Managing Editor’s Note: Jeff is airing his Robotaxi Emergency Briefing tomorrow at 1 p.m. ET…
If you haven’t already signed up to attend, make sure you do so right here.
Because despite the media’s insinuations, Tesla is far from finished. The company is set to launch a fleet of robotaxis in just a couple of months… first in Austin, Texas, but before long, Tesla’s Robotaxis will be in every city.
And Jeff has identified a handful of small companies poised to profit as the trend plays out. So, be sure to go here to instantly sign up.
Early this morning, I set aside some time to listen to the Tesla first quarter 2025 all-hands meeting.
If we were to believe the talking heads on CNBC or the media’s portrayal of Tesla, it would be logical to assume the all-hands would have been nothing but doom and gloom.
Just take a look at Tesla’s stock chart, down 53.7% from all-time highs in December.
With the media’s gleeful and persistent use of images of Teslas and Tesla dealerships on fire, damaged, and defaced, one would think that the company is in big trouble…
Perhaps it won’t make it in the end after all…
Don’t bet on it.
Tesla as a company will prove to have one of the singularly most profound impacts on society in human history. And it all boils down to its autonomous technology, which as we know, is some of the most advanced artificial intelligence ever invented.
And anyone who watches the all-hands, which you can find right here, or has been tracking what Tesla is actually accomplishing rather than what the press says, will know this.
The meeting was the exact opposite of what you might expect. It was upbeat, positive, and inspirational.
Musk, or anyone else in attendance, didn’t care about tariffs, trade negotiations, stock charts, burning Teslas, or the incredible need for the U.S. to reduce its deficit and curtail its destructive and irresponsible deficit speaking.
All the team at Tesla cared about was moving forward, building, and achieving their vision of a sustainable energy economy and, ultimately, a world of abundance.
Nothing will slow Tesla down.
One of the images that I particularly liked during the presentation is the one shown below. In a simple slide, it shows us the method to Musk’s madness. I’ve been researching and writing about all aspects of what’s shown below for years. This image makes it all very easy to grok. We can see the interconnections between all of Tesla’s inventions…
Artificial intelligence is the core of Tesla. Its Cortex 1 and Dojo supercomputers are used for AI training, specifically autonomous software, both for vehicles, as well as for autonomous humanoid robots.
During the presentation, Musk noted that Cortex 1 has over 50,000 GPUs active now, soon to more than 100,000 GPUs. That alone will make it one of the largest AI superclusters in the world.
And Dojo, which is Tesla’s custom-designed AI supercomputer, which uses its own AI application-specific semiconductors (ASICs), rather than GPUs, is currently responsible for about 5% of self-driving training compute.
Announced at the meeting was that Dojo 2 is under development and “will be probably 10 times better” than Dojo 1. Ten times better…
Just imagine what that means. Tesla has already achieved what almost every “expert” said was impossible… entirely vision-based autonomous driving.
Embarrassingly, days ago, Waymo highlighted “vision-based end-to-end driving” as something that is a research challenge, despite Tesla having already mastered it.
Source: Waymo
Waymo is attempting to crowdsource solutions to some of its own challenges with autonomous driving technology. This year’s “Challenges” come with a $10,000 first prize and recognition on a leaderboard.
Gee thanks Google/Waymo, so generous…
Meanwhile, Tesla has long solved that problem. It has been able to achieve that feat using Cortex 1 at 50,000 GPUs and Dojo 1. Now Tesla is about to have an AI supercomputer that is 10 times better.
Insane. Just think about what’s coming next.
Optimus…
Speaking of the first production, Optimus came off the Freemont, California, factory’s production line already – something that was mentioned during the all-hands.
All 2025 Optimus production will be used internally in the office and factories. But by next year, we’ll be able to purchase an Optimus for the home, office, factory, or healthcare facility.
Optimus will be able to clean your house, mow the lawn, do the laundry, assist those in need, and perform “backbreaking” work without batting an eye. This is a billion-plus unit market opportunity, more than a $25 trillion market.
