3 Huge Trends Are Converging Around Tesla!

Billionaires Ron Baron, a legendary fund manager, and Jeff Bezos, the founder of Amazon, as well as JD Vance, the US vice president, all said the same thing this week. The future is AI, robots, and energy, and every road leads to Tesla and SpaceX. First, Ron Baron on CNBC, he says the time to buy Tesla is now. A,400,000 people use FSD, growing 55% a year. His car even stopped for a duck and six ducklings. his words, "Everyone's going to want it." Second, Jeff Bezos. Everyone worries AI makes humans redundant. He totally disagrees. AI will create a labor shortage instead because we have an endless set of things to invent. Think about what that means for Optimus. Third, Vice President Vance quoting Elon directly, "China generates three times the electricity America does, and we have to build more power. That's Tesla's energy business he's describing." Fourth, the receipts. Samsung's Texas foundry just started prototype production of Tesla's AI5 chip with mass production around year end. And finally, Tesla connected the dots itself. AI scales with energy and mega packs are the foundation already in 65 plus countries. Three visions, one direction. We'll get into it. We got Larry Goldberg joining us today. He's a serial entrepreneur and has been an active venture capital investor for the last decade. Check out lumisenti.com. Welcome Larry. >> Great to be here. >> Okay, we got Ron Baron. We got JD Vance. We got Jeff Bezos. Uh let's listen to what they've been saying in the past week. Here's Ron. He was interviewed again on CNBC. Says a lot of the same stuff, but uh one thing he does say is uh uh you know, he's already put all in himself, but that uh he's uh never sold. And then he says this is the time to actually buy. So let's listen to what he said. >> Too much time in Tesla, but I think Tesla is the time to buy the stock is now. uh all this FSD is is catching on and it's going to be bigger and bigger and bigger and this is going to drive uh you know they have a billion a million four people now we're on this driving they're growing 55% overall uh increase a year and and everyone 55% of the new people they're getting it are buying this with the uh with a self-drive >> and uh it's going to be everywhere. Are you buying more if you think this is the time or do you think you're overexposed or at least as exposed as you want? >> 30 billion in >> Yeah. >> Yeah. He says he's not going to buy more. What's your thoughts, Larry? >> Well, Ron Baron has, you know, he's a legendary investor. He's uh had an incredible career and it's not over yet. I mean, he's only 82, so he's got a way to go, but I mean, he's he's a legendary invest legendary investor investor, and his success is somewhat due to Elon. So, um, you know, I'm I'm following in his footsteps. I I we own um Baron's uh stock. We own Baron Partner stock, actually, is what we own. Um, I guess they're funds, they're not stock. Um and uh we've done very well with them. We bought them originally many years ago because they had a huge component of SpaceX in the Baron Partner Fund. It was the only access we had at the time to SpaceX. Since then, we were able to invest in several uh SpaceX uh direct SpaceX investments and and some SPVS. Um and so you know we that way we were able to acquire a direct SpaceX exposure but Baron funds have done very well for us very very well for us and he is extraordinary. I've been to one of his conferences and it's it's a lot of fun. Um at my age I don't go to these conferences anymore but it was a lot of fun being at the one that I was at. Um, and what was amazing to me at that conference was on the first day he actually ran he was on the stage the entire day. I mean it was extraordinary. Here is this 80, well at the time it wasn't quite 82, but here is this 80 year old person just managing the intellectual backwards and forwards with all these CEOs of all these incredible companies. Just an incredible performance. I'm amazed by it. But anyway, back to the back to his thesis. I'm aligned with his thesis 100%. These are going to be the most amazing companies in history. Tesla and SpaceX and obviously when they combine they're going to be the greatest company the world has ever seen. >> When uh Larry he the way he positioned it he was just interviewed and he says time to buy Teslas now but then he also says the reason is the FSD people are using FSD it's growing 55% a year. Uh what do you think about his thought process there? That was the one reason he gave. >> I like his thesis. I I like his thesis 100%. You know, I'm a avid FSD user. I'm I'm at uh 98% in my car over the last uh 11,000 miles. So, I use the car consistently only on FSD. And that you know the the 30 or 40 m actually is almost 70 mi now of the 11,000 is on on is just you know parking or getting out of a difficult space or just uh re reparking the car actually when when it doesn't park into the parking space I prefer. Um, so I I'm aligned with him and look, our elderly population, you know, I gave a I gave a talk at our retirement community here the other day about FSD. And the result of that was many couples, more than several couples went out and bought Tesla FS for its FSD. Why? Because as we age, so our driving skills are not as good as we want them to be. And so having FSD makes a huge difference. And we have an aging population. For all these reasons, I think he's right on the money. When people discover just how good FSD is, boy, that changes their style. My son has just ordered a Y. He's waiting for it to be delivered. Why? because he had to borrow our y to go on a road trip to take some of his employees on a road trip to a you know a place that he couldn't fly to that he needed to drive to and he wanted it to use FSD so he real he realized