Build Your Cybercab Empire!

What if buying one Cyber Gap could eventually turn into an entire fleet? We're [music] not speculating or hoping here. This is through old-fashioned cash flow. Tesla's robo taxi model allows owners to add their vehicles to the network and earn revenue when the car is driving passengers. And it looks like in the future, these can also earn revenue even when the car is parked using the computer to do office work. But here's the thing, that monthly income could potentially be used to finance additional cyber caps. Start with one, let the revenue accumulate, then acquire another, then another. When you run the numbers, the compounding effect gets surprising very [music] quickly. And that raises a much bigger question for Tesla investors. If individual owners can scale fleets this way, what happens when thousands of people start doing it simultaneously? [music] Because that changes the economics of car ownership completely. Certain Basher is a chartered financial analyst running his own investment advisory firm called Brilliant Advice. They provide wealth management services. Welcome, CERN. >> Hi, Robert. We are entering a period in history for the first time when a car manufacturer can make as many vehicles as it can and they will sell every single one. And then I think your thesis today and then report you're going to show to us today is that if people buy the cyber cap, number one, it's not an expense. Number two, you're going to show the numbers that actually they can make so much money that they can buy another one, another one and it becomes this I guess you'll show us but exponential scaling growth of revenue which is really really incredible when you can sell a product that can help people make money. Uh so let's see if this is true. Uh you always come with fantastic first uh slides here, great photos. Uh how many cyber caps are here? >> Oh, good question. Uh, a lot. I don't I didn't attempt to count them. >> Okay. >> Uh, but there's no lack of cyber cabs in that image. Yep. It's a metaphor for if you start with one, you might need a parking lot to store them. >> Gotcha. >> Yep. We'll put some numbers around that looking at various assumptions. >> So, if you purchase a cyber cab, how large can your fleet become? And I'll come back to you at the end. If I bought one, how long will it take me to let it man multiply through this betty? We'll see. >> That's right. You're going to be surprised. This is pretty amazing. >> Okay. So, a couple weeks ago, we we >> gorgeous. [laughter] >> Yeah, there's the AI version of me. I'm not sure if that's an improvement. I think you might have scared off a lot of viewers on this video, but you can see this video did pretty well. A couple hundred thousand views. >> So, despite me looking menacing there, >> uh enough people uh were interested in the title at least. And with there we explored sort of the economics of a single cyber cab and we looked at various scenarios there and I think we discovered that the cyber cab could be a pretty lucrative business opportunity for individuals to the extent that Tesla sells them to people. They have said that they will. And today we're going to take that one step further and say, okay, if you start with one, how large can your fleet become if you reinvest your cash flow? Because I think there are many people out there that won't just be satisfied with one cyber capab. >> Can you also answer maybe later as a teaser? The number one question from this video was, okay, so I can make money if I buy a CyberCap, but should I put it into stock, Tesla stock now versus the Cyber Cap? And >> today's video, I think, might answer that question. >> Okay, good. Cuz you did answer it on that first video. Uh but it was it, you know, so we'll we'll we'll address it again. Okay. >> My thinking has changed a little bit on that. >> Yeah. >> Okay. >> I think it's now uh more obvious. >> Whoa. >> Yeah. >> Okay. Interesting. >> So, as usual, we need to start with a whole set of assumptions. This model, the cyberc model is actually pretty complex. What you're seeing here is a summary of some of the key assumptions. Uh behind all this also is some cost assumptions for various things like charging and tires and maintenance and things like that. We'll get into that in a second. This is pretty consistent with the video from 2 weeks ago in terms of average speed of travel 25 miles an hour, trip length 5 miles, empty miles 40%, um average loading and unloading time 3 minutes um and so on. And you can vary those numbers. And as we showed a couple weeks ago, it doesn't make too much difference. The model still works. It's still very attractive no matter what assumptions you want to make here. There might be a tweak or two here or there to get the economics to work out so that Tesla is well compensated and also the individual cyber cab owner receives the right compensation. In this particular scenario, I set Tesla's share of network revenue at 35% which is pretty consistent with what we looked at before. Uh I've got vehicle and battery life at 600,000 mi. I've got the cost of FSD at $199 a month. And by the way, that doesn't really matter a whole lot, but $1.99 a month. And then instead of showing today a bunch of different utilizations, uh we'll see some of that, but I'm going to focus really just on the 30% utilization, which is the lowest level of utilization that that I tracked. I went from 30 to 65 in previous previous show. So, we're just looking kind of at the quote unquote worst case scenario here of using the vehicle 7.2 hours a day. And that's not revenue generated 7.2 hours a day. That's just in service. And a good portion of the time the vehicle is traveling around empty, not earning any revenue in that 7.2 hours. Now, I did update my fair assumptions. The base fair now in Austin's at $3, up from a dollar. So, I just went with what we're currently seeing in the marketplace. Not that this is indicative of where Tesla is going to be. I do think this is going to be very dynamic. uh every single fair potentially could be different depending on supply and demand factors, but for now let's just go with what we're seeing in the marketplace. And then the fair price per mile is now $140 here in Austin, up from a dollar. This is still well below uh ride share uh fairs of $2 to $4 a mile and even higher in some