1 00:00:00,080 --> 00:00:02,400 Welcome back, everyone today on the Joseph Carlson Show. 2 00:00:02,480 --> 00:00:06,720 If for some reason you were offline or away from the news 3 00:00:06,720 --> 00:00:10,160 over the past 12 hours, then you missed perhaps one of the 4 00:00:10,160 --> 00:00:13,120 biggest beefs of all time. This is the beef of the most 5 00:00:13,120 --> 00:00:15,360 powerful man in the world and the richest man in the world. 6 00:00:15,360 --> 00:00:18,720 We've seen inklings of this relationship deteriorating over 7 00:00:18,720 --> 00:00:21,520 the past 24 hours. The first signs were Elon Musk 8 00:00:21,520 --> 00:00:24,760 criticizing President Trump's key legislation, the big 9 00:00:24,760 --> 00:00:27,480 beautiful bill, calling it a bloated pig. 10 00:00:27,960 --> 00:00:31,640 And from there, things derailed. Yesterday was the day that Trump 11 00:00:31,640 --> 00:00:33,600 and Musk torched their partnership. 12 00:00:33,680 --> 00:00:36,000 The relationship has completely imploded. 13 00:00:36,000 --> 00:00:39,960 Insults, intense insults, were hurled left and right from one 14 00:00:39,960 --> 00:00:42,480 to the other across the web for the world to see. 15 00:00:42,480 --> 00:00:46,080 And today we're looking at it from aftermath, like a like a 16 00:00:46,080 --> 00:00:49,160 big accident happened, like a plane crash or a train wreck. 17 00:00:49,280 --> 00:00:50,880 And we're just looking at what happened. 18 00:00:51,320 --> 00:00:53,200 Now we're going to be going through the details, the 19 00:00:53,200 --> 00:00:56,800 timeline of events, how we got to this point, what it means for 20 00:00:56,800 --> 00:00:59,400 both President Trump and what it means for Elon Musk. 21 00:00:59,400 --> 00:01:02,080 We're also going to be going over many of the responses to 22 00:01:02,080 --> 00:01:05,680 this event, people like Dan Ives, Gene Munster, these are 23 00:01:05,680 --> 00:01:09,240 Tesla investors, Tesla enthusiasts going on the TV 24 00:01:09,240 --> 00:01:12,400 quickly to play damage control. Now, we also have some good 25 00:01:12,400 --> 00:01:13,880 news. On the day we had the jobs 26 00:01:13,880 --> 00:01:16,840 report come in. This was hinted at by the ADP 27 00:01:16,840 --> 00:01:18,560 report that looked really gloomy. 28 00:01:18,880 --> 00:01:20,800 The jobs report came in a little bit higher than analysts 29 00:01:20,800 --> 00:01:22,800 expected. We'll be looking at the numbers 30 00:01:22,800 --> 00:01:24,160 and what this means for the market. 31 00:01:24,280 --> 00:01:26,840 We also have news that Lululemon reported their earnings are down 32 00:01:26,840 --> 00:01:28,520 20%. We're going to see what's going 33 00:01:28,520 --> 00:01:31,240 on with this company, why the stock is cratering. 34 00:01:31,280 --> 00:01:34,080 And we have a report from the information that Amazon is 35 00:01:34,080 --> 00:01:37,920 reportedly training humanoid robots to deliver packages. 36 00:01:37,920 --> 00:01:39,120 We'll be looking at this as well. 37 00:01:39,160 --> 00:01:41,360 Now, we have a lot to cover in this episode, and we'll start 38 00:01:41,360 --> 00:01:43,880 things off with the main story, the implosion of this 39 00:01:43,880 --> 00:01:46,720 relationship. It seemed like just yesterday 40 00:01:46,720 --> 00:01:50,440 that Elon Musk and Trump were together in the Oval Office, 41 00:01:50,960 --> 00:01:53,360 talking about how good the relationship was, how 42 00:01:53,360 --> 00:01:58,440 appreciative Donald Trump was of Elon Musk's efforts, Musk there 43 00:01:58,440 --> 00:02:03,600 in his doge hat, his doge father T-shirt, standing alongside the 44 00:02:03,600 --> 00:02:06,160 president. Now, this was a kind of odd, 45 00:02:06,160 --> 00:02:08,919 sometimes awkward relationship from the beginning. 46 00:02:09,360 --> 00:02:12,440 Having the richest person in the world, a business leader, 47 00:02:12,760 --> 00:02:14,200 intermingling with the president. 48 00:02:14,640 --> 00:02:17,280 It's just a bit different than what you normally see. 49 00:02:17,960 --> 00:02:21,760 But we saw this go on for months where Elon Musk was basically 50 00:02:21,840 --> 00:02:23,840 one-on-one with Trump all the time. 51 00:02:24,240 --> 00:02:27,040 And from what we heard, even though they may not agree on 52 00:02:27,040 --> 00:02:30,320 everything, they're besties, they're friends, they're very 53 00:02:30,320 --> 00:02:32,720 close with each other. Some people even called them 54 00:02:32,760 --> 00:02:35,000 family. In fact, there were family and 55 00:02:35,000 --> 00:02:38,840 extended family photos of them taken at Mar a Lago, like they 56 00:02:38,840 --> 00:02:41,440 had adopted Elon Musk into the family. 57 00:02:41,520 --> 00:02:44,600 Now, Fast forward just a few moments, and the front page of 58 00:02:44,600 --> 00:02:47,400 the Wall Street Journal is literally filled with articles 59 00:02:47,640 --> 00:02:49,920 about the implosion of this very relationship. 60 00:02:49,920 --> 00:02:52,080 So how did we get here? The first thing that I think is 61 00:02:52,080 --> 00:02:55,880 important to note is that there has been frustrations building 62 00:02:55,880 --> 00:02:59,720 up with Elon Musk and the White House administration, which is 63 00:02:59,960 --> 00:03:03,680 President Donald Trump's team. Those two groups, Elon Musk and 64 00:03:03,680 --> 00:03:06,920 presidents team, have grown a little bit frustrated with each 65 00:03:06,920 --> 00:03:09,360 other for some time. In fact, just six days ago, 66 00:03:09,360 --> 00:03:13,080 senior Trump aides swallowed their irritation with Elon Musk 67 00:03:13,080 --> 00:03:15,560 and planned a chummy Oval Office send off for him. 68 00:03:15,880 --> 00:03:18,840 They briefed the president on the allegations of Musks drug 69 00:03:18,840 --> 00:03:21,880 use so Trump would be ready to defend the billionaire when 70 00:03:21,880 --> 00:03:25,440 reporters raised the issue at his goodbye event as late as 71 00:03:25,440 --> 00:03:28,680 Wednesday evening, Trump played down any conflicts with Musk in 72 00:03:28,680 --> 00:03:31,440 meetings with Republican senators, even though the 73 00:03:31,440 --> 00:03:34,920 billionaire had spent the past few days disparaging the 74 00:03:34,920 --> 00:03:38,480 president's legislative agenda. That's the big thing that's 75 00:03:38,480 --> 00:03:41,200 caused this. If you've been on X or Twitter 76 00:03:41,200 --> 00:03:44,920 or whatever you want to call it, Elon Musk has been non-stop 77 00:03:45,240 --> 00:03:49,200 bashing the Republican legislative agenda, The big 78 00:03:49,200 --> 00:03:51,120 beautiful bill. Now you can have whatever 79 00:03:51,120 --> 00:03:53,520 thoughts you want on the big beautiful bill. 80 00:03:53,560 --> 00:03:56,480 You can believe it's a bad bill or a good one, or you can 81 00:03:56,480 --> 00:03:59,640 believe that in politics you don't get everything you want. 82 00:03:59,880 --> 00:04:03,000 You're not going to get all the tax cuts or the incentives or 83 00:04:03,000 --> 00:04:05,760 the credits or everything that you want in a single bill. 84 00:04:05,880 --> 00:04:08,280 After all, you have a lot of representatives, a lot of 85 00:04:08,280 --> 00:04:11,160 limitations, a lot of constituents representing 86 00:04:11,160 --> 00:04:13,120 different cohorts of the population. 87 00:04:13,240 --> 00:04:16,399 Now, Elon Musk knows that President Trump can't just 88 00:04:16,399 --> 00:04:19,160 demand everything he wants in a single bill. 89 00:04:19,360 --> 00:04:21,079 He has to make these compromises. 90 00:04:21,320 --> 00:04:24,520 Republicans have a slim majority in the House of Representatives, 91 00:04:24,640 --> 00:04:27,600 but Elon Musk was highly critical of the bill anyways. 92 00:04:27,680 --> 00:04:31,840 It seems like Elon Musk wasn't just critical of the bill, but 93 00:04:31,840 --> 00:04:35,880 the bill was representative of his frustrations of other things 94 00:04:35,880 --> 00:04:38,880 going on in the White House, other things happening 95 00:04:38,880 --> 00:04:41,800 personally between his relationship with the 96 00:04:41,800 --> 00:04:44,160 administration. And there are some things that 97 00:04:44,160 --> 00:04:47,400 Elon Musk was likely frustrated about over the weekend. 98 00:04:47,400 --> 00:04:51,400 After Trump dumped Musk's ally as the head of NASA, the 99 00:04:51,400 --> 00:04:53,640 president made it clear to associates that he wasn't 100 00:04:53,640 --> 00:04:56,680 planning a high profile confrontation with his former 101 00:04:56,680 --> 00:04:59,560 adviser, according to a person who talked with the president. 102 00:05:00,000 --> 00:05:03,600 Now, this doesn't seem like that big of a deal, but this is 103 00:05:03,600 --> 00:05:05,680 actually a big deal. Elon Musk had a strong 104 00:05:05,680 --> 00:05:09,360 suggestion of the head of NASA and the Trump administration did 105 00:05:09,360 --> 00:05:11,800 not listen to Elon Musk's suggestion. 