this is crazy I need I need a Tesla >> I need this car >> this is going to happen more and more and more in fact it's happening more and more >> it is happening it's it's a demand driver now he says this I don't want to spend too much time on Tesla but I think Tesla the time to buy the stock is now all this FSC is catching ing on and it's going to be bigger and bigger and bigger. This is going to drive you know they have a million4 pe four, million400,000 people now on this driving growing 55% overall increase a year and 55% of new people that are getting it are buying this with the self-driving is going to be everywhere. >> I agree 100%. >> Yeah, I do think that uh FSE is now a demand driver. I think that it's so good now that people are willing to recommend it to others and that when they get into it, they're it's no longer this uh oh, you know, this mistake, that mistake, you know, it's it's now almost perfect. It's almost perfect at this point. It's crazy. And then FSE version 15, that could be it. Maybe that's from Yeah, it's very >> from we're hearing from other people. Um, I'm just going to play a little quick funny thing about uh him talking about his own FSE experience. >> And uh on Sunday mornings uh we go to breakfast uh in a little joint at the in East Hampton and we have pancakes and French toast and cereal and orange juice. And uh I overslept on Sunday morning. So I said, "Oh my god, I'm looking and no one's here." So I take a quick shower, run out to my car. that's in the garage. Uh, I didn't remember the address. I pushed the name of the store we're going of the restaurant we're going to. Uh, it says self-driving. That opens up my garage door. Pulls out backwards. Drives around my driveway, which is really long. Opens up the gate to front of the property. Opens it up. Drives to the, you know, a little bit more to the street. Looks both ways. Pulls on to the street. Makes a left-hand turn. Goes for two blocks. Makes a righthand turn. goes for two blocks, then makes a lefthand turn, and I'm not even paying attention. Makes a left-hand turn and all of a sudden stops short. I say, "Oh my god, did I break something?" And then I look out and I'm watching the front of the car, and there's a large duck walking across the road with six little ducklings behind it. It stopped for the ducks. And then the ducks pass. The car starts up again, goes to Main Street, makes a right, goes into the parking lot, and parks right next to the restaurant that was having breakfast. Stop for ducks. This car is unbelievable. My sons have driven from New York to here. You drive in New York. You have to try this car. I'll get you a car to try if you want it. >> I won't. We're going to do it. >> It's amazing. >> Not for me, but but uh >> everyone's going to want it. And he says it's like driving a horse and buggy if you don't have this at some point. And your son is going to be this is great for children. Children have to learn to drive. >> Such a worry that I don't want him, you know, worry about him worry about other. >> Don't worry about this stuff anymore. This is really cool. You got to have it. So that's that's Tesla. >> Yeah. Interesting. >> Not for me guy. They're not I mean, can you believe it in this day and age? Not for me. And this is supposed to be a car guy. I mean, my goodness. >> I mean, clearly he's biased, but I mean, the point is, okay, A, he won't even try it. You got to try it. B, it's like it's now safer. So this he he was his argument was, you know, now you have to watch it and all that. Like no guy is like it's now safer if you care about your family and all that. But anyways, okay. It's okay. It's not everybody has to get it. And uh but it's just interesting that obviously there's a huge group of people who won't do that. Yeah. Yeah. I hear it all the time. There's a huge group of people who uh really just don't like Elon, think that he's the devil, whatever. and then they won't ever buy his car. But my answer is well that's fair because what 50% of people hate them, 50% love them and all the cars are being sold anyways. Do you think that will change or that will always be there? >> Look, the political situation in our country right now is so fraught that I think there's always going to be an element of that. Um I think you know there I I don't think it's going to it's going to have too much of an impact on sales. I think there are enough people who need it, want it, and will will buy it. But you know over time even those people are opposed to it they'll end up taking the cyber cab they'll end up you know getting a robo taxi they'll end up understanding the capabilities and in the end that will pass. I mean it will pass. >> Yeah. It's like for me it's like uh somebody I don't know the exact numbers but somebody uh pointed out that uh solving driving accidents 40 40,000 people died last year on an on an accident forget the three plus million that you know are severely injured but u it's almost equal to how many people died of cancer I don't know if that's true in the US I don't know exactly if that's true but the point being that you are so upset with somebody that you don't want 40,000 people no longer dying. And so you should, you know, fine, don't don't do Tesla, but support self-driving, you know, and have more people check out self-driving. Okay, let's talk Jeff Bezos. So, a lot of people hate Jeff Bezos, and a lot of people think he's um, you know, they think that he's a billionaire doing all these things. First of all, I want to play what he said about um AI, but also uh there's this article written says Jeff Bezos earned his Amazon furniture a fortune. The Amazon's founders innovation saved customers 22 hours a year on averaging, giving them the gift of time, but obviously the productivity. Just like