Tesla's Biggest AI Upgrade Yet!

[00:00:00]Welcome everyone. I'm currently away on vacation and we'll be back Wednesday, July 22nd. Today your host will be CERN Basher. CERN runs his own investment advisory firm called Brilliant Advice.

[00:00:10]Enjoy.

[00:00:10]>> Hey Joe, it's good to see you again.

[00:00:12]This is my very last show as the host of Cernbert.

[00:00:16]>> Very very good. If anything bad happens in earnings, you can say you had you had nothing to do with it. It was all Cernert.

[00:00:23]>> Well, it's all Herbert's responsibility tomorrow. He's back tomorrow. So, >> exactly. anything goes bad with earnings, it's all on him.

[00:00:30]>> Yes, exactly.

[00:00:32]>> Yeah. Not not that the stock price has behaved that well during my tenure of uh covering a show.

[00:00:37]>> You don't have the best track record there, [laughter] sir.

[00:00:41]>> Yeah. Well, let's get let's get started.

[00:00:43]So, this seems like old news now, but uh we learned yesterday that Starlink V5 uh will be directly integrated into CyberCab. Um, and we've got a nice schematic here, but first of all, the Starlink account mentioned this highspeed internet from space for the future of autonomous vehicles. Um, we have uh Yun Tasai from Tesla saying uh SpaceX uh handshake with Tesla there. Um Elon himself, he says, "Watch 4K streaming video while Cyber Kev takes you anywhere you want." Um, so that's something he's thinking about. And then Chuck Cook uh made a comment here. says, "This is a big deal and arguably could be a hardware requirement going forward.

[00:01:22]Connectivity has never been required for a Tesla to operate safely on FSD, but there are times and places that one bar of LTE just isn't enough to get traffic updates for dynamic reroutes. If future capabilities include fleetwide distribution of dynamic street information, potholes, closed roads, and accidents, Starlink could be the solution to an always on stable connection when you have a clear view of the sky. So, I thought that was a nice comment. Um and uh a shock uh responded to that. Um but he's talking about uh it's not required for operation of the vehicles but from a fleet management perspective it could be very useful.

[00:01:59]>> Yeah I think uh the bigger picture here is that you know of course everyone's just waiting for them to roll these things out shareholders but uh we are preparing for a future here that is completely mind-boggling. People forget about this because we get sucked into the weeds. There are two types of people. Obsessed Tesla shareholders who just complain all day long why the stock's not going up and why we only deploy two, you know, robo taxis today and normies who don't even know what's happening. We need like a third type of person who sees like, okay, let's just forget for a moment that we only rolled out two cyber uh two robo taxes today.

[00:02:32]This is all nuts. This is going to happen the latest by next year and then by 2028 we will be swamped in a new age of transportation where we see millions of these things driving around or hundreds of thousands at least. You have 4K real time everything in your car in not your car in the cyber cap. You can hop in and out for nothing for $1 per mile and have a level of entertainment connectivity you can't even imagine and video calls whatever I don't even know like whatever you want. They can replace even medium range trips right instead of taking maybe instead of taking a 40minut flight you take a three-hour cyber cap drive because you sit there and can work and have all kinds of things and it picks you up from your home and drops you at the meeting. I think it just it just makes clear this is a totally new transportation platform that is imminent. That's what people don't get.

[00:03:27]It is imminent and imminent doesn't mean tomorrow. It means by 2027 widespread.

[00:03:33]>> You could have a really cool cool kind of immersive um movie premiere in the vehicle. And you could have also that that correspond with activities in the real world like on a closed road, you know, the zombies come out of the woods while you're watching a zombie movie on the screen. Things like that. You're you're thinking more like a Hollywood master than me. I'm just thinking about boring like video meetings. Imagine >> that's sit there and have your conference call and it's in 4K and there's no problem and it's a big screen instead of somewhere on the plane or on the like somewhere on your little phone.

[00:04:04]So, >> do do you think that we'll see this come to all the other Tesla vehicles as well?

[00:04:08]You think this is a sign of things to come?

