Fantastic stock picks and talk about Kathy Woods Tesla Thesis: How it Stacks up against the competitors, how to hedge your investment in Tesla We'll talk about all that and more in this video reminder. The Flash Sale for the programs on building your wealth expires and next week. so make sure you join those programs. Get Lifetime access.

It's the only sponsor on the channel, so if you appreciate the content, support the channel, join the program. Get Lifetime access and I'm confident you will be. Blown Away With A New Perspective You can get within them and the course member live streams link down below. Now we gotta talk about a Tesla We got to talk about not only what Kathy Wood says regarding Tesla or price Target on Tesla but we got to talk about: is she interested in Byd and why is she interested in Byd? Are they even remotely interested in automation? What kind of cost curve reductions are we looking at? Is it just batteries? or is there something else to pay attention to as well.

And has Elon Musk liked any of Kevin's tweets yesterday? Well, I kind of gave that away. Yes, Follow me on Twitter to find out which one actually. Uh, no. I'll just show it to you on screen right here.

It's kind of cool I Like it woke up to it this morning. So Elon Musk collect your Tweet Government should never limit the potential of anyone to equalize privilege. Government should help those who were dealt a worse hand. Example given: Don't be like California Specifically Culver City Removing honors classes because not everyone is represented.

Instead, invest in more education for those following behind. Yes, yes, great tweet. Oh wait. I'm just complimenting myself I'm sorry.

Anyway, follow me on Twitter at Realmeetkevin and make sure to follow me on Instagram where I'm posting a lot of stories of our real estate travels including yesterday. We won't be making a video out of that content because it was more of a family day, but you get to see some of the houses we're looking at, so check that out as well as the flash sale on the programs on building your wealth link down below which is linked to Tesla Investor Day which is coming up on a March 1st my thesis By the way, on Tesla Investor Day, if you haven't yet seen it, make sure to type into YouTube Meet Kevin Tesla is bankrupting the competition Tesla Investor Day Preview gives you some pretty cool insights about the potential for what the model 2 might actually be and it might be a lot more obvious than it seems. so watch that video. But for now, let's listen to Kathy and respond her: Flagship Strategy which which is Ark-k Tesla is our largest holding.

but if you look at ARK Q which is our autonomous um, our autonomous technology and robotic strategy. We also own other names like Byd in China and etchpang and a little Neo as well. Now, uh, why uh do we think uh EVS are the place to be? well. we are analyzing Battery Technology But more important, drive train technology which includes batteries.

And if you look at the cost curves associated with drivetrains, what you'll see is that for every cumulative doubling in the number of electric vehicles uh, sold, produced, and sold, cost declined by roughly 28 percent. Uh, and it seems as though keep that in mind for a moment if let's say a drivetrain costs a thousand bucks once you produce twice as many. So let's say Tesla goes from a million vehicles to 2 million vehicles or any Electric Vehicle Manufacturer She's basically saying that thousand bucks is now potentially only going to cost Uh, let's say 28 Minus So 720 dollars? Great. That's fantastic.

Now remember the battery Day or the investor Day goal is to potentially show how the next Master Plan 3 MP3 can reduce costs all costs by 50 percent for cost of goods sold of electric vehicles at Tesla. Of course she's broadly talking about just specifically EV Drive trains and how those cost declines are so rapid, something that you're not seeing in Ice. Vehicles Those have already reached essentially their their bottom in costs. Like you're not making internal combustion engines cheaper, they've already hit they're they're low so to speak.

and if anything, their their longer term cost has started to Trend up because of just the inflationary impetus that we've been going through. But anyways, Eddie The total cost of ownership of an electric vehicle is lower than that of a gas powered vehicle. which means Uh which Which helps us understand why. Last year electric vehicle sales globally were I Believe it was 62 or 64 percent, while gas powered vehicles were down about seven percent globally.

So the electric vehicle shift is underway. Consumers want electric vehicles a total cost of ownership cheaper. So last year there were 7.7 a million electric vehicles uh, sold around the world. We think that number is going to 60 million in the next five years.

now. The consensus estimated that it is that it's going to only 20 million, so there's still a big gap between. Think about that, that's a 3X She's suggesting in where we are and where. The consensus view is that 60 million We Believe will account for 75 percent roughly of all vehicles sold in five years.

So electric vehicles very important Now many people focused on Asia say, wait a minute. Byd is winning here. And if you look at last year's sales, Byd sales. if you look at hybrids and Battery electric vehicles, they were up 211 percent to roughly 1.8 million units, whereas Tesla's vehicle sales were only up 40 percent.

And so the question from Asia is, well, isn't Bydia Byd ahead of the game here? Uh, you might say yes based on those statistics. but if you take out High by the way, this is a, uh, a counter to Charlie Munger right? Charlie Munger is like ah, Byd is going so great. So this is basically without saying it Kathy would directly responding to Charlie Munger now because of where I paused here. She's basically saying if you take out hybrids here we go hybrid vehicles and we think hybrid is is going away.

