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Tesla: Intel Joins Teala + 420w Solar Panel in Texas
Recorded: April 7, 2026 Duration: 1:02:28Space Recording
Full Transcription
Thank you. Thank you. Hey everyone, how's it? morning Tesla good morning good morning can you guys hear me it
is definitely another one of those days when we are glitching I'm trying to send the co-host
invites out and it keeps dropping you guys down so I find that a little bit weird I will still
try it again but hopefully it will give you the opportunity. I'll cancel
the ones that I have sent out. We are broadcasting from the
far side of the moon.
Are you hearing me? Can I get a thumbs up if you guys are hearing me? Yeah, yeah, we hear you.
You're good. Okay, cool. Yeah, here we go.
Oh, Robert, we'll get you up to um have a
little reset um cancel co-host i sent the penny penny sent you another one
so hopefully you're getting that now and it doesn't kick you down but how are things going
on your side yep looks like you have sent or i've sent it to you. Can you see it? I saw it, and then it disappeared.
Now I can hear y'all.
Maybe we should just avoid the co-host thing altogether.
I mean, it just doesn't work for me.
Yeah, it might be the thing. It might be the thing today.
So how are you guys going on your side?
Start with just order of what I see i see i go landon and penny
then pass to robert hey really happy to be here sorry for the the glitches maybe it's just me
probably not but boy it just strikes me this morning i'm so excited to talk about tesla
for all the reasons but i have to remind people mean, at least this crosses my mind that we are in a battle.
We are in a constant battle. If you're in this stock, it's a battleground stock between the
future optimism and the haters and the crying. I mean, I'm just hearing lots of it lately. I don't
know what you guys are hearing, but I'm here to fight because I know the people
and the products of these companies
are what I want to support because we've researched
and we've gotten into this every day.
Tuesdays, we talk about it every day.
We research this.
So get on the right side of the future and join Tesla.
What are you up to, Penny?
Well, I did see one bit of interesting Tesla news today.
It looks like Intel is joining in on the TerraFab project,
which I think is pretty cool.
Other than that, you know, I'm just sort of waking up and facing the day myself.
that, you know, I'm just sort of waking up and facing the day myself. That Intel news, boy,
they've got major, major U.S. manufacturing right there in Chandler, Arizona. I used to walk,
I had a house in Chandler and Ocotillo, and I could just walk by all of those factories.
And you could walk for three miles as you walk by Intel factories.
And boy, people seem to be excited about it.
This seems to be like, you know,
buying some expertise in certain areas,
buying some manufacturing.
That seems right, bringing it all on board.
This is not a game where you get extra credit
for solving all of the problems yourself.
You're allowed to work with others that have done this before. And I think that this is,
sounds like a great opportunity for a leg up. Well, it's obviously the biggest,
most risky project in Tesla's medium-term future. We're talking about doing something
that they've never done before
at a scale that nobody has ever done it before. And why wouldn't we bring in all of the expertise
that we can? You know, if I was Tesla, or, you know, a leader at Tesla, I would be spending as
much energy as possible trying to do stuff exactly like that. Now, you don't want to just acquire
talent for no reason. It's got to be the right people.. Now, you don't want to just acquire talent for no reason.
It's got to be the right people.
But definitely, if you can find partnerships with people that know what they're doing
and de-risk that gigantic project a little bit, it can't be bad.
You know, it's a great point, Penny,
because if you're reading the Intel information this morning,
this morning. You know, maybe you're not up on, you know, everything going into AI5, AI6 plans.
Hey, what has happened with Dojo and the start that that was, you know, that Tesla had on Dojo
a couple of years ago? Is that still alive? Where is that going? Yes, it is. And so this is kind of,
this is kind of something. Let's talk about what you just
said. So now Tesla is partnered with Samsung. They have said Elon will be walking the Samsung
chip fab lines in order to help, right? They're working with TSMC, who's currently making AI5. You know, that thing has
been set, all the parameters it's set in, and they're, I don't know if we could say they're
starting production, but that's TSMC. And now we've got Intel. So which of the chip makers in
the world is Tesla not involved in?
I guess maybe is a better question.
Definitely some exciting times.
And that was the top thing that I saw.
Robert, love to hear your thoughts about all that was just said or all the exciting times ahead.
I'm going to a robot meetup up in San Francisco right now.
I'm in my FSD car. It's driving. I'm not looking a robot meetup up in San Francisco right now. I'm in my FSD car.
It's driving.
I'm not looking at the road.
The markets are all red on my screens.
So it's hard to keep your optimism when the markets are red.
But when I first started investing in Tesla, my money manager told me about Amazon.
And in 1999, it was $112.
And he said in 2001, it went down to six and everything else was going bankrupt.
And, you know, that prepared me mentally for days like this and not to do something stupid like sell all my stock.
this and not to do something stupid like sell all my stock there's so many good
things coming over the next few years for Tesla I mean even the next month or
so there's a new Roadster that's coming sometime soon there's the semi trucks
are starting to come off the line.
You're seeing robo taxis going to start expanding and start go human less.
And that's what I'm waiting for.
We still haven't heard about plans in China for robo taxi.
That's coming sometime soon.