places like San Francisco where they can be astronomically high. Um, in this model, I've got charging costs at 35 uh cents per kilowatt hour, which is pretty high. So, I'm sort of assuming here that you use a Tesla supercharger to do all your charging. So, I'm trying to kind of load this model up with some costs. And then the new assumption here is what percent of your monthly cash flow that you receive from a cyber cab are you setting aside and potentially reinvesting then in the next one. And if you do that, if you invest a third, if you reinvest a third of your monthly cash flow, how many cyber cabs do you think you can accumulate over a period of time? And the answer I think will surprise you. >> So this is very conservative CERN. Um, if you are using this cons assumptions to calculate the rest of the performance here. >> Yeah, >> very conservative because you know 40% empty miles, 30% vehicle utilization like you said is the lowest amount. pretty significant uh bump up in a base fair because that and and then the price per mile because that is what they are doing. Uh which actually is actually good for for the owner if they raise the price per mile which again Tesla has always said it's the cost of them could be 30 cents a mile but that doesn't mean price is going to be dynamic. It's going to be based what the market can do but they'll always most likely always be lower than what's out there. the the one thing that you did not put in yet because I think it just happened just yesterday, right? Where Elon said that if a car is sitting still with AI4 chip, which means all of our cars, uh, if you have an AI4 chip car, but also any new cyber caps being put in even just now starting and he said within 6 months, they're able to take that that compute and use it to do office work. >> He called that digital optimist. He called that macro hard and uh it's going to be able to generate money. So even when your car is sitting and he he had a follow-up post saying that even if your vehicle is parked it will generate you money. So that is something you have not put in because that then says that even if you have you said 7 and a half miles 7 and a half hours in a day >> 7.2 hours yep >> driving around how some of it is fair some of it is just going to the passenger to pick them up. But the rest of the time that it's not doing anything, if it's parked somewhere, >> it could be generating more money for you >> and there's a revenue share you as the owner of CyberCap could get. >> So I you didn't include that because that >> could be more. Who knows? We don't know. >> That's right. We have taken a crack at that in the past some time ago. Those numbers were purely guesses. We'd still be guessing if we were to do it today. If you actually go to the next slide, um this is one where it shows what the revenue potential revenue sources are. And so in this model again to make it very conservative, I'm just using trips revenue. But if you look at the legend down below, there's also potential revenue from advertising that could be shared with the the vehicle owner. There's uh revenues from curated experiences. So, for example, you show up in a in a city and you use the car as a tour guide and it takes you around or it gives you a restaurant recommendations or it gives you a wine tour or you name it, history tour. There would be a charge for that. And so, there's some revenue opportunity there, too. I've left that, you know, basically at zero. There's entertainment and connectivity. While you're riding in a cyber cab, you might as well be playing video games or doing something fun. So, there's some revenue opportunities there. And then the last one is what you just spoke about which I previously labeled as just distributed inference revenue which is exactly the digital optimist uh macro hard concept. U that potentially has uh an interesting opportunity associated with it. We just don't know to what magnitude yet. But the way to think about this, as you can see, trips revenue scales up with utilization, but [clears throat] distributed inference revenue would be higher at the 30% utilization because you've got more time. >> Yeah. >> To earn that. So what it effectively does, it takes that curve that's slanted like this and potentially brings it more like this. More of a flat line. Maybe not totally flat, but it could flatten it out a bit. >> Yeah. You can see though the difference right now between my 30% utilization number at 80,000 of revenue and all the way up to let's sayund 60% at 160,000 there's that's twice as much. Is distributed inference revenue going to make up that difference? Probably not. I I I don't think it's going to be that lucrative relative to the trip's revenue, but still >> it's something. >> Can can you just do a quick uh behind a napkin on the napkin kind of math here? So, let's say in an hour, how much money would I make in robo taxi in an hour ride? >> Uh, I don't have those numbers handy. Actually, actually I do. I do. I can pull it up for you. Just one second. On an hourly basis, um, profit per hour, gross profit per hour, sorry, the revenue per hour at 30%. It's about $6 an hour. >> You don't think uh digital office work could generate six bucks an hour? >> Maybe. The cool thing too about that is it doesn't have the expenses that the trips revenue does. The trips revenue, you're burning tires, you're burning electrons, right? You've got to charge the car. Well, I guess you do too for the digital optimist, but maybe less. Um, there's wear and tear on the vehicle when you're driving it. There isn't the same wear and tear on the vehicle when it's just being used as compute. So, even though the revenue might be less, even if it is, the profitability of that revenue is probably a lot higher. Yeah, we we'll have to do another full deep dive on that on that show because I I don't want it to be a future where you're Tesla and you are more motivated to just keep the car parked. [laughter] >> Yeah. >> Which doesn't make sense. No, >> because you can just buy a Mac Mini or something that and let that do office work. So, that doesn't make sense. But I'm just, you know, [laughter] >> a very expensive computer that way if you look at it that way. Yeah. >> Okay. >> Yeah. is it's probably a reason that Apple doesn't sell computers with wheels. Yeah, but maybe that reason's changing. Um, okay. So, that's