[00:04:09]>> Of course, it would be dumb if not. Um, Brett Winton says, "A widely distributed high bandwidth antenna network with an attached high performance chip. Sure, useful for those in the car. Slow internet and dead zones will become just as intolerable on car trips as they are on airplanes, but also for any Starlink direct to sell customers nearby. Those puny cellular antennas can piggyback off the larger one in the cyber cap." So, that's kind of interesting, too. Yeah, there all these synergies, but I'm like, yeah, there all these synergies, network synergies for SpaceX and for Tesla, collecting data, sending data, networks, all kinds of things. So, um, these are all additional modes that are completely insurmountable for others who if anyone wants to compete, they can't. So, it's I mean, this is just the claws of the Musk universe gripping the world more and more. You can't escape because these are synergies and economies of scale. You can't even imagine once this is all like imagine you have tens of millions of these things plus hundreds of thousands or millions of satellites and it's all one singular super web right >> I mean what are you going to do if you're a startup like oh let's do it too it's like well it's not easy >> you have to build some rockets first get those to work yeah >> you have to build a 100 million cars >> and [laughter] 10 million orbital AI satellites yeah it's not easy >> yeah well speaking of SpaceX we know their earnings call. The first one's going to be on August 4th, which I think is a little earlier than than a lot of people expected. I think a lot of people were expecting mid to late August. So that's that's exciting. So that's not too far off.

[00:05:45]>> I think earnings call much more exciting than Tesla earnings call. I think Tesla earnings call will be boring as always and then we maybe the stock drops a little bit. I don't think they have any rabbits for us. Uh but SpaceX will be of course very interesting because the stock is under a lot of pressure.

[00:05:58]There's more unlocks coming in my opinion to slide down into November at the same time. And people, the fans, the fanboys talk about, oh, Starship, like who cares about like Starship doesn't even do anything even if it relands 10 times because there is no business right now, right? And I'm talking right now.

[00:06:17]I'm an I'm a micron investor. I'm invested in a company that drowns in cash and Wall Street sells it off. like, "Oh, it's just 400 billion in free cash flow is not enough over three years."

[00:06:27]Like, what? So, so [laughter] you're going to tell these people, "Oh, but now Starship can reland. Yeah, it makes negative 1 billion cash flow, but soon." It's like really? So, what's interesting about SpaceX is Colossus because there will be colossal cash flow coming this year on in addition to what they have. Uh, we did some analysis. I think it's coming latest in Q4 very likely in Q3 which is like now they will announce some deals maybe not in in May I think in September or something maybe in August they will announce deals because this thing's kind of ready or it will happen Q4 and these will not be small deals will double their profit the whole company I think people know that maybe but I'm not sure that they know it so SpaceX is an interesting situation I still think we see significantly lower share prices but now we're getting into an area where it gets more interesting. The slide will also see some bumps because if you go to a 100 or something and then suddy by the way we just doubled our entire earnings from 11 billion to 20 billion maybe that does something to the share price. Also, if you add a trillion, going from 10 billion to 20 billion just like that in earnings gets you very I mean then we are talking about a whole different situation. Then you add 50 prize earnings. That's crazy. And then if they say well next year we double it again.

[00:07:55]Boom. Then you're at 25 price earnings and then it becomes insane because that thing should be at least at 150 or something. So you know given what's coming in 2028. So I think we are still in for a slide because these selling pressures are too high with all these unlocks. But now we're getting in interesting territory. Now we are suddenly talking about 50 and 25 price earning forward price earnings. So it's a complete transformation from being extremely overvalued to potentially being extremely undervalued very quickly. It's like a flip. Share price falls, earnings explode, and that could happen now. Yeah. So, I think it's too early, too early to get greedy, but uh time to really watch this thing.

[00:08:37]>> Yeah. Which is a a cautionary tale about paying too much attention to PE ratios.

[00:08:42]Those can change quite quickly. Um in terms of developments, um we're hearing some good things about Grock 45. So, this is from Mia. Still haven't found a real use case where Grock 45 fails at something I ask versus the others. Uh all of them are excellent, but Grock uh 45 wins on price and speed by far. uh to that Elon responded, "Gro is a solid workhorse." Then we have uh Elon saying that this is a response to Corey Robin's post here. Um he says SpaceX's massive corpus of worldclass engineering data excluding material blocked by ITAR uh will be added during supplemental training of the two trillion run. This will dramatically improve Grock's engineering capability. So they're really trying to make rock uh an amazing uh AI for engineering applications.

