Latest / Elon Musk Podcast / Elon Musk Weekly News Update: Tesla, SpaceX, X, Neuralink, and More

Transcript

Elon Musk Weekly News Update: Tesla, SpaceX, X, Neuralink, and More · 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, the Shape, SpaceX, Tesla X, The
0:11
Boring Company, and Neurolink. I'm your host, Will Walden.
0:15
How will the 94 percent of federal employees who currently
0:19
work remotely respond? Well, they discover their every
0:23
keystroke and login could soon be tracked.
0:26
The answer may arrive sooner than expected as Elon Musk and
0:30
Vivek Ramaswamy advance their proposal for comprehensive
0:34
federal worker surveillance. Now, the Department of
0:37
Government Efficiency, known as DOGE, stepped into the spotlight
0:40
this week as its newly appointed leaders, Musk and Ramaswamy
0:43
presented their strategy to Republican lawmakers during
0:46
multiple closed door sessions on Capitol Hill.
0:49
The primary objective centers on achieving $2 trillion in federal
0:53
budget reductions through what they term the elimination of
0:57
government waste. Now Senator Joni Ernst from Iowa
1:01
emerges as a central figure in this developing story, having
1:05
released a detailed 60 page report examining the current
1:08
state of government remote work. The report presents striking
1:12
statistics claiming that merely 6% of federal employees work
1:15
full time in physical office location.
1:18
Ernst, 2, chairs the Senate Doge Caucus, draws from her
1:22
agricultural background to criticize the current remote
1:24
work situation, stating growing up on a farm, I know what
1:28
working from home really means, but in Washington, working from
1:32
home apparently means having a field day.
1:36
Now. The proposed The proposed Remote
1:38
Act, sponsored by Ernst, introduces comprehensive
1:41
monitoring software designed to track federal employees computer
1:44
activities. This technology would maintain
1:47
detailed records of network traffic, login frequencies,
1:51
online duration, and overall digital engagement patterns for
1:55
remote workers. Legislation represents a direct
1:59
response to concerns about remote worker productivity and
2:02
accountability. Now, Elon Musk has amplified
2:05
these concerns through social media.
2:06
On X, where he shared particularly stark assessments
2:10
of the situation, he said if you exclude security guards and
2:13
maintenance personnel, the number of government workers who
2:16
show up in person into 40 hours of work a week is close to 1%.
2:21
Almost no one now the implementation of employee
2:26
monitoring software mirrors existing practices in the
2:29
private sector. Major corporations like JP
2:32
Morgan, Barclays Bank, and United Health Group already
2:35
enjoy similar technologies to monitor the remote workforce,
2:39
tracking metrics down to individual keystrokes and e-mail
2:43
composition times. Now, Elon Musk brings
2:46
substantial personal experience regarding remote work policies
2:50
to his new advisory role as CEO of Tesla.
2:53
He previously mandated a minimum 40 hour in office work week,
2:57
informing employees that failure to comply would be interpreted
3:00
as resignation. This hardline stance continued
3:03
on X after his acquisition, where he required personal
3:08
approval for any flexible work arrangements.
3:11
Now, the federal Office of Management and Budget presents
3:14
contrasting data in their August 2024 report spanning nearly 3000
3:18
pages. Their analysis indicates that
3:21
approximately half of federal workers occupy full in person
3:24
positions, such as healthcare providers and food safety
3:27
inspectors. Among employees eligible for
3:30
telework, 60% of their work occurs at assigned office
3:34
locations. Now, House Speaker Mike Johnson
3:38
has voiced strong support for the DOGE initiatives despite
3:42
their conflicting statistics. Johnson continues to cite the
3:47
disputed figure that only 1% of federal workers maintain daily
3:51
in person attendance, demonstrating alignment with
3:54
Mosque and Ramaswamy's perspective on federal workforce
3:56
reform. Now, the potential impact of
3:59
these proposed changes extends beyond simple workforce
4:01
logistics, though. In their November Wall Street
4:04
Journal op-ed, Musk and Ramaswami outlined the strategy,
4:07
stating requiring federal employees to come to the office
4:10
five days a week would result in a wave of voluntary terminations
4:14
that we welcome. Ramaswami has suggested even
4:17
more aggressive measures, proposing the elimination of 75%
4:21
of federal positions. Now, Musk frames the remote work
4:25
debate as both a productivity and moral issue.
4:29
He argues that office workers should not receive special
4:32
treatment regarding workplace flexibility when industrial and
4:35
service workers must physically report to their job sites.
4:40
Saying people should get off their God damn moral high horse
4:43
with their work from home BS now, Musk stated, adding that
4:48
the laptop class is living in La La land now.
4:52
The scope of Doge's actual authority remains uncertain,
4:54
though Douglas Holtz Eiken, former Congressional Budget
4:58
Office director and current president of the Center Right
5:01
American Action Forum, provided context in an interview with
5:04
Fortune's Jeff Colvin. They don't have any power,
5:08
Holstein explained, describing DOGE as essentially a very high
5:12
profile think tank focused on generating ideas rather than
5:16
implementing direct changes. The proposed monitoring system
5:20
would create unprecedented levels of oversight for federal
5:22
employees. Software would track network
5:24
activity, login patterns, and overall online engagement,
5:28
establishing a comprehensive digital surveillance framework
5:31
for the federal workforce. Now, federal employee unions and
5:35
workplace advocacy groups have yet to respond formally to these
5:38
proposals. Their eventual reaction could
5:41
shape the implementation timeline in specific details of
5:45
any new monitoring systems or return to office mandates.
