Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads that shape SpaceX, Tesla X, The
Boring Company, and Neuralink. I'm your host, Will Walden.
Tesla's stock surged over 6% on Monday morning, extended gains
that have driven the electric vehicle manufacturer shares up
by about 19% in the last month. Now, the reasons behind Tesla's
continuing stock climb are multifaceted, with one notable
speculation linking the increase to Elon Musk's recent decision
to follow Uber founder on social media.
Clinic, who left Uber in 2017, is known for his role in
developing a successful ride sharing platform, which aligns
with Tesla's long term ambitions for its robo taxi platform.
Now, Tesla plans to unveil its robotaxi on August 8th of 2024,
and Musk's connection to Kalanick has sparked theories
that Tesla might benefit from the insights or involvement with
the platform, although this remains very speculative.
Now, beyond this, other factors are contributing to Tesla stock
gains. Notably, the Chinese electric
vehicle market has shown substantial year over year
growth, bolstering investor confidence in Tesla's
performance. Chinese EV manufacturer BYD,
which often matches Tesla's delivery figures, reported
426,000 deliveries in the second quarter.
Now, this has led to speculation that Tesla's Q2 delivery numbers
might be similar. Our analysts are divided on
Tesla's quarterly performance. While some expect a decrease
from quarter 2/20/23, others anticipate an increase from
quarter 1/20/24, reflecting mixed settlement on Wall Street.
And the consensus among analysts is that Tesla's Q2 deliveries
will reach around 438,019 vehicles.
Now this figure falls short of the 1,000,000 vehicles some had
hoped for in the first half of the year.
And Tesla's growth trajectory is poised between its current
production capabilities and the potential of its next generation
platform and robotaxi, which could drive future growth.
The company's ability to meet its projected timelines for
these initiatives is very crucial as delays have been a
challenge for Tesla in the past. And also in related news, Elon
Musk has been promoting the development of AI chatbot Grok,
which is expected to train on a significant number of NVIDIA
each 100 GPUs. And Musk announced that Grok 3
would be something special after training on 100,000 NVIDIA each.
100 GPUs each value between 30,000 and 40,000 dollars.
While it's unclear how many of these GP us were purchased
outright by Musk's companies, there are possibilities of
renting GPU compute from cloud service providers.
Reports indicate the Musk's XAI startup was negotiating with
Oracle to spend $10 billion over multiple years on cloud servers,
adding to the complexity of the GPU strategy.
And Musk's companies have a history of acquiring NVIDIA H1
hundreds, with Tesla reportedly diverting $500 million shipment
of these chips to X, formerly known as Twitter.
Now, the training of Grok 3 on 100,000 GPUs is a significant
increase from the 20,000 GPUs used for Grok 2.
And that's the scale of XAI. Grok One and Grok 1.5 have been
released, with Grok 2 expected in August, followed by Grok 3 by
the end of the year, according to Musk.
And the intense competition of AI talent is evident as
companies like Meta are also heavily invested in Invidia 100
GPUs. Now.
Meta plans to purchase around 35 or 350,000 H 100 GPUs by the end
of 2024, indicating fierce rivalry in the AI development
territory. And the high demand for H100
GPUs has led to aggressive recruiting tactics as
illustrated by EI startup Perplexity CEO who noted the
challenge of hiring top talent from Meta.
And also another development, Elon Musk praised Invidious CEO
Jensen Wong for their leadership style and his hands on approach
of engagement with employees. And Huang Co founded NVIDIA at a
Denny's restaurant in San Jose in 1993 and has guided the
company to its current status as a leading AI chip manufacturer.
And their personal story from dishwasher to CEO reflects his
commitment to hard work and his philosophy that no task is
beneath him, as highlighted in his recent interviews.
Now, Nvidia's impressive performance with year to date
return of about 151% places it at the forefront of the
magnificent 7A group of influential tech companies.
And the stockpiling of AI chips in the competition to secure top
AI talent is high stakes right now.
AI development race is happening and Tesla and Meta are pushing
the boundaries of that technology.
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