And of course optimus and when i've been studying the robot world for a long time here
and visiting companies here in san francisco and talking to a bunch in china and tessa's uniquely
positioned to do real well with optimus they have the 12 000 workers in the Fremont factory that are training the robot. They shut down the Model X
and S lines, which is a hit, but that's going to be where they're going to make the optimists with
the workers there. Very few companies in America have that ability and have that workforce.
General Motors and Toyota shut down that factory and fired the workers because they were too expensive.
They didn't realize the workers in Silicon Valley are more innovative than workers elsewhere.
And that's why, you know, a lot of the fabs in the world were started in Silicon Valley in little small fabs.
I get them working and then they spread them to China or wherever else.
So I'm optimistic.
If you look at a decade from now, are there more robo taxis or fewer?
A lot more.
Are there humanoid robots walking around our streets?
Yes.
And at a quantity that will stun people.
You know, so I just hold.
It's a red day.
Oh, are the markets down?
You guys look at the – oh, this is kind of a financial space.
Jeez.
Yeah, probably a good time to remind everybody.
Yeah, Robert.
Yeah, it's all red except for Broadcom is up
because Broadcom just did a deal with OpenAI
or with Anthropic, I mean.
Yeah, that's the first,
the very first gambling app on the iPhone
was that stocks app.
You ever notice that the news stories that go along with that on the Apple iPhone,
the news app, the Stocks app, do you ever see any of those articles that are favorable?
I don't know.
They did a study about that, and I'm really disappointed, Apple.
I love you.
But I deleted that Stocks app off of my phone for two reasons.
One, because you do not need to be looking every day
about what other people that you don't know
or you don't respect are paying for this company.
You know, they can buy it.
I'm gonna buy it low.
I'm gonna keep buying the dip until there's no more dips.
And I've been doing it like Robert since 2018.
And if you're in Tesla, you're going to have days like this.
Seriously, I haven't even looked.
I don't care.
I'm not doing anything other than trying to buy more.
But this is the future, and this is what we're buying.
Since Tesla, it's gone down, I think, nine times more than 40%.
So it's a stock that uh will shake out uh people who
don't have conviction right and if you don't do your homework you won't have commit conviction if
you don't really understand what's coming with the future you won't have conviction so um that's why
i join these spaces and try to try to offer a little conviction here and there because
the robot world is coming yeah very interesting that you said and I think it's very fittingly
named optimist of course you know no time to be a pessimist when optimist is coming so you know
it's kind of funny on that regard but then also you know a lot of these conversations that I have
with people you know I spend a lot of time in like Bitcoin spaces.
And it sounds very similar. If you believe in the technology, believe in what's coming, whatever it is, whatever the chart does for that particular day has nothing to do with you.
And just going forward and some people are going to laugh at you along the way, but it doesn't matter if you truly believe in what's coming.
But Trev, always happy to have you. Love to hear your thoughts on either what's coming with this Intel tariff fab deal, all the stuff with Optimus, whatever's happening in the previous speakers.
Then we can go to Smokey afterwards.
Yeah, thanks for having me again. And yeah, this deal is very, very exciting to me.
to me. You know, I think a lot of people are kind of sleeping on Intel here. You know, people are
You know, I think a lot of people are kind of sleeping on Intel here.
saying, you know, they're not as good as TSMC and Samsung, which, you know, may be true. And
but that's not the point of this, right? The point of this is really to, you know, you want to get
somebody in-house that really understands chip manufacturing. And Intel, they understand chip manufacturing.
I mean, they have, you know, Robert would probably know more than me,
but they have many, many years of experience in chip manufacturing.
And, you know, one of the things I was just actually looking up is that their latest advanced process nodes are sub 2 nanometer.
So, I mean, they know what they're doing.
And Tesla really, you know, Tesla's already partnering or I guess you could say collabing with TSMC and Samsung.
And, you know, they're not like Elon said in his TerraFab presentation.
They're not trying to push them aside or, you know, make enemies out of them or anything like that.
They're just they understand that, you know, they can't give them the compute that they need.
Right. They just can't fulfill the orders fast enough.
Right. So that's what this whole thing is about is accelerating the chip manufacturing process. So I'm really excited about this Intel collab
because Intel, from what I understand,
they're really good at packaging.
So basically, they're very good at putting these
large models on small chiplets or smaller dies.
And that's very, very important
when you're trying to combine like compute memory
and, you know, IO efficiently and, you know, hyperscale it.
Because it's one thing if you can actually make,
like design and make the chips that Tesla wants to make, right?
The AI chips, you know, the AI5 and AI6 chips
for, you know, Optimus and the self-driving car,
the RoboTaxis, right? But it's completely, it's a completely harder, more hard thing to do
to actually hyperscale that, right? To, you know, a terawatt. You know, obviously, we've heard the,
you know, they're going to Tesla's going to build
a kind of a smaller factory to get started at Giga Texas, right? Just to kind of get that fast
iteration loop that Tesla, SpaceX and XAI are known for. And I imagine they're going to start
breaking ground on that, like pretty much immediately, like they're probably going to want
to get that up as fast as
possible and then they're going to take the what take those lessons that they learned there and
they're going to build this terra fab um i know that they're looking for land right now probably
somewhere in texas um maybe it could be a different location but it's most likely going
to be in texas i mean that makes the most sense from a logistics standpoint. So, yeah, I mean, I'm super excited about this Intel deal. I think
people are sleeping on it. And yeah, I'd love to hear what everybody else has to say about it.