5:49
Industry experts note that implementing such extensive
5:52
monitoring systems across federal agencies would require
5:56
substantial technological infrastructure and training
5:58
investments. These costs could offset some of
6:01
the intended budget savings, at least in the short term.
6:04
And the timing of these proposals coincides with broader
6:07
national discussions about workplace flexibility and
6:10
productivity measurements in the post pandemic era.
6:13
The federal government's approach to these issues could
6:16
influence private sector policies and practices.
6:19
Now, constitutional law experts have begun examining potential
6:22
privacy implications of their proposed monitoring systems.
6:26
Questions about federal workers reasonable expectations of
6:29
privacy while using government equipment may require legal
6:33
clarification, and this could take years to figure out.
6:37
And as the Trump administration prepares to take office, the
6:40
fate of the federal remote work policies remains uncertain.
6:43
Nobody knows what's going to go on this.
6:44
Like they said before, it's a high level think tank.
6:46
They have no power. And the success or failure of
6:49
these initiatives will likely depend on the complex
6:52
interactions between executive authority, legislative support,
6:56
and administrative feasibility. Delaware Chancery Court Judge
7:01
Kathleen McCormick struck down Elon Musk's $56 billion Tesla
7:04
compensation package for the second time on Monday, while
7:08
simultaneously addressing an extraordinary request from the
7:12
victorious attorneys. The legal team sought $5.6
7:16
billion in fees for their successful challenge to Musk's
7:20
pay structure, but McCormick awarded them $345,000,000
7:24
instead, payable in cash or in Tesla shares.
7:28
So the legal saga traces its origins the 2018 when Tesla
7:32
shareholder Richard Tornetta filed a lawsuit challenging the
7:36
unprecedented compensation agreement.
7:39
Now, Tornado's lawsuit alleged that Musk wielded undue
7:42
influence over Tesla's board during the creation of the pay
7:46
package, and the shareholders received misleading information
7:49
before approving the plan. The compensation structure
7:52
consisted of 12 performance milestones, each unlocking
7:57
additional Tesla shares as the company's value increased.
8:01
Now, Judge Mccormick's initial ruling in January of 2024
8:05
determined the process leading to the plan's approval was
8:09
fundamentally flawed. She specifically cited Musk's
8:12
position as a controlling shareholder at Tesla created
8:15
potential conflicts of interest that compromised the board's
8:19
independence. Now, McCormick wrote that Aceo's
8:23
celebrity status can make even truly independent directors
8:27
quote unduly differential and created a distortion field that
8:32
interferes with proper oversight.
8:35
Now, Tesla's board attempted to salvage the compensation package
8:39
by putting it to another shareholder vote in June of
8:42
2024. The measure received 72%
8:45
approval from shareholders, demonstrating strong support for
8:49
maintaining Musk's incentive structure.
8:51
However, McCormick remained unconvinced, explaining that no
8:56
Delaware court had ever reversed its judgement based on a post
9:00
trial stockholder vote. Now, the judges latest ruling
9:04
addressed both the compensation package and the attorneys fee
9:07
request with careful consideration of legal precedent
9:11
and fairness principles. McCormick acknowledged the legal
9:14
team substantial work, noting they logged 19,499.95 hours,
9:21
conducted extensive investigations, managed document
9:24
discovery and took 17 depositions while facing some of
9:29
the best law firms in the country.
9:31
Now, the attorneys representing Tornetta came from three
9:35
prominent firms, Bernstein, Litowitz, Berger and Grossman
9:38
LLP, Andrews and Springer, LLC, and Friedman, Oster and Titel
9:44
PLLC, and their track record of securing major recoveries in
9:47
Delaware courts and successfully managing high stakes litigation
9:52
through trial and appeal. Contribution to Mccormick's
9:55
decision on their fee award. Now, Tesla's defense team
9:59
proposed a considerably lower fee award of $54.5 million.
10:04
McCormick found middle ground, determining that while the
10:07
plaintiff's attorney's mythology was sound, awarding $5.6 billion
10:11
would constitute an unjustifiable windfall.
10:15
The final award represents a 25.3 multiplier of the hours
10:20
worked by the legal team. You know, the compensation
10:23
packages. Original structure reflected
10:25
Tesla's ambitious growth targets.
10:27
The first milestone required Tesla's market capitalization to
10:30
reach $100 billion, with subsequent milestones demanding
10:35
additional $50 billion increments.
10:37
The company needed to achieve a $650 billion market value for
10:42
Musk to fully vest in the award, and Tesla has experienced both
10:46
triumphs and challenges. Since the packages
10:48
implementation, the company's value has surpassed $1 trillion,
10:53
far exceeding the original targets.
10:55
However, recent headwinds include slowly electric vehicle
10:59
sales growth and increased regulatory scrutiny.
11:02
A Musk response to the ruling came through X, where he stated
11:07
shareholders should control company votes, not judges.
11:11
Tesla echoed this sentiment, posting that the ruling suggests
11:15
judges and plaintiffs lawyers run Delaware companies rather
11:19
than their rightful owners, the shareholders.
11:23
Now the legal team's victory marks a notable shift in
11:26
corporate governance oversight. Bernstein, Little, Witzberger,
11:28
and Grossman expressed dissatisfaction with both the
11:31
ruling and fee resolution, while maintaining readiness to defend
11:34
the decision if appealed to the Delaware court system.
11:38
The case highlights fundamental questions about executive
11:41
compensation and corporate governance.
11:44
Mccormick's ruling suggests that even with shareholder approval,
11:48
compensation packages must withstand scrutiny regarding the
11:51
independence of board decisions and fairness to all
11:55
stakeholders. Now, Tesla announced plans to
11:57
appeal the decision to the Delaware Supreme Court.