106 00:05:11,800 --> 00:05:14,760 That seemed a bit underhanded to Elon Musk because after all, 107 00:05:15,040 --> 00:05:18,840 he's the one flying rockets to space, he's the one with SpaceX. 108 00:05:19,160 --> 00:05:22,840 He has likely more experience than most people on Earth with 109 00:05:22,840 --> 00:05:24,720 dealing with these type of technologies. 110 00:05:25,240 --> 00:05:28,720 So he felt like he had big weight in the decision of the 111 00:05:28,720 --> 00:05:31,240 head of NASA. And Trump didn't ultimately go 112 00:05:31,240 --> 00:05:33,880 with Elon Musk's suggestion. So you see how that could be 113 00:05:33,880 --> 00:05:37,440 frustrating for Elon Musk. After this event of him not 114 00:05:37,440 --> 00:05:41,040 choosing the head of NASA that Elon Musk wanted, all goodwill 115 00:05:41,040 --> 00:05:44,240 disappeared on Thursday. Elon Musk's critiques and 116 00:05:44,240 --> 00:05:47,840 criticisms for the big beautiful bill got more and more intense. 117 00:05:48,080 --> 00:05:50,760 Calling it a bloated pig, calling it all these names. 118 00:05:51,120 --> 00:05:54,040 And Trump had heard enough. 13 minutes into an Oval Office 119 00:05:54,040 --> 00:05:56,400 meeting with the German Chancellor, Trump laid out his 120 00:05:56,400 --> 00:05:59,080 frustrations with Musk. Listen to what Trump says here 121 00:05:59,200 --> 00:06:02,760 and keep in mind he has the German Chancellor in the White 122 00:06:02,760 --> 00:06:07,040 House in the room with them. Look, Elon and I had a great 123 00:06:07,040 --> 00:06:10,040 relationship. I don't know if it went well 124 00:06:10,040 --> 00:06:12,080 anymore. I was surprised because you were 125 00:06:12,080 --> 00:06:13,360 here. Everybody in this room 126 00:06:13,360 --> 00:06:16,240 practically was here as we had a wonderful send off. 127 00:06:16,240 --> 00:06:17,720 He said wonderful things about me. 128 00:06:17,720 --> 00:06:19,960 You couldn't have nicer said the best thing. 129 00:06:20,680 --> 00:06:23,080 He's worn that hat. Trump was right about 130 00:06:23,080 --> 00:06:27,400 everything, and I am right about the great, big, beautiful bill. 131 00:06:27,640 --> 00:06:30,040 President Trump initially addressing this issue seemed to 132 00:06:30,040 --> 00:06:32,200 be somewhat moderate. He actually showed a little bit 133 00:06:32,200 --> 00:06:35,000 of restraint here. He didn't hit back on Elon Musk 134 00:06:35,000 --> 00:06:38,760 or do anything too personal. He just said that he disagrees 135 00:06:38,760 --> 00:06:40,440 with them. But after enough time, this got 136 00:06:40,440 --> 00:06:42,440 to a boiling point. President Trump had heard 137 00:06:42,440 --> 00:06:44,880 enough. By Thursday night, Trump had 138 00:06:44,880 --> 00:06:48,560 publicly toyed with cutting off government contracts to Musk's 139 00:06:48,560 --> 00:06:51,680 companies. He said that he went crazy and 140 00:06:51,680 --> 00:06:54,600 suggested that he is suffering from Trump Derangement Syndrome. 141 00:06:55,200 --> 00:06:59,600 Now, I don't mind so much the Trump Derangement Syndrome 142 00:06:59,880 --> 00:07:02,560 insult there or even saying that he went crazy. 143 00:07:02,880 --> 00:07:06,000 Obviously these are big insults. But what's really uncalled for 144 00:07:06,000 --> 00:07:09,040 from the president is to toy with cutting off government 145 00:07:09,040 --> 00:07:12,480 contracts from a private company because of a personal feud. 146 00:07:12,840 --> 00:07:14,480 The president should not be doing that. 147 00:07:14,520 --> 00:07:19,360 It is indefensible for President Trump to use his position to try 148 00:07:19,360 --> 00:07:22,160 to determine the outcome of companies because of personal 149 00:07:22,160 --> 00:07:24,240 feuds. So in that case, he was 150 00:07:24,240 --> 00:07:27,120 completely wrong. Now this gets so bad from here. 151 00:07:27,160 --> 00:07:29,800 It gets so much worse than you would anticipate. 152 00:07:30,160 --> 00:07:33,200 Musk floated. He started floating the idea of 153 00:07:33,200 --> 00:07:36,240 a new political party, suggesting that Trump should be 154 00:07:36,240 --> 00:07:38,800 impeached. Argued that Trump's tariffs 155 00:07:38,800 --> 00:07:42,120 would trigger a recession and pledge to decommission a 156 00:07:42,120 --> 00:07:43,800 valuable piece of space equipment. 157 00:07:43,880 --> 00:07:47,240 So once President Trump targeted Elon Musk's businesses, he gets 158 00:07:47,240 --> 00:07:49,920 real personal. The message is again posted the 159 00:07:49,920 --> 00:07:52,200 entire world. None of this is done behind 160 00:07:52,200 --> 00:07:54,160 closed doors. This is all just the hundreds of 161 00:07:54,160 --> 00:07:57,040 millions of people Elon Musk says I'm sorry but I can't stand 162 00:07:57,040 --> 00:07:59,320 anymore. This massive outrageous pork 163 00:07:59,320 --> 00:08:01,840 filled congressional spending bill is a disgusting 164 00:08:01,840 --> 00:08:03,920 abomination. Shame on those who voted for it. 165 00:08:04,000 --> 00:08:05,920 You know you did wrong. You know it. 166 00:08:06,000 --> 00:08:09,280 Elon Musk says whatever, keep the EV solar incentive cuts in 167 00:08:09,280 --> 00:08:12,520 the bill even though no oil and gas subsidies are touched. 168 00:08:12,520 --> 00:08:14,560 Very unfair. But ditch the mountain of 169 00:08:14,560 --> 00:08:17,000 disgusting pork in the bill. In the entire history of 170 00:08:17,000 --> 00:08:20,720 civilization, there's never been legislation that both is big and 171 00:08:20,720 --> 00:08:22,280 beautiful. Everyone knows this. 172 00:08:22,680 --> 00:08:25,800 Either you get a big and ugly bill or a slim and beautiful 173 00:08:25,800 --> 00:08:28,080 bill. Slim and beautiful is the way. 174 00:08:28,560 --> 00:08:32,960 So Elon Musk is taking a bit of Trump strategy of branding. 175 00:08:33,200 --> 00:08:35,919 Trump loves giving these monikers and names to things big 176 00:08:35,919 --> 00:08:38,280 and beautiful. And in this case, he's using 177 00:08:38,280 --> 00:08:42,600 that tactic against them, saying it's slim and beautiful or big 178 00:08:42,600 --> 00:08:45,000 and ugly. Now, you have to know Elon Musk 179 00:08:45,000 --> 00:08:48,000 and Trump when you're renaming bills and going after things, 180 00:08:48,000 --> 00:08:50,880 his key piece of legislation, which Trump is trying to 181 00:08:50,880 --> 00:08:53,400 advertise as this great bill for America. 182 00:08:53,920 --> 00:08:56,960 This is personal. This isn't friendly banter 183 00:08:56,960 --> 00:08:59,920 between two friends. Now, when Elon Musk gets in 184 00:08:59,920 --> 00:09:03,440 these cycles of accusations, we've seen him do this before. 185 00:09:03,440 --> 00:09:05,000 He did the same thing with Sam Altman. 186 00:09:05,680 --> 00:09:09,760 He gets in a cycle like he gets out of control or he loses his 187 00:09:09,760 --> 00:09:13,680 nerve and he posts and posts and posts on X, with the posts 188 00:09:13,680 --> 00:09:15,760 getting more severe, more personal. 189 00:09:16,080 --> 00:09:20,080 Anything that he can scrap together as a gotcha insult he 190 00:09:20,080 --> 00:09:22,920 tries to put in this flurry of posts. 191 00:09:23,320 --> 00:09:26,160 The next one from Elon Musk is without me, Trump would have 192 00:09:26,160 --> 00:09:29,760 lost the election, Dems would control the House and the 193 00:09:29,760 --> 00:09:33,160 Republicans would be 51 to 49 in the Senate. 194 00:09:33,440 --> 00:09:38,080 Such ingratitude. Now again, this doesn't seem too 195 00:09:38,080 --> 00:09:42,240 bad, but realize that this is a very personal message. 196 00:09:42,280 --> 00:09:45,920 Trump and Elon Musk are both very prideful people, very proud 197 00:09:45,920 --> 00:09:49,240 of what they accomplish. When we look at Trump, he won 198 00:09:49,240 --> 00:09:53,200 that election and Elon Musk is trying to take the Thunder away 199 00:09:53,200 --> 00:09:55,240 from him, saying it wasn't because of you. 200 00:09:55,880 --> 00:09:58,240 I did that. I'm the one that won you the 201 00:09:58,240 --> 00:10:01,400 election. He is directly trying to steal 202 00:10:01,400 --> 00:10:05,480 the limelight, the Thunder, the credit for winning the election 203 00:10:05,720 --> 00:10:08,360 from Trump. That's about as personal as it 204 00:10:08,360 --> 00:10:10,560 can get. Do you think Trump likes hearing 205 00:10:10,560 --> 00:10:13,200 that someone else is taking credit for his victory? 