If you've been following the news around Elon Musk over the past few weeks, you'll probably know that things aren't looking good for the world's richest man. On November 16th, Musk publicly endorsed a tweet that many people view as anti-semitic This caused numerous advertisers to suspend all spending on Twitter which is now owned by Musk. In response to the backlash, Musk gave an interview at the New York Times dealbook Summit that I can only describe as one of the most bizarre things I've ever seen. There was all of the criticism.

there was advertisers leaving we talked to. Bob Iger They stop you. hope. Uh, don't advertise.

You don't want them to advertise. no. What do you mean if somebody's going to try to Blackmail me with advertising, blackmail me with money, go f yourself. But go yourself.

Is that clear? I Hope it is. Hey Bob here in the audience. what are the economics of that for for you? I mean you, you have enormous resources so you can actually keep this company going for a very long time. Would you keep it going for a long time if there was no advertising? I Mean if the company fails because of an ad advertised boycott, it will fail because of an advertised boycott and that will be what bankrupted the company.

And that's what all everybody on Earth will know. And you think that the public is going to say that that Disney is making a mistake? Yes, and they're going to boycott Disney they already are. Elon Musk is the rich and arguably one of the most powerful men in the world controlling Tesla SpaceX and Twitter his increasingly deranged public Outburst Give us a glimpse into the state of his mind and the philosophy he uses to run his companies. in this video, we'll take a deep dive into the rabbit hole of musk, increasingly bizarre mental state and what this means for both Twitter and Tesla before we get into the video.

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Long story short, Musk significantly reduced content moderation which scared off advertisers, leading to a 50% decrease in Revenue. In an attempt to offset this decline in Revenue, Musk laid off 80% of the company's employees despite the layoffs, Twitter continued to burn cash, largely due to the 1.5 billion of annual interest expense associated with the $13 billion he borrowed to finance the deal. With this paid verification feature having flopped massively, we speculated Twitter's days as a solvent company were numbered in November of 2023. Musk seemingly decided that Twitter wasn't losing enough money, so he posted an anti-semitic tweet.

This caused Brands including but not limited to: IBM Apple Disney Sony Warner Brothers Discovery Comcast NBC Universal and Paramount to haul all advertising on the platform. Previously, these were some of Twitter's biggest advertisers Twitter was already losing money. Before this, their cash burn is almost certainly accelerated. Musk acquired Twitter in October of 2022 for $44 billion.

Given the $1 13 billion debt load and deteriorating cash burn, the equity value is probably close to zero. If any rational person owned a 44 billion doll company that was imploding before his eyes, he would probably be distraught and desperately thinking of ways to save the sinking ship. But Elon Musk sees the iceberg and goes full steam ahead in his dealbook interview, He almost seems to welcome the idea of Twitter going bankrupt, so he can blame it all on the advertisers. What he hopes to gain from this is unclear by all accounts.

The Twitter acquisition was one of the most disastrous deals in the history of business. This begs the question: Why did he do it? Did he actually think there was a chance of success? We don't have to speculate any longer. In a recent appearance on the Joe Rogan podcast, Musk opens up about his rationale: I mean this is going to sound uh, somewhat melodramatic, but I was worried about that that it was having a corrosive effect on civilization. I Think part of it is that it's where it's where it was located.

which is, uh, you know, downtown. San Francisco Um, if you've walked around downtown San Francisco right near the Xfk Twitter headquarters, it's a zombie apocalypse. Um, and the outcome of that M virus is very clear if you walk around the streets of downtown. San Francisco It is the end of civilization.

Um, and and there's some people who are are like most the time it's it's implicit, they don't exp. but sometimes it's explicit. like there's a guy on the front page of the New York Times uh, who? It literally has the thing called the Extinctionist movement Um, and he was quoted on the front page of the New York Times as saying uh, there are 8 billion people on the world, but it would be better if there were none. And I'm like, well buddy, you can start with yourself.

Prior to Musk's acquisition, Twitter was run by a cabal of radical San Francisco leftists, whose ultimate goal was the extinction of the human race. Acquiring Twitter was not a fin Financial investment. It was a selfless Endeavor to save Humanity from the San Francisco death cult. His evidence for this was a recent article published in the New York Times which interviewed a man named Les Knight Les Knight is the founder of the Voluntary Human Extinction movement, which advocates for people to abstain from procreation.