12:01
The appeal process could establish important precedents
12:03
for future executive compensation cases and the
12:06
weight given to post trial shareholder votes in Delaware
12:10
corporate law. Now legal experts know that the
12:12
timing of Mccormick's decision coincides with broader
12:15
discussions about executive compensation and corporate
12:19
accountability. The ruling may influence how
12:21
other companies structure their executive pay packages and
12:24
handle board oversight responsibilities.
12:28
This case demonstrates the complexity of balancing
12:30
shareholder interests with executive incentives.
12:33
While Tesla achieved remarkable growth under Musk's leadership,
12:36
the court determined that procedural fairness and board
12:40
independence cannot be compromised regardless of
12:43
business success. Questions remain about how Tesla
12:46
will structure future compensation for Musk.
12:48
Mccormick's ruling leaves room for the board to create a new
12:52
package, provided it follows proper procedures and maintains
12:55
independence from Musk's influence.
12:58
And attorneys for Tesla shareholders said that their
13:01
commitment to defending the court's decision through any
13:04
appeals process suggesting this legal battle may continue to
13:08
shape corporate governance standards in Delaware courts for
13:11
decades to come. And Mccormick's dual rulings on
13:14
the compensation package and attorney fees established clear
13:17
boundaries for executive pay and legal compensation and corporate
13:21
litigation, while reinforcing the court's rule in maintaining
13:25
proper corporate governance standards.
13:27
Now, the Delaware court's rejection of both Musk's
13:30
compensation package and the attorneys multibillion dollar
13:33
fee request reinforces judicial authority over corporate
13:38
governance while establishing new standards for executive pay
13:41
and legal compensation and high stakes corporate litigation.
13:45
Breaking news, Donald Trump just pictured Isaacman to run NASA
13:51
when he comes in office. Now this makes me wonder if
13:54
SpaceX might actually end up taking over the whole moon
13:57
program. What do you think about their
13:58
Starship possibly replacing the $2 billion per launch SLS
14:04
rocket? So this space exploration
14:07
landscape just shifted dramatically as president-elect
14:10
Donald Trump nominated Jared Isaacman, who's 41 year old CEO
14:14
shift for payments and accomplished private astronaut
14:18
to serve as the next NASA Administrator.
14:21
Isaacman, who has commanded 2 private Space Flight missions
14:24
through SpaceX, brings a unique combination of business acumen
14:28
and hands on space experience to the role.
14:31
His nomination arrives at a critical juncture for America's
14:33
space program, as NASA grapples with ongoing delays in its
14:38
Artemis moon missions and mounting pressure from China's
14:41
advancing space capabilities. The selection of Isingman makes
14:46
a notable departure from NASA's recent leadership appointments,
14:49
which have traditionally favored former politicians.
14:51
The current administrator, Bill Nelson, and his predecessor Jim
14:54
Bridenstine, both served in Congress before taking the helm
14:58
at NASA. Now, Isaac's min's background in
15:01
the private sector, coupled with his actual Space Flight
15:04
experience, suggests a potential shift toward greater commercial
15:08
integration in NASA's operations.
15:11
His successful leadership of payment processing company Shift
15:14
4, combined with his achievement in conducting the first ever
15:17
private space walk from a SpaceX Dragon capsule during the
15:20
Polaris Dawn mission, demonstrate his capacity to
15:24
merge technological innovation with practical space operations.
15:29
The timing of Trump's announcements carries
15:31
particularly weight as it comes months earlier than typical
15:35
presidential transitions. This accelerated timeline
15:38
coincides with increased involvement from SpaceX CEO Elon
15:41
Musk's in discussions about space exploration with the
15:45
president-elect. Trump's personal attendance at
15:48
Spacex's 6th Starship test launch in Texas shows the
15:52
growing influence of commercial space companies and shaping
15:55
national space policy. Now the relationship between
15:58
Musk and Trump has intensified, with SpaceX founder taking on an
16:02
advisory role focused on federal budget reduction strategies.
16:07
Now, Isaac Mann's nomination arrives during a period of
16:10
uncertainty for NASA's Space Launch System, the agency's most
16:13
powerful rocket, which is designed for deep space
16:15
missions. Each SLS launch carries a price
16:18
tag over $2 billion, prompting criticism about cost efficiency.
16:25
Now. the Rockets performance during the Artemis 1 mission in
16:27
2022 proved successful, yet questions persist about its long
16:32
term viability in an era of increasing commercial space
16:35
capabilities. Now, the substantial investment
16:38
already made in SLS infrastructure at Kennedy Space
16:40
Center as complexity that any potential program changes now.
16:44
The incoming administration's previous public statements about
16:48
NASA's Artemis program warrant attention, though Isaacman has
16:52
openly criticized the agency's expenditure on SLS rockets and
16:56
questioned the decision to award a second lunar Lander contract
16:59
to Blue Origin. His statement was Spend billions
17:03
on lunar Lander redundancy that you don't have with SLS at the
17:07
expense of dozens of scientific programs.
17:10
I don't like it. That provides insight into his
17:13
perspective on resource allocation within NASA's
17:15
portfolio. Now, the relationship between
17:18
NASA and SpaceX continues to evolve, though, particularly
17:21
regarding the development of Starship.
17:23
This spacecraft serves a dual role in the current Artemis
17:26
architecture, functioning as the lunar Lander for astronaut
17:29
service missions. And SpaceX has achieved notable
17:32
progress with Starship recently, including a technological feat.