206 00:10:13,840 --> 00:10:16,520 No chance. No chance that he enjoys hearing 207 00:10:16,520 --> 00:10:19,000 that from Elon Musk. This is about as personal as it 208 00:10:19,000 --> 00:10:21,600 can get. Elon Musk is trying to get under 209 00:10:21,600 --> 00:10:25,280 Trump's skin any way possible. But he doesn't end here. 210 00:10:25,280 --> 00:10:28,480 The flurry of posts continue. In the mix of this, President 211 00:10:28,480 --> 00:10:31,640 Trump starts to respond on his own version of Twitter, which is 212 00:10:31,640 --> 00:10:34,680 Truth Social. He says Elon was, quote, wearing 213 00:10:34,680 --> 00:10:36,840 thin. I have asked him to leave. 214 00:10:36,880 --> 00:10:39,960 I took away his EV mandate that forced everyone to buy electric 215 00:10:39,960 --> 00:10:41,920 cars and nobody else wanted that. 216 00:10:41,920 --> 00:10:45,400 He knew for months I was going to do and he just went crazy. 217 00:10:46,040 --> 00:10:47,720 Now this is kind of like a tit for tat. 218 00:10:47,720 --> 00:10:50,000 President Trump is saying, hey, you're taking credit for me 219 00:10:50,000 --> 00:10:52,000 winning the election. I'm going to go ahead and say 220 00:10:52,000 --> 00:10:54,880 that nobody wants to buy your vehicles unless they have an EV 221 00:10:54,920 --> 00:10:56,960 credit. So they're they're both kind of 222 00:10:56,960 --> 00:10:59,920 striking at each other's egos, taking away credit. 223 00:11:00,440 --> 00:11:03,760 You're you're successful, your company's successful because of 224 00:11:03,760 --> 00:11:06,800 government EV credits. And Muscar is saying you're 225 00:11:06,800 --> 00:11:09,360 successful because I got you into the White House. 226 00:11:09,400 --> 00:11:12,520 Trump also continues to post saying the easiest way to save 227 00:11:12,520 --> 00:11:16,120 money in our budget, billions and billions of dollars, is to 228 00:11:16,120 --> 00:11:19,000 terminate Elon's government subsidies and contracts. 229 00:11:19,520 --> 00:11:21,640 I was always surprised that Biden didn't do it. 230 00:11:21,640 --> 00:11:24,320 There he is again striking directly at Elon Musk's 231 00:11:24,320 --> 00:11:26,720 businesses. There we have them trading these 232 00:11:26,720 --> 00:11:29,440 individual insults, striking at each other's pride. 233 00:11:29,520 --> 00:11:34,080 Then we move on and get to the big bomb, as Elon Musk calls it. 234 00:11:34,440 --> 00:11:37,160 This is kind of like his drop the Mic moment in this 235 00:11:37,160 --> 00:11:39,320 ridiculous feud between these two people. 236 00:11:40,000 --> 00:11:42,520 Elon Musk says time to drop the really big bomb. 237 00:11:43,040 --> 00:11:45,800 Real Donald Trump is in the Epstein files. 238 00:11:46,000 --> 00:11:48,760 That is the real reason that they have not been made public. 239 00:11:49,080 --> 00:11:53,560 Have a nice day DJT. He has a nice little sign off 240 00:11:53,560 --> 00:11:56,160 there to try to really let it sink in. 241 00:11:56,200 --> 00:11:58,120 Try to make that one really hurt. 242 00:11:58,760 --> 00:12:00,520 And that's the big bomb. This is the one that's going to 243 00:12:00,520 --> 00:12:03,640 get hundreds of thousands, millions of likes, tons of 244 00:12:03,640 --> 00:12:06,800 retweets suggesting that President Trump doesn't want to 245 00:12:06,800 --> 00:12:10,080 release the Epstein files because he has incriminating 246 00:12:10,080 --> 00:12:12,520 evidence within it. Elon Musk a few minutes after 247 00:12:12,520 --> 00:12:15,200 posting that, doubled down and said, mark this post for the 248 00:12:15,200 --> 00:12:17,120 future. The truth will come out. 249 00:12:17,200 --> 00:12:20,320 And this is the last big bomb dropped in this entire dispute. 250 00:12:20,480 --> 00:12:23,600 Now looking at this timeline of events, this entire dispute, I 251 00:12:23,600 --> 00:12:26,360 want to Fact Check a couple things and give some important 252 00:12:26,360 --> 00:12:28,400 context here. The first one is the EV and 253 00:12:28,400 --> 00:12:31,800 solar incentive dispute. Elon Musk says that he doesn't 254 00:12:31,800 --> 00:12:34,920 care if you remove the EV solar incentives, but you're not 255 00:12:34,920 --> 00:12:37,280 removing any subsidies for oil and gas. 256 00:12:37,280 --> 00:12:39,840 And that's unfair. And there's also been many 257 00:12:39,840 --> 00:12:43,560 people that have told me that Elon Musk has been very outward 258 00:12:43,800 --> 00:12:47,000 and very affirmative in saying that he doesn't mind if the EV 259 00:12:47,040 --> 00:12:49,960 and solar incentives are cut. He doesn't care about them at 260 00:12:49,960 --> 00:12:51,720 all. That's what he publicly says. 261 00:12:52,080 --> 00:12:55,280 Those don't matter now to a Tesla investor, these EV solar 262 00:12:55,280 --> 00:12:57,360 credits actually add up to a lot of money. 263 00:12:57,560 --> 00:13:02,640 In 2023, for example, Tesla made $1.79 billion in sales from 264 00:13:02,640 --> 00:13:04,880 carpet credits. Those are regulatory credits. 265 00:13:05,080 --> 00:13:07,560 These are the EV credits that we're talking about here. 266 00:13:07,840 --> 00:13:13,560 If they're removed, this 1.79 billion vanishes. $1.79 billion 267 00:13:13,560 --> 00:13:16,960 is a lot of money to a company that's only generating less than 268 00:13:16,960 --> 00:13:20,080 $7 billion in free cash flow. This makes up a good chunk of 269 00:13:20,080 --> 00:13:23,040 the profitability of Tesla. These EV credits have been 270 00:13:23,040 --> 00:13:25,400 beneficial in getting people into EVs. 271 00:13:25,560 --> 00:13:28,040 So Musk is saying publicly, and he said before that he doesn't 272 00:13:28,040 --> 00:13:30,520 care about the EV credits, go ahead and remove them. 273 00:13:31,000 --> 00:13:33,280 But obviously they do mean a lot to Tesla. 274 00:13:33,280 --> 00:13:37,080 They help out Tesla's business. Now on the note that it's unfair 275 00:13:37,080 --> 00:13:39,000 because there's oil and gas subsidies. 276 00:13:39,040 --> 00:13:42,040 There are no tax credits for buying a gas vehicle. 277 00:13:42,400 --> 00:13:45,360 You go and buy a gas vehicle, you are paying full price for 278 00:13:45,360 --> 00:13:48,000 that vehicle. So the oil and gas subsidies 279 00:13:48,000 --> 00:13:51,200 they're talking about are for the businesses themselves, for 280 00:13:51,200 --> 00:13:54,800 the CapEx investments. There are huge oil subsidies and 281 00:13:54,800 --> 00:13:58,640 gas subsidies for the businesses themselves, but there's also 282 00:13:58,640 --> 00:14:01,640 huge incentives for every big business, including Tesla. 283 00:14:01,640 --> 00:14:05,680 The Nevada Gigafactory received a $1.3 billion tax incentive 284 00:14:05,680 --> 00:14:08,800 package from Nevada. The Vermont factory received a 285 00:14:08,840 --> 00:14:12,280 $465,000,000 loan from the US Department of Energy. 286 00:14:12,400 --> 00:14:15,880 Even outside of the US, Tesla receives government subsidies. 287 00:14:16,120 --> 00:14:18,480 This happens with virtually every big business. 288 00:14:18,560 --> 00:14:20,840 All these businesses are subsidized by the government, 289 00:14:20,840 --> 00:14:24,440 but EVs are uniquely subsidized in the direct purchase of a 290 00:14:24,440 --> 00:14:27,760 vehicle, and gas vehicles do not receive that credit. 291 00:14:28,080 --> 00:14:30,920 On the note that Elon Musk doesn't care about the removal 292 00:14:30,920 --> 00:14:34,080 of EVs because he said so publicly, there is conflicting 293 00:14:34,080 --> 00:14:36,280 reports on this. Bloomberg reported that Elon 294 00:14:36,280 --> 00:14:38,880 Musk is on a mission to block President Donald Trump's tax 295 00:14:38,880 --> 00:14:43,000 bill after he tried and failed to convince Republican lawmakers 296 00:14:43,000 --> 00:14:46,440 to preserve valuable tax credits for electric vehicles in the 297 00:14:46,440 --> 00:14:48,600 legislation. The Tesla chief executive 298 00:14:48,600 --> 00:14:52,720 officer personally appealed Mike Johnson to save the tax credit, 299 00:14:53,000 --> 00:14:56,480 the person said, requesting anonymity to discuss a private 300 00:14:56,480 --> 00:14:58,800 conversation. Again, this this could possibly 301 00:14:58,800 --> 00:15:00,680 be wrong. Maybe the informant in this case 302 00:15:00,680 --> 00:15:03,120 doesn't really know or it's just made-up. 303 00:15:03,360 --> 00:15:05,600 But either way, there are reports that he was trying to 304 00:15:05,600 --> 00:15:07,720 keep these in. The other big thing that I think 305 00:15:07,720 --> 00:15:11,720 needs to be addressed is this claim by Elon Musk that there's 306 00:15:11,720 --> 00:15:15,280 this huge incriminating evidence of President Donald Trump on the 307 00:15:15,280 --> 00:15:19,600 Epstein files and that Elon Musk is Privy to this and he has this 308 00:15:19,600 --> 00:15:22,000 big smoking gun. He knows this information. 