the revenue situation and here's kind of the split. So, at the 35% take rate for Tesla, they get the red portion. And so, again, if we focus on the 30% utilization, that 80,000 or so in revenue, 28 and a half's going to Tesla and the vehicle owner's getting 52.5,000. >> [snorts] >> Now Tesla, you know, doesn't have the kind of expenses that the vehicle owner does. That's why the vehicle owner is earning more because they have expenses. And if we look at the next page, here's the details on that. >> Before you go there though, I just want to remind folks, okay, Tesla currently sells cars today. And the margin that they might get is anywhere from, I don't know, it changes, right? $5,000 per car, one time, you know, profit. Y >> and then maybe 7,000 sometimes 10,000 like that. >> Here you you if you run that vehicle, same one vehicle, but every single year Tesla can make $30,000 at the minimum. >> Yeah. >> Yeah. >> Per year. >> And the profitability on that is is much higher. Yes. The percentage and the profit margin. Yep. Okay. So this is again the 30% utilization looking at the revenue but now breaking down the cost. And so FSD at 199 a month is about 2,400 a year. That's going to Tesla. Fine. Then you got the vehicle cost. This is just I'm just straight line depreciating this over a period of time. Again, it's it's it's based on the miles traveled, right? The 600,000 miles lifetime for the vehicle. So at higher utilizations, this number is higher because you're burning through the vehicle that much faster. I've got financing cost. I'm assuming that you're financing every vehicle. Okay, so you've got the vehicle depreciation cost, you got the financing costs. Charging is a big part. It's almost $5,000 a year given the assumption that we made of 35 uh cents per kilowatt hour. That's one of your biggest char the biggest costs is charging. Now, in this model that we didn't have two weeks ago, I've added costs for cleaning >> Mhm. >> and parking because if you're building a fleet, these now are considerations. If you're just buying one vehicle, you you do this yourself. If you park it in your garage, you clean it yourself. But if you're building a fleet, unless you want to be doing this full-time, you know, cleaning the vehicles, there's going to be a charge. Maybe Tesla does this for you. Maybe this is what you pay them. I don't know yet. Tesla's building these cleaning robots. But let's assume for now that you have to figure out a way to to to cover this. So, it's about 1,700 bucks a year. Parking about 6,000 a year potentially per vehicle. It's a big number. Again, highly variable depending on where you live. If you live in a dense urban environment, that's this number might be low. If you live in a more of a suburban environment, this number may be way too high. So, there's, you know, please understand that there's a wide range here. And then we've got the other things that are the same as the last time. Insurance, um, a plug for some other costs that we can't think of right now. There's essentially $1,800 in the model for other other costs. uh tires and maintenance 2,800 a year and then EV taxes another of 13,400 bucks. So that leaves you with a net profit per vehicle of about $23,000 given the assumptions that that we made. And this is quite a bit higher than what we talked about two weeks ago because again now the base fair is $3 and the price per the fair per mile is $140. So if you compare this versus two weeks ago, you'll see the difference. Um, small changes can make a big difference in the attractiveness of this model and we're seeing that play out here. >> CERN, um, you included financing costs, so I would assume most people will not just, let's say, what's the price of the car? $30,000. >> Uh, yes. >> Let's assume it's 30, but it it may not be 30 at at the onset, right? It could be higher at the very beginning, but let's say it's $30,000. If I'm going to buy Cyber Cab, I'm not going to plunk down $30,000 cash. I would finance it, right? >> But if you look at the financing, uh, your $1,800 that's per year. And my point being that you can probably buy a cyber cab by financing without actually having to because it's going to be out in business and it's going to be making me money. So, it's going to pay for the financing loan. U, >> you got to put the cost somewhere. But but you're right. Um yeah, and by the way, the model assumes 30,000 for the cost of the vehicle. >> Yeah. So I probably need to put up some sort of down payment. Um >> yes, and we'll get into that in a second. I I didn't include that. >> Okay. >> Um so anyway, so here's what it looks like for the vehicle owner. Now, let's do a little fairness check that we did a couple weeks ago. Let's compare the gross profit for Tesla in red versus the gross profit for the for the vehicle owner. And you can see at the 30% utilization, the vehicle owner makes about 7% more than Tesla does in gross profit. To me, that seems relatively fair. It's in the range of, you know, each party's making about the same amount of money on a gross basis. Now, Tesla may have some other expenses. Your tax rate could be higher or lower than Tesla. None of that matters, but I think at the gross profit level, this is where you would try to equalize things or achieve whatever ratio Tesla is looking to achieve. You can see here with this model as the utilization improves the vehicle owner makes more relatively speaking than Tesla does. Both parties make more money but the difference in the two is to the vehicle owner's favor up to 25% more gross profit at the 65% level. Anyway, I just wanted to point that out. But we're focused today on that 30% utilization number. Okay. All right. Now, let's put our fleet owner head on. If you have one vehicle, then the monthly cash flow of that vehicle per this model is about $1,929 a month. >> Not bad. >> Okay. So, the question is, what are you going to do with this cash flow? Are you going to put it in your pocket and or spend it? >> Yeah. >> Or or do you want to reinvest it? Okay. Let's make the assumption that you take onethird of this money >> and you put it in in a in an account and say, "Okay, as soon as this becomes enough, and I'll talk about what enough is in a second, I'm going to buy another cyber cab." And then you can do it again. Now, you've got two cyber cabs and you save and then