[00:09:32]>> Yeah. I mean I I tweeted I think that was longer ago, nine months ago. I had this very critical tweet of uh Grock, respectful but critical. And Elon responded to it and he said I said like it's amazing that they have so much talent but can't afford to hire a product management intern which was a little and then Elon responded like obviously we know it's not perfect like bro like and they still have that problem do this day Elon what's I think it's Elon's weak spot that's where anthropic is absolutely killing it where chat GPT like openi is just masterful right in these and Grog just sucks so extremely. So they have a great frontier model. They have now a great cursor team that makes it enterprise ready with their accounts.

[00:10:21]But on the consumer or or longtail, I'm not even a typical consumer. I'm also kind of a business. But let's say the long longtail consumer and small and mid-size businesses, they're completely ignoring them. If you go to Grock build for example, how hard honestly can it be to have like an icon download it on Windows or Mac and install it and have it. No, it's like some stupid CLI shell geek crap. Like sure, if you're a coder, you know what to do. I'm I'm I can't do these things. I want an icon thing.

[00:10:52]Download it, click on it, and then it's there. Like, this can't be. So, that costs you a million bucks. Like, just buy a little team, just some product, dude. Copy. Tell them whatever anthropic and open AI just copy these people. Also have an icon makes it also download.

[00:11:09]Make it a desktop app. Make it open and exactly copy it because they copied each other. They have the exact same thing.

[00:11:15]Codeex uh and co-work look exactly the same. They have chat co-work chat codeex and then you just have the slider and then you have your agentic system. With grock build I want to test this like what is it? What here? Blah blah blah CLI shell like dude. What are you talking about? And maybe I sound stupid, but I'm not that stupid because there are tens of millions of people like me who all want to use Grock and they just can't. Like really, is that smart to not get tens of millions of additional users who pay? I don't know. I don't think it's smart. So, I think it's a it's a management deficit of in Elon's universe, I know exactly his super strengths and also his weaknesses. And that's probably his most severe weakness because it's such a low hanging fruit.

[00:12:03]Like what what the hell?

[00:12:05]>> Yeah.

[00:12:05]>> Make itable.

[00:12:07]>> The good news is that uh Grock is coming to the vehicle in some Asian markets.

[00:12:11]And so here's a little video on that.

[00:12:23][music] Nexus wood supercharger experience center around 286 km [music] range.

[00:12:56]Gardens by the Bay is [music] perfect for relaxing with its cool domes shielding you from the thundery showers.

[00:13:02]The flower dome and cloud forest [music] offer serene vibes amid stunning plants.

[00:13:07]Malaysia.

[00:13:11]>> Anyway, this goes on. Uh it's it's nice to see Gro coming to the vehicles in different countries, different languages. Um, and if you're talking about a friendly user interface, I guess this is uh this is ideal.

[00:13:22]>> Yeah, it's pretty cool. I think these things are all driving sales because people like this kind of stuff and they can talk about it and show it.

[00:13:29]>> Yeah. So, this is apparently coming to vehicles in India, Thailand, Singapore, Philippines, and Malaysia.

[00:13:35]Um, so that's that's good to see. And then uh Joe this is um well first of all from Nick Cruz Betain he says Tesla is the only one building humanoid robots and autonomous vehicles that share the same computers brain batteries and cameras. Physical AI will soon become a huge talking point in my opinion. Tesla is already the leader in real world AI.

[00:13:57]Pretty obvious where things are headed.

[00:13:59]So this is something that that you've talked about and we've talked about before. Um, this was a post that Joseph uh wrote and you wrote a reply to this.

[00:14:09]So, let me just read this and then perhaps you can go over your your response. So, Joseph says, "It's hard to hold a generational company like Tesla.

[00:14:17]Goals are insurmountable. Projects are earth shreddingly big. Enemies luring all around. Elon promises and delivers, but late, almost always late. We all feel it. I get it. If you don't think this is worth it, perhaps invest in something else. I will not judge you and I understand. My game plan is to stay for Roboaxi and Optimus. It has always been my goal. I reviewed all the pros and cons and I stay invested mostly in Tesla, Nvidia, and a few others. The best companies are the ones I don't have to sell. That's my trajectory and timeline. So, this was something that you uh you responded to, and here's a a copy of your post, but perhaps you can kind of lead lead us through your thoughts here, Joe. Yeah, I did a video yesterday on this. So, um, basically I think if you follow the stock and you're watching, you know, my channel and Herbert and Cernird and everyone, I think it's easy to get sucked into this tactical everyday news cycle on Tesla and Roboax and Optimus, maybe even AI.