for example yesterday instead of me having to go out you know spend four hours picking up a um prescription it would just arrive same day right so it's fantastic and u by reducing the times people spend shopping managing inventory and building infrastructure Amazon has created consumer surplus that far exceeds Bezos's personal fortune and Elon said valid point welldeserved praise you can tell something is generally good when most of the world would be upset if it went away that is true of Amazon and And let's listen to what he actually said about his belief about AI and what it's going to do to the world. >> Place people necessarily. It's going to be a tool for engineers to use. >> No, no, no. Really valuable. >> I know there's a lot of concern that many people have, including many smart people, that AI is going to make humans redundant and so on. I I totally disagree with this point of view and I think in fact AI is going to create a labor shortage because it's going to make it possible for people to identify more problems. We have an endless set of things to invent >> and we are only limited today. We are limited not by our imaginations but by what we can actually do. I promise you every single person in this audience has had an idea for a new business or a new product or a new device that they wish they could manufacture and that idea stayed in your head and went nowhere. And the reason it stayed in your head and went nowhere is because it's too hard to do and it wasn't worth it. And if we can accelerate the dream build loop, all of the ideas will then become possible. And then we end up being limited not by our capabilities but by our imaginations. You can already see this with you can already see this some with vibe coding, right? You know, I was classically trained as a computer scientist, but three years ago, I was a terrible computer scientist. I got but now I can in just an afternoon write an iOS app and and and I have some ideas for iOS apps and and that that be that is one thing LLM can do very well because it is symbolic and so they can code very well and then imagine the tools that they're thinking about bringing that that I could in an afternoon do that in the physical world and you know contemplate something and magically it comes off my 3D printer. I I'm chomping at the bit. It's It's so exciting. >> Well, they seem to be very optimistic about AI. They're certainly not AI doomers. What do you think, Larry? >> I'm a great Jeff Bezos fan. You know, I I owned that Amazon stock for years and years and years and uh to this day through the fact that I sold it, you know, at the peak in the in the COVID years, um I should have I should have kept it. I have a huge huge amount of respect for Jeff Bezos and I think you know he he he's got such sense such a great sense of the future. So I really respect his his thinking and his ideas and he's absolutely right. You know here's a thought. One of the things that AI is going to do is put these damn app developers out of business finally because you're not going to need somebody to develop an app for you. Your AI will do the app development that you need for the functions that you need. That's that's my view. which means that, you know, we'll be able to save all those hundreds of dollars a month we're paying for those damn apps that we really, really do not need to be paying for. Anyway, that's just a pet peeve of mine. But getting back to Jeff, I mean, the guy is absolutely solid. I I agree with him 100%. I think we're in this next great industrial revolution or the next great digital revolution and uh mankind is just going to be a lot better off with what we're going to get out of AI. Do you think he's right though that AI will create a labor shortage because we have an endless set of things to invent? So I I think that there's obviously many different kinds of people and some people have what I call agency, right? They have the ability to to act. And now what he's saying is that yeah there's people who don't have agency but because everything's so easy now you just verbally tell something hey uh you know I'd like to have an app and it's recipe app. Okay. And then I go sure okay boom and here it is. It's like it makes it easier and then they might do more or do you think that there are like the vast majority of people really are not inventors or you know idea idea people. He says everybody in his audience has had an idea could be true. I'm inclined to align with him rather than with you. I think >> everybody has agency in a different area and skill, a different sense. I don't think it's fair to say that no that only some of us have agency. Agency is really um you you know is multifaceted. You can have agency in some areas and zero in others. >> Yeah. So, so I I think I think it's unfair to say that only some of us have agency. I think it's fair to say that some of us have agency in some areas and others have agency in other areas because just to get through life you have to be s somewhat independent to a degree independent in many areas. Yeah. >> So, um I I think he's right and I I don't think it requires every one of us to be inventive. I don't think it requires every one of us to use AI, but those of us that do use AI will become dramatically more productive and that productivity translates into lower cost for others. So, you know, evolution of capability is not uniform. It varies, you know, over people, over area, over geographic areas, over nation states and so on and so forth. But ultimately any economic activity that lifts some people up or some group up or some nation up or some geography up ultimately lifts everybody up because that's the nature of economic activity. >> That's what we say. >> So I I'm I'm very comfortable that he's right. >> The end of the article