17:35
No one's ever done this before, but they've landed the vehicle's
17:38
massive booster stage, and it was successfully caught by the
17:42
robotic chopsticks during its return flight to the Texas
17:45
launch facility. The company's emphasis on
17:48
reusability presents potential billions of dollars in cost
17:52
advantages for future missions. Now, China's declared intentions
17:57
to land astronauts on the moon by 20-30 adds urgency to
18:01
America's lunar ambitions. The Chinese space program's
18:05
track record of meeting announced deadlines contrast
18:07
with NASA's recent schedule delays, technical challenges
18:11
with various Artemis components including space suits, Orion
18:15
spacecraft systems and also Starship that pushed the first
18:18
crew Lander landing to autumn of 2026, significantly later than
18:23
initially planned. Now, the nomination of Eisigman
18:27
raises questions about the future direction of NASA's
18:30
Aeronautics Research Division under the current
18:32
administration. This development has focused on
18:35
developing environmentally friendly aviation technologies.
18:39
Similarly, the Space Science unit has experienced budget
18:42
constraints in workforce reductions as resources were
18:46
redirected toward the Artemis program.
18:48
Isaac Mann's approach to balancing these competing
18:50
priorities remains to be determined for the future.
18:54
Now the Polaris program, which has privately funded series of
18:59
increasingly challenging space missions, is up in arms too.
19:04
It's up up for grabs, I should say.
19:06
The successful completion of Polaris Dawn, featuring the
19:09
first commercial spacewalk demonstrated Isaac Min's ability
19:13
to execute complex space operations.
19:16
Now during this historic event, Isaac Min's observation back at
19:20
home, we all have a lot of work to do.
19:22
But from here, Earth sure looks like a perfect world, revealed
19:26
his philosophical perspective on space exploration.
19:30
Now, the transition in NASA leadership occurs amid ongoing
19:33
debates about the most efficient path to lunar exploration.
19:37
Now, while the SLS rocket currently serves as the only
19:40
vehicle certified to launch the Orion crew capsule directly to
19:44
the moon, alternative launch scenarios using Spacex's Falcon
19:48
Heavy rocket have been considered.
19:50
However, such alternatives would require substantial
19:53
modifications to both hardware and procedures, potentially
19:57
introducing additional delays to the Artemis timeline.
20:00
Technical requirements for lunar missions extend beyond launch
20:03
capabilities, though the ability to reach various lunar
20:06
destinations, particularly the scientifically intriguing South
20:10
Pole region, demands specific vehicle performance
20:13
characteristics. The complexity of these
20:16
requirements raises questions about the readiness of
20:18
commercial providers to assume. Greater responsibility for
20:23
mission critical systems, now Isaac Mann's business experience
20:27
could prove valuable in managing NASA's substantial budget,
20:30
though, which currently stands at nearly $25 billion.
20:35
His statement accepting the nomination emphasized both
20:37
personal passion and professional commitment, he
20:40
said. Having been fortunate to see our
20:42
amazing planet from space, I'm passionate about America leading
20:46
the most incredible adventure in human history.
20:48
Further expressed his intentions to step down to shift for CEO
20:51
upon confirmation while maintaining majority ownership
20:55
of the company. Now, the commercial space
20:57
sector's growing capability to conduct human spaceflight
21:00
operations independently raises fundamental questions about
21:03
NASA's future role. Under Isaac Man's leadership,
21:07
the agency might accelerate its transition toward becoming a
21:10
customer of Commercial Services rather than maintaining
21:12
traditional operational control over all aspects of space
21:17
missions. The evolution could affect
21:19
thousands of NASA employees and contractors across the United
21:23
States, and the broader implications for International
21:26
Space collaboration remain uncertain.
21:29
NASA's current partners, particularly with the European
21:32
Space Agency and other international contributors to
21:34
the Artemis program, might require reassessment under new
21:38
leadership priorities. These relationships represent
21:41
years of diplomatic and technical cooperation that
21:44
factor into America's global leadership in space exploration.
21:48
Now, the success of NASA's Moon program depends heavily on the
21:51
integration of various complex systems, including the Orion
21:55
spacecraft, lunar Landers, and surface systems, and any major
21:59
changes to the current architecture would need to
22:01
address these interdependencies while maintaining progress
22:04
toward establishing goals. A challenge of balancing
22:07
innovation and practical constraints will likely define
22:10
Isaacman's tenure. If confirmed as administrator.
22:14
Our changes in NASA's leadership historically result in
22:17
adjustments to programs, priorities, and implementation
22:20
strategies. As Isaacman prepares for Senate
22:23
confirmation hearings, his vision for America's space
22:26
program will face scrutiny from legislators concerned with
22:29
maintaining both technological leadership and also fiscal
22:32
responsibilities. He has extensive leadership
22:37
experience in both business and spaceflight operations, and it
22:40
provides a unique foundation for addressing the challenges of
22:43
NASA. It could transform American
22:48
space policy, combining commercial space expertise in a
22:51
way that's never been seen before with the money from the
22:55
government to advance lunar exploration and growing
22:58
international competition from China.
23:10
So do you remember for the last decade Elon Musk saying the full
23:15
self driving for Tesla cars was just around the corner?
23:19
Well, with this new FSD version 13.2 roll out and this potential
23:27
upgrade during the Trump presidency, should we finally
23:31
take these claims seriously? While Tesla initiated deployment
23:35
of its newest Full Self, driving the FSD software version 13.2 to
23:40
employees and select customers during the weekend, propelling
23:44
the company's stock value higher.
23:46
In Monday trading, the EV manufacturer shares rose 3.2% to
23:51
$356.07, extending a remarkable 37% increase since the November
23:59
5th presidential election results.