[00:15:18]uh and as an investor and as a human who watches progress, who likes progress, you sometimes have to to stay uh take a step back. We're talking about the most transformational period in human history right now. And we're talking about certain things that Tesla is doing that is a that are key pieces of the puzzle.

[00:15:36]Tesla doesn't do everything, but it does some very high-profile things. Optimus and robo taxi, for example.

[00:15:42]And when you take a step back and forget that you hold these shares and forget that you're down 15% year to date uh and you look at what's actually happening, we see tremendous progress, you know, like we and I repeated here what we are actually talking about the the immense thing that's happening. Robo taxes will make between 20 and 50,000 per robot taxi per year. I became a little more widespread with my prediction. We are actually modeling it out base case at 45,000. So pretty high at scale at millions.

[00:16:14]>> And I think that's still just the most conservative I can come up with. But some people say it's much less. Let's say it's 50,000 at 1 million robo taxes. That means 50 billion in Abbott. That means 10x more than 10x what's current that what's currently the entire earnings of Tesla.

[00:16:31]So they can grow 1,000% their earnings with just 1 million robo taxis. and they have to just produce another million robot taxes the next year to double it because they keep running. Then you add a crazy 100 billion in earnings and then the market for this whole thing exceeds 100 million robot taxes by far in my opinion is more 500 million if you would cover the earth with it. We have 1.4 billion cars going towards two billion.

[00:16:57]So yeah >> and so we talking about some insane thing here. We're talking about you're getting to a hundred billion in earnings and you have 1% of the TAM and there's no competition on top of it. Maybe there is a competition. I think in China you will have competition at some point but whatever then maybe you're at 5% of the TAM at 100 billion earnings and can 50fold that. So we are talking about insane things and we are talking about them happening now as we speak like in the next two months in my opinion there will be an inflection point if I'm totally wrong it happens in the next six months. Okay I mean given how big this is like the largest companies on earth had a lower market cap than what they can make in earnings very soon like five years ago or something. It's only very recently that we had this crazy trillion dollar thing. So, so this is an enormous transformation and that's not speak even speaking of what it means for us as humans on the ground literally that there will be millions of these things you can just jump in and out you will have probably a $100 per month standard flat rate and can just go everywhere or something. This is very transformative and [clears throat] my point was a little bit if you see that should you really get as mad as everyone is getting right now that we are two months late >> right >> no like I think it's inappropriate so [clears throat] you know I think we have to take a step back and also see it's not that it's empty promises we see continuous expansion of cities we see more and more things deployed most importantly we see cyber cap scaling it is just a question of time and I think the disappointment comes from people and that's partially also my fault. I understand. But my job is also to make money. So I have to make these predictions. But to say April and then it's May and then it's June and then everyone's frustrated. But I mean the big picture is it's completely nuts.

[00:18:52]And I think this is just a small example Tesla of the greater craziness that's going on. Think about AI. Take a step back, >> put yourself into your own shoes, go four years back and then show someone Claude Design or Clog or Grock Build.

[00:19:10]They would think you're crazy. They would think, "Cernird, what did you take today?" But they couldn't even understand because there's no AI. You couldn't have faked the video because it was impossible. So if you show a video, it's like, "Well, I don't even know what to say." So, I mean, we live through completely insane times. And the fact that people say, "I'm selling Micron because they're only making 400 billion in earnings over the next two and a half years." Then we sell Tesla because they are not scaling a fully autonomous robo taxi fast enough. And then we are thinking AI is a bubble because claw design is only as good as the top 0.1 human designers and not better. I mean, it's a little bit like, dudes, think about it.

[00:19:54]It's nuts. And then I went through the whole this Yeah, I went through a bunch of stocks and about SpaceX.

[00:20:02]I said what I said before. I think, you know, they are still under selling pressure. Uh, they're being sold because these shares unlocked, but I also think Colossus 2 and three are coming and they might double their earnings this year. I don't know if expectedly or unexpectedly because I'm not the I don't know what the market expects. I think it's pretty obvious, but it still might be a huge catalyst. So, I think SpaceX right now is still too expensive because there will be more selling pressure, but at any moment they might now actually announce much more earnings. And so, we're getting into interesting territory. And it might not be smart to wait all the way to November, my original plan, because now it dropped so much. So, SpaceX will be interesting. Uh, right now I find Tesla a little more attractive because I think things are happening in the next three months, but SpaceX is getting there, especially because it falls so much. And then I talked about Micron and Nvidia, the two semis. I think they're in a way related, but Micron is like the insane one and Nvidia is the super conservative one.

