So Ron Baron The billionaire investor in Tesla just went on Tnbc minutes ago and schooled the entire panel by dropping some massive Bombshells Let's watch the interview and then I'm going to give my honest reaction to what just happened. The Tesla is now at a similar stage where it was in 2014 2015. Uh, when I was investing 16 and they were doing 40,000 cars a year. they're now doing a million eight on the way to 20 million and uh, they been growing 50% a year and uh, this year the probably be up.

uh, you know, 25 30% next year. same about the same, but there's a new Uh car coming 25 30% Revenue Uh, no units, units and uh, and then they got the battery business which is $6 billion a year and that's going to be up a triple over the next three years and that's going to go up 30 times. There's been a lot made over the UAW and the potential strike that is facing the big three automakers here. And what's been brought up is they have all of these EVS that they have to deal with.

Their cost basis is quite a bit higher than Tesla way higher. and and uh, so every time they sell an EV they sell one fewer gasoline core and the gasoline core they make money on and the EVS they lose money on the Uh. The traditional Oems are, uh, are troubled right now and uh I think ultimately, uh, you know they're going to make metal, they're going to make the units, and ultimately they're going to buy software. uh from Tesla Tesla is going to be like the uh, like Intel inside of a Microsoft computer.

that's going to be Tesla Tesla is going to be everything that makes a car. you know all the all the all the inside is going to be Tesla that's what's ultimately going to be licensed. Are you buying any additional Tesla or SpaceX or have you kind of maxed out where you feel comfortable with your fund which is a diversified fund um, in the funds that I manage I've been maxed out. we had uh when the stock went up 20 times after we bought it, we sold for clients.

uh, about a quarter of the shares I didn't sell a share personally I committed to the directors of our mutual funds I only invest in mutual funds normally. uh I made an exception in this instance and I said that I would be I was the last in I would last out and I won't sell a single share for myself until we sell all of our client stock. Uh, and as far as buying more, uh, I would buy more if I could but I can't and other guys at our firm nibbling. they do things that this is a great price.

this is. this is when they introduce this Model 2. they're going to have the cost half of what it is right now, half and uh, and they're going to sell the car for I don't know, maybe a third less than what it is right now. And there's credits.

So this is an Toyota almost bankrupted the whole automobile industry 20 years ago. Do do you at the same time think that the Big Three have their work cut out from? We're going to have a UAW head on today. Sean Feain and and what the rank and fou are asking for given the uncertain future of whether Americans ever Embrace non-tesla EVS I mean would you think that the the Big Three are have the work cut out for them? Would you at least acknowledge that Do you think I haven't studied? Uh, the Big Three? Uh, relationships with the unions I don't own them although I really like Marib Bar but I don't own them. Would you like to compete against Tesla I would hate to compete against Tesla So Warren Buffett Initially would say you know said you know 20 years ago 15 years ago he said that you know he wouldn't invest in Tesla and now he says he would hate to compete against Tesla Uh, so so so so to go on to this.

So Model Two, this is coming within. Uh, you know by 2025 when that comes that's going to be exactly the same thing as what happened when Tesla introduced the model S So you're going to see this tremendous change going on there. And then as I said before, the software core Competency Model 2 half price and then Dojo so Dojo Oh right, yes I said. what is Dojo So Dojo is a training and what that is that they have this massive amount of data for all these cars have been driving around for millions and millions of miles and and that keeps growing exponentially.

No one has that they have this data but to Crunch the data you need compute and compute is what Nvidia has uh and Nvidia has compute a chip which is for everyone to use. I have all these different uh you know device all these different uh you know opportunities that this company has. What our company has is they're making their own uh compute and they in 18 months they're going to have more compute than anyone in the world Tesla and compute the stuff that's in your basement as opposed to the chip that's in your car. So what they're going to have is they will have some much massive capacity to provide services to cars and to be able to train this dat to train your car on this data.