24:01
The latest FSD upgrade promises substantial improvements in
24:05
autonomous driving capabilities, with Tesla forecasting A6 fold
24:09
reduction in required driver interventions per mile traveled
24:15
now. Early demonstrations of version
24:16
13.2 revealed enhanced functionalities, including the
24:20
system's ability to navigate from parking spot to parking
24:23
spot with minimal human interaction.
24:26
Now, Tesla's Artificial Intelligence division announced
24:30
the update through its social media account on X, stating new
24:33
Brain who DIS. NOW investment firm Stifle,
24:38
demonstrated confidence in Tesla's autonomous driving
24:41
technology by substantially increasing its stock price
24:43
target from $287.00 to $411.00. The adjustment primarily stems
24:50
from analysts optimistic outlook regarding the company's robotaxi
24:53
program, dubbed Cyber Cab, and continued advancement in self
24:57
driving technology. This assessment comes despite
25:01
maintaining steady EBITDA projections for 2024 and 2025
25:07
and reducing expectations for 2026.
25:10
Now, financial analysts at Roth MKM upgraded Tesla stock rating
25:15
from Neutral to Buy, establishing a new price target
25:18
of $380.00, significantly higher than their previous $80.00 a
25:23
target. Now, the firm's analysts suggest
25:26
that Elon Musk's public support for former President Trump and
25:30
new President Trump has expanded Tesla's consumer base and
25:34
strengthened confidence and potential market growth.
25:37
Now, Tesla CEO Elon Musk projected achievement of genuine
25:40
autonomous driving capability by mid 2025, focusing initialing on
25:46
Model 3 and on Model Y vehicles in California and Texas.
25:52
Now, during Tesla's third quarter earnings call last year,
25:56
Musk acknowledges sorry. Earlier this year, Musk
25:59
acknowledges tendency to provide optimistic timelines while also
26:02
revealing potential hardware limitations in vehicles equipped
26:06
with hardware 3 point O, promising free upgrades if
26:10
necessary. Now, early user feedback from
26:13
experience FSD testers indicate substantial improvements in the
26:17
system's performance. Veteran tester Dirty Tesla on X
26:21
reported successful navigation through snow covered dirt roads
26:25
with complete autonomy, while aid driver noted superior ride
26:31
smoothness compared to professional ride sharing
26:34
services. Now, the technical
26:36
implementation of FSD version 13.2 demonstrates notable
26:41
advancements in practical functionality.
26:44
Tesla Autopilot engineer emphasized the system's
26:48
comprehensive park to park capabilities, allowing vehicles
26:51
to complete entire journeys with minimal driver input beyond
26:55
initial destination selection. Market analysts attribute
26:59
Tesla's recent stock performance partially to expectations of a
27:03
more favorable regulatory environment under the new Trump
27:07
administration. Wedbush Securities analyst Dan
27:10
Ives suggested that Trump's presidency could expedite the
27:14
implementation timeline for autonomous driving technology,
27:17
potentially advancing goals originally set for 2026 or 2027.
27:21
And the company's strategic positioning includes aggressive
27:24
sales initiatives, particularly in the US market.
27:28
Tesla recently introduced year end discounts on Model Y
27:30
vehicles as part of its effort to achieve record-breaking
27:33
quarterly deliveries with analyst consensus projecting
27:36
498,000 vehicle deliveries in quarter four.
27:40
Now there's another tester out there.
27:41
FSD tester Chuck Cook documented improved performance in
27:45
challenging scenarios, specifically noting enhanced
27:48
navigation of unprotected left turns and natural appearing
27:52
U-turn maneuvers. These objectives or observations
27:57
suggest meaningful progress in the system's ability to handle
28:01
complex traffic situations. Now, the software updates impact
28:05
extends beyond really basic driving capabilities.
28:08
Whole Mars blog NX verify the system's comprehensive
28:12
automation, reporting successful navigation without requiring
28:16
steering wheel interaction throughout the journey at all.
28:19
This achievement marks a notable step towards Tesla's goal of
28:23
fully autonomous operations. You know, Tesla stock maintains
28:27
a leading position within the auto manufacturers industry
28:30
group, holding an 88 composite rating in 95 relative strength
28:34
rating. These metrics reflect strong
28:37
market performance relative to industry peers and overall
28:40
market conditions and the technological advancement
28:44
represented by FSD. The new FSD addresses several
28:48
previous limitations. The elimination of steering
28:51
wheel jitter and improved parking lot navigation,
28:54
including automated Supercharger station positioning, shows that
28:59
it's a refined control system and also enhanced environmental
29:02
awareness. Market response to Tesla's
29:05
latest FSD release occurs against the backdrop of
29:08
intensifying competition in the autonomous vehicle sector.
29:13
The company's stock consolidation around 34 month
29:16
highs suggests investors confidence and technical
29:20
progress and marketing positioning for Tesla.
29:23
And the integration of autonomous charging capabilities
29:26
with FSD 13.2 represents a huge technical achievement.
29:31
System's ability to navigate to improperly aligned with
29:34
Supercharger stations addresses a crucial aspect of EV
29:38
operation. Current market projections
29:41
anticipate continued growth in Tesla's delivery numbers with
29:45
expectations of two Point O 6,000,000 vehicles in 2024.
29:49
This forecast brings upon the company's previously quarter
29:52
rating record of 200 or 485,000 deliveries in quarter 4/20/23
29:58
in. The development of autonomous
30:00
driving technology from Tesla occurs within a very complex
30:04
regulatory and political landscape.
30:06
The potential influence of the future administration policies
30:09
on implementation of timelines adds another dimension to market
30:13
considerations and development strategies.