I've been inside the in-fap up in Oregon. it's flex manufacturing facilities i've ever been in
it's a huge building with thousands i mean when you when you get in the fab it it's like i don't
know 10 foot it might be 20 football fields 10 10 to 20 football fields every piece of it has a tool
football fields every piece of it has a tool that looks like a refrigerator that the chip goes
through to deposit material on the chip you know to make the layers of the chip um you're right on
point that intel has a lot of expertise in manufacturing chips they have fabs ready to go
manufacturing chips they have fabs ready to go um you know they might not be the bleeding of
bleeding edge you know compared to tmsc but intel needs a really good customer and uh elon musk is a
really good customer you know tmsc has a lot of customers. They have Apple and NVIDIA and a bunch of others. They're not going to give Elon Musk the time of day that he needs to innovate.
that makes little tiny AI chips.
They can hold a 200 million parameter AI model,
which sounds small and it is,
but that's running on a ring on your finger, right?
And it uses very, very little power
to run that neural network.
And Elon needs to innovate in chips like that
to run the Optimus hand,
to handle the sensor readings coming off the fingers
the sensors in the fingers um and he needs to innovate in that direction and you know
intel intel could get there uh particularly but it's combined with the expertise at Tesla and SpaceX.
Don't you think this too, Robert, is for acquiring talent, right?
Like that's why I think, you know, obviously SpaceX and Tesla,
and XAI for that matter, already have some of the brightest engineers,
software engineers, hardware engineers on the planet.
And I think this actually helps them acquire, you know, talent because, you know,
if we go back and look, my last thing I'll say, and then I definitely want to hear other speakers,
but, you know, the main goal when Elon announced this TerraFab project was to build, you know,
a manufacturing facility that combined the logic, memory, and advanced packaging under one roof, which
does not exist today.
So I think they're going to need expertise, like Intel's expertise in this field, and
also to help them acquire the talent needed to make this an actual reality.
Let's be honest.
Intel has one of those machines that very few companies can get that burns
the chip, makes the chip, right, from the Netherlands.
And, you know, Tesla and SpaceX has its own chip expertise.
Elon's been working on in a part he's telling me um so I putting these companies together
I look for things that you know does two plus two equal five this is one of those cases
yeah really interesting there uh and those of you that are just interested uh check out
tariff fab.ai.
They have a new website, which I think is really, really cool.
So just go check that out.
But Smokey, love to hear your thoughts.
Hey, buddy.
Work kept me a little busier than usual right now.
I'm sitting on a very low battery.
I think most of the points have been hit on the tarrafab.
But Trev, you brought up a point about looking for land.
I don't think a lot of people understand that if you've been to the actual gigafactory
That only takes up maybe less than 4% of the total land that Elon Musk owns there in Texas
So I see the Terra fab going in Texas full-blown
They've got enough land to do it and it's gonna be amazing
to do it and it's going to be amazing.
That's crazy because that is a huge building.
That means he definitely has a lot of land.
So even though the numbers that we see are ridiculous,
he definitely has the capacity to do so.
Last thing I will say, though, with the whole Intel thing.
So, you know, a few times people have said that the Intel might not make the most powerful chip.
Well, those of us that are both Android and iOS
users will see that when you look at all the specs of the Android Snapdragons and all those
chips, they're always blowing apples away. But then when you actually use them head to head,
because everything is integrated in one manufacturer operating system, software is
optimized, the raw power doesn't necessarily matter. So it could be
a case where even though they're not the number one absolute leader in chips, that they have so
optimized it for Tesla and whatever else that they're building that it could be a lot more
efficient and more powerful by scale. Because by raw numbers alone, if you look at Android phones,
every single one of them, the power of the chip should just blow away every iPhone. Yet, of course, when it comes to spaces,
even, I'm not trusting my Android on the space. But no, I'll just throw that out there really
quick. And, you know, interesting times, you know, Penny, it's been a while since I kind of heard
you. But, you know, anything that was said by any of the other guys that before we move on to another topic, would you love to hear some thoughts?
Well, the last thing that I'll say about the TerraFab is they don't have to make the fastest
chips. They just need to make a lot of chips, right? I think that their focus is on increasing
the supply. Elon said something to the effect that you lose some efficiency
as you try to go smaller and smaller
with these chips anyways.
And they're just trying to get as much powerful
or as much power as possible,
as power efficiently as possible.
And, you know, I think that
just pushing the frontier
with a company that already knows
what they're doing with chips, it's probably a good idea for them to team up and get as many of those out as possible.
The other topic that I wanted to bring up real quick is we're sitting on the release of the next FSD, the one that Elon said, you know, is the final puzzle piece for unsupervised driving.
you know, is the final puzzle piece for unsupervised driving.
And last I heard, it was out to employees for testing like a week ago.
And we should be expecting that soon.
So I think that's another exciting topic in the Tesla world.
Yeah, you know, I just went to GTC NVIDIA's big conference
and met with a lot of the autonomous car people there.