309 00:15:22,680 --> 00:15:24,440 There's a couple of reasons where I don't consider this 310 00:15:24,440 --> 00:15:27,400 threat serious at all. Frankly, I don't think Elon Musk 311 00:15:27,400 --> 00:15:30,360 has anything here. One of the reasons why is 312 00:15:30,360 --> 00:15:34,560 because these files have existed for years under Democratic 313 00:15:34,560 --> 00:15:36,920 control. And there's a lot of things that 314 00:15:36,920 --> 00:15:39,840 I'm willing to believe. But one of them that I'm not 315 00:15:39,840 --> 00:15:44,080 willing to believe is that the Democrats knew about and had 316 00:15:44,080 --> 00:15:47,840 access to highly incriminating evidence of President Donald 317 00:15:47,840 --> 00:15:49,960 Trump, and they never released it. 318 00:15:50,560 --> 00:15:52,600 I cannot come around to that conclusion. 319 00:15:52,600 --> 00:15:55,520 There's some people saying or suggesting that the reason that 320 00:15:55,520 --> 00:15:58,840 the Democrats would not release incriminating evidence on Donald 321 00:15:58,840 --> 00:16:02,040 Trump is because there's also incriminating evidence on the 322 00:16:02,040 --> 00:16:03,880 Democrats. But I don't believe that would 323 00:16:03,880 --> 00:16:06,480 be the case. I think even if there was 324 00:16:06,480 --> 00:16:09,920 incriminating evidence on some Democrats, they would have still 325 00:16:09,920 --> 00:16:12,840 released it to sink Trump. They couldn't withhold 326 00:16:12,840 --> 00:16:15,000 themselves. They couldn't help themselves. 327 00:16:15,480 --> 00:16:18,920 If they really had access to information that would sink 328 00:16:18,920 --> 00:16:22,440 Trump, that would make it so he couldn't become president, they 329 00:16:22,440 --> 00:16:26,120 would have released it and taken down anyone of themselves along 330 00:16:26,120 --> 00:16:27,960 the way. The other reason why I don't 331 00:16:27,960 --> 00:16:30,920 believe that there's anything actually here is because Elon 332 00:16:30,920 --> 00:16:34,320 Musk is not exactly new to launching baseless or 333 00:16:34,320 --> 00:16:37,960 evidenceless accusations. He's done this thing a time or 334 00:16:37,960 --> 00:16:39,720 two. In fact, he's done something 335 00:16:39,720 --> 00:16:42,600 almost entirely similar to this exact post. 336 00:16:42,720 --> 00:16:45,680 Six years ago, Elon Musk called the British diver in the Thai 337 00:16:45,680 --> 00:16:49,600 cave rescue mission a pedo and a baseless and evidenceless 338 00:16:49,720 --> 00:16:51,600 attack. Now, why did this happen? 339 00:16:51,600 --> 00:16:55,280 Because at the time, Tesla tried to develop these quick little 340 00:16:55,280 --> 00:16:57,800 mini submarines to go through and save the kids. 341 00:16:57,880 --> 00:17:00,800 This was Tesla's effort to try to help out, and it was pretty 342 00:17:00,800 --> 00:17:02,960 cool at the time. They were trying to help, but 343 00:17:02,960 --> 00:17:05,599 this cave diver promptly said that these were basically a 344 00:17:05,599 --> 00:17:07,000 waste of time. They wouldn't help. 345 00:17:07,240 --> 00:17:09,160 They're too big, they're not going to fit through all the 346 00:17:09,160 --> 00:17:12,079 jagged edges that you have to go through in these caves. 347 00:17:12,480 --> 00:17:16,280 And Elon Musk took that as an insult, saying that his time and 348 00:17:16,280 --> 00:17:19,160 effort was wasted here, that these things are basically not 349 00:17:19,160 --> 00:17:21,200 useful. Elon Musk didn't like hearing 350 00:17:21,200 --> 00:17:23,119 that, and he attacked The Cave diver. 351 00:17:23,280 --> 00:17:26,599 He launched these accusations, calling this guy the same thing 352 00:17:26,599 --> 00:17:29,240 over and over again. And the guy eventually sued him 353 00:17:29,240 --> 00:17:31,560 for defamation. And during the trial process, 354 00:17:31,560 --> 00:17:34,880 Elon Musk actually looked at the diver's background, tried to do 355 00:17:34,880 --> 00:17:38,320 retroactive research to see if there is anything to justify the 356 00:17:38,320 --> 00:17:42,280 claims he had already made, and he found nothing, absolutely 357 00:17:42,280 --> 00:17:44,320 nothing. This was a totally baseless, 358 00:17:44,360 --> 00:17:46,440 warrantless, evidenceless attack. 359 00:17:46,480 --> 00:17:49,520 Elon Musk has a history of saying things he probably 360 00:17:49,520 --> 00:17:52,960 shouldn't say that aren't exactly true during times of 361 00:17:52,960 --> 00:17:55,680 great frustration. And just like in The Cave divers 362 00:17:55,680 --> 00:17:58,400 situation where he actually apologized for saying those 363 00:17:58,400 --> 00:18:01,720 things, saying he was frustrated at the time, I see a very 364 00:18:01,720 --> 00:18:04,920 similar pattern in this case. This tweet is the response of 365 00:18:04,920 --> 00:18:07,760 Elon Musk trying to get under Donald Trump's skin, saying 366 00:18:07,760 --> 00:18:09,640 whatever he can out of frustration. 367 00:18:09,800 --> 00:18:12,240 So for a few reasons, I don't believe if there's any big 368 00:18:12,240 --> 00:18:15,880 incriminating evidence that Elon Musk knows alone, maybe I'll be 369 00:18:15,880 --> 00:18:19,680 proven wrong, but I just don't believe Democrats would sit on 370 00:18:19,680 --> 00:18:21,480 that evidence and not release it. 371 00:18:21,760 --> 00:18:24,240 Even if it took down some of their own members, they would 372 00:18:24,240 --> 00:18:27,320 want to release it. Elon Musk has a pattern of doing 373 00:18:27,320 --> 00:18:29,960 this type of thing. And then finally, it also would 374 00:18:29,960 --> 00:18:33,880 speak volumes about Elon Musk's character if he truly knew about 375 00:18:33,880 --> 00:18:37,840 some big incriminating thing that the president did, but he's 376 00:18:37,840 --> 00:18:42,080 refusing to release any details or he just waited until now 377 00:18:42,080 --> 00:18:45,400 during a fight to release it. That's not exactly a great look 378 00:18:45,400 --> 00:18:47,680 from Elon Musk either. To me, this strikes me as 379 00:18:47,680 --> 00:18:49,840 someone out of frustration, going through a feud very 380 00:18:49,840 --> 00:18:53,280 publicly, someone targeting his company, his accomplishments and 381 00:18:53,280 --> 00:18:56,720 his pride, and is responding with a lot of frustration like 382 00:18:56,720 --> 00:18:59,960 he's done in previous times. Now, after all of this happened 383 00:18:59,960 --> 00:19:03,440 after Elon Musk dropped this bomb, Trump was reportedly taken 384 00:19:03,440 --> 00:19:06,920 aback by Musk's escalation. Trump told advisers he didn't 385 00:19:06,920 --> 00:19:10,080 believe he was harsh about Musk in the Oval Office and was 386 00:19:10,080 --> 00:19:12,400 surprised at how aggressive Musk became. 387 00:19:12,840 --> 00:19:15,560 Trump's aides spent some time Thursday trying to figure out 388 00:19:15,560 --> 00:19:18,680 what Musk's goal was. The president told advisers that 389 00:19:18,680 --> 00:19:22,360 Musk was just being a child. Now, understandably, a lot of 390 00:19:22,360 --> 00:19:24,280 people are confused by the situation. 391 00:19:24,400 --> 00:19:27,240 Some people that love both Elon Musk and Trump don't really have 392 00:19:27,240 --> 00:19:30,160 a home or an identity right now. They're being forced to pick 393 00:19:30,160 --> 00:19:32,360 sides in sometimes awkward cases. 394 00:19:32,480 --> 00:19:36,400 Tesla stock is up 6% on the day, but that's after dropping over 395 00:19:36,400 --> 00:19:39,640 15% yesterday. Now, Elon Musk is in the process 396 00:19:39,640 --> 00:19:42,720 of trying to walk back a lot of the damage done, making a bit 397 00:19:42,720 --> 00:19:45,320 more of a joke out of it. And there's also a report that 398 00:19:45,320 --> 00:19:48,520 Musk was going to talk to the administration this morning, 399 00:19:48,800 --> 00:19:50,920 that he had a call scheduled with the White House. 400 00:19:50,920 --> 00:19:53,600 That report is not true. Trump says he's not interested 401 00:19:53,600 --> 00:19:56,040 in a call with Musk. Now, while this is all going on, 402 00:19:56,040 --> 00:19:59,000 we also have the Tesla thought leaders, the investors in it, 403 00:19:59,480 --> 00:20:02,440 the ones that are trying to play damage control in the situation 404 00:20:02,440 --> 00:20:05,720 as fast as possible. We had Dan Ives go on the TV and 405 00:20:05,720 --> 00:20:07,640 explain how he thinks this is working out. 406 00:20:07,800 --> 00:20:11,440 I I mean, there's a view that the battle here going on between 407 00:20:11,440 --> 00:20:14,880 Musk and Trump that this is going to continue to sort of, 408 00:20:15,080 --> 00:20:18,000 you know, increase. And what that ultimately does is 409 00:20:18,000 --> 00:20:21,040 that autonomous in the regulatory vision. 410 00:20:21,280 --> 00:20:25,240 Does Trump now now not start to play nice in the sandbox with 411 00:20:25,240 --> 00:20:28,360 Musk? Now, on this point, Dan Ives is 412 00:20:28,360 --> 00:20:30,880 exactly correct. Part of the reason that Tesla's 413 00:20:30,880 --> 00:20:35,360 stock rocketed up 30% after Trump's victory is the thought 414 00:20:35,360 --> 00:20:38,360 process that Elon Musk had closely aligned himself as an 415 00:20:38,360 --> 00:20:42,760 ally to the president, a key holder to regulatory approval. 