What I don’t understand is how betting on FSD prevents Tesla from bending more metals on the side. It’s like as if because Musk acquired twitter, spaceX had to cancel falcon heavy Tesla can bet the company on AI while shipping 10 new models. These are done by completely different people
@KelvinYang7 It’s the resource ($). He’s betting most of the $ on AI because demand for vehicles are low. I don’t agree with it but that’s what he’s doing
@PongVamos I don’t remember how many billion they have in the stash. A factory like the one in Shanghai only costs 2 billion
@KelvinYang7 @PongVamos they have like $30B in cash, no reason not to invest in more cars. And more Tesla cars on the road = more FSD opportunities
@KelvinYang7 @PongVamos its not money but human resource. A small team cant create multiple EV's in 3 years. They go to another project when its finished. Elon betting with all his resources on robotaxi.
@KelvinYang7 @PongVamos It’s the NVIDIA AI chips. They are way more expensive than a new factory.
@KelvinYang7 I think he’s being cautious. Their FCF are declining a lot due to much lower margins and sales. The stash is from before. He mentioned AI costs $10 billion at least in a tweet. And we all know China factory at $2b means way more in other less efficient countries.
@KelvinYang7 @PongVamos Its all about CAGR and efficiency. Tesla is lean af. So you better work hard and your work better be relvant, or youre shown the door. And thats what happened. Spend to optimize cagr