Neuro's CEO showed up.
Hold on a second.
My car's not doing the right thing.
Here we go.
We had a safety takeover right there.
I was heading toward a truck in the left lane.
I've been listening to you for years,
and you always say you're driving your car.
That's the first time I've heard you take over.
I happened to be looking at the road right there.
I was like, what are you doing?
Back to AI.
Nuro showed off a more flexible AI than Tesla has.
They took their car to Japan.
They had never done any training in Japan.
They had never done any data capture in Japan.
Japan's a left-hand drive.
They did most of their training here in Silicon Valley
on right-hand drive roads.
It drove just fine because it decomposes the road around you it splits it into all of its parts
right what is drivable surface where is a truck that my car just tried to hit right where's uh
the lane markings where stop signs where stop lights and it figures out how to drive in a more flexible way the founder told me
uh the reason it does that is because they built it on a new end-to-end neural network
well tesla's a leader in end-to-end networks and even if they are a little bit behind a little
startup like that they're not very far behind and i'm expecting the next version of fsd
to be flexible that way um
or with reasoning the ai world's bleeding edge right now is trying to figure out how to make
reasoning the reasoning part of the models better and better and we all
know that's where tesla falls apart a little bit in parking lots it doesn't find the right space
where uh sometimes makes a mistake going through town or whatever um the reasoning engine should
start really improving and so i'm I'm excited for
Omar to get it because Omar always gets it
three weeks before I do.
If Omar doesn't have it yet, then I know
it's at least
three weeks away.
With Tesla,
they too
didn't do a whole lot.
Omar or anyone else can correct me. They didn't do a whole lot. And Omar or anyone else can correct me.
They didn't do a lot of training for Australia.
And they're also on the other side of the road.
And according to a lot of people there, it does just fine.
And they're on V13.
They're not even on V14 yet.
So, you know, I think, you know,
Tesla has probably the most advanced,
in my opinion, I think they have the most advanced AI
on the planet because, you know,
I can take my car down my gravel driveway.
It doesn't need lane lines or anything.
Took it in the snow, you know, obviously,
snow and,
and things like that still need a little bit of work. Um,
but it was able to, you know, counter steer, um, on ice, you know, um,
and, and do slippage like that. So, you know, and, and we've seen, you know,
Tesla, you know,
we've seen people take their Tesla's kind of illegally and put FSD on it in a
country and it just kind of works.
And that kind of just goes to show you how advanced that AI is that even if it's not allowed, you know, it's still working in a country that, you know, obviously they didn't really do any training in.
I appreciate that, Trev, because, yeah, that's right. I mean, they talk about this.
When they get the car out on roads that it's not trained on and it does things,
you know, you get people from the Tesla team telling us,
you know what, we didn't write a specific code to say do this there.
We just exposed it to how everybody else handles it and it figured it out.
So, Robert, I am kind of curious,
you know, I love chatting with you about this tech, and you've got such insight, you go to so many conferences, interview so many people. But so for a couple of nights now, you've said what
you just said. You've said maybe these companies are ahead because they're building these world
models, they're building the spine of an area with their mapping.
But, you know, what is it that makes you say that?
Like Trev says, when Tesla can just put a version of FSD in Australia,
and it's not a big deal, it's not a problem, it doesn't fail.
Now we've got three different major version of FSD.
We got the one that's in your car.
That's a version 12.
We've got, you know, these ones in Australia.
That's a version 13.
And we're lucky to have the amazing version 14 here in the U.S. and in Canada.
So what is it that you think about this model that you've seen that makes you think it might be, you know, maybe six months ahead of Tesla? I just saw the demo and I'm being conservative.
You know, it's been a while since we've had a big update from Tesla on the models. So,
you know, I don't think they're, I don't think they're behind. Tesla's the world leader on world models.
They have more data.
They have a bigger fleet than anybody else.
They have a lot of advantages.
And they're doing a lot of work in simulators, too.
NVIDIA Simulator, by the way, would play with it a little bit.
It's a 200 billion parameter world model.
It runs on a a big bp pc
underneath the desk and you just give it a single photo of any road in the world
and it generates the city that you're driving around it it's real sick from a single though
and you can prompt the ice on the road.
Make it snow.
I think he's breaking up on my side.
I don't know if he's going through a tunnel.
Are you guys hearing that too?
Yeah, Robert,
you're kind of a little choppy.
It's all good.
We'll come back to you in a second.
It's still a little choppy.
Okay. Yeah, yeah just just a second well tesla owners love to drive you can't get out of your car once you get a touch man all you want to do is drive you look for excuses to drive
i love it so much yeah i see doug popped up then that we can uh pass to omar afterwards but doug
love to hear your thoughts on all what was said Yeah. You know, I wanted to pop up because Penny mentioned the idea that 14.3, you know,
is on its way. And something that I think might be correlated that's getting me kind of excited
is the fact that there are legions of robo taxis showing up in new places around the country.
Robo taxis showing up in new places around the country.
You know, we're seeing entire small fleets be stationed in new locations.
And I think these two things are correlated.
I mean, Tesla's been testing 14.3 internally.
And, you know, I'm starting to think that they really have gotten this whole reasoning.