416 00:20:43,040 --> 00:20:46,280 Many of Musk's businesses, including Tesla, operate in 417 00:20:46,280 --> 00:20:50,520 highly regulated industries, robotaxi being one of the most 418 00:20:50,520 --> 00:20:53,400 highly regulated in existence. In many cases. 419 00:20:53,400 --> 00:20:56,520 When I bring up Google and I look at what Waymo's doing, a 420 00:20:56,520 --> 00:21:00,000 lot of people are suggesting that the big limiting factor to 421 00:21:00,000 --> 00:21:04,080 Waymo's growth is manufacturing capacity, that they can only 422 00:21:04,080 --> 00:21:07,800 grow as fast as they can manufacture or outfit cars with 423 00:21:07,800 --> 00:21:11,600 their sensors. That cost, that capital is the 424 00:21:11,600 --> 00:21:14,400 big limiting factor here. And I think those people are 425 00:21:14,400 --> 00:21:16,320 wrong. I don't think that Google's 426 00:21:16,320 --> 00:21:20,960 Waymo is limited by CapEx, manufacturing or any type of 427 00:21:20,960 --> 00:21:23,720 capital restraint. I believe the biggest bottleneck 428 00:21:23,720 --> 00:21:28,160 for Waymo by far is regulatory approval, proving that they have 429 00:21:28,160 --> 00:21:30,920 a safe product that they can scale to different cities, 430 00:21:31,120 --> 00:21:35,080 different capacities, different types of roads and airports and 431 00:21:35,080 --> 00:21:38,960 do so safely over time and get all the green tape to do so in 432 00:21:38,960 --> 00:21:42,800 different localities. That is a massive undertaking. 433 00:21:43,360 --> 00:21:47,520 Waymo has the backing of Google. Google, if you don't know, has 434 00:21:47,520 --> 00:21:51,000 virtually unlimited cash flows. They generate in a single 435 00:21:51,000 --> 00:21:54,960 quarter, $20 billion. Google could buy unlimited 436 00:21:54,960 --> 00:21:57,200 amount of vehicles. They could buy hundreds of 437 00:21:57,200 --> 00:22:00,360 thousands, millions of vehicles in a single quarter if they 438 00:22:00,360 --> 00:22:03,600 wanted, and they wouldn't even have to go to the bank to do so. 439 00:22:04,160 --> 00:22:06,440 CapEx is not a restraint for Waymo. 440 00:22:06,720 --> 00:22:09,160 They could invest unlimited amounts of CapEx. 441 00:22:09,320 --> 00:22:11,240 They could scale up as fast as they want. 442 00:22:11,480 --> 00:22:15,040 The big limiting factor here is regulatory approval. 443 00:22:15,160 --> 00:22:18,600 Regulatory approval is done through the government and part 444 00:22:18,600 --> 00:22:21,000 of what Elon Musk had working to his benefit. 445 00:22:21,160 --> 00:22:24,960 It seemed like a genius 4D chess move was to become so close with 446 00:22:24,960 --> 00:22:27,760 the biggest person, the person that has the most control over 447 00:22:27,760 --> 00:22:30,480 regulation, which is President Donald Trump. 448 00:22:30,920 --> 00:22:34,360 So by having that close relationship, Elon Musk had both 449 00:22:34,360 --> 00:22:37,160 things at his side. He had regulatory approval or at 450 00:22:37,160 --> 00:22:40,080 least an easier path to get regulatory approval. 451 00:22:40,360 --> 00:22:43,280 And of course, Tesla has the manufacturing know how. 452 00:22:43,760 --> 00:22:47,840 But in this case, Dan Ives is correctly illustrating that out 453 00:22:47,840 --> 00:22:51,280 of the things that Elon Musk did, what he did yesterday is 454 00:22:51,280 --> 00:22:54,160 sever ties. And not only severed ties, but 455 00:22:54,160 --> 00:22:56,600 he burnt bridges. He exploded the bridge with a 456 00:22:56,600 --> 00:22:58,920 nuclear bomb with President Trump. 457 00:22:58,920 --> 00:23:01,880 They're not friends anymore. And President Trump is likely 458 00:23:01,880 --> 00:23:05,280 not going to do anything specific to help out Elon Musk's 459 00:23:05,280 --> 00:23:08,280 business. Tesla is now left to its own 460 00:23:08,280 --> 00:23:11,880 devices with regulation. Elon Musk made sure of that 461 00:23:11,880 --> 00:23:15,520 yesterday and that is not good for the Tesla investor. 462 00:23:15,680 --> 00:23:19,680 Yeah, I mean, the timing is is obviously very head scratching 463 00:23:19,680 --> 00:23:22,880 in terms of must just going aggressively right in terms of 464 00:23:22,880 --> 00:23:26,000 the shot across the bow. And I was next next week you 465 00:23:26,000 --> 00:23:29,920 have the launch of Cyber Cab robotaxis in Austin, so a 466 00:23:29,920 --> 00:23:33,120 friends fight. So again, I think this is not 467 00:23:33,120 --> 00:23:35,200 one that you could basically say this is going to continue to get 468 00:23:35,200 --> 00:23:37,600 worse and worse. But clearly there's a line in 469 00:23:37,600 --> 00:23:40,040 the sand here. Musk has taken a stands. 470 00:23:40,320 --> 00:23:43,680 But I think the broader view, the reason Tesla stocks off the 471 00:23:43,680 --> 00:23:47,240 way it is and I think overdone is because the view that this 472 00:23:47,240 --> 00:23:50,760 means that Trump is not going to play nice when it comes to 473 00:23:50,760 --> 00:23:54,480 regulatory autonomous. And a big part of the view, the 474 00:23:54,480 --> 00:23:56,480 Dow is going to be a huge positive, and I still believe it 475 00:23:56,480 --> 00:24:00,080 is for Musk and Tesla. This is possibly one of the most 476 00:24:00,080 --> 00:24:03,120 ridiculous takes that I hear. And this isn't just an Ives. 477 00:24:03,120 --> 00:24:05,560 There's a lot of people that are going along with this take 478 00:24:05,840 --> 00:24:10,240 trying to downplay the the feud here, saying friends fight, 479 00:24:10,640 --> 00:24:13,600 friends fight. Who amongst us hasn't fought 480 00:24:13,600 --> 00:24:15,320 like this? Haven't you? 481 00:24:15,720 --> 00:24:18,280 Haven't you fought like this with one of your friends? 482 00:24:18,840 --> 00:24:23,000 I mean, really, who hasn't gone on to X with hundreds of 483 00:24:23,000 --> 00:24:26,480 millions of followers and said that your best friend was on the 484 00:24:26,480 --> 00:24:28,960 Epstein list? If I had a nickel for every time 485 00:24:28,960 --> 00:24:32,800 I've done that with my best friend, Come on, Dan, friends 486 00:24:32,800 --> 00:24:36,240 don't fight like this. This is not something we can 487 00:24:36,240 --> 00:24:40,080 just chalk up to a friendly banter, to a little mishap, to a 488 00:24:40,080 --> 00:24:42,560 tiff. Of course friends fight. 489 00:24:42,600 --> 00:24:45,480 That's a truism. Every friend really does fight 490 00:24:45,480 --> 00:24:48,760 at one point or another, but typically that's over a small 491 00:24:48,760 --> 00:24:51,640 disagreement, something that's handled through text or in 492 00:24:51,640 --> 00:24:56,040 person, not blown out to the entire world on X. 493 00:24:56,520 --> 00:24:59,880 Not insinuating that your friend is on the Epstein list. 494 00:24:59,960 --> 00:25:02,760 Friends do not attack each other in front of the world with the 495 00:25:02,760 --> 00:25:06,280 most salacious and insidious accusations possible. 496 00:25:06,640 --> 00:25:08,800 This is not just some friend fight. 497 00:25:09,080 --> 00:25:12,680 And the people that are trying to downplay this like oh this is 498 00:25:12,680 --> 00:25:15,560 something everybody does. It's just ridiculous. 499 00:25:15,760 --> 00:25:19,160 I don't know about the rest of you, but if I had a friend that 500 00:25:19,160 --> 00:25:23,200 did this, that went online and attacked me in similar fashion, 501 00:25:23,640 --> 00:25:25,920 that would not be my friend anymore. 502 00:25:26,440 --> 00:25:29,480 We would no longer be friends. That's not a typical fight. 503 00:25:29,480 --> 00:25:33,000 That's not something you just shrug off and easily move past. 504 00:25:33,640 --> 00:25:35,720 It's it's a bit different of a level. 505 00:25:35,840 --> 00:25:38,160 Now. I understand the attempt for 506 00:25:38,160 --> 00:25:41,120 people that are fans of Elon or Trump to downplay this. 507 00:25:41,120 --> 00:25:43,400 I really do. You want to try to downplay it. 508 00:25:43,400 --> 00:25:46,440 And even Elon Musk, I think is walking back some of this after 509 00:25:46,440 --> 00:25:49,560 some of his frustration and and heated feelings have cooled down 510 00:25:49,560 --> 00:25:51,920 a little bit. But the words here that were 511 00:25:51,920 --> 00:25:54,440 shared were not of a normal friend fight, and we shouldn't 512 00:25:54,440 --> 00:25:57,040 try to pretend that they were. This was an embarrassment. 513 00:25:57,320 --> 00:25:59,920 An embarrassment for the country, an embarrassment for 514 00:25:59,920 --> 00:26:02,280 Elon Musk, and an embarrassment for Trump. 