you buy the third. Okay? I assumed in this model that you start with a total of $6,000 and that you put 5,000 down for each vehicle. So the $30,000 car, you're putting 5,000 down and you're financing 25,000. >> Mhm. [clears throat] >> Okay. And then you still got $1,000 left over because you started with six. As this money comes in, you're taking a third of that and adding it to that thousand and building that up. As soon as that hits 5,000 again, >> you're buying another one. Okay. So, let's look at what it looks like if we start doing that. So, this is looking at the first 12 months. You start with one vehicle and in month seven you're buying another one. >> Pretty good. >> And then in month 11, you're buying another one. So, you've got a total now of three. >> Look at that. How fast much faster you're able to buy another one. >> Just you wait. >> Just you wait. Okay. The next uh chart then shows the cumulative number of vehicles, right? You have one for the first seven months and now you have two and then the 12th month now you have three vehicles. Okay, this is your total vehicles in your fleet. So in the first year you go from one vehicle to three. You may say okay that's not bad. >> That's three times and I paid part like and only a third of my profits paid for this. What if I did all of my profits? But anyways, okay. >> Hold on. That's where it gets crazy. [laughter] >> All right. Now let's look at another chart that shows your monthly cash flow. It's gone from 1929 a month. >> Oh, >> to two vehicles. Now you're at 3858 a month. >> Mhm. >> And then 57.87 at three vehicles. So you can very easily see here you've got sort of an accelerating right amount of money coming in every month. Now you you should be able to buy vehicles that much faster. Every time you add a new vehicle, it's accelerating your ability to buy more vehicles. >> This is cash. This is not this is not uh revenue. It's it's minus expenses. This is >> this is taking all the expenses out of the model. It's taking that $23,000 a year of gross profit. >> Y >> taking one 12th of that your monthly cash flow. Okay. All right. Let's look at now over two years. You can see the first two bars. Se month seven and month 11. That's from the first year. >> Mhm. [clears throat] >> Okay. Now we're into year two, month 13. January, you don't buy another vehicle. February, you're buying another one. >> March, no. April, you're buying another one. >> May, nothing. And then from there on, it's a vehicle every month. And then in the last month, it's two. >> Two vehicles. >> You can afford Okay. Wait. Wait. But by the time I hit month 18, how many vehicles would I have already at that point? >> Go to the next page. >> Okay. >> Five. >> Five. So once I hit five vehicles in the market, I'm able to afford by cash flow to get one vehicle every single month. >> Yeah. And it it starts to accelerate from there pretty soon. >> That's that's crazy. Buying a car every single month. >> Yeah. Yeah. No, not outright. You're financing it, but the financing cost is all built into the model. It's all It's all accounted for. >> Yeah. >> Okay. All right. And again, >> if I'm financing it, I'm still buying it. Like, I still own it at the end of the period. I I I have the title at the end of the period. >> The bank has the title. But yes, >> until the end of the loan and then I get it, >> but I get it. It's like it's not lease. It's not a lease where I I I'm just paying a monthly rental for it or whatever and leasing it. No. >> Yes. Okay. And I'm taking people through this like step by step slowly because this gets crazy pretty fast. >> No, but this is fun. I I really appreciate the way you presented this. Uh it is it is a great way a great way to depict uh how how often how much how many enough money I cash I get that I can buy another car. One one a month I'm happy, dude. >> Well, just you wait. We're just getting started here. >> You wait. Okay. >> All right. Now, let's look at the monthly cash flow. >> So, wait. from one car at uh month one. By the time it's two two years later, I'll have 11 cars. >> 11. >> Yeah. 10 times. >> Yeah. >> Car 10 times my car that I put in once. >> Yeah. Not bad, right? >> Mhm. >> And then here's your monthly cash flow. You're go from 1929 a month up to 21,000 a month. >> Mhm. >> Okay. Okay. And again, you're reinvesting a third of that every you're putting that in your in your purchase new cyber cab bucket. >> So, which means that twothirds of it is actual profit that I'm spending and I'm going on vacations and I'm doing stuff I want to do >> and paying taxes. There's taxes in there you have to account for. But yeah. Okay. So, starting to look pretty good. Starting to starting to go up pretty nicely. >> So, if I just think if I just think about that by two years 21,000 is uh my cash flow. So then twothirds of that, is that the right way to think of it? >> Two/3s is spendable. 2/3 of you take >> 40,000. So 40,000 >> uh 14 No, 14,000 you could take out of that and spend if you wanted to. >> Okay. So >> seven of it being reinvested each month. >> Okay. So each month I'm already making 14 just But then the rest seven, hey, you're you're a good financial adviser. Put this put a third back. >> Put a third back. >> All right. >> Okay. All right. Now, let's go to three years. 36 months. [snorts] >> Okay. Now, you're buying in in that third year, you're buying three, four, five, and even six per month. >> Per month. >> Per month. >> I I have enough money that every single month, I'm now buying six cyber cabs per month. >> Yeah. If enough people did this, Tesla is going to have to figure out a way to make these cars every 5 seconds. demand is going to be so huge. Okay, now let's look at the cumulative number. So, how many cyber cabs do you end up if you start with one, reinvest a third of the cash flow, you end up with 47. >> I was hoping the number was 42, but 42 is month 35. 