And, you know, the little quirks that we
all experience, I think they're
ironing that stuff out and we're going
to see 14.3 and an
expansion of RoboTaxi, in my
opinion, kind of go hand
in hand in the very near future
and I'm really excited about it.
I don't know if anyone else thinks there's a connection between
these two, but for me, it seems obvious.
There certainly is a connection between these two but for me it seems obvious there certainly is a connection one of the drive yeah go ahead one of the drivers told me there is a connection in fact i have a friend who works at the fremont factory um uh doing qa on on cars that
that are being made there and at nights and on weekends, he's getting double time to drive a robotaxi to help the robotaxi effort out.
They're shaking the tree for any last errors that they need to fix before they really start scaling this up and taking humans out of the car.
The whole robotaxi effort right now
is really an engineering project.
Let's be honest, it's not a serious,
put ads on the freeway and get millions of people using it.
It's to get rid of the errors and get this thing
to where we can get unsupervised in our car and get humans out of the robotaxi and start really driving it at some sort of scale. I mean, it really does feel like reasoning is the missing piece.
I'm at 98% of my miles being FSD.
And if I think about all of my interventions, none of them were safety related.
I haven't had a safety related intervention in a really long time, maybe since 14.0 or something
like that. So ever since 14.2, ever since it started counting the miles, I have not had a
single safety intervention. And the ones are like they're part they are thinking things it's
like turn the wrong way in a parking lot so i have to go like five extra turns and waste a minute
or turn the wrong way into a one-way street and need to turn back around it's just like silly
things like that but if it thought a little bit it wouldn't do but since it's only reacting to
five seconds of the time it doesn't think that far ahead. And it makes mistakes that it otherwise wouldn't.
So I'm really, really excited to see what happens.
And I feel like most of us who would like to get near 100% already could.
If you were just willing to put up with all of those annoying things,
you could probably already get like 99.9.
And if we just get past those last little bits,
I don't think that there's any problem
rolling out unsupervised robo-taxi.
And we all know that that opens the floodgates
to all sorts of new things and believers, right?
Because people don't believe it when you,
even if they hear me say 98%,
I can show them the 98%, right?
Unless you sit in the car and it's just driving
and no one has to supervise,
you can take a nap.
That's when people will really start to believe, I think.
Really interesting stuff there.
Omar, I'd love to hear your thoughts.
And if by any chance you are privileged enough to be on the new version yet,
there's a little rumor going around that you get it first.
So yeah, I'll throw it out to you.
Well, the new version isn't out to anybody yet so no I don't have it but yeah you know Tesla I think is out a demo, and demos are great, but there's nothing like actually being out there in the real world and actually driving real miles.
You can't imagine how weird the real world is, the kind of stuff that happens in the real world.
And Tesla's driven now about 9 billion miles.
They just recently crossed 9 billion miles.
That's, you know, that's about 13 light hours.
It takes a beam of light 13 hours to go 9 billion miles.
In a way, by comparison, they've driven about, you know, maybe 200 million to 9 billion miles. In a way, by comparison, they've driven about
maybe 200 million
to 400 million miles.
Million, sorry. They're working
on their first billion.
So this is super underappreciated.
Tesla's operating in
countries all over the world,
even countries that don't officially
have FSD.
So you can just sort of see it when you try it.
When I use Waymo, it's robotic, it's jerky, it's stopping and going.
When I get in my Cybertruck, I mean, the way the self-driving works on this
is like nothing else I've ever seen before.
It's like watching TV in color when you've only had a black and white TV before.
This thing is like so lifelike, just like weaving through traffic.
I said yesterday, Mad Max mode on the Cybertruck feels like you're being chauffeured by Dominic Toretto from The Fast and the Furious.
It really is incredible.
You just have to try it.
Words can't do it justice.
It's like nothing else in the self-driving world.
So, as usual, I think people are completely sleeping on what Tesla's doing.
Q1 is kind of seasonally the weakest quarter.
You often see this pattern in Tesla where there's a correction in the first quarter.
You saw it last year with the stock hitting highs of around 440 in December of 2004.
in December of 2004. In January of 2025, Elon joined the government, had the Department of
Government Efficiency. There was all this crazy stuff happening. People were losing their mind
as the stock hit 220. And well, by the end of the year, they had hit new highs at
480 a share. So, you know, there's an old saying in the market, which is easy to remember,
but not so easy to do, which is buy low, sell high. It's pretty simple in theory. You buy when
shares are low, and you sell when shares are high, and you make money. In theory, it's easy.
In reality, people do the opposite.
They buy high and sell low.
Why? Because when everybody's hyped and excited,
and they're launching robo-taxis,
and wow, unsupervised by the end of the year,
that's when people get really excited and buy.
When hype is at its peak, and it's at an all-time high.
When you see a correction like we're seeing right now in Tesla,
where the stock's down 20-25% year-to-date,
nobody wants to buy, right?
That's kind of the funny part of it.
Everybody suddenly gets very bearish.
But as this correction gets deeper and deeper,
this is where you start to get some interesting entry points
for if you want to play the autonomous driving theme.
You know, just kind of, I read an article yesterday
about the resistance to self-driving in New York City.
