To The Moon

I believe the market is right to worry about AI disrupting software companies. One only has to glance at "Macrohard", Musk's not so subtly named vehicle to attack Microsoft as a case in point. Clearly Musk believes that AI will inevitably disrupt the software space and is positioning his AI efforts to be part of that disruption.

Hmm, I can't help wondering whether Elon Musk's lawsuit against OpenAI is queering the pitch for this investment. Should Musk prevail, this would hit OpenAI and Microsoft badly and investing in XAI might be a better bet for Nvidia.

No, this is not the reason that Tesla is "pivoting away from EVs". Chinese automakers are struggling because their business model is to sell low-priced EVs at low margin at volume, because they can't compete with Tesla up market. Tesla continues to make decent margins at these elevated price points. The reason Tesla is not so concerned about EVs is because it has other juicy alternatives to extract higher margins from the batteries it consumes to make its products. For example, the Energy business makes much higher margins than the auto business. The Robotaxi business, though still nascent, will attract SAAS margins, of the order of 80%, which compared to the ~16% margins on autos makes the pivot somewhat of a no-brainer.

"Tesla stock wobbles". What, ~2%? We seasoned investors in $TSLA are used to 10 to 20% lurches up or down. To us, 2% is more like a rounding error.

GLJ "Research". Gordon Johnson is a perma-bear, who has never seen anything good about Tesla, no matter what they achieve. He has a 0 star rating on tipranks.

It's almost as if Photoshop never existed for the EU. XAI won't generate the images unless asked to do so by a user.  A painter who chooses to paint a pucture of a nude uses the tools available. If it's too spicy, do we condemn the painter or the company that supplied the paint and brushes they used?

But is BYD as profitable as $TSLA? Is it great that BYD are selling a heap of low margin cars to attain this "title"? Or is it a better strategy for TSLA to divert much of its battery production to support its energy division with margins of ~30%? Will TSLA have a problem selling as many vehicles as it likes to roll out its Robotaxi fleet, you know, a venture that produces ongoing revenue rather than a one off profit on a car sale? I don't think looking at car sales metrics is particularly informative for a company like Tesla.

Now if automotive sales were still the be all and end all of Tesla's profits, this might still be somewhat relevant. However, energy sales continue to take off, Robotaxis are going to take up any slack in the market and provide much greater margin than each unit sold would generate. So I'm still relaxed holding my $TSLA. Then comes Optimus...

More ancient FUD dredged up on cue by Bloomberg. This is a non-story from 2022, where latches are provided to release car doors, but people don't know where to find them. As far as battery fires go, Teslas are about 1000x less likely to catch fire than combustion vehicles (the clue is in the word "combustion"), but no mention of that fact within this hit piece.

At long last! Delaware could see the writing on the wall should the lower court's decision had been allowed to stand. The loss of tax revenue from companies moving out of state was beginning to hit hard.