30:17
This new release of FSD combines technical advancement with
30:20
market optimization, while political factors and regulatory
30:25
considerations shape the company's autonomous driving
30:29
future under the new administration.
30:34
Now, let's switch some gears here from Tesla all the way to
30:39
this guy's with SpaceX and NASA. And the future of NASA's most
30:43
powerful rocket hangs in the balance following Donald Trump's
30:47
recent electoral victory. The Space Launch System or the
30:50
SLS, which is a cornerstone of our return to the moon, faces
30:54
potential cancellation, according to space industry
30:57
insiders. So Eric Berger recently posted
31:00
on X. To be clear, we're far from
31:02
anything being settled, but based on what I'm hearing, it
31:05
seems at least 5050 that NASA's Space Launch System rocket will
31:09
be cancelled. Eric Berger says it you know, he
31:12
has some inside information. He's been in this game for a
31:14
very long time and it cred some shed some credibility on this
31:21
potential of cancellation of the SLS.
31:24
So the SLS rocket let's get into this a little bit.
31:26
The SLS rocket serves as the primary launch vehicle for
31:29
NASA's Artemis program, which aims to return humans to the
31:32
moon for the first time since the Apollo era ended in 1972.
31:37
Now this massive rocket his demonstrated its capabilities
31:39
through successful testing, including the unmanned Artemis 1
31:43
mission in 2022. The complete of Artemis 3
31:46
mission would mark humanity's return to the Lerner surface,
31:50
and the current mission architecture for Artemis 3
31:52
involves a carefully choreographed sequence of
31:55
events. 4 astronauts will launch aboard NASA's Orion spacecraft,
32:01
which is carried by the SLS rocket into lunar orbit.
32:05
Now, upon reaching lunar orbit, 2 crew members will transfer to
32:09
Spacex's Starship vehicle, which will have launched separately to
32:13
make that ascent to the moon's surface.
32:15
And after completing their lunar exploration, these astronauts
32:19
will return to orbit in Starship, rejoin their
32:22
colleagues in Orion, make the journey back to Earth.
32:26
Now, technical challenges have pushed the timeline for the
32:29
first crewed lunar landing to autumn of 2026, considerably
32:34
later than initially planned. Various factors contribute to
32:37
these delays, including necessary redesigns of astronaut
32:41
space suits, complications with Orion's heat shield and life
32:45
support systems, and ongoing development issues with Starship
32:49
Lunar Lander down at Boca Chica Star Base, Texas.
32:53
Additionally, the upgraded mobile launch tower for the SLS
32:56
has experienced both cost overruns and scheduled delays.
33:01
You know, NASA space probe program has announced plans to
33:04
send its own astronauts to the lunar surface by 20-30, adding a
33:08
competitive element to this timeline.
33:10
Chinese space missions typically maintain conservative scheduling
33:13
estimates, suggesting their projected timeline may be more
33:17
reliable than American estimates.
33:20
This development has created pressure on NASA to maintain its
33:23
schedule and technological edge in space exploration.
33:28
Now Elon Musk's role in the incoming administration as a
33:32
chief cost cutter tasked with finding up to $2 trillion in
33:37
U.S. Federal budget reductions.
33:39
As another layer of complexity to the situation.
33:42
Musk's own space company, which is SpaceX, has achieved recent
33:45
success with its Starship program, including an impressive
33:48
demonstration where the vehicles massive booster stage was
33:52
recovered using robotic arms. The chopsticks at their Texas
33:55
launch site at Starbase. Now let's get a little bit of
34:00
finances. The aspects of the SLS program
34:03
have drawn scrutiny from various quarters.
34:05
Each launch of the SLS carries an estimated price tag exceeding
34:09
$2 billion, while billions more have already been invested in
34:13
the Rockets development in supporting infrastructure at
34:15
Kennedy Space Center. These costs stand in stark
34:18
contrast to Spacex's focus on reusable rocket technology,
34:22
which promises significantly lower launch costs.
34:26
We're not talking billions of dollars for an SLS, we're
34:29
talking millions of dollars now. The Starship vehicle presents an
34:33
intriguing alternative to the SLS, though, as it could
34:36
potentially serve both as a launch vehicle and the lunar
34:40
Lander. However, this option comes with
34:42
significant technical hurdles. Starship remains in its testing
34:46
phase right now must they must still demonstrate critical
34:50
capabilities such as in orbit refueling in uncrewed lunar
34:54
landings before it could be considered for crude missions.
34:57
Now, the Falcon Heavy, which is another SpaceX vehicle, has been
35:01
suggested as a possible launch platform for Orion.
35:05
This alternative would require substantial modifications to
35:07
both the rocket and the launch procedures, potentially
35:10
introducing new delays and technical challenges to the
35:13
Artemis program. But it wouldn't cost billions of
35:16
dollars to get this thing ready. These changes could impact both
35:19
positions of America and the Chinese Space Race.
35:24
Now. The Artemis program's goals
35:25
extend beyond simple lunar landings, though.
35:28
The program envisions establishing a permanent lunar
35:31
base where astronauts can conduct Advanced Research and
35:34
development technologies necessary for future space
35:37
exploration. The base would serve as a
35:39
proving ground for technologies and procedures needed for
35:43
eventual missions to Mars. Now, the Trump administration
35:47
has shown interest in prioritizing Mars exploration
35:51
over lunar missions, aligning with Musk's stated goal of
35:54
establishing a human presence on the Red Planet by 2028.
35:59
The shift in focus could significantly impact the future
36:02
of the SLS and the broader Artemis program.