Hybrid is two systems in one, much more complicated, much more costly. Uh, and you look on that basis, Byd's a pure battery. Electric vehicle sales last year were 900 000 whereas Teslas were 1.4 million around the world. But electric is not the whole story here.

In fact, from our point of view when it comes to Tesla Uh, Autonomous Autonom. their autonomous strategy autonomous taxi platforms is much more important than their electric vehicle strategy. In our view, our fifteen hundred dollar price target for Tesla It's roughly it's a little over two hundred dollars now, but our fifteen hundred dollar price Target in five years is two-thirds because of autonomous. And when we listen to Byd We do not hear autonomous as a strategy.

That, by the way, my opinion: Huge Boon For which company no, no I know you're saying Tesla I know you're saying Tesla it's okay Nvidia Seriously Huge. Huge Boon for NVIDIA there now I I Don't want to come across this like hyping in video right now because the darn thing ran so much after earnings because all they did was talk about Ai and it's like like I want to buy more Nvidia I Don't want you guys to pump it on this sad I Understand AI is important Don't get me wrong, Kathy is going to talk about it as well. Okay, like yes, but like most companies have already been using Ai and developing AI they've just not really been talking about it since chat Jpt and now everybody's like don't worry, we too are working on our yeah yes yes I too am working on AI with our company house hack. Okay, like it's not that big of a deal.

Apparently everybody thinks it's a big deal, but no Nvidia Why? Because when the companies realize they're behind like Mercedes who only fixes about I think it's 17 of their recalls via over their the air updates Uh, companies like Mercedes what do they do? well they realize they're way behind on autonomy. So as you can see here in the Nvidia earnings call and I'll just summarize it here. But basically what you see with oh, it's 17 uh, what you see with Mercedes is Mercedes going to companies like Nvidia for their autonomous uh and automotive technology whether it's the systems on chips or or whatever. uh, the Gpus for the the neural Nets the the AI basically for for your driving uh and observation uh, whatever.

I think Nvidia is actually a big winner of Automotive companies falling behind Tesla I Think a lot of people I mean look at it this way Toyota Mr Toyota from Toyota is like oh no. Hybrids are the way hybrids are the way. That's the future. That guy gets fired for reiterating that hybrids are the future and he's part of the silent majority.

It's fired. Now you get somebody else who's coming in. What's he saying? EVs And it's true. Like the electric vehicles are the future.

So so pure. EV platforms coming soon for for Toyota Finally, Finally, they're getting with it. But look at that. that's like five or six years behind when they should have made that realization, they should have made that realization back in 17 or 18.

Now you've got companies that are like yeah, we Toyota is another one of them, by the way. Oh, we don't need autonomy, we just need adaptive cruise control or whatever you know, like I Drove a pretty much a brand new Sprinter van yesterday. Sprinter vans by the way. Absolutely beautiful, fantastic cars.

I Cannot wait until Tesla makes a sprinter van and I know that Elon Musk has a place in his heart for the Sprinter van. I Think they're just probably too large to Giga cast yet and they got to Kind of Perfect the model before they get to larger ones. I don't know. that's my hope and that's the excuse I'm giving I just hope by 2030.

I get a sprinter event from a Tesla and that's because I want the autonomy. I'm driving in this thing and it sucks. it sucks. I'm sitting there for like 90 minutes and I have to hold the steering wheel.

Okay, I know that sounds terribly first world, but my point of that argument is once you drive every day and you technically don't drive because you're on full self driving, you're just sort of supervising. how do you go back? You don't. But the Legacy companies are so far behind. they're like including Byd and not investing in Autonomy like Kathy Wood says they're going to be forced to dive into Autonomy and they're not going to have the time to develop it themselves.

So what are they going to do? They're going to go to a company like Nvidia or you know, Mobileye which which you know Intel's spinning off so or whatever wherever they can find it. I'm not saying Nvidia is the only player, but I am saying if you kind of want to hedge to Tesla's autonomy, Nvidia is actually a very interesting play Anyways, keep going. We hear it more with X-pang but again, they from a unit volume point of view, are far behind Byd and Tesla so that's how we're looking at the world right now. I Think when you're talking about electric vehicles, you're not talking just about drivetrain.

The drive train strategies. Um, I Think the companies that are going to win as I mentioned before, are not focused only on electric. They're focused on autonomous. Which means they are focused on three of our major Innovation platforms: first Robotics autonomous vehicles are robots, second energy storage.

They will be electric because the total cost of ownership now for vehicles is uh, lower for electric than gas powered and three artificial intelligence. So these are three major black platforms. Artificial intelligence will power these autonomous electric vehicles and we believe that Tesla from a thought leadership point of view is leading the charge. so to speak in this uh, in this movement towards autonomous electric vehicles, and just in in terms of your fragmentation point, you know the the five thousand dollar.