So what's the competitive Advantage is the data and the training is going to be provided by uh by this compute and they're going to have more of it than anyone. Nobody can catch them last year. By the way, you read about uh, the number of people that are uh, seeking jobs and they're saying that uh, there's you know, there's too many too many people seeking the jobs or whatever they say it is with with uh with too too few people and uh what Tesla has is last year or this year I think they have 3 and a half million people seeking 30,000 jobs. Last year they had 3 million people seeking 20,000 jobs.

so there's 130,000 people. So they yeah but Ron let let's jump to another stop. Okay, thank you Ron Baron for this absolutely annihilated panel. Let's talk about everything he just talked about because he drops a massive Bombshells here.

number one. So the first thing he said was very interesting note. So he said look, I invested in this company when they were making 40,000 Vehicles they're currently making 2 million Vehicles So we're currently in the point where I was when I invested 40,000 because they're about to make 20 million cars and this is that moment where you can invest when they only make tenth of that. So basically saying hey, this is the second jump.

The first jump happened from 40,000 to 2 million from 2 million to 20 million. We're currently just before that happens and it's not yet priced in. Uh, the other thing is he actually mentioned that the battery business can be 30 times bigger than what it is right now. 100% agree.

One of the most undervalued things about Tesla and a whole new scurve in its own. He mentioned the new model 2. whatever it's going to be called, it's probably not going to be called Model 2 and he basically says look, the this car is going to revolutionize the world, It's going to cost half as much as the model 3 and it's going to so it third less than the model 3 which is going to make Tesla a whole lot of money Now He also mentioned before he got interrupted and I don't know if it was intentional or not, but he was about to say hey, Toyota almost bankrupted the US Auto industry and Tesla is about to do the same. But as he was saying this, I don't know if somebody told the panel in the earpiece don't let him say this, Don't let him say this All of a sudden he got interrupted with a question about the UAV and how it you know it's going to impact the big three and basically you know they didn't let him finish that sentence but he was about to say hey, Tesla is about to bankrupt the US Auto industry just like Toyota almost did.

Now surprisingly enough, Becky from the from from the panel she actually she called it right she said hey, the cost for the big three for the gym the Fords to make an EV is so much higher than a Tesla how can they compete I Can't believe she actually was allowed to ask that question on CNBC But essentially Ron Baron actually went even deeper and said yeah, that's true. But also, don't forget the one thing that has in you know in standard Legacy automakers, you have a lot of cannibalization. So when he's right, whenever is like for their GM they sell an electric vehicle which they're losing money on. There's one last sale of an internal combustion engine vehicle which they're not selling and that's their core business.

So essentially there that's why he's saying nobody's going to catch Tesla Because these two companies these three companies The Big Three They're caught in this mouse trap where if they don't sell, EVS they can't catch up with Tesla if they sell EVS they're killing the only business that actually is profitable so they're in a way digging their own grave. I Know it sounds horrible, but it kind of is now. he also said, you know he said that they're troubled but I think what it actually means they're and and he also said they're eventually going to have to license software from Tesla which is 100% per true Tesla is going to already is going to provide the infrastructure for the charging for the entire industry. that's already the done deal.

They're also going to provide the software for that industry and then people will wake up one day and realize oh my God Tesla isn't a car company Their energy, software, infrastructure, robotics AI company now on the AI side. He actually did say that hey ER by the way, um yeah, they also have Dojo which is going to be a massive step in Tesla's dominance in AI with Tesla's data coming from FSD Which is far greater than anybody else the amount of data they collect and Dojo good luck to you catching Tesla Nobody's catching Tesla Not in AI Not in full driving anywhere. He actually said something very true Warren Buffett does not want to compete with Tesla Go check out how many shares of Byd Warren Buffett sold over the past two years, over the past two years, Warren Buffett have been selling heavy Byd. He's been getting out of that investment.

Some of it maybe because of China but some of it because he knows he's not going to compete with Tesla and people get all excited about Byd selling a lot of cars in. China First of all, half those are hybrids and the other part is Tesla is not competing with these guys once Tesla launches the model two. Let's have that talk then and then we'll see what's up now again. Ron Baron is a G.

That thing was absolutely based. He annihilated the panel dropped massive. Bombshells Absolutely phenomenal every time he speaks. Belisimo I'll see you in the next video.

All the best.