42 would be a nice number to have. >> Yeah, >> Darkest Guide to the Galaxy. Anyway, 47 is the number here. Okay, think about that. This is self financing. You started with one. You put $6,000 into this investment. Okay? It has compounded. You've invested a third of the cash flow and you've compounded from one vehicle net of 47. Okay. What do you think this does for your monthly cash flow numbers? Look on the next page. You're now at $90,000 a month in cash flow. Now, at some point, you probably say, "Okay, enough is enough. I've got a fleet of 47 cars. That's enough for me. You know, how big of a business do I want to be?" Now, you're making $90,000 a month of cash flow that you can just take and spend if you wanted to or obviously pay tax on it and spend the rest of whatever, whatever you wanted to do, okay? Or you can continue to reinvest. I didn't show year four and five. gets really nutty in those years if you if you continue this. Okay. All right. This next page then is your cumulative free cash flow. This is the amount of money that you've been able to take out over the years. So, it's now over half a million dollars. So the the one-third that you that you reinvested, you ended up with 47 cars that's now generating 90,000 a month in cash flow. But the 2/3 that you took out, the cumulative amount of that is over half a million on a $6,000 starting balance. So you've got half a million in cash. That's pre-tax. After tax, it would be probably be less. and a fleet of 47 cars generating $90,000 a month. You tell me, Herbert, do you think that's going to outperform the stock on a $5,000 investment? >> That's 100x. >> Is Tesla going to 100x from here in 3 years? >> Not likely. I I'll let the viewer decide. >> Mhm. >> Okay. Again, there may be constraints on this. Tesla may not allow people to buy cars that they're, you know, I'm not suggesting that this is a slam dunk. I'm just saying that the decision between buying a Cyber Cab or building a fleet versus Tesla stock, a lot of people say, "Oh, I'll just buy the stock." What I'm here to say is that decision may not be so clear. You might do very well with this. And by the way, what is the equity value of a fleet of cyber cabs making making $90,000 a month? What's that worth? >> Meaning that you can borrow from borrow from it >> or you can sell it to somebody. You can sell it to another person. I'll sell you my 47 cyber cabs generating $90,000 a month. What's the value of that business? >> Now, the these 47 in three three years, I assume that they're all still going to be viable. They all still be there. Uh sometimes when you talk about rental businesses, Hertz Avis, I think they have a three-year thing, right? After they maybe even sooner after a car has been used for a year and a half, two years, they sell it because they don't want to >> they always want their cars to be I don't know. I don't know their reasoning, but that's what they do. Depreciation, all that. >> Yeah. I suppose you could say that at some point the vehicles start to drop off, but the cash flow is going to allow you to create so many buy so many more new ones versus the numbers that drop off because initially, you know, one and two drop off and you're adding uh and in the end you're adding six a month there. >> So, let's say you you let's say in year four you lose one, but you're adding six. You're you're barely going to notice that. >> Yeah. And also the re the likelihood is that these cyber cabs will last longer than three years. Uh Tesla one of their decisions obviously to create these things is to make them much more >> durable uh and and these are plastic body panels. So you can swap all of this out and have brand new body panels probably easily. And then you can you know the minimalistic in interior you could probably swipe swap that out. And then the battery and all that that that's million miles and longer. That's not a concern that people have. I think currently today my car right now I think the actual statistic is every single year that I own it I lose 1% of battery capacity. So in 12 years I've gone from 100% to 88% battery capacity. Barely noticeable. Not a big deal. 12 years. So, it's not like, you know, that there this catastrophe that people always assumed with these batteries. It's actually not the case. >> Uh, >> yeah. And with a cyber cab, most trips are pretty short. So, even if the the range comes way down from where it starts, it's still very usable. >> And the tires are already built in. You've already priced it in where you're replacing them pretty well once a year, if not twice a year, because you got two. >> By the way, these tires are designed to be long-lasting tires. Um, No one's going to be doing fast acceleration uh in these cars or cornering aggressively in these cars. >> That's right. >> Yep. >> Yeah. The the uh autonomous driving will take that in consideration uh to le lessen the wear and tear. Uh regenerative braking, so you don't really have to replace the back the brakes at all. Uh if you know, if any any life car maybe because it is, you know, a cyber cap, much more driven more more than a regular car. windshield wipers. >> Yeah, >> that's about it. There's no parts, guys. >> We have plenty of money in the model for all that stuff. >> Yeah, this is not your regular car out there that you have to like the Avis car, a gas car, hybrid car, even worse, you have to like uh take care of, >> right? >> Okay. >> Okay. Now, let's look at the scenario where you're investing 100% of your >> Yes. >> cash flow. >> Okay. Everything in this is the same except the last line. The percent of monthly cash flow reinvested is now 100 instead of 33%. >> Why would I do this? Why would I do 100% investment but build the business and then I'm not getting any cash out of this? >> Well, you're trying to build equity value so you can sell it. You can sell this fleet to somebody else. So, how big of a fleet do you think you could build in three years? >> It's not the same as building a business or a house that is appreciated in value. This is a service business that it is what it is. Here's your cash flow per year. So, pay me for, you know, a multiple of the cash flow per year. >> Recurring revenue every single day. I mean, what a beautiful business this is. >> You can there be a markup to it is my point. Like, you know, >> I think so. I think I think if you have a say this, let's just make this abstract. You have a machine that's that's producing let's say, you know, $90,000 a month in cash flow. What's the value of that machine? while you look at the different components. What's the profitability? Is this durable? Are there other opportunities for growth? Are there different revenue streams that could be added onto this at some point? Right? As we've just talked about with the platform that Tesla's