Musk said that “Optimus will be the biggest product of all time” and that it’s already “the most sophisticated humanoid robot on Earth.”
And he’s right. All of the hard work that Tesla did on autonomy for cars translated directly to robots. That neural network is what has given Tesla such a large lead compared to all the other competitors.
And Tesla knows how to manufacture at scale.
After all, Tesla has already manufactured 7 million vehicles and will pass 10 million cumulative manufactured vehicles by next year. Compare that to the 20 cars it manufactured in its first year of production. How’s that for progress?
And the Model Y has been the best-selling car – not just the best-selling electric vehicle, but the best-selling car of any kind – for two years in a row. And yes, with the new Model Y, Tesla will do it again this year.
And perhaps the most outlandish thing Musk said during the presentation was that Tesla would eventually be able to manufacture a Cybercab, start to finish, in five seconds.
That’s not a typo.
Tesla redesigned the manufacturing process for Cybercabs to be more akin to a consumer electronics device. Everything is automated. Eventually, no humans will be required to assemble a Cybercab.
It will entirely be done by extremely precise intelligent manufacturing robots.
And whether it’s five seconds or just five minutes, I don’t really care. Tesla will eventually be able to manufacture an entire Cybercab within 5 minutes. Just imagine the implications of a production line where a finished fully autonomous vehicle rolls off the production line every few minutes.
The scale will be incredible, and the costs will decline making autonomous ride-hailing omnipresent and affordable to all.
Musk spoke of the path towards a world of abundance where anyone can have anything that they want.
I know that sounds crazy at a time like this. But it’s starting to happen now. In a world of energy abundance, provided by nuclear fusion, nuclear fission, and solar in some places; combined with autonomous robots, the costs of goods and services will decline significantly, making them affordable to all.
The cost of a good or service will essentially boil down to the cost of energy required to produce or provide it. And as energy production costs decline, so will the cost of those goods and services.
This is Tesla’s master plan, yet if we look at the stock chart or listen to the mainstream media, most simply don’t see it.
It’s just like the perception of what the Trump administration is doing with tariffs right now.
Do we really want to fall for the Armageddon narrative that the media wants us so badly to believe? Or are we smart enough to see the strategy to get trade partners to the negotiating table to agree on radically improved, mutually fair, and reasonable trade agreements?
I have long maintained that this was President Trump’s negotiating strategy. He had to demonstrate the willingness to see the tariffs through so that the world would know that he was serious.
It worked, and we saw it play out today. Those countries that came to the table to negotiate reasonable agreements saw a 90-day pause to give enough time for negotiations. And those who retaliated did not.
China received a 125% tariff for its indiscretions. The U.S. only exports to China about one-fifth of what China exports to the U.S. Which side do we think will feel the most pain?
It’s ridiculous that institutional capital couldn’t see through this. They sure saw it today. The NASDAQ was up a ridiculous 12% today. In one day.
Or how about the fear, uncertainty, and doubt about the rising U.S. Treasury yields, suggesting too much risk associated with owning U.S. government debt? Some are claiming that no one is going to cover the gap in needed Treasury purchases.
Seriously? Let’s just look around the world and see which country’s economy is in better shape. Short answer, there isn’t one. The U.S. economy is about to enter a period of well above-average GDP growth all driven by technological advancement.
And for those curious about where one of the biggest sources of buying U.S. debt will come from, I strongly recommend reading yesterday’s Bleeding Edge – The Debt Buyer Nobody is Talking About. This is a regulatory masterstroke by the Trump administration that will be written about in the future.
Tariffs won’t stop the technological advancement that’s happening right now. Treasury yields won’t have any impact. Setting cars on fire won’t put a dent in it. Interest rates. Inflation, or lack thereof. Balancing the budget.
None of it will slow down what’s happening right now.
We’re about to live in a world full of autonomous robots. And whether they look kind of like us, or move on wheels, they’re going to be everywhere.
This latest spat of volatility is nothing. It may be uncomfortable, but it will be temporary and short-lived.
What comes next will be incredible. And the first stop will be Austin in less than two months.
Source: Tesla
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