515 00:26:02,760 --> 00:26:04,960 It was embarrassing all around. It should have been handled in 516 00:26:04,960 --> 00:26:08,200 closed doors or over a phone call, not blasted out to the 517 00:26:08,200 --> 00:26:10,280 entire world. Now Dan goes on to give his 518 00:26:10,280 --> 00:26:13,000 continued optimistic view about the future of Tesla. 519 00:26:13,520 --> 00:26:16,240 And this is stock that I mean, I could argue it could be down a 520 00:26:16,240 --> 00:26:18,320 little. And it's my view that like if 521 00:26:18,320 --> 00:26:21,600 you're a believer in autonomous like we are in robotics, this is 522 00:26:21,600 --> 00:26:23,920 a $2 trillion mark cap in terms of Tesla. 523 00:26:24,160 --> 00:26:27,680 But the view that you went from basically first, buddy, in terms 524 00:26:27,680 --> 00:26:31,440 of Musk with Trump in the White House, Mar a Lago, and now 525 00:26:31,440 --> 00:26:33,840 they're doing this fight over social media. 526 00:26:34,000 --> 00:26:36,560 It's not what you want to see as a Tesla shareholder. 527 00:26:36,840 --> 00:26:39,800 And, and you saw with Trump, I think Trump's obviously a little 528 00:26:39,800 --> 00:26:42,560 taken aback that Musk has taken this much of A stance. 529 00:26:43,120 --> 00:26:46,960 But again, this is 1 where there can be a lot more chapters to 530 00:26:46,960 --> 00:26:48,560 this story. I don't think it's done right 531 00:26:48,560 --> 00:26:50,920 here. Now, Dan says that he could see 532 00:26:50,920 --> 00:26:53,960 the stock being down a little based on this news. 533 00:26:54,640 --> 00:26:58,280 But when the stock went up 30% after President Trump was 534 00:26:58,280 --> 00:27:01,720 elected, based on Elon Musk's close relationship with him, Dan 535 00:27:01,720 --> 00:27:04,840 said that was justified. So it was justified. 536 00:27:04,840 --> 00:27:08,000 The stock went up 30% specifically because of this 537 00:27:08,000 --> 00:27:10,240 close relationship. But as that very same 538 00:27:10,240 --> 00:27:13,880 relationship implodes, it's not justified that the stock go down 539 00:27:13,880 --> 00:27:15,720 as much. Now, next, we get the instant 540 00:27:15,720 --> 00:27:18,200 reaction from Gene Munster on the same incident. 541 00:27:18,360 --> 00:27:20,400 Gene Monster, if you've forgotten, is the person where 542 00:27:20,400 --> 00:27:23,400 everything is bad for Google, everything is good for Tesla. 543 00:27:23,880 --> 00:27:27,640 So this might be a true test. Is this in fact, finally, 544 00:27:27,640 --> 00:27:30,640 something that's not good for Tesla, something that is good 545 00:27:30,640 --> 00:27:32,160 for Google? Well, we'll see. 546 00:27:32,280 --> 00:27:36,120 I think it was an overreaction. And ultimately Andrew really hit 547 00:27:36,120 --> 00:27:38,640 the pressure point on the head. And I just want to zero in on 548 00:27:38,640 --> 00:27:41,680 that. And when you think about AI and 549 00:27:41,680 --> 00:27:45,360 this arms race, I mean, undoubtedly this the new 550 00:27:45,360 --> 00:27:50,160 frontier in terms of global power and the physical AI piece 551 00:27:50,160 --> 00:27:54,360 is 1 manifestation of that. And the most obvious example 552 00:27:54,360 --> 00:27:56,240 that is going to be with autonomy. 553 00:27:56,240 --> 00:27:59,240 So just to kind of play this forward, let's take the position 554 00:27:59,240 --> 00:28:02,440 that Trump is more punitive to Elon. 555 00:28:02,440 --> 00:28:06,520 It makes it more difficult for autonomous and then we look 556 00:28:06,520 --> 00:28:09,800 around and we see autonomous vehicles in China everywhere. 557 00:28:09,800 --> 00:28:12,920 I'm fast forwarding one to five years from now and in Europe and 558 00:28:12,920 --> 00:28:15,600 the rest of the world. It would be a little bit odd, I 559 00:28:15,600 --> 00:28:22,240 think for this personality blow up to really slow down that pace 560 00:28:22,240 --> 00:28:24,880 of innovation. And so ultimately, I think that 561 00:28:24,880 --> 00:28:27,440 what is best for the country is for autonomy to move forward. 562 00:28:27,440 --> 00:28:30,080 And I think that that means that this is going to continue to 563 00:28:30,080 --> 00:28:33,320 move forward obviously comes in a big time with Tesla next week 564 00:28:33,320 --> 00:28:35,000 and and what we're going to hear from Austin. 565 00:28:35,120 --> 00:28:39,320 Now keep in mind, Elon Musk just severed his ties with the 566 00:28:39,320 --> 00:28:41,840 president, blew up this relationship. 567 00:28:42,160 --> 00:28:46,280 The month that Tesla supposed to launch robo taxi vehicles, the 568 00:28:46,280 --> 00:28:48,800 very month of it. And both Dan Ives and Gene 569 00:28:48,800 --> 00:28:51,200 Munster saying that this is no big deal, the stock doesn't 570 00:28:51,200 --> 00:28:52,440 really deserve to be down at all. 571 00:28:52,600 --> 00:28:55,600 They're kind of shrugging this off like it's really not a big 572 00:28:55,600 --> 00:28:59,560 event and Tesla and robotaxi will move on with or without 573 00:28:59,560 --> 00:29:02,240 Trump's approval. In terms of what Gene Munster 574 00:29:02,240 --> 00:29:06,240 says specifically here, that robotaxi is happening in China, 575 00:29:06,240 --> 00:29:07,720 it's going to happen in the United States. 576 00:29:07,960 --> 00:29:10,560 That is true. There are companies doing it in 577 00:29:10,560 --> 00:29:13,520 the United States right now. Tesla's not the only company 578 00:29:13,520 --> 00:29:16,560 that's in the robotaxi industry. I understand the effort that 579 00:29:16,560 --> 00:29:20,080 these Tesla investors want to do to downplay the events, but what 580 00:29:20,080 --> 00:29:24,080 was the purpose of this? What does Elon Musk and Tesla 581 00:29:24,080 --> 00:29:27,160 gain from blowing up this relationship? 582 00:29:27,560 --> 00:29:30,200 Where's the upside? Where's the tactic behind it? 583 00:29:30,360 --> 00:29:32,920 He severed a relationship with the most powerful man on earth 584 00:29:32,920 --> 00:29:35,760 that holds regulatory approval the month before launching A 585 00:29:35,760 --> 00:29:39,120 robotaxi network. What is the purpose of doing so? 586 00:29:39,320 --> 00:29:41,040 How is that good for Tesla stock? 587 00:29:41,560 --> 00:29:44,440 And in the process, another thing that I'll mention is this 588 00:29:44,440 --> 00:29:47,440 isn't just between a relationship of Elon Musk and 589 00:29:47,440 --> 00:29:48,960 Trump. This is also blowing up a 590 00:29:48,960 --> 00:29:52,280 relationship between Elon Musk and Trump fans. 591 00:29:52,640 --> 00:29:55,440 Millions of people that really like Trump that will side with 592 00:29:55,440 --> 00:29:57,920 Trump over Elon. Now they're not going to be 593 00:29:57,920 --> 00:30:00,480 looking at Tesla as keenly as they were before. 594 00:30:00,840 --> 00:30:03,680 Elon Musk has already damaged the relationship between the 595 00:30:03,680 --> 00:30:07,240 Tesla brand and Europe. Many European countries, many 596 00:30:07,240 --> 00:30:10,520 citizens there refused to buy Teslas, which were selling well 597 00:30:10,640 --> 00:30:13,680 specifically because of Elon Musk's behaviour and rhetoric. 598 00:30:14,080 --> 00:30:17,240 And now after blowing up a lot of relationships with the more 599 00:30:17,240 --> 00:30:20,480 liberal side, left-leaning people, especially in Europe and 600 00:30:20,480 --> 00:30:23,840 some in the US, he seems intent on doing that with people on the 601 00:30:23,840 --> 00:30:27,400 right in the United States, severing his relationship with a 602 00:30:27,400 --> 00:30:30,760 key figure, someone that has a lot of power and influence, and 603 00:30:30,760 --> 00:30:33,280 with many of his millions of fans in the process. 604 00:30:33,360 --> 00:30:35,800 So I asked the Tesla investor again, what is the purpose of 605 00:30:35,800 --> 00:30:38,400 this? Elon Musk seems intent to 606 00:30:38,400 --> 00:30:41,680 destroy relationships across the world with many people. 607 00:30:41,760 --> 00:30:44,320 If that's not the intention, that's at least the outcome. 608 00:30:44,640 --> 00:30:47,760 And I don't see how this is good for either regulatory approval 609 00:30:47,760 --> 00:30:51,560 needs, key relationships, or the brand of Tesla. 610 00:30:52,000 --> 00:30:55,320 Overall, I see this is a massive diminishing of the brand of 611 00:30:55,320 --> 00:30:57,520 Tesla. Another event that will take 612 00:30:57,520 --> 00:31:00,520 time to figure out, time to heal. 613 00:31:00,720 --> 00:31:03,800 The same thing that investors in Tesla have been waiting for for 614 00:31:03,800 --> 00:31:05,960 years. They've been waiting and waiting 615 00:31:05,960 --> 00:31:08,280 for things to get better and approved for this company. 616 00:31:08,480 --> 00:31:11,640 And Elon Musk, because of a petty disagreement, is in the 617 00:31:11,640 --> 00:31:14,000 process of pushing that in the wrong direction. 