building here, there's all kinds of factors I think you'd look at. Um, but I do think that you could be building a nice equity value, not just the cash flow this is throwing off, >> but the value actually of of the fleet itself. >> Yeah. What wealthy people will do, and of course you know this so well, is that you don't take the money out. What you do is uh you keep it all in to this a asset, this equity, and then you borrow money off of it and you have a loan. You don't have to pay taxes on it because it's not a gain. And then you just and then this thing, you know, you just keep buying borrowing on it because it's the assets keeps growing. And so there's you just keep borrowing the financing uh component to the actual asset is just keeps growing. And so the financing is always about the same percentage. And so you don't ever have to actually even pay. And if you're borrowing it at, I don't know, let's say 6%, which is probably the worst it can be at this point. It could obviously go up to 10%, but at 6%. It could even be lower by that point. >> Yeah. >> Right. It's a business set up for this. >> Before you go to the next slides, >> yeah, >> I want you just to make a guess for me. If you did this >> Mhm. >> and reinvested all your cash flow for three years, you started with one vehicle. >> How many vehicles do you think you end up with in that 36 month? >> So in 36 months, if I did one/3, it was 47, right? >> Yes. >> 47 vehicles. So just a quick stupid math thing. I'll go stupid math. I'm sure it's stupid. Okay. Just a general thing would be three times that. So 150. >> Yeah. So that's you're not taking into account the exponential nature of this, >> right? Exactly. I knew >> proof in the pudding that humans are terrible at exponentials and in fact you're so bad you're off by like orders of magnitude. >> I purposely did that dude. >> Yes, I know. All right, [laughter] let's take a look at the next slide. This is the number of vehicles added per month. This is not the final tally. This is the number of vehicles added per month. So in the first year you're adding you're adding one, two, three, four, five, and the 12th month you're adding 10. You've added 10 that month. >> Okay. Okay, then the numbers get so jumbled there, but you can see by 36 months you're add you added 26,000 vehicles almost in that one month >> per month. I'm buying 26,000 vehicles. >> Okay. >> I'm a manufacturer now. >> Yeah. And if you go to the next page, you'll see the total. It's like 67,000. >> This is why I said Tesla's got to figure out how to how to produce one every 5 seconds because if if enough people do this, the demand's going to go through the roof. >> This is uh this is crazy. I don't think anybody could have guessed this number. >> Yeah. And this is why I didn't start with this. This is not my base assumption. Anybody would do this. Um, by the way, if you're building a fleet like this, you're going to have some serious expenses besides just parking and cleaning. >> You're going to have enough people have to build a headquarters. You're going to have to buy land. >> Yeah. >> Right. You you probably can't use 100% of the cash flow. But maybe you can find investors to finance all those other expenses and and build this massive fleet of 67,000 vehicles. >> This is why you call you often call this the golden geese. Oh, there's five more golden geese driving around out there. Uh there's n there just transport 19 out there. I saw one. You call them golden geese because it's a geese that lays golden eggs. >> Golden eggs >> that can keeps laying these golden eggs over and over and over again. What do you think the monthly cash flow is on 67,000 vehicles and almost 130 million 130 million per month per month >> cash flow after the expenses. This is gross. This is a gross number. Okay, this is before tax. But look how gross. Look at this exponential curve. Okay, you start at 1929 in the first month. After the first year, it's $52,000 a month in cash flow. After the second year, you're two and a half almost 2.6 million. And then after 36 months, you're almost 130 million. Again, this is not considering the other cost you're going to have. If you're building a fleet of this size in a business this large, you're going to have some serious other cost of building the team of people and the infrastructure you need to support this. Okay. So, this is purely hypothetical. Don't don't find with me. This was not my going in assumption. >> Yeah. It's like the chances that Tesla will sell you 67,000 vehicles per month for you. [laughter] >> Yeah. >> And and and at that point, if I'm living in um you know, Pacific Northwest, >> do you see why Elon worries about having enough chips? Do you see why Elon thinks about building a terapab? And we haven't even talked about robots yet. Well, we are talking about robots, robots with wheels. We're not talking about Optimus here yet >> because Optimus theoretically should make way more than uh than a robo taxi autonomous driving per mile thing. >> And maybe ultimately the cost of an Optimus is similar to the cost of a cyber cab. So maybe the numbers are very similar. >> I think so. But they'll make more per ride. >> I think so. Yeah. at least in the early years >> because we we we've already banded out the numbers before and used like a 100,000 per year is pretty conservative now and like you said the early years because eventually there'll be so many of them that you can't charge that high for the factory work that we're talking about but by by that point there should be other kinds of jobs that people are willing to pay much higher for surgeons things like that but uh but uh this one is 30,000 per year at the base >> and and by the way just to remind everybody that we used uh a$140 a mile. That's not where the market is right now. So, actually, if you have a higher revenue in the early years, you're going to accelerate your ability to buy cyber cabs early on. >> Yeah. >> Right now, maybe 3 years from now, maybe the market's at a$140 average. So, maybe that number's good for that point in time, but it's not good for earlier points in time, making these numbers conservative. That's what's nutty about this. Yeah, Herbert, if you bring up the next chart again, we were looking at the 30% scenario and I remind everybody that there's other utilization scenarios where the numbers are