36:05
The convergence of Trump's and Musk's Mars ambitions raises
36:08
questions about the long term direction of American space
36:11
policy. The original Artemis program,
36:14
established during President Trump's first administration in
36:17
2017, laid out a comprehensive plan for substantial lunar
36:22
exploration. The plan included not only
36:24
landing missions, but also the development of supporting
36:27
infrastructure and technologies necessary for long term lunar
36:31
presence. The current uncertainty
36:33
surrounding the SLS puts this broader vision at risk, and
36:36
NASA's assertion that the SOS is, quote, the only rocket that
36:40
can send Orion astronauts and cargo directly to the moon in a
36:43
single launch shows the rocket's unique capabilities.
36:48
The space agency has invested considerable resources in
36:51
developing this specialized vehicle designed specifically
36:54
for deep space missions. Canceling the program could
36:58
necessitate significant redesigns of mission
37:00
architecture and supporting systems.
37:04
Now, the technical requirements for lunar missions demand
37:07
specific rocket designs and extensive planning for crew
37:10
safety and mission success. Landing sites, particularly in
37:14
the unexplored lunar South Pole region, present unique
37:18
challenges that the current mission architecture was
37:21
designed specifically to address.
37:24
Any alternative launch system could need to meet these same
37:27
stringent requirements, including the Falcon Heavy and
37:30
Starship. That the economic implications
37:33
of cancelling SLS program extend behind the billions of dollars
37:37
already invested in it. The program supports thousands
37:41
of jobs across multiple States and maintains crucial aerospace
37:45
engineering capabilities within the United States.
37:47
These factors could influence potential political support for
37:51
any proposed changes to the program, but NASA's willingness
37:54
to collaborate with commercial space companies demonstrates the
37:58
agency's adaptability and recognition of private sector
38:01
capabilities. However, the complexity of deep
38:03
space missions suggests that a hybrid approach combining
38:06
government and also commercial capabilities might prove more
38:10
effective than completely privatizing lunar exploration
38:14
efforts now. The decision about the SLS
38:17
future carries implications for American leadership in space
38:21
exploration, international cooperation, and the development
38:24
of new space technologies. The incoming administration must
38:28
weigh various factors, including technical capabilities, economic
38:33
considerations, and geopolitical implications, before making any
38:37
final decisions about the program's future.
38:41
And the potential cancellation of the SLS is at a critical
38:45
juncture right now in American space exploration.
38:48
It's proven. It's already been around the
38:50
moon and back, and the Starship hasn't quite made it to orbit
38:55
yet. It's an emerging commercial
38:57
alternative to the SLS, but it's not quite there yet.
39:01
There's also national security interests and international
39:04
competition in space to think about.
39:07
SpaceX has only launched a few Starship rockets by this time
39:12
and they haven't done a in orbit refueling.
39:17
They haven't gone to complete orbit yet.
39:19
They haven't launched a satellite from this thing.
39:21
It is not crew rated like the Orion.
39:25
And also it can't get to the moon in one shot.
39:28
It has to stay in orbit to refuel a bunch of times, about a
39:32
dozen to 20 times somewhere in that region before it actually
39:36
goes to the moon. So astronauts would have to
39:38
launch and probably a Falcon Heavy or even a Falcon 9 to get
39:43
to the Starship. And then the crew would transfer
39:47
from that capsule to the Starship and then fly all the
39:52
way to the moon. And they would completely
39:54
dismantle the Orion program at this point because they wouldn't
39:58
really need it other than getting back to Earth.
40:02
And it would completely destroy that program and thousands of
40:07
people would lose their jobs or be restructured into NASA's.
40:14
Web fabric of of people that work there.
40:17
So it's a very complex thing to think about.
40:21
If they go forward with canceling the SLS, it'll be
40:24
probably another six years before Starship is actually
40:29
ready to fly this whole mission and they have to reconfigure
40:31
Falcon Heavy. It's going to be a big deal.
40:36
How effective is Tesla's Full Self Driving system under poor
40:41
visibility? And also what led a new federal
40:44
investigation targeting Tesla's driver assistance tech?
40:47
Could this scrutiny disrupt Elon Musk's robo taxi?
40:52
Now the National Hwy. Traffic Safety Administration,
40:54
the NHTSA, announced a preliminary evaluation into
40:58
Tesla's FSD technology after four reported crashes between
41:02
November 2023 and May of 2024. These incidents all occurred
41:07
under reduced visibility conditions such as fog, sun
41:10
glare or airborne dust. The agency's focus is whether
41:14
the software is capable of detecting and responding
41:17
appropriately in such scenarios. One of these incidents in
41:21
Rimrock, AZ involved a Tesla Model Y striking and killing a
41:26
pedestrian. The crashes have prompted
41:28
concerns over the system's reliability in non ideal driving
41:32
environments, leading to broader inquiries into its operational
41:36
safety. The investigation effects
41:39
approximately 2.4 million Tesla vehicles equipped with FSD,
41:44
spanning models released between 2016 and 2024.
41:47
This includes Model S, Model X, Model 3 and Model Y, and also
41:51
the 2023-2024 Cyber Truck. The preliminary evaluation is
41:56
just the first step in a potentially lengthy process that
42:00
could lead to recalls if the vehicles are deemed a safety
42:03
risk. The investigation will assess
42:05
whether Tesla has made updates to the FSD system to improve its
42:09
handling of poor visibility, and the NHTSA is also evaluating the
42:14
safety implications of the updates, examining their timing,
42:18
purpose and effectiveness. Now, the four crashes under
42:22
investigation are under certain scenarios with SFD appeared to
42:30
falter. Rimrock, AZ November 2023 I
42:34
already spoke about that when a pedestrian was killed after
42:36
being struck by a 2021 Tesla Model Y January 2024 in nipped
42:40
in California, a Model 3 collided with another vehicle
42:44
during a dust storm and Red Mills, Virginia in March of
42:47
2024, a Model 3 was involved in a crash on a cloudy day and
42:52
Collinsville, OH May 2024 a Model three hit a stationary
42:57
object on a foggy rural Rd., resulting in injuries.