[00:21:08]Nvidia is in a very strong position, higher valued than Micron, but much less volatile. And you can't really lose with Nvidia in my opinion. This thing is just locked in. If you want to make 30% a year with very low risk, I think Nvidia is good. And >> Micron, it's just crazy to say, isn't it? 30% per year with very low.

[00:21:27]>> Yeah, I think it's a total buy because of that. But it's very low risk. And Micron is just insane. I think it's insanely underpriced. I mean, you know, today or yes, on on Tuesday, it was up whatever 15%. So, if you buy this thing, you have to, you know, buckle up for a pretty wild ride, just going up and down 10% every day.

[00:21:49]>> Mhm.

[00:21:50]>> Um, options premiums are also insane.

[00:21:53]With Nvidia, you get literally nothing.

[00:21:55]There is no options premium. Like, it's amazing these puts like this thing at 205. You sell a 205 put weekly and you get zero cent. It's like what? This is stupid. And for a micron, it's the other way around. It's insane. It's a 900. You sell a weekly at 900 strike put and you get $100 or something. It's like what?

[00:22:18]And then I did it of course and the first thing that happened it dropped 10%. [laughter] So then I was like oh now I understand why. But you can definitely play with short puts with Micron and that's very attractive.

[00:22:32]And then you have of course the uh Mac 7 like Meta and everyone else. I think Meta is the most interesting of the Mac 7 of the other Mac 7 of the ones I didn't mention. Uh so you know Amazon, Google, Microsoft I think are solid.

[00:22:47]They're a little like Nvidia but Nvidia I think is just a stronger case even less risk and more upside.

[00:22:55]Um, and meta is a little bit in my opinion is qualitatively a good bet because it's still underrated and Alex Wang and the AI team is very strong and that is not what the market thinks. So that's good. There's alpha. I think they still have priced in Yan Leun who's a little incompetent and they think Meta is just a total loser stock in AI and I think the opposite is actually true and Alex Wang took over uh who is a very smart cookie acquired by Zach for very cheap what was it 8 billion or something forgot cheap higher and he he already made him 70 billion in one day when he announced the his new model use and so I think Meta it's a little more risky little less much less sure than Nvidia but if you want to gamble a little bit on the Mac 7 I think Meta has the most upside potential but also high risk that's my take on the whole thing that's fantastic >> very very tactically I like Micron but that was little yesterday so [laughter] now I like it 15% less uh so >> yeah of course none of this is investment advice but yeah thanks change in real time. So, yep.

[00:24:09]>> Yeah. And then, of course, we didn't talk about Bitcoin, but again, when you take off your tactical crypto bro hat, I'm talking about you, Serb, take it off the crypto bro head. But no, all joking aside, it's like most people in crypto are like hooked into their charts. It's like, oh, bottom whatever like all these fourear cycle stuffs like dudes, you know, no one knows. But I think the macro theme is that there is one thing I had like my black pill video on one day that was a good video where I talked about very macro. What is even the problem here? Why is everyone selling stocks that are so hot and I think there is a dark cloud over the entire earth that will suppress uh these price earnings ratios and market values over the next two years.

[00:25:03]It will drag it down over the next three years. And that big dark cloud is the total disruption of civilization. That is like a thing. And that means even if you're so bullish on Micron or any of these things, dudes, how is this all going to play out? You are either wrong and this is a bubble then it's very bad news for all of us or we are right, which I'm 99% sure we are right. But what then? Okay, then suddenly all jobs are gone. Everyone's unemployed. the fiscal health imploses of the United States. We need to print tens of trillions for UBI and there's no plan.

[00:25:40]This can't even work. So that's a little disconcerting and also like oh yeah corporate profits go through the roof but why because they don't need humans anymore. So how this is not healthy.

[00:25:50]Then China comes along and boom now we have a frontier model that's 10 times better than the entire thing and everyone has to switch to that and token prices get cut by a 100x on Friday.

[00:26:00]say, "Okay, this is a little crazy."

[00:26:04]So, I think the opportunities are infinite, but markets, you know, see uncertainty as a much bigger drag than opportunities can pull it up. They say like, "Whatever, dude. I'm out of here.

[00:26:16]This is too much." And so this is going to happen and and we can be also sure that there will be just massive amounts of fiscal disruption which will lead to absolutely guaranteed massive amounts of money printing because what else are you going to do? And that is bullish. It's not just technically bullish for Bitcoin and Ethereum and all these things because you print more fiat. It's also psychologically bullish because everyone's just going to seek out like what can I even rely on in this crazy world.