far higher. Okay, so if you think what we just shared with you is crazy, well, this is at I think the low end on that far left column. >> Isn't that crazy? And then you know we we've talked about this many times but um when when Tesla the the the argument would be that well you know great it's 30% I get that uh you can get 50% but it's unlikely you can get 65% because there'll be so many cyber caps out there because if you add up everybody's out there it'll be but actually the reality is that this is going way beyond right this is going to take over um other markets because the price goes down that they will take over passenger owner uh vehicle ownership altogether. So all of a sudden many people won't buy that second car anymore and people will choose to get a right autonomous driven vehicle to take you from one place to another place as opposed to driving a car or buying your own car having your own car. So that opens up the market like tenfold. >> So let's look at that scenario on the next page. >> Oh okay. >> Okay. Now, we have the same assumptions, but we're driving down the fair price to 50 cents instead of a$140. >> Okay? Everything else is the same. Uh, ignore the the 100% reinvested. That doesn't factor into this right now. But what I changed on this page was the $140 to 50. Let's look at the unit economics of that now per the model. Well, in that case, if nothing else changes, you actually have negative gross profit. So we reached a point here where if you were that cyber cab owner, you're not making any money anymore. Okay. So what what can we do? What what can happen? Right. So one of the things that we can look at well before we go there, what's clear to me is that this business is a scale business. So, if you have enough scale and you can drive your parking charges from $6,000 a car down to two, suddenly you have a nice gross profit. If you can have your own solar or way to generate um power the vehicles, charge the vehicles at less than 35 cents a kilowatt hour. If you can get, you know, commercial rates, so let's say 15 cents an hour or whatever it might be, and drive that $5,000 cost down, then suddenly you have plenty of gross profit. If you can find ways to reduce your cleaning cost, if you can find ways to reduce your tire cost, like all those things are going to matter. This this is going to be a cents per mile kind of a business. And one cent per mile savings is going to be huge. So I think in the early years this is an incredible opportunity if Tesla does allow people to buy these cyber cabs as individuals. You have an opportunity to frontr run what ultimately is going to be a scale business. The biggest players are going to win in this market. You've got to get to scale to drive these costs down. I don't know what point that's going to matter, but I'm showing you here if we get to 50 cents and those other things don't change, you're no longer making any money. So, if you're thinking about investing in a cyber cab, unless you have plans to scale it, if Tesla allows you to, then your ownership of the cyber cab and that money-making opportunity could be diminished over time. Again, we didn't factor in though the other sources of revenue here. And that that may be also kind of the negative thing is that maybe this number would be positive on the gross profit side if we factored in advertising and distributed inference and all that. So, maybe it wouldn't be so terrible. But I I do foresee a time when I think this this is going to be a scale business just like the rental car business is today. If you're not at scale in the rental car business, you're not making any money. And unless you've got a niche, unless you're renting out Lamborghinis at a you know a resort location or something, right? Um so I think that that kind of development is coming for this business as well in the long run. >> But I do think we have a nice near-term opportunity if Tesla allows it. >> Okay. Right. Now, the other thing though, and there's some other variables here, is Tesla can adjust what they take. So, even in this scenario where it's 50, let's look at what I call the fairness chart. Tesla's actually making quite a bit of money here and you're not. So, all Tesla needs to do is reduce their take rate. And so instead of them making, you know, uh $12,000 at the 30% number and you losing money, they could lower their take rate and maybe you'd each make, you know, $8,000 in that scenario. So it's not it's not like, you know, you're stuck. It's like, oh my gosh, 50 cents a mile, this is history. No, there's actually some levers that can be pulled. You reduce your cost by scaling. Tesla adjusts their take rate. You layer on additional revenue sources. Okay. Um, the next one is an example, Herbert, if you're able to reduce your charging cost from the 35 down to 15 cents. Uh, the second from the bottom, charging costs, cents per kilowatt hour, now 15 instead of 35. Let's look at see what that does, holding everything else equal. Well, now you're making $4,000 a year. Again, previously you were losing in this scenario. So again, it shows you if you can contain costs and keep them down, reduce the costs, that's a way to maintain profitability. So I wanted just to explore some of those different things, right? There's there's different factors here, different levers that that Tesla can pull, that the fleet owners can pull uh over time that that should that should benefit this. The next page, >> sorry, go ahead. Yeah, I just I I don't know when to talk about this, but I think it's important, which is here is Tesla's uh you know product that they're offering to the market, the Cyber Cab plus the Model Y, mostly Cybercap for because 80 90 plus% of all rises, one or two, and they want to reduce the cost. My point being that if they can reduce the cost, what about competitors? You know, people talk about Uber, they talk about all of these other it would become a commodity to have autonomous driving. Okay, Whimo, wave figures out. Every single automaker starts creating autonomous vehicles. But the the if you can bring down your cost, then you can outpric them. if you outpric them and you have so many of them that [clears throat] I just don't understand how how this is going to fall apart like you know the vast majority will be still Tesla and if Tesla can find other ways to make money like specifically