Mr Knight has never been employed by Twitter and has never had any influence over the operations of the company, but no need to get bogged down in the details. While this could explain Musk's motivation, it's important to remember that he didn't buy Twitter alone. He raised $5 billion from 17 co-investors including the Venture Capital Giants Andrees and Horowitz and Seoa Capital, as well as the mutual fund. Fidelity.

These companies have a fiduciary duty to investors. It seems unlikely that saving Humanity from the Leftists was included in their investment prospectuses. It's possible that these investors thought that Musk would run Twitter as a competent businessman and at least pretend to maximize shareholder value. But even before the deal closed, there were some red flags.

The first indication that this whole thing was a giant joke was Musk's proposed acquisition price of $542 per share. If you've been following Musk's Antics over the years, you will know that the $4.20 was no coincidence. His Infamous 2018 funding secured tweet also claimed that the purchase price would be $420 per share. The extra 20 cents needed to make his 420 joke added $150 million to the sale price I Honestly have no idea what Musk co-investors were thinking, but some of these people were also investors in FTX so intelligence may be too much to expect.

Now back to Musk. It appears that he truly believes that he was saving the world by buying Twitter and relaxing its content moderation policies. What led him to develop this worldview for the first decade or so of Musk's Life As a public figure, he was relatively uncontroversial. He would give interviews with the media, but for the most part he would talk about his businesses Tesla and SpaceX as well as the importance of electric vehicles to climate change.

He rarely, if ever delved into the realm of politics or other controversial topics. Things started to change around 2018. This was a very stressful time for Musk. The Model 3 production ramp was not going well, the company was burning cash, and Musk himself admitted that they were single digits away from bankruptcy.

While their stock price was tanking, everything he had worked so hard on for the past decade was teetering on the edge of the Abyss. If that wasn't bad enough already, high-profile short sellers were profiting from his company's failures and gloating about it in public. In fact, Tesla became the most shorted stock in the history of the stock market as measured by the nominal value of the short interest. Musk was desperate and Furious in August of 2018, he finally snapped and posted a tweet, saying quote and considering taking Tesla private at $420 funding secured.

unquote. This represented a substantial premium to the stocks trading price at the time, and the stock increased 6% on the day, causing hundreds of millions of dollars of losses for short sellers. Musk had indeed held preliminary discussions with the Saudi Public Investment Fund about a potential investment in the company. However, the potential transaction action was uncertain and subject to numerous contingencies.

Musk had not discussed specific terms of the deal with any potential financing Partners Long story short, funding was not secured. Musk agreed to settle with the SEC by paying $40 million of penalties and agreeing to tighten up corporate governance at Tesla. At the time, Musk was under a lot of stress. He made a mistake.

We all make mistakes, but instead of putting this incident behind him, Musk lashed out at the SEC. He eventually accused the SEC of blackmailing him into a aging with the settlement had He not agreed to the settlement, the ongoing enforcement action against Tesla would cause its banks to close down their credit lines and Tesla would go bankrupt so he had no choice but to pay the $40 million fine even though he did nothing wrong. for months after the settlement, he continually trashed the SEC on Twitter, calling them the Short Seller Enrichment Commission. Here, we can begin to get an understanding of Musk's mindset.

He is on a benevolent mission to save Humanity from climate change by accelerating the adoption of EVS. He can do no wrong. The securi fraud charges were not his fault. it was a conspiracy by the evil short Sellers and their cronies at the SEC who want to see him fail.

When the Pandemic hit in 2020, the subject of Musk's ire expanded Beyond just the short sellers. In the early months of the pandemic, many businesses saw their revenue collapse as they were forced to shut down their operations. Bankruptcy seemed like a real possibility, even for Fortune 500 companies that were thriving Just a few months ago Tesla was forced to temporarily close down its Factory in Fremont California to comply with State mandated stay-at home orders. Prior to the pandemic, Tesla was on the verge of profitability.