You know, New York City is the biggest rideshare market in this country,
maybe one of the biggest rideshare markets in this world.
And they have 143,000 taxi cab drivers in New York City.
143,000.
To put that into context, we have less than 4,000 driverless cars in the entire country.
So there's 40 times more cab drivers in one city than we have self-driving cars in the entire
country. And people are ready to say, you know, this race is over. We have a lot of scaling of self-driving to do.
A lot of scaling.
There's a lot of work to do to make that happen.
And Tesla's the only company
that is mass producing self-driving cars.
They have a huge role to play in making that happen.
And most of the market, most consumers
are just completely in the dark about that.
This is a theme that we're going to be talking about a lot for years and years.
And I think this is going to be a really good entry point for people who want to play that AI theme.
You know, right now the market's worried about the Iran war and the price of oil and inflation.
Right now the market's worried about the Iran war and the price of oil and inflation.
And they're selling a lot of these tech companies that are being transformed right now by generative
AI and all of these LLMs, things like robotics, things like autonomous driving.
The earnings potential of these companies are going up, but the valuation is going down.
That's a setup that I love as an investor. And, you know, Tesla and Elon Musk,
they're always working on something. They're always thinking a little bigger than even
we can catch on to at the time.
You know, about a month ago, they announced the TerraFab, a plan to fabricate their own
chips.
And I was kind of scratching my head like, wow, chip making is really hard.
How are they going to make this work?
You know, when might we actually see them get chips out?
How are they going to get the EUV Ultra lithography machines?
And today they announced a partnership with Intel.
Yeah, that's really exciting.
Well, now I'm starting to...
Definitely exciting.
There's always 10 steps ahead, man.
Yeah, I mean, every time I've doubted Elon, I've turned out to be wrong.
When he said, hey, we're going to turn the radar off in your car for full self-driving,
I said, what?
The radar that stops me from hitting the car in front of me at 80 miles an hour, you're
going to turn that off?
How could that possibly be a good idea?
Fast forward to today, my car is driving way better than it ever did with the radar on.
It turned out the key was deep learning, not sensors.
And yeah, I think he's thinking a few steps ahead with this TerraFab thing.
Intel is the company that put the silicon in Silicon Valley.
They're a truly great American company,
but they've struggled in recent years with competition from TSMC and others.
They're losing money right now.
They actually need a partner like Elon,
and I think Elon needs a partner like them to help them get started.
I mean, they know a lot about chip making.
They've been making chips since the dawn of the PC industry.
Yeah, we had a segment earlier that we were kind of excited about that partnership right there.
And I think it is really cool.
And the analogy that I use is just having someone that's really working on your behalf
is a mutual benefit that, you know, in-house, it could be more efficient, even though it
might not be the 100% most powerful compared to competitors, but because it's especially
tailored for your special needs, it could be really great.
So, no, great thoughts there, 100%.
And we, you know, we are excited to
see what happens. But just really quick, one thing I want to throw in there, you said 9 billion miles
as to how far they have driven. I don't think a lot of people, you know, when you hear 9 billion
miles, yes, sure, that's a big number. But how big really is that? Well, the moon is 239,000
is 239,000 miles away. So those of you that are into space, and I assume you are if you're into
miles away. So those of you that are into space, and I assume you are if you're into tech,
tech, that the Artemis crew, like, you know, that is 18,000 round trips of what they would actually
do going to the moon and coming back 18,000 times to actually get to 9 billion miles. So that is a
truckload of miles that has self drive has done. So that's a lot of data right there. So we talked about the sensors and being shut off and in replace for the learning and observing the surroundings. Well,
that's a lot of data going into it. So really cool stuff there. And as far as processing it and
while you were speaking there, Omar, Tesla Yoda popped up. So I don't know if he has something
directly to say based on what you said,
but right while you were speaking there,
I saw the shoot up.
So love to pass to you.
Anything that Omar said kind of sparked your attention there?
Yeah, I joined, you know, kind of late.
So maybe I didn't catch all of Omar's point.
But yeah, I agree that Intel has an amazing kind of legacy from kind of the PC CPU.
But they've currently are, I would just say, like put them as laggers in the, whether it's the CPU, GPU side for
manufacturing, designing AI chips. Now, of course, I think, you know, Intel has existing infrastructure
machines, engineers that certainly TerraFab can leverage and get a jumpstart.
And I'm very sure that the Tesla team, including Elon, of course, is aware of the shortcomings,
the pros and cons of each of these partners.
So they're leveraging what they need out of these companies, including TSMC, Samsung, and Intel.
So I sort of look forward to learning more about the details of the partnership.
I think at the extreme, it could be potentially leading to an acquisition of the Intel fabrication arm.
Because, you know, design and manufacturing are sort of separate lines of businesses,
which could be a replay of like kind of Fremont 2.0.
But yeah, at this point, I could share more, but just wanted to share my initial thoughts.
I had a question, Tesla.
I've never done any research on this.
I mean, how much is Intel worth?
And I don't mean that in a bad way.
I mean, really, what are they worth?
Could potentially SpaceX buy them?
Is that what you're saying?
Actually acquire the company?