[00:26:47]>> Oh, there's an algorithm. 21 million coins done. No cheating.

[00:26:53]>> Just buy it.

[00:26:54]>> Just give me peace of mind.

[00:26:56]The other thing too, just as a quick aside, we don't want to linger on this too much, but when you think about uh AI agents running a muck on the internet, I'm not so worried about agents from, you know, OpenAI and Claude and so on, anthropic, but what about agents from Russia and China and other adversarial nations? How are we going to actually stop them? It's one thing to build models that that can't, you know, from the US that that can't hack systems.

[00:27:22]That's fine. But no one else is going to abide by that.

[00:27:25]The Chinese are people always talk about, oh, the Russians, all the Chinese, all these evil little Chinese try to hack whatever our rockets. It's like, dude, that's not even the problem.

[00:27:35]The problem is that Xi Jinping just announced their strategy. So, there's no way of negotiating this away and their strategy is open source all the way, open weight all the way. These people are going to just, you know, uh, develop the most advanced models. And look at Kimmy K3. It's getting wild. Like that thing beat Fable on front end coding.

[00:28:02]That was last this week. Uh, so what does it mean? It means these Chinese are going to develop models that by the end of the year will be vastly better than Fable. Like let that sink in. the thing that they shut down because the end of the world, >> they are going to release them to the public as open weights so you can even fine-tune them to your cyber attack needs or boweapon needs. And I'm not even against it. I think there's just no way around it. And it's not the Russians we have to consern be concerned about the Iranians or the Chinese. We have to be concerned about everyone.

[00:28:39]>> Yeah.

[00:28:40]>> Because it's just out there. every little kid in a basement in Ohio can now attack everyone and it doesn't matter if the kid is in Ohio or in Moscow. Like, who cares? It was the kid in the basement. And I'm not like a doomer. I think of course the good that comes out of that is infinitely larger than the bad because now the kid can also whatever invent well most things that are crazy to invent dangerous but they can invent all kinds of things. It's the ultimate empowerment of everyone having millions of employees. So all PhDs and you can make your dreams come true and yeah in between there will be some bioweapons and cyber hacking. So I don't know what to make of it but to my point that's a little disruptive and there's absolutely no way to stop it.

[00:29:30]>> Well, oh the US should not allow like think about the US should not allow open weight models. Like how does what do you mean like you should not allow to >> Yeah. We won't have >> open like how does this work?

[00:29:43]>> Yeah.

[00:29:43]>> And of course they say oh we should like make it make them liable make like people who provide them on servers liable if enterprise use them. Well then people just download it into their living room and put it on a DJX Spark or something. So >> yeah. Yeah. No, we won't be able to stop I I don't think the models at that level. Uh the question becomes how do we physically constrain something that's in cyerspace? And of course, the short answer to that is that's what the Bitcoin mechanism does. That's exactly what it is. Everybody thinks of Bitcoin as money and it happens to be money because it's so secure. But in reality, what it is is a digital security technology that's going to be very very useful in constraining AI and constraining AI agents ultimately.

[00:30:25]>> Yeah, I think it's we have like the one thing that concerns me is it's just too much at once like the complexity to handle. But to your point, I think it's useful. It's more it's not useful on the long tail for the basement kid. It's useful on the frontier, right? If you say like how do we constrain like a mega AI, like an ASI from self-improvement and these things, that's where Bitcoin comes in to incur these costs that the basement kit can easily carry. They pay one cent more, but the ASI has to pay a trillion dollars more because it wants to kill us all. So >> that's right.

[00:31:00]>> Can create this friction. So I think for that it's good but it's not going to prevent the longtail human super application of all these agents on a human scale like to have a thousand of them or something >> right >> so very interesting stuff but I think the bottom line is >> we are completely not prepared for this that is happening this year I mean in two weeks they're releasing the open weights on Kim K3 by end of the year they will have one or two more iterations on this deepseek and the whole crowd. So we will have some vastly beyond fable openweight models flying around that's already disruptive enough because then what hap I mean I don't even know what happens I think the capability explosion for every human being is insane and then what does that mean it's highly disruptive to society and the economy and this is all happening this year I think people are totally not prepared for it and I think the markets ultimately will lower their their ratios they will just just too much risk here. We just have to derisk a little bit the entire market.