618 00:31:14,040 --> 00:31:16,960 Some people suggest that my commentary is negative on Elon 619 00:31:16,960 --> 00:31:19,680 Musk because I just have some big bias against them, or that I 620 00:31:19,680 --> 00:31:22,240 hate Tesla and that's not the case at all. 621 00:31:22,480 --> 00:31:26,400 I don't hate Elon Musk or Tesla. I'm commentating on events. 622 00:31:26,760 --> 00:31:31,440 I didn't force Elon Musk to wake up yesterday and cause a feud 623 00:31:31,440 --> 00:31:34,240 and implode a relationship with the most powerful man on Earth. 624 00:31:34,640 --> 00:31:37,320 That wasn't my doing. He chose to do that himself. 625 00:31:37,640 --> 00:31:41,080 I'm looking at the evidence and observing what's going on when I 626 00:31:41,080 --> 00:31:44,080 look at what Elon Musk is doing specifically with Tesla. 627 00:31:44,440 --> 00:31:47,680 I would be very upset if I was a Tesla shareholder. 628 00:31:47,920 --> 00:31:51,720 He's putting his own personal endeavors in feuds above the 629 00:31:51,720 --> 00:31:55,360 company, above the company and its millions of shareholders. 630 00:31:55,480 --> 00:31:58,280 And the same could be said for any stock that I own. 631 00:31:58,520 --> 00:32:01,920 If I looked at any company that I owned, any single one of them, 632 00:32:02,240 --> 00:32:05,640 and the CEO's decided to get in a personal spat with the 633 00:32:05,640 --> 00:32:08,760 president, insulting them and burning bridges. 634 00:32:08,960 --> 00:32:12,120 Especially if those CEO's worked in industries that rely on 635 00:32:12,120 --> 00:32:14,360 regulation, that would be upsetting. 636 00:32:14,360 --> 00:32:17,400 I'd be highly critical of them. People would say, Joseph, you're 637 00:32:17,400 --> 00:32:19,920 not saying complimentary things about that CEO. 638 00:32:20,160 --> 00:32:22,560 And of course, I wouldn't because that's not what a CEO 639 00:32:22,720 --> 00:32:26,120 should be doing. I like my CEOs getting along 640 00:32:26,120 --> 00:32:28,520 with regulators. For example, we have a new 641 00:32:28,520 --> 00:32:32,400 holding of mine, Equifax, which the CEO recently had a meeting 642 00:32:32,400 --> 00:32:35,440 with a key regulator, Bill Polte, This new figure that's 643 00:32:35,440 --> 00:32:38,240 over housing and especially focused on closing costs. 644 00:32:38,520 --> 00:32:41,080 He met with the CEO of Equifax. He says. 645 00:32:41,360 --> 00:32:43,600 I had a good meeting with the CEO of the credit Bureau 646 00:32:43,840 --> 00:32:46,200 Equifax. It was super constructive. 647 00:32:46,240 --> 00:32:49,320 I appreciate his approach. We want to be invisible to 648 00:32:49,320 --> 00:32:52,560 companies as long as we enforce our statutory and legal 649 00:32:52,560 --> 00:32:55,480 obligations. Some companies and their CE OS 650 00:32:55,640 --> 00:32:59,120 make it easier than others. This is what I like seeing. 651 00:32:59,360 --> 00:33:03,240 I like seeing my CEO do the right thing for the shareholder. 652 00:33:03,440 --> 00:33:05,640 They're trying to make business run smoothly. 653 00:33:05,880 --> 00:33:08,600 They're trying to get the regulators on their side. 654 00:33:08,880 --> 00:33:11,880 That's what me, the shareholder, is investing in the company for. 655 00:33:12,040 --> 00:33:13,880 That's what we're paying the CEO for. 656 00:33:14,040 --> 00:33:17,520 Now, if the CEO of Equifax was insulting Bill Poltay through 657 00:33:17,520 --> 00:33:21,200 posts online and trying to destroy this relationship of 658 00:33:21,200 --> 00:33:24,280 someone that directly regulates the company, that would be 659 00:33:24,280 --> 00:33:26,760 upsetting. I'd be very critical of the CEO. 660 00:33:26,880 --> 00:33:29,440 But that's not what most CE OS do. 661 00:33:29,800 --> 00:33:32,440 So to be clear, the Tesla investors that say that I'm 662 00:33:32,440 --> 00:33:35,840 biased against Elon Musk, the reason that I'm uniquely 663 00:33:35,840 --> 00:33:39,480 critical against many of the things that Elon Musk does is 664 00:33:39,480 --> 00:33:42,640 because Elon Musk does a lot of things to be uniquely critical 665 00:33:42,640 --> 00:33:45,000 about. If that wasn't the case, I would 666 00:33:45,000 --> 00:33:48,240 not be focused on him at all. But blowing up the relationship 667 00:33:48,240 --> 00:33:52,200 with the president on the onset of the robotaxi release is 668 00:33:52,200 --> 00:33:55,240 something worthy of criticism. Now moving on, we get to this 669 00:33:55,240 --> 00:33:58,640 news of EU payroll. It finally came in. 670 00:33:58,680 --> 00:34:00,920 This was something that we looked at the news from ADP. 671 00:34:01,160 --> 00:34:04,880 They give us some insight, some bit of data, but it actually 672 00:34:04,880 --> 00:34:08,440 came in better than expected. US payrolls gained 139,000 in 673 00:34:08,440 --> 00:34:11,280 May, which points to gradual moderation. 674 00:34:11,320 --> 00:34:13,679 Now, again, these aren't spectacular numbers, but they're 675 00:34:13,679 --> 00:34:16,400 better than expected. The figures may help temper 676 00:34:16,400 --> 00:34:19,280 concerns that companies are quickly ratcheting back 677 00:34:19,280 --> 00:34:22,400 employment as they contend with higher costs related to tariffs 678 00:34:22,639 --> 00:34:24,760 and prospects of slower economic growth. 679 00:34:25,080 --> 00:34:27,120 President Donald Trump's decision to pause some of the 680 00:34:27,120 --> 00:34:30,639 more punitive import duties, including those on China, has 681 00:34:30,639 --> 00:34:33,920 helped lift sentiment among the businesses as well as consumers. 682 00:34:34,360 --> 00:34:36,560 So this is what I was talking about in the most recent 683 00:34:36,560 --> 00:34:40,560 episode, that this is all lagging data and lagging 684 00:34:40,560 --> 00:34:43,400 sentiment. Things were really gloomy in the 685 00:34:43,400 --> 00:34:46,520 month of April for businesses. They didn't want to hire anyone. 686 00:34:46,520 --> 00:34:48,440 They felt like it was time to turtle in. 687 00:34:48,880 --> 00:34:52,320 But a lot of that sentiment has changed from from being very 688 00:34:52,320 --> 00:34:54,480 gloomy to now being far more optimistic. 689 00:34:54,760 --> 00:34:58,120 If you ask those very same business leaders, they feel a 690 00:34:58,120 --> 00:35:01,680 lot better because a lot of the the rates, a lot of the tariff 691 00:35:01,680 --> 00:35:03,720 rates have been lowered substantially. 692 00:35:03,720 --> 00:35:06,000 This is welcome news that makes it less likely we'll see a 693 00:35:06,000 --> 00:35:08,240 recession this year. Now, we also had the earnings 694 00:35:08,240 --> 00:35:10,720 report of Lululemon yesterday after market close. 695 00:35:11,000 --> 00:35:15,720 The stock is down 20%, down $65. Let's go ahead and take a look 696 00:35:15,720 --> 00:35:18,080 at the reasons why directly from the management. 697 00:35:18,200 --> 00:35:19,680 We can bring this up on Qualtrim. 698 00:35:19,680 --> 00:35:21,840 We have here a transcript summary. 699 00:35:21,840 --> 00:35:25,960 We have the company now growing revenue by 7 percent, 8% on a 700 00:35:25,960 --> 00:35:30,000 constant currency that fills a little slow 7% growth. 701 00:35:30,000 --> 00:35:33,440 That's because it is Lululemon was growing really fast and now 702 00:35:33,440 --> 00:35:35,240 the growth is decelerating rapidly. 703 00:35:35,320 --> 00:35:39,360 Their guidance is now for five to seven and seven to 8% growth 704 00:35:39,360 --> 00:35:41,960 in the 53rd week. They're basically saying that 705 00:35:41,960 --> 00:35:46,280 they're now growing in this mid single digit rate, very slow 706 00:35:46,280 --> 00:35:48,120 growth for a company like Lululemon. 707 00:35:48,120 --> 00:35:51,440 Now I've looked at Lululemon stock for a long period of time. 708 00:35:51,440 --> 00:35:54,560 It's one that's shown up a lot because over time it's actually 709 00:35:54,560 --> 00:35:57,160 grown at a fast rate. They save a lot of money because 710 00:35:57,160 --> 00:35:58,520 they don't do a lot of marketing. 711 00:35:58,520 --> 00:36:00,160 You're not going to see advertisements for it. 712 00:36:00,400 --> 00:36:03,080 It's all through word of mouth. It seems like it's an incredibly 713 00:36:03,080 --> 00:36:07,440 strong brand, very high end. But I've seen some significant 714 00:36:07,440 --> 00:36:11,400 problems with companies like Lululemon and any brand focused 715 00:36:11,400 --> 00:36:13,400 company. It's virtually the same reason 716 00:36:13,520 --> 00:36:16,360 that I I don't buy Nike stock. If we look at Nike stock, this 717 00:36:16,360 --> 00:36:18,560 is a Bill Ackman investment. It's one that's gone through a 718 00:36:18,560 --> 00:36:21,640 big sell off. Nike's down 35% over the past 719 00:36:21,640 --> 00:36:23,560 year. It's attracted a lot of value 720 00:36:23,560 --> 00:36:26,440 investors, a lot of compound quality investors. 