I mean my grandpa's garage? They're everywhere Who's gonna beat them? So which Rivals are catching up? Which Rivals are getting better in generative AI I Don't understand where this question came from, but nevertheless, she bounced it off really really well.

Basically she said, look, this is the time to invest in AI The biggest opportunities are right now. Why? Because most markets don't understand how insane this opportunity is, Everybody is evaluating Tesla looking PE priced earnings Now Look, some companies don't make no sense. Some companies it's worth to pay high. PES For now, I'm going to fund a lot of Nvidia fans here, but I wouldn't pay high PE for NVIDIA because the data center business that Nvidia is actually building their cache on right now is a massive business.

but it's an infrastructure upgrade. Whether it takes two, three, four, five, six years, eventually it's gonna run its course and then Nvidia will have to reinvent itself again paying massive B for this. To me, it's not a bad idea, but Tesla has a way higher ceiling between robotics. AI Electric vehicles energy.

All of these things. Not to mention EVS like not to mention AGI The ceiling here is absolutely endless. So she's right that this is the best time to invest in AI because the most, well, the market isn't getting it yet and she's 100 right on the fact that that's going to be the winner that's going to take most. In fact, I'm going to double down and I'm gonna say she's being very cautious I think Winner Takes All whoever wins the FSD Autonomy race is going to get to dictate the rules.

You know how Elon said in a few days ago that the winners they write history. In fact, he had a little joke about it how losers have more time on their hands and they write Wikipedia pages. But basically whoever wins the FSD race, whoever wins Autonomy gets to license their technology out to the rest of the auto manufacturers. The rest of the Oems much like the little lions of the Pack of the Pride and have to watch the other male get to mate with all the other females in the tribe or pack whatever it's called.

But basically this is what's going to happen. It Tesla wins and they take over Autonomy in. FSD The rest of the Oems will have to license the technology from Tesla it's just the rules of the game. Now if Tesla already has a massive lead as we've shown in the video just a few days ago with 140, 150, 160, 170 I don't know at this point how much they have probably more like 180 million miles.

and they're generating a million miles a day. So you already have a massive lead and you're running three, four, five times faster than the second and the third guy. In fact, you're running faster than all of them combined. How are they going to win? I Mean there's no chance if this was a race, the race is over.

It's just a question of time. Now, the other thing she mentioned here, which is I think is brilliant is something that doesn't get discussed a lot. and I keep pounding my freaking hand in my notebook talking about these guys. This is an 80 gross margin business.

This isn't selling cars. This isn't 20 30 gross profit business. This is an 80 gross profit business. It's software.

Now if we talk about software at 80 gross margin, essentially all Tesla has to do is generate about one and a half trillion dollars of revenues from FSD to generate about 1.2 trillion dollars of profit. Which is exactly what Elon said in the Walton Isaacson book in the bio. He literally said that he said that I think Tesla is not going to be the biggest company in the world. It's not only going to be the most important company in the world, it's going to generate one trillion dollars of profit annually per year.

Now With an 80 gross margin, you don't have to generate three or four trillion dollars of Revenue. You're probably need one and a half trillion for that number to become true. And if the entire Market is five or six trillion dollars which is half of what Kathy Wood thinks, she thinks it's a 12 trillion dollar market. But if it's a five to six trillion dollar market and Tesla grabs most of it at 80 gross margin, do the math.

Then the mathematics of Elon Musk and Kathy with about the share price becomes on the low side. it's not 1400. it's a whole different number. Now she also said something really important.

She said look, it's not only going to impact the 80 gross margin coming from FSD. the Blended margin of the company in between selling EVS energy Robotics and FSD is going to be about 50 to 60 percent. Now, if Tesla ends up operating at 50 gross margin, and the essentially they grab the autonomous the FSD Market I can't even start thinking about how massive this company is going to be Now they did mention the fact that Chinese Automakers might be challenging Tesla Now to me, it's a fair question. But here's the problem.

The most of the Chinese automakers, they're not anywhere near Tesla and scale to compete to generate enough data expand Lee Auto Neo minuscule miniature. The only company in China that has the scale to compete with Tesla on data potentially is Byd. Byd sells enough cars. Byd puts enough cars.

on the road to generate enough data to compete with Tesla potentially. But Byd themselves came out and said, we're not playing this game. Byd admittedly themselves said we're not trying to develop full self-driving It's a waste of time and a waste of money for their clients. It makes perfect sense they're targeting a demographic that does not require that they're targeting the low tier twenty thousand, twenty five thousand dollar car.

Their clientele is not going to be looking for FSD unless it's the absolute standard of the industry which it may become in 10 years. but not now. So if Byd isn't changing this, if the rest of the competition is in shambles light years behind. Tesla I'm very bullish and I think she's absolutely 100 right now.

If you agree with me, comment below. If you disagree with me, comment below: I Want to hear the people who disagree with me even more than the people who agree with me? I Think that the variety of opinions is super important for us to have a debate. I'm not trying to create an echo chamber here, so if you think that what I'm saying is an accurate ridiculous the ramblings of a Madman you know comment below. Let me know now.

One Last Thing Before I Let You Go We have a few spots left in our Academy we have the upcoming Zoom meeting on Thursday I think and on Thursday we're going to cover how to evaluate management, how to distinguish between equality CEO and the Bose of CEO and companies you invest in because I think that's one of the more important things in actually picking stocks to invest in. Would love to see you there. If you do join, it's 30 30 days money back guarantee. Try it out for 29 days.

don't value in it. Money back right away. And if you haven't yet, go and watch this video I'm going to put on the screen right now by Ron Baron making absolutely insane prediction about Tesla If you think this is insane, go watch wrong Baron later.