[00:32:10]>> But the counterweight will be you can derisk micron all day long to five price earnings. You still make 100% a year. So >> at some point becomes too cheap. Yep.

[00:32:22]>> Right. At some point you just I know buying the earnings for the next two years and then you know so it's like it's doesn't mean we can't make money.

[00:32:30]It just means the expectations also SpaceX and Tesla will get crushed like it now it's time to deliver massive amounts of cash.

[00:32:39]>> But fortunately they are they are getting into that position. So that's all I'm saying.

[00:32:43]>> Well, it's something that's a bit more mundane perhaps. Uh this is a kind of a hard hard shift, but the uh Model Y L uh adults can comfortably fit into the third row. So here's a quick video on that. I'm in the back of the Tesla Model Y L and I'm pleased to report that I can actually fit in the back. Normally I don't fit in the back of third rows of SUVs, but I actually can for once and I'm actually comfortable. Shocking.

[00:33:07]>> And then another thing to talk about is uh Tesla has a pretty amazing technology when it comes to obstructions and they have a clever way of showing that in this video.

[00:33:34]So that's that. Um, >> in terms of the duck still needs to go to Cairo after that, but it's fine.

[00:33:42]>> Yeah, at least the you can see that the duck uh, you know, the squishy duck at least stops it. That's nice. Um, and then on the negative side, uh, this guy Ryan Torres says, "Dry wipes on FSD are the death of me." And Yintasai from Tesla's AI team says, "I personally review customer clips. In most cases, it's trying to get rid of dust or wet residual or moisture. In FSD, we prioritize wiper for visibility, not really what you see on the windshield.

[00:34:10]We do know if the surface is wet or dry." So, that's something that they're working on thinking about. Um, and all of us FSD users, I think, have have our challenges with that. Um, here's some uh positive experience from somebody that um got a loaner car while his car was in the service center. He says, "I connect to your app and the new car you just drive off. The loner has all your settings, including your saved addresses, audible books, Spotify playlists. Even my garage door opener worked on the loner." And he says, "Foot. I've owned Teslas for 10 years, and this was the first time I had to do this."

[00:34:43]>> Yeah, that's the uh This is a precursor for us uploading our brains into >> That's right.

[00:34:50]>> Yep. And then the Tesla North America reposted that and said any Tesla will automatically load all your settings and preferences when you're added as a driver and have cloud profiles enabled.

[00:34:59]Um and then finally here uh new store in Santana Row the showroom um makes it abundantly clear FSD is now the product.

[00:35:07]The store is 100% focused on selling FSD, not cars. So here's some images of that. Uh they got the future of transport on the wall here. Uh uh full self-driving supervised keeps you safer.

[00:35:20]Um and then another image here uh on a coffee table showing the cameras all around and the visibility of the vehicle. The evolution of autonomy here on the wall to give people a sense of the timeline. I'm sorry it's not big enough really to read. Um and then here's another visual. These are all signs that you know they have very high confidence in FSD at this point.

[00:35:44]>> Yeah. Showing the 12 billion miles that have been covered now with FSD. I think it's actually more than this. I think the counter actually is behind in terms of where the actual fleet is. Um and so on. So you can see here the whole showroom basically is FSD focused. So uh that's nice. And then last but not least, um on on the note of other car companies trying, uh Ford's smaller EV pickup was spotted at a Tesla Supercharger for the first time. Comes with a native Knack charging port and an LFP battery. And it's supposed to have a starting price of 30,000. If they do that, they probably lose a ton of money.

[00:36:20]Um it's supposed to launch next year.

[00:36:22]And here's some uh images of it close up. Of course, it's been disguised somewhat, so it's hard to tell exactly what it looks like. Uh Tesla also does this, but when I look at this photo, I didn't even see these trucks. I was just admiring the Cybert truck here on the on the left side.

[00:36:35]>> I'm glad I'm not a car executive these days. It's no fun.

[00:36:40]>> Tough business to be in. Yeah. Well, Joe, it's been great having you on the Cernbert show. Uh thank you for joining me for my last episode before Herbert returns.

[00:36:48]>> It was an honor as always. Cernbert is the number one show in the world. So, >> well, only because of the great work that Herbert has done over many years.

[00:36:57]So, we appreciate him. We We've missed him and we're happy to have him back tomorrow. So, uh, thanks to everybody for joining us.

[00:37:03]>> Thank you.