The closure of the Fremont Factory could derail everything. As it turned out, the pandemic ended up being a huge Boon for Tesla near zero interest rates and massive government stimulus caused demand for its cars to Skyrocket But this was not obvious in the first few months Musk was Furious about the lockdown restrictions. Over time, he began to blame the political left for all of this. Not only that, but he saw big tech companies including Twitter censoring what he viewed as legitimate content which questioned the lockdown policies.

in Musk's view, the radical Silicon Valley leftists who control the social media platforms for enforcing an Orwellian censorship policy aimed at brainwashing the population. their ultimate goal was the extinction of humanity. The part of Musk's recent dealbook interview that gained the most media attention is when he told Twitter's advertisers to go f themselves, but there's another part of the interview that's at least equally Illuminating As to his state of mind, I understand that Tesla currently sells two twice as much uh in terms of electric vehicles as the rest of electric car makers and United States combined Tesla has done more to help the environment than uh, all other companies combined. Would be fair to say that therefore, as a leader of the company, I've done more for the environment than everyone.

Any single human on earth, Musk is on a Messianic journey to save Humanity He can do no wrong at the current rate unless Musk makes drastic changes. Twitter is almost certainly headed towards bankruptcy if he wants to buy a company for $44 billion and then run it into the ground. that's his prerogative, but as we will see, Musk's delusions of grandure are also impacting how he runs his other company. Tesla In addition to saving Humanity with his Twitter acquisition and saving the climate with electric cars, Musk is also on a mission to save hundreds of thousands of lives per year.

With Tesla's autonomous driving capabilities, He unveiled Tesla's fully Autonomous Robot Tax Network in 2019, saying that he was very confident it would be deployed in 2020. Of course it wasn't Every year since then, he's been saying the robo taxi network is one year away. While the Robo taxi network has not happened, tens if not hundreds of thousands of Teslas on the road today are equipped with either the autopilot or full self-driving software, which allows the car to drive itself although the driver is supposed to be at the wheel and paying attention at all times. Since the autopilot was released in 2014, there have been 42 fatalities resulting from automobile accidents involving Tesla cars with autopilot enabled.

In 2016, Fortune Magazine published an article criticizing Tesla for failing to disclose a recent autopilot death when they conducted a $2 billion stock offering prior to the publication of the article, Fortune contacted Elon Musk for comment. In an emailed statement, Musk said quote, indeed, if anyone bothered to do the math obviously you did not, they would realize that of the over 1 million Auto deaths per year worldwide, approximately half a million people would have been saved. If the Tesla autopilot was universally available. Please take 5 minutes and do the bloody math before you write an article that misleads the public.

Unquote In 2018, Musk doubled down, telling investors quote people are reading things in the press that cause them to use autopilot Less that makes it dangerous for our customers. Unquote in 2021 as he was interviewed for his Time Magazine Man of the Year article. Musk said quote: There's something somebody said to me at the beginning of when we were pursuing autonomy. even if you saved 90% of the lives, the 10% % that you don't save are going to sue you I Think it's one of those things where you're not going to be rewarded necessarily for the lives that you save, but you will definitely be blamed for the lives that you don't save.

Unquote: No System can be 100% safe. Tesla Cars using autopilot will inevitably get into crashes sometimes, but if the chances of a crash are lower than a human driver, there is a net saving of lives. Thus, Tesla will continue to push out its autonomous driving features. despite the fact that they will receive unfair criticism from the media.

this sounds reasonable. The problem is, it's just not true. In fact, it's not even close to being true. A few months ago, we published this video talking about the problems with self-driving cars, including a discussion about Tesla's misleading use of Statistics Every year Tesla publishes its Vehicle Safety report, which shows that Teslas with Autopilot employed, get into far fewer crashes per mild driven compared to unassisted driving as we showed in this video.

These Statistics are highly misleading. Once you adjust for the fact that Autopilot only drives on highways, driver quality and weather, we believe that a given driver is far more likely to get into a fatal accident with autopilot employed than without. If you want to see how it came to this conclusion, check out this video link in the description below. Since our previous video, we've come across more information which further exposes the dangers of Tesla's autopilot.

Autopilot was launched in 2014, and since then, every single car produced by Tesla has the hardware necessary to run autopilot and full self-driving Although to get the advanced autopilot features, you need to pay an additional $66,000 and to get full self-driving you need to pay a subscription of $100 to $200 per month. In 2015, Tesla launched an over-the-air update of its Autopilot software to include a feature called Auto Steering. Auto Steering allows the car to autonomously change lanes on the highway, among other things. In 2016, the National Highway Transportation Safety Board or NTSB conducted an investigation following a vehicle collision involving Tesla Autopilot.