Vehicles If you look at the range and performance of those Vehicles there's no comparison to a Tesla Model 3.. the range is very limited. The power is very limited, so you really do have to adjust. Uh, when you're talking about price for range and performance which is what we do and well, most people do.

but there are some people who are so convinced that Elon Musk is an evil man that they don't do that and it's so weird I feel so terrible about it. but there's someone in my family who is such a person I still love them I'll still have beer with them. whatever. Just say it's crazy and uh, I do believe that Tesla has for a given price, the best range and performance of any car on the market today.

One of the things I could say David sorry, um that we're not just talking about uh Battery Technology Drive trains When we're talking about autonomous, we're talking as I mentioned before about robots, energy storage, artificial intelligence. and we're talking about software as a service. So over-the-air software updates I Got my Um I bought my first Model 3 in 2018 I have never taken it in for service I have never been to any station I don't have to go to a gas station. Okay warning, Do not ride with Kathy her tires are probably bald.

Kidding, that's obviously different than service, but it's like that. that's important. So think about that. How much in the way of costs, uh, and convenience I have been saved over these last five years? The most important variable, uh, we believe in this new AI age is, um, proprietary data and I I think uh, if we're looking for killer apps, you know a lot of people are trying to compare this to the early days of the internet and we didn't know during the early days of the internet that it was the apps on top of the internet that were going to Garner all of the economics, the social networks of course.

and um, and today, what we believe people are missing is that the big winners are going to be those companies that not only have the right AI expertise, but also have the right domain expertise. If you thought, if you talk about life sciences and multi-omics DNA RNA proteins methylation, you've got to have domain expertise and understand that. But even beyond that, you have to have your own data. So we think, uh, that AI is going to cause one of the most profound productivity increases in the history.

This by the way, is very similar to what Brett Whitten who's obviously also at ARC uh mentioned in the interview with me uh which I mean you Again, you should watch that interview. Uh, it's uh, just type into YouTube meet Kevin Arc invest and you should see it Brett Whitton Phenomenal examples of that productivity increase that AI could do in your life where maybe that AI isn't separate on like chat GPT but it's like built in to your Excel spreadsheet or your email or or your text messages or or whatever and it makes your life so much easier. I mean I Just want to give a like a simple, simple, super easy example of something that already exists today that makes my life easier is like if I want to say like uh, if somebody's like oh, where are you on an iPhone I can just type I'm here and then it shows up. You press the little button, it's like current location.

Boom, it already does that for me. Think about that. just like on steroids, right with with what uh, where technology can go in terms of understanding what we're trying to do and then simplifying Our Lives It's really incredible, which we're always remember. If you also want to simplify your life, use the flash sale down below to get lifetime access to programs I'm building your wealth whether that's zero to million a real estate vesting course most popular right now, followed by Stocks and Psychology of Money.

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check out the Elite Hustlers Course These come with a lifetime access to their live streams and would love to have you there. Let's keep going of of the world and so you have to. As you're looking at investing you, you must look at companies and how they're harnessing AI to lower their cost structures. That's the first killer app and that other companies that have proprietary data like.

Tesla we'll go back to. Uh Tesla It has more it has collected over the last five to seven years. The highest number of real world driving miles uh, in the world. In fact, it has probably collected more miles uh, by an order of magnitude than all of the other Auto and tech companies around the world.

And that's why we think it is in the pole position to develop and win at the autonomous taxi platform. uh strategy The first company to to get from point A to point B most safely and quickly is probably going to win. So we're looking at a lot of winner take most opportunities in this new AI world and the winner take most. As I mentioned before is based on bringing in the right AI expertise, the right domain expertise for your own businesses, and the highest quality and biggest pools of data upon which to train AI in our flat.

Yeah, that's a really good point. The training of AI as well you need. It's not just having the machine or or some data, it's having a lot of data. And that's probably the hardest part of AI And that's where she's suggesting.

Tesla's clearly a leader and it's it's a I think a fantastic response to Charlie Munger and and makes me quite excited for seeing what's coming up on investor Day again. watch my video on investor day, but just to give you a little preview. personally: I Think it's very possible that the model 2 or whatever that people think is going to be announced investor day I could be wrong. but I wouldn't be surprised if it's actually that 25 000 car is actually the model 3.

in other words, here's how we can make the model 3 cost fifty percent less to produce and sell it for twenty four thousand, six hundred ninety bucks whatever they choose and actually have an affordable car that's amazing. In other words, not going down to a two-door car or not going down to a limited range car to get to 25k which is generally what people expect with a two a model two. I've also been a believer that in the future a smaller car like that would come out I Do think a car like that makes probably sense for the Chinese markets, but I've adapted my vision and I agree with Brett Whitten from Arc when he told me in person that the likelihood of a smaller car like that being popular in the United States is very low because as Americans we buy a car for that that edge case scenario not for our everyday scenario. So I thought that was uh really incredible.

But anyway, we'll see that'll be fantastic. Very cool perspective here from Uh Kathy on uh on on Tesla and the autonomy.