uh said this um the moral case for Mrs. Abbezzo's wealth doesn't require blind admiration of his business acumen. It requires arithmetic. If Amazon saves each customer 22 hours a year, his fortune passes the Nordhouse test. If it saves more than that, society receives far more than he keeps. It's easy to resent the billionaire. It's easy to ignore the saved hours. But the hours matter because time is limited. It is our most precious resource. Count the time saved and his fortune becomes less mysterious and much more defensible. Yeah, >> I mean that article is saying exactly what I said a little bit earlier. You know, one person lifts up a group of people, everybody gets lifted up. That's the whole point of economic activity. >> All right. Uh just a quick thing before we move on to um Oh, why did I throw it here? Okay. No, Jeeoff, let's let's listen to Oh, I think I think I threw in here, which is just a quick thing about um there's movement with Tesla's AI chip text foundry plant in Texas. The prototype production has begun. So these ideas mass production of the products can begin by year end or early next year. >> Yeah, I'm not sure where the news came from, but it's interesting that we've heard this news um at least from Tesla Chan. Um prototype chips do not necessarily mean early delivery. Prototype chips can often mean the beginning of a cycle of re of of improvement or debugging and stuff like that. So we have to be a little cautious about it. >> Good point. Uh but if if these are truly, you know, production level prototypes, then that's very much faster than I'd expected. Very much faster. >> Okay. Yeah. I don't know why I threw that story in. That was weird. Uh back to our, you know, uh the big discussion here. JD Vance uh was interviewed and um this is what he said about the requirement for power which is required for all that AI that we're talking about. can't just stop building because of it. What you've got to do is build the things that you need, specifically power. So, you know, Elon talks about this all the time, but I talk about it, too. If you look at the amount of power generated by the PRC, the People's Republic of China, and compare it to the amount of power generated by the United States of America in 2005, they crossed the line, meaning they started to generate just a little bit more power than we did in 2005. And since then we have effectively flatlined and the PRC now generates three times as much electricity as the United States of America does. I think that a lot of our problems um are downstream of that fundamental problem and we just have to build more. We have to build more power. >> I think um did they not uh announce also that uh that is going to be an initiative for the United States is to focus on building more power. Right. >> Undoubtedly. I mean that is our great deficit right now. To think that China went 3x in 20 years, two decades, 3x and we flatlined. I mean that is that is the most devastating you know statement you can make about this whole notion of allowing China to build for us and to manufacture for us and we consume it. So this power deficit actually you know is is an indication of how we have to do a leaprog. We have to get beyond this issue of how to build power here on earth. We have to get that power from from the sky and we have to do it very quickly. We have to find ways to actually build very big rockets to send huge satellites up to space to capture all that energy and to send the data back to Earth. I wonder who could do that for us. I don't know. Hopefully somebody steps up the game, right? Somebody out there. Uh talking about power, you need to store it in some batteries. Mega packs are the foundation for energy abundance. built at our mega factories in California and Texas and deployed in 65 countries across six of seven continents. Is mega packs succeeding at this point, Larry? Do you think it's >> the growth of AI is fully dependent on how we power it? And mega packs are enabling for that to happen at scale. >> Yeah. I mean, talk about eating your own dog food. I mean the the largest I think the largest installation of mega packs right now are at SpaceX's um um data center. So yeah I mean it's essential it is absolutely essential that we that we build as fast as possible. Mega packs do not supply power. What they do is they store power and they balance the the grid. They help balance the grid. So they're critical part of building out this power supply. But ultimately ultimately we need to build out build our industries out in space because that's where power is free. Energy is free I should say. >> It's good to see. Okay. Well, here we go. So we talked about um you know Jeff Bezos thinks AI is going to be good for society. You you you saw um Ron Baron think that FSD is going to be a driver for Tesla and you got JD Van saying, "Hey, we need to build more energy." So, and AI, it's got to happen. Where are you? I guess you are definitely an access accelerationist, not a doomer. Um >> Oh, yeah. I'm an accelerationist because if you go back 2,000 years of recorded history, you go back 5,000 years of recorded history, man has only advanced when he is able to actually generate power and deliver energy. And and that's been the basis of, you know, all of industrial age. And even before the industrial age, we we used, you know, mode of power by people and by animals. And so we're just going to have to find the means to deliver energy in the form of knowledge and mode of capability. And the more we can the the greater the good. >> Thank you, Larry. You're my AI. You're my LLM. I ask Larry. Ask Larry. I get my answers. Uh especially space technology. You're the man. Thank you so much, Larry. Check him out at his website lumisenti.com. Thanks everybody. >> Thank you David.