Well, their business is made up at the highest level between kind of the design, chip design,
and the fabrication side, the manufacturing side of the chips. I think their market cap,
I think their market cap, you guys can look it up, but I think it's around 260 billion right now.
So it's not exactly 50-50, but these are not insurmountable numbers for an acquisition by any means.
If SpaceX and XAI's market cap is north of 1.69 trillion, 1.5 trillion.
I mean, the acquisition is fine.
But it's just sort of like, what are you buying?
Now, there's a whole supply chain set up that is very valuable.
The queue that you're in with the ASML machines, that's valuable. There's many
assets which are valuable to acquire. The issue is really the process, the manufacturing process
whereby they're lagging behind. No one can name because there are none. There are no AI hyperscalers,
file service providers,
no foundational model makers
who are using Intel's AI chip design
or using Intel's fabs to manufacturing
their AI infrastructure, their AI chip solutions.
They're just none. In fact, Intel is, you know, kind of struggling to land its very first
partner for its 18A, which is the most advanced node process. So, you know, so yeah, essentially,
So, you know, so yeah, essentially, that's why I think, you know, today when I saw it was concerning. But of course, I know, like, the teams that Tessa AI and, you know, Elon, of course, they know what they're getting into. And, you know, it might be just going after some of these assets.
after some of these assets?
You know, I shouldn't get excited about this, obviously,
this, like, opportunity, but now, like,
I just can't help myself.
Like, now my mind's racing, like, holy shit,
like, what if SpaceX IPOs and then, I don't know,
five months down the line, they acquire them.
That would be very interesting.
I'm curious, like Omar or Robert, do y'all have any,
like what percentage chance do you think that that's a possibility?
Or do you think this is like strictly a partnership to get terrified,
kind of like how Tesalio to put it,
like it's basically a jumpstart to get the, you know the talent and everybody in-house.
I mean, Intel's kind of a turd.
I don't think you necessarily want to buy them,
but they definitely know how to make chips.
And Tesla, SpaceX, XAI do not know how to make chips and tesla spacex xai do not know how to make chips
so there's a lot they can learn from intel for sure
and robert you were saying uh you're kind of breaking up a little bit there
like i think both of you are canceling each other out elon doesn't like elon likes vertically
integration right he likes to own the whole thing so I'm sure he would like to own a chip manufacturing facility like Intel. I just don't know the chances of him wanting to own it. So it's interesting. Yeah. I think the other thing to keep in mind is the clash of the Tesla-SpaceX culture with the current Intel culture,
which has been, I think, reshaped a little bit by the new CEO Lupiton's joining.
joining. The word on the street for why Intel has not been able to have a lot of partners on the fab
side is because that in the past decade, they've been very arrogant and sort of rightly so because
you're Intel. That arrogance of not listening to customers' needs,
not sort of bend over backwards
for the requirements of the customer
is what gave rise to Samsung TSMC
in the last couple of decades.
You can see that for the iPhone 6S, there was a fork in the road where Apple bent 50-50
on Samsung and TSMC.
And prior to that, you know, Intel of course was inside of, you know, Mac products for
computers, for Mac books.
But Apple has since walked away from Intel and then subsequently on the phone
side, walked away from Samsung.
Because at the advanced node, the process of being able to, the manufacturing
of being able to, the manufacturing process is not trivial.
process is not trivial.
So yeah, I think it really begs the question,
if you're not buying, not buying, I guess,
if you're not partnering with Intel on design,
because TerraFab is designing its own AI-567 chips,
if it's not for design, is it for the manufacturing process?
Well, currently Intel has no manufacturing process
at the three nanometer node and below,
and five below is where it's required for the AI chips.
So it's not for the process.
So then is it for kind of the plant, the equipment?
Now there is one thing which is packaging.
So, um, Intel is currently, um, um, I think it has a new plant, uh, in the U S, uh, that
specializes in advanced packaging.
And it's, um, it's about to secure, I think Google and a couple of partners, um, whereby
the packaging
of their TPUs will be done by Intel.
Packaging is a bottleneck because of capacity right now with TSMC.
And again, that could be one of the IPs, the know-hows that TerraFab is gaining is the
packaging, specifically the packaging side of these chips.
But yeah, like I said...
Very technical.
Yeah, just raising a little bit of a flag
in that this is not the most obvious play.
The word joining is ambiguous.
So we'll see how, how deep this goes, but, um, yeah, it's, um, it's, it's,
uh, interesting to watch the development of course, Intel is American.
Um, and it has that great brand and legacy.
So, uh, you know, I, I hope it works out.
Um, I should clarify that TSMC is my second largest holding and my concern is not for that reason.
It's far from that.
It's really just solely looking at kind of the pros and cons, the rationale on the Tesla
side itself.
Makes sense.
Now, I just want to clarify for those of you that are just wandering into the room.
Of course, this is the Tesla Deep Dive.
We're speaking about all things Tesla and we're just going down the rabbit hole of,
of course, the Intel partnership, a little speculation as to whether or not they would
ever acquire. And of course, very huge company, lots of details and lots of moving parts when it
comes to this chip manufacturing. So those of you that did not catch the entire conversation,
this has been a recorded space. We have a few minutes left, but I just want to take the time to not only thank everyone that is listening to us,
but Omar, Penny, Landon, Robert, Tesla Yoda, Doug, Trev, and Smokey, all of those that hang out with us.