They released a report about the investigation in 2017. Based on data supplied by Tesla The the NTSB found that the rate of crashes in Tesla cars decreased by 40% after Auto steer was implemented from 1.3 crashes per million miles driven down to point8 in future autopilot death incidents. Tesla has cited the Nhtp report to prove its autopilot feature increases safety. They said quote.

It is worth noting that an independent review completed by the US government over a year ago found that Autopilot reduces crash rates by 40% Unquote. First of all, this is factually incorrect. The Ntsb's calcul ation compared the crash rates of Tesla's before and after Auto Steer was installed. Auto Steer is an additional feature added to Autopilot in 2015.

Autopilot itself was launched in 2014. Many of the cars in the sample were purchased in 2014 with Autopilot pre-installed and received Auto Steer as an overthe a update one year later. This data does not show that the autopilot makes the car 40% safer. It instead shows that the newer version of Autopilot with auto Steer included is safer than the older version of Autopilot.

Both versions could be more more or less safe than not having Autopilot at all, But not only did Tesla misrepresent the findings of the Ntsb's report, we later found out that there are serious flaws in how the Nhtp calculated these numbers in the first place in 2019. A consulting firm called the Quality Control Systems Corp Ed the Freedom of Information Act to request to gain access to the data provided to the NTSB by Tesla To calculate the crash rate per mile driven, you need to take the number of airbag deployments within the relevant subsample and divide it by the number of miles driven. This is only considering crashes serious enough to trigger the airbag during the relevant period. There were 278 airbag deployments for every single airbag deployment.

Tesla had data of whether or not Auto steering was installed in the car. At the time of the 278 total airbag deployments, 86 of them happened to cars where Auto steering was not installed and 192 of them happened to cars where Auto steering had been installed. These numbers for airbag deployments are not controversial. Nobody disagrees that these are the correct numbers.

The controversy comes from the denominator. According to the Ntsb's analysis, vehicles in the sample drove 65 million miles before Auto steering was installed and 236 million miles after Auto steering was installed. While there were far more airbag deployments after Auto steering was installed, there were also far more miles driven, so the crash rate is lower. Tesla provided odometer data for Four Points of time.

The first data point is when the car is first purchased. Obviously, the odometer reading at this point is zero. Tesla Also provided data for the last mileage reading prior to the auto steering being installed. The first mileage reading after the auto steering was installed in the latest odometer recording.

Ideally, the last mileage reading before the auto steering was installed and the first mileage reading after the auto steering was installed should be identical. This way, you know exactly how many miles were driven before and after, but the odometer data was only recorded at irregular intervals. So for 87% of the cars in the sample, there was a gap between these two numbers Auto Steering was installed at some point within this Gap But there is no way to know exactly when when the Nhsb disregarded all the miles within the Gap allocating them to neither the before Auto steering or after Auto steering bucket. Remember that the NTSB used 65 million mi as a denominator for before Auto steering and 236 million mi for after Auto steering.

There is some portion of miles that is unallocated. We don't know how many miles this is, but for the sake of this example, let's assume that there are 50 million mil unaccounted for. Assuming the gaps in the odometer readings are completely random, the cut off point of where the auto steering was installed should be random. Any point along the line is equally likely.

Thus, for the average car, the cutoff point would be right at the halfway point. So of the 50 million unallocated miles, 25 million should be allocated to before Auto steering and 25 million to after Auto steering. Because the number of airbag deployments is fixed, increasing the number of miles decreases the crash rate, but because the before Auto steering is starting from a smaller mileage base, the effect is greater. In this hypothetical example, the crash rate decreases from 1.3 to 1.

The after Auto steering crash rate decreased by a much smaller amount from8 to7. Thus, assuming that the odometer readings are randomly distributed. excluding the mileage, Gap has the effect of increasing the before Auto steering crash rate by a large amount and increasing the after Auto steering crash rate by a much smaller amount. We don't know how big this effect is because we don't know how many unallocated miles there were, but this wasn't even the most egregious part of the Ntsb's errors.