721 00:36:26,920 --> 00:36:30,240 But I don't like investing in companies where the Moat of the 722 00:36:30,240 --> 00:36:33,040 company is primarily through its brand value. 723 00:36:33,040 --> 00:36:36,960 Brand value is a Moat and it can be powerful at times, but I 724 00:36:36,960 --> 00:36:40,080 think it needs to be combined with many other types of moats 725 00:36:40,440 --> 00:36:43,480 like network effects, like how embedded the product is, like 726 00:36:43,480 --> 00:36:45,880 switching costs, all that type of stuff. 727 00:36:45,920 --> 00:36:48,480 Even though Lululemon makes these high end yoga pants and 728 00:36:48,480 --> 00:36:51,320 all the stuff that people like, there's now many competitors to 729 00:36:51,320 --> 00:36:54,920 Lululemon, many other companies making also high end clothing, 730 00:36:55,240 --> 00:36:56,840 and they're undercutting their pricing. 731 00:36:56,880 --> 00:37:01,200 You have companies like Aloe Yoga, Viori, Athletica, all 732 00:37:01,200 --> 00:37:04,200 these new brands popping up, gaining market share. 733 00:37:04,200 --> 00:37:06,680 For that reason, I continue to avoid these type of companies. 734 00:37:06,800 --> 00:37:09,360 Now we finally get to the news story that Amazon is in the 735 00:37:09,360 --> 00:37:11,560 robotics game. In this case, they're in the 736 00:37:11,800 --> 00:37:15,240 humanoid robotics game. Amazon is reportedly training 737 00:37:15,240 --> 00:37:17,440 human robots to deliver packages. 738 00:37:17,560 --> 00:37:20,480 The Information reports that Amazon is developing an AI 739 00:37:20,480 --> 00:37:23,720 software that will enable robots to operate as package delivery 740 00:37:23,720 --> 00:37:27,720 workers that are ferried around in Rivian electric vans and will 741 00:37:27,720 --> 00:37:31,080 soon be ready to start real world testing at a new facility. 742 00:37:31,240 --> 00:37:33,680 Citing an anonymous source involved in the effort, The 743 00:37:33,680 --> 00:37:37,560 Information says that Amazon has almost finished construction of 744 00:37:37,560 --> 00:37:41,720 an indoor humanoid park at one of their retail giant San 745 00:37:41,720 --> 00:37:44,880 Francisco offices that roughly it's roughly the size of a 746 00:37:44,880 --> 00:37:47,720 coffee shop. The obstacle course reportedly 747 00:37:47,720 --> 00:37:51,640 contains 1 Rivian van for training purposes, with Amazon 748 00:37:51,640 --> 00:37:54,960 aiming to have the humanoid robot quote hitch or ride in the 749 00:37:54,960 --> 00:37:59,440 back of Amazon's electric Rivian vans and spring out to deliver 750 00:37:59,440 --> 00:38:02,680 the packages. The report coincides with Amazon 751 00:38:02,680 --> 00:38:06,280 launching a new agentic AI team that's helping develop 752 00:38:06,280 --> 00:38:09,640 technologies that willpower robots, quote, operating in 753 00:38:09,640 --> 00:38:12,200 Amazon distributions and logistic hubs. 754 00:38:12,680 --> 00:38:15,360 In a statement to Silicon Valley, Amazon says that quote, 755 00:38:15,640 --> 00:38:19,280 instead of rigid specialized robots, we're creating systems 756 00:38:19,280 --> 00:38:23,200 that can hear, understand and act on natural language and 757 00:38:23,200 --> 00:38:26,760 commands, turning warehouse robots into flexible, multi 758 00:38:26,760 --> 00:38:30,000 talented assistance. Now this is something that is 759 00:38:30,000 --> 00:38:32,880 not only not surprising, but something that I have been 760 00:38:32,880 --> 00:38:37,040 saying for years with Amazon. Amazon is the preeminent, 761 00:38:37,120 --> 00:38:41,800 leading, biggest robotics company in the world by far, and 762 00:38:41,800 --> 00:38:45,840 there's not a close 2nd place. A lot of people talk about Tesla 763 00:38:45,840 --> 00:38:48,000 being the leading robotics company. 764 00:38:48,000 --> 00:38:51,000 A lot of people say that's the robotics, AI robot play. 765 00:38:51,480 --> 00:38:54,480 I think it's Amazon, and I've held this position for a while. 766 00:38:54,840 --> 00:38:57,520 Amazon has ample experience creating robots. 767 00:38:57,720 --> 00:39:02,680 They literally have 750,000 robots working in their 768 00:39:02,680 --> 00:39:04,960 warehouses. We've seen footage of these very 769 00:39:04,960 --> 00:39:09,000 specific robots, these little mini Waymo machines that glide 770 00:39:09,000 --> 00:39:11,600 around the warehouse floors. They pick up different, 771 00:39:12,120 --> 00:39:14,280 different shelves of products and they bring them to the 772 00:39:14,280 --> 00:39:17,400 picking station. Now that robot was very specific 773 00:39:17,440 --> 00:39:20,560 and Amazon is broadening the capabilities of robots. 774 00:39:21,000 --> 00:39:24,520 Now there's ones that resemble a bit more of a human and they say 775 00:39:24,520 --> 00:39:26,880 that they can actually feel what they're grabbing. 776 00:39:27,000 --> 00:39:29,720 That's how they describe it. They get actually sensor 777 00:39:29,720 --> 00:39:31,360 feedback from what they're grabbing. 778 00:39:31,360 --> 00:39:33,680 They can see how it feels and determine how much pressure 779 00:39:33,680 --> 00:39:36,320 apply if the product slipping and so on. 780 00:39:36,960 --> 00:39:39,000 To me, this looks a bit more humanoid. 781 00:39:39,080 --> 00:39:41,720 And here we have news that Amazon is now actively trying to 782 00:39:41,720 --> 00:39:45,440 create robots specifically for delivering packages from Rivian 783 00:39:45,440 --> 00:39:48,440 vans to the house. Now, this is an interesting 784 00:39:48,440 --> 00:39:51,720 application of Amazon because right now we look at the retail 785 00:39:51,720 --> 00:39:53,680 business as being very low margin. 786 00:39:53,720 --> 00:39:55,440 That's the word repeated from retail. 787 00:39:55,680 --> 00:39:58,760 Part of the reason why is it's expensive to deliver all those 788 00:39:58,760 --> 00:40:02,720 items every single day, multiple times a day to the same house. 789 00:40:03,160 --> 00:40:07,360 To hire hundreds of thousands, in fact around 400,000 delivery 790 00:40:07,360 --> 00:40:11,560 people to deliver those items from the vans to people's homes. 791 00:40:11,680 --> 00:40:15,960 If Amazon was to theoretically replace these workers with 792 00:40:15,960 --> 00:40:19,240 robots that jumped out of a van and did the delivery themselves, 793 00:40:19,360 --> 00:40:22,960 they would no longer have to pay around 400,000 people. 794 00:40:23,560 --> 00:40:27,160 They could save on lunch breaks, they could save on insurance, 795 00:40:27,200 --> 00:40:30,960 people getting hurt, taking time off staffing, training, 796 00:40:31,240 --> 00:40:33,960 everything associated with hiring a human. 797 00:40:34,320 --> 00:40:37,720 Humans are far more expensive than maintaining robots. 798 00:40:37,960 --> 00:40:39,720 We know that through ample evidence. 799 00:40:39,720 --> 00:40:43,200 Over time, this is an opportunity for Amazon to have 800 00:40:43,360 --> 00:40:47,640 enormous margin expansion in their primary business, of which 801 00:40:47,640 --> 00:40:51,240 they are by far the largest. So just this little news piece, 802 00:40:51,600 --> 00:40:54,560 the Amazon is actually testing this, looking at humanoid robots 803 00:40:54,560 --> 00:40:58,200 to do delivery is substantial. And when we're looking at this, 804 00:40:58,200 --> 00:41:01,840 again, part of the limiting factor of these type of robots 805 00:41:01,840 --> 00:41:04,520 has not been the physical technology. 806 00:41:04,920 --> 00:41:07,960 The physical technology has been very strong, very good for a 807 00:41:07,960 --> 00:41:10,280 long time period. We can make the hydraulics and 808 00:41:10,280 --> 00:41:11,920 we can make the machines work well. 809 00:41:12,280 --> 00:41:16,240 The difficult part is the software, but AI is helping to 810 00:41:16,240 --> 00:41:20,320 solve the software equation. Amazon can infuse the physical 811 00:41:20,320 --> 00:41:24,200 hardware with their AI models, train it on how to do these 812 00:41:24,200 --> 00:41:27,320 deliveries, how to make it from the van and walk up to the 813 00:41:27,320 --> 00:41:31,160 porch, not run into anything, not bump into anything, have 814 00:41:31,160 --> 00:41:34,560 lots of safety protocols in the process, and in doing so, raise 815 00:41:34,560 --> 00:41:37,240 the margins of the company. So I think this is actually 816 00:41:37,240 --> 00:41:39,360 potentially huge news for Amazon. 817 00:41:39,640 --> 00:41:42,480 I'll be following the story. It's not the only reason to get 818 00:41:42,480 --> 00:41:44,400 bullish on Amazon, but I think it's one more. 819 00:41:44,400 --> 00:41:45,800 That's going to be it for this episode. 820 00:41:45,920 --> 00:41:46,480 See you in the next.