43:01
Now the NHTSA is seeking to determine if these incidents are
43:05
indicative of broader systematic issues within the full self
43:09
driving system. Tesla has long marketed FSD
43:13
software as a step toward autonomous driving, though it
43:16
currently requires driver supervision, not its website.
43:19
Tesla clearly states that FSD is not a fully autonomous system in
43:22
advisors users to remain attentive during driving behind
43:26
the wheel. The system has faced scrutiny
43:29
throughout the years, with critics arguing that Tesla's
43:31
reliance and a camera only approach without supplemental
43:34
sensors like radar or Lidar may limit its reliability in adverse
43:38
conditions. And some industry experts
43:41
suggest that weather related challenges could be a critical
43:43
hurdle for Tesla's self driving. Now, this latest probe is not
43:47
Tesla's first encounter with regulators.
43:50
Earlier in 2023, NHTSA closed an investigation into Tesla's less
43:55
advanced Autopilot system after examining nearly 500 crashes.
44:00
That inquiry identified 13 fatal accidents, leading to heightened
44:04
concerns about Tesla's driver assistance technology.
44:08
Tesla also faces lawsuits and government investigations into
44:11
its claims about Autopilot and FSD.
44:14
One high profile case, Tesla reached a settlement early this
44:17
year avoiding a trial over an Autopilot related crash.
44:21
Meanwhile, the Department of Justice has issued subpoenas
44:25
related to Tesla's self driving claims, and the California
44:28
Department of Motor Vehicles has accused the company of
44:31
overstating the system's capabilities.
44:34
Now, Elon Musk has frequently touted Tesla's advancements in
44:38
autonomous technology, positioning it as a cornerstone
44:41
of the company's future. Just a week before the
44:43
investigation was announced, Musk unveiled the prototype of
44:46
the Cyber Cab 2 Seater Robo Taxi concept without a steering wheel
44:51
or pedals. Now, Musk claimed that Model
44:53
Threes and Model Y vehicles would operate without
44:56
supervision in California and Texas by 2025, but offer no
45:00
specifics on how this would be achieved.
45:03
However, regulatory hurdles loom large for Tesla to deploy
45:07
vehicles without traditional controls, approval from NHTSA
45:11
would be required. This poses a huge challenge as
45:14
the agency investigates Tesla's current technology and its
45:17
ability to ensure safety. Now, Tesla's approach to
45:21
autonomous driving relies exclusively on camera based
45:24
vision systems powered by artificial intelligence, a
45:28
method some experts argue is vulnerable to environmental
45:31
limitations. And competing companies such as
45:34
Waymo and Cruise incorporate lidar and radar technology to
45:38
enhance their system's ability to navigate complex
45:40
environments. Now, Jeff Schuster, who's a vice
45:43
president at Global Data, noted that weather conditions could
45:46
impede the performance of camera based systems, adding the
45:49
regulatory oversight may delay Tesla's deployment of fully
45:52
autonomous vehicles. And the investigation adds to
45:56
more pressure on Tesla as it faces increased competition in
46:00
the electric vehicle market. Companies focus on self driving
46:03
technology comes amid slowing demand for its core vehicles and
46:07
rivals are making strides in the robo taxi space with more robust
46:10
sensor arrays. Tesla's legal troubles and
46:13
regulatory scrutiny could also impact investor confidence.
46:16
While Tesla's stock rose slightly after the announcement
46:19
of the investigation, prolonged uncertainty could weigh on the
46:22
company's market position. Now.
46:24
What's next? The NHTS as preliminary
46:27
evaluation is expected to last up to 8 months, but the agency
46:31
identifies significant safety risks.
46:33
It could escalate the investigation to an engineering
46:35
analysis or recommend a recall. Tesla has not commented publicly
46:39
on the latest probe, leaving questions about its next steps
46:42
unanswered. The agency is also examining
46:45
whether Tesla drivers are adequately adhering to
46:47
instructions to remain engaged while using FSD.
46:50
Past investigations in Autopilot revealed instances where drivers
46:54
rely too heavily on the system, leading to accidents.
46:58
Now, Tesla has faced other fatal accidents involving its driver
47:02
assist systems. In one instance in April of
47:05
2023, a Model S operating in FSD mode struck and killed a
47:09
motorist near Seattle. Such incidents have drawn
47:12
criticism from safety advocates, who argue that Tesla's branding
47:16
of the software as Full Self Driving and mislead users into
47:20
overestimating its capabilities. Now, the company's December 2023
47:24
recall of more than two million vehicles to address issues with
47:27
its Autopilot system also remains under review.
47:31
The NHTSA is still evaluating whether those measures
47:35
adequately resolve concerns about drivers not paying
47:38
attention. Hey, thank you so much for
47:48
listening today. I really do appreciate your
47:50
support. If you could take a second and
47:51
hit the subscribe or the follow button on whatever podcast
47:54
platform that you're listening on right now, I greatly
47:57
appreciate it. It helps out the show
47:59
tremendously and you'll never miss an episode.
48:02
And each episode is about 10 minutes or less to get you
48:05
caught up quickly. And please, if you want to
48:08
support the show even more, go to patreon.com/stagezero and
48:14
please take care of yourselves and each other and I'll see you
48:17
tomorrow.