For almost onethird of the cars in the S examp. Le the data for the last mileage reading before Auto steer installation was missing. For these cases, the Nhsb assumed that the car had Auto steering already installed when it was purchased. Thus, all the miles incurred over the lifetime of the car were allocated to the after Auto steering bucket.

However, this group of vehicles included 15 airbag deployments that were labeled as Auto steering not installed. Many of these cars did not have Auto steering when they were purchased, but had it installed over the air at some point thereafter. But for whatever reason, the data point for the last mileage recording before the instulation was missing. Yet, the Nhsb categorized all these miles as after Auto steering.

This clearly biases the data to make the crash rate for after Auto steering lesser and the Crash rate for before Auto steering greater. For 133% of the cars in the data set, there was no mileage gap. An odometer reading was recorded at the time when the auto steering was installed. This subset of cars with complete data were the only cars for which the crash rates can be calculated with certainty.

Based on this data, the crash rate before the auto steering was installed was 76 per million I miles after Auto steering was installed, the crash rate increased 59% to 1.21 Tesla Supplied the incomplete data to the NTSB. They either knew or were reckless in not knowing that the 40% decline in Crash rate calculated by the NTSB was incorrect. Yet, they continued to tout this number to the public in an effort to trick people into thinking that autopilot is safer than it actually is. Hundreds of thousands of people have purchased Tesla's autopilot software.

undoubtedly Elon Musk and Tesla's numerous statements about the safety of autopilot was a substantial factor in this. Now 42 of them are dead. Joshua Brown was a Tesla Enthusiast and proud owner of a Tesla Model S from the small town of Canton Ohio He had a YouTube channel where he posted videos about how Tesla Autopilot works. Here we are stopping go traffic on 271 and ah jeez, car is doing it all itself.

I'm going to do with my hands down here. it takes all the stress out of it. Tell you what it's like. Yeah, get to your destination slightly slower, but hey, at least now you don't have to worry about anything.

it's just just let it go on. April 6th 2016 he uploaded a video called Autopilot Saves Model S It shows his car swerving towards the side of the road to avoid a truck changing lanes in front of him. A couple weeks later on April 17th Elon Musk noticed the video and tweeted a link to it to his millions of followers. Musk was using this video as a positive example of how the autopilot feature can improve.

Pro Safety When he saw Musk's tweet, Joshua Brown was ecstatic. He tweeted excitedly that Elon Musk noticed his video. Little did he know this would be the last video he ever posted. A few weeks later, Mr Brown drove his Tesla Model S to Orlando for vacation on May 7th, 2016.

Less than a month after publishing his last video, A semi-truck drove in front of him, The autopilot failed to take evasive action or engage the brakes. The Model S slammed into the semi- at a high speed, tragically, resulting in Mr Brown's death 3 years later in March of 2019. Florida resident Jeremy Banner died under eerily similar circumstances. His Tesla Model 3 with Autopilot slammed into a semi-truck at full speed, resulting in another tragic fatality.

When the semi-truck pulled in front of Mr Banner's Model 3, the Autopilot failed to engage any breaking, deceleration or evasive steering to prevent the crash. Musk has repeatedly claimed that the quality of Tesla's full self-driving technology increases exponentially. In fact, it's difficult for for humans to comprehend the rate of improvement because it's happening so fast. In 2016, Autopilot failed to recognize a semi- Tru right in front of it.

3 years later, in 2019, it still failed to see a semi- Tru right in front of it. What happened to that exponential? Improvement As Musk's Fortune has grown over the years, so too has his ego in sense of self-importance he is on a mission to save Humanity He can do no wrong. Every controversy is someone else's fault. It was Tesla that supplied incomplete information to the Nht.

PSB It is Tesla that continues to this day to publish misleading statistics about the safety of Autopilot. It's not Musk's fault, it's the media's fault for daring to expose this. It was Musk who tweeted that he had secured funding to take Tesla private at $420 per share despite knowing full well that funding was not secured. But the Securities fraud wasn't his fault.

the SEC was just blackmailing him. Elon Musk Decided to buy Twitter and endorse an anti-semitic tweet which would predictably and inevitably cause advertisers to leave the platform. But it's not his fault, it's the advertisers trying to blackmail him. All right guys that wraps it up for this video.

what do you think about Elon Musk Let us know in the comments section below. As always, thank you so much for watching and we'll see you in the next one! Wall Street Millennial Signing out.