Latest / Elon Musk Podcast / Tesla Stock Soars Amid Speculation and Strong Chinese EV Market Performance

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Tesla Stock Soars Amid Speculation and Strong Chinese EV Market Performance · Elon Musk Podcast

• 0:01
  Hey everybody. Welcome back to the Elon Musk
• 0:04
  Podcast. This is a show where we discuss
• 0:07
  the critical crossroads that shape SpaceX, Tesla X, The
• 0:11
  Boring Company, and Neuralink. I'm your host, Will Walden.
• 0:15
  Tesla's stock surged over 6% on Monday morning, extended gains
• 0:19
  that have driven the electric vehicle manufacturer shares up
• 0:22
  by about 19% in the last month. Now, the reasons behind Tesla's
• 0:26
  continuing stock climb are multifaceted, with one notable
• 0:30
  speculation linking the increase to Elon Musk's recent decision
• 0:35
  to follow Uber founder on social media.
• 0:40
  Clinic, who left Uber in 2017, is known for his role in
• 0:44
  developing a successful ride sharing platform, which aligns
• 0:48
  with Tesla's long term ambitions for its robo taxi platform.
• 0:53
  Now, Tesla plans to unveil its robotaxi on August 8th of 2024,
• 0:57
  and Musk's connection to Kalanick has sparked theories
• 1:01
  that Tesla might benefit from the insights or involvement with
• 1:05
  the platform, although this remains very speculative.
• 1:08
  Now, beyond this, other factors are contributing to Tesla stock
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  gains. Notably, the Chinese electric
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  vehicle market has shown substantial year over year
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  growth, bolstering investor confidence in Tesla's
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  performance. Chinese EV manufacturer BYD,
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  which often matches Tesla's delivery figures, reported
• 1:25
  426,000 deliveries in the second quarter.
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  Now, this has led to speculation that Tesla's Q2 delivery numbers
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  might be similar. Our analysts are divided on
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  Tesla's quarterly performance. While some expect a decrease
• 1:37
  from quarter 2/20/23, others anticipate an increase from
• 1:41
  quarter 1/20/24, reflecting mixed settlement on Wall Street.
• 1:45
  And the consensus among analysts is that Tesla's Q2 deliveries
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  will reach around 438,019 vehicles.
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  Now this figure falls short of the 1,000,000 vehicles some had
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  hoped for in the first half of the year.
• 1:58
  And Tesla's growth trajectory is poised between its current
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  production capabilities and the potential of its next generation
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  platform and robotaxi, which could drive future growth.
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  The company's ability to meet its projected timelines for
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  these initiatives is very crucial as delays have been a
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  challenge for Tesla in the past. And also in related news, Elon
• 2:20
  Musk has been promoting the development of AI chatbot Grok,
• 2:24
  which is expected to train on a significant number of NVIDIA
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  each 100 GPUs. And Musk announced that Grok 3
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  would be something special after training on 100,000 NVIDIA each.
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  100 GPUs each value between 30,000 and 40,000 dollars.
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  While it's unclear how many of these GP us were purchased
• 2:44
  outright by Musk's companies, there are possibilities of
• 2:47
  renting GPU compute from cloud service providers.
• 2:51
  Reports indicate the Musk's XAI startup was negotiating with
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  Oracle to spend $10 billion over multiple years on cloud servers,
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  adding to the complexity of the GPU strategy.
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  And Musk's companies have a history of acquiring NVIDIA H1
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  hundreds, with Tesla reportedly diverting $500 million shipment
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  of these chips to X, formerly known as Twitter.
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  Now, the training of Grok 3 on 100,000 GPUs is a significant
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  increase from the 20,000 GPUs used for Grok 2.
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  And that's the scale of XAI. Grok One and Grok 1.5 have been
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  released, with Grok 2 expected in August, followed by Grok 3 by
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  the end of the year, according to Musk.
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  And the intense competition of AI talent is evident as
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  companies like Meta are also heavily invested in Invidia 100
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  GPUs. Now.
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  Meta plans to purchase around 35 or 350,000 H 100 GPUs by the end
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  of 2024, indicating fierce rivalry in the AI development
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  territory. And the high demand for H100
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  GPUs has led to aggressive recruiting tactics as
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  illustrated by EI startup Perplexity CEO who noted the
• 4:02
  challenge of hiring top talent from Meta.
• 4:05
  And also another development, Elon Musk praised Invidious CEO
• 4:10
  Jensen Wong for their leadership style and his hands on approach
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  of engagement with employees. And Huang Co founded NVIDIA at a
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  Denny's restaurant in San Jose in 1993 and has guided the
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  company to its current status as a leading AI chip manufacturer.
• 4:27
  And their personal story from dishwasher to CEO reflects his
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  commitment to hard work and his philosophy that no task is
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  beneath him, as highlighted in his recent interviews.
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  Now, Nvidia's impressive performance with year to date
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  return of about 151% places it at the forefront of the
• 4:45
  magnificent 7A group of influential tech companies.
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  And the stockpiling of AI chips in the competition to secure top
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  AI talent is high stakes right now.
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  AI development race is happening and Tesla and Meta are pushing
• 5:00
  the boundaries of that technology.
• 5:08
  Hey, thank you so much for listening today.
• 5:10
  I really do appreciate your support.
• 5:12
  If you could take a second and hit the subscribe or the follow
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  button on whatever podcast platform that you're listening
• 5:17
  on right now, I greatly appreciate it.
• 5:20
  It helps out the show tremendously and you'll never
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  miss an episode. And each episode is about 10
• 5:25
  minutes or less to get you caught up quickly.
• 5:28
  And please, if you want to support the show even more, go
• 5:31
  to patreon.com/stage Zero and please take care of yourselves
• 5:37
  and each other and I'll see you tomorrow.