I highly recommend that you would just check out their profiles, follow them.
They all have amazing stuff, including spaces of their own that they host.
If you're a night person, there's some really relaxed night spaces that you could kind of, you know, let your hair down.
And it's not as, I guess you would say, structured and I guess you'd say corporate as this kind of space.
But if you want to hang out with these guys, I would say, you know, definitely check them out.
They have amazing things.
Check out their profiles and follow all of them. But any closing thoughts, you know, I've kind of
circled around. It's been a while since I heard from Landon and Penny, but, you know, faithful
co-hosts, even though the glitch did not allow them to be the hosts here, but they're always here
as well as Omar as well. But anyone that has some closing thoughts in the last few minutes that we
have, I'd love to start with Landon.
Thanks very much.
You know, I'm really interested,
and I'm a beginner in this chip education kind of space. So join me if you are too,
and please help me understand if you've been following this stuff much,
much longer.
But I just love the concept of working with anybody and everybody that can
be helpful to the goal. And it reminds me of when people are saying, hey, Elon, what about this new
battery technology? What about this kind of stuff? What about this kind of battery? What kind of this
what about this charging? And Elon said, listen, we love batteries. And we have the battery experts from around the
world working with Tesla, working for Tesla. And Tesla wants to be the 31 flavors of batteries.
If there's good battery technology, Tesla is involved and Tesla knows about it. And so I think that's what we can look forward to Tesla doing in the chip space.
Tesla knows a lot about chips.
Intel is already the partner for Dojo 3,
which is basically morphing into AI7.
And so these are things out at the edge
of the future for us,
but they're way, way sooner than sleds on the moon, right?
So this is happening.
Tesla knows what it's getting into.
Tesla knows what it needs to do in order to scale.
And so I love hearing about this.
It surprised me.
And that's what you get with Tesla.
You get surprises.
They're always working on the next thing.
And that's one of the reasons I love being involved.
Yep.
We all love surprises.
Penny, any thoughts on these surprises or anything else that we spoke about?
Oh, nothing new to add.
Excited to see how it all plays out.
Have a good week, everybody.
Awesome.
Omar, how about you?
Do you have anything coming up or anything that you'd like us to check out?
Awesome. Well, definitely highly recommend
you follow his page. Always
something there, and Robert
too as well. It was a pleasure,
my friend. You're always welcome here.
I'll give you a last thought, and then we kind of wrap up. We're at the top of the hour, so I don't want to overextend our welcome in people's lives now. But yeah, Robert.
on the road that has an AI computer in it and cameras is going to soon be a huge advantage
over the others, even if they get a few months ahead in technical AI, which I'm with Omar.
They're not, you know, Tesla's the state of the art of AI company. They're going to be
laying down some AI that people are going to be shocked by.
But when you hook it up with the fleet, that's where the magic happens.
For instance, I'm sitting in a parking lot in San Francisco.
My car can see the whole parking lot, see how many spaces are open there,
can tell the fleet, hey, there's some spaces in this parking lot.
So when you're coming into San Francisco soon,
your car is going to know where there are spaces to head toward
to get you near where you want to go.
And sorry, you know,
Nuro is only planning on a few tens of thousands of cars by the end of 2027 right tesla makes that in a
few days so it's the fleet that is soon going to be a major advantage and this is sort of where we
all are we're betting on the future we've done our homework we've studied it We know there's major things coming in the future for Tesla. Today's a red day. Omar is absolutely right. My money manager, when we talked about buying Tesla in 2018 and talked about Amazon, he said everyone sold at $6 because they all thought Amazon was going bankrupt and a lot of his clients didn't buy until it went way back up because they lost conviction in that stock and so it's a good time to
have a different conviction than anybody else you know because that lets you make
some money and buy at the dips when everybody else is selling
when everybody else is selling.
And Robert, that's absolutely on track.
Taj, I wanted to ask you what you had on tap
for the rest of your day,
anything that you're looking at that we should know about.
And everybody can see, Taj, you know Alexander
down in the listener's lounge there
in the cheap seats right now, Alexander.
You know, he's from Sweden.
He's really into FSD Europe and Sweden.
He is working on a big announcement for this week in FSD in Europe.
And that's where I'm going right after this space.
He's got a subscriber space, a couple of bucks a month, whatever.
Kind of neat to get a worldview on FSD.
So that's where I'll be.
Follow Alexander.
He's down there.
It's link in zero one is his handle.
Thanks, Alexander.
See you soon.
Awesome.
Great.
Always great to have friends.
And by the way, Dallas Tesla Club,
I was trying to get you up earlier.
You had dropped off,
but we're about to shut down. What we have, Ryan, M, and Jordan,
those guys are over on Wolf Trading right now. They are live. Later on, there will be stocks on
spaces and other financial discussions here on this page. Just check out the pinned post on Wolf's
page. It has the schedule up. So if you're into anything in finance, there is something here for
you. But we will be back every single Tuesday.
This has been Tesla Tuesday.
Thank you all for hanging out with us, speakers, everyone that spent the last hour with us.
Really, really, really appreciate all of you.
And we'll see you next week.