the when it's parked it's still making money then that's game over at this point. Yeah. And I actually if you go to the to the last slide, I think that that'll probably show it pretty well. >> I see it. Y >> right. So if if you can find ways of making money with the vehicles when they're not taking people around. >> Mhm. [clears throat] >> And that's that green uh well that case delivery services >> [clears throat] >> um and delivery is nice because maybe the the peak hours of delivery are can be offset with the peak hours of moving people. Uh so that's one big component that kind of flattens this curve. Um, and of course it's distributed inference and other things. So I think that we're just scratching the surface here in terms of what could be possible to use this platform for. >> And I think like a lot of platforms, it's hard in advance to really know what how it's going to shake out other than they're building this very flexible autonomous platform that'll be, you know, extremely useful, extremely valuable. On the issue of, you know, how does Uber compete? Well, they have to get their cost down to where Tesla is. And so how do you do that? Well, you got to build a $25,000 car. You've got to be able to have the infrastructure and the scale to drive down your charging cost, to drive down your maintenance cost, to drive down your cleaning cost, to drive down tires, all those things are going to be measured in cents, cents per mile. And so, right now with the ride share market being, you know, $2 to $4 a mile and even higher, you can get away with being expensive because it's an expensive market. It costs a lot. But as I showed here, once Tesla's at 50 cents, there is nothing left for Uber at that point unless they can drive. >> That's a price point, right? That's a price point. If at some point Tesla charges 50 cents a mile, which Elon kind of kind of said that some future he sees that same price as it takes you to take a bus is his goal. >> That's right. And so who can compete with that? And Tesla, I think, is working on addressing every single component of that of those of all those costs that I mapped out. >> Robotic cleaning. >> Who else has the charging network? Okay. Well, it's open. So, okay. So, everybody benefits from that. Great. Robotic cleaners, manufacturing cars. How is Uber or Whimo going to compete with Tesla on that front? Are they building their own cars and their own factories? No. So, they're going to have to pay a profit margin to an OEM to do that. So, right there, they're at a massive disadvantage. So long long term, how can they compete? I I don't see I don't see how they can. The Chinese, sure. >> Other [clears throat] than that, can Hyundai compete? Maybe. I don't know. We haven't seen them participate in this yet. Can European automakers compete? Not seeing any signs of any desire to. Um, it's it's kind of crazy and it's going to be hard for somebody to catch up once Tesla starts to really ramp up the scale. It'd be like starting a new uh car rental company today. Like good luck. You're going to have to suffer through years and years of losses for for what benefit? Same same challenge here, I think. >> And you're always chasing because every future year adds up allows Tesla to scale more, to reduce prices more, to um improve their manufacturing process, use AI. And if you go back to that left chart again, by the way, Tesla's building a product in Optimus that will allow for those green bars in that last chart to become reality. >> Oh, delivery services, >> right? >> The robot can ride in the car. The the Optimus clearly fits in the car. Um, and I think we'll probably see evidence of that very soon. So, so you're what you're saying here is that uh during the downtime when there's no there's few people to pick up humans to drive around uh maybe let's say midnight during the night hours the the subcaps will pick up a an Optimus and pick up packages in a back. The Optimus is driven to a home. They pull out the back. It's designed specifically for lots of packages by the way. It's a you know that's why they design it that way versus Whimo. How do they do it? because their cars are regular cars. They have a, you know, enough for two suitcases in the back there. Maybe they fold down the chairs, but it's not ideal because those are not designed for transport of commercial. >> And why are packages today largely delivered during the daytime? >> Well, because humans do it. >> Yeah. >> Most people don't want to work overnight. Now, some Amazon packages are delivered in, you know, early in the morning. like there's some people that that out there delivering, but why not with Optimus? Why don't you deliver all the packages overnight? >> So now you've got downtime where all the vehicles, even at 65%, they're all parked at some point during the night. Some of them are charging, but you don't need to be charging that long. So why not deliver all the packages overnight? And you you can see then that you know what that does from a revenue standpoint. Again, these are just just guesses, but it could significantly improve the profitability of of robo taxiing, >> which is the driver for your price point. If you if if Tesla decides to offer 50 cents per mile because they have all these other revenue streams, by the way, you're probably making more on a delivery >> uh fee fee. >> Uh what happens to competitors? How do they do 50 cents a mile if they don't do delivery? If they don't do distributed inference in inference, if they don't have the scale, if they don't have automated uh cleaning, if they don't have supercharging, they have to pay extra. Then they have to pay Uber an extra fee for the platform, the AI, the app platform. >> These advertising numbers they have on here, I don't think are the right numbers either. I think it could be considerably higher. >> How what do you think? Like as in I'm in the car. I I've got I'm watching a movie. There's going to be advertisement somewhere there. I don't think that that is going to be Tesla's priority. Maybe not. >> It's not that lucrative. >> What they could do this and I think this is really interesting is you can say, "Okay, do you want advertising?" No. Then the fair is this. If you want to be I don't they're not going to do that. You know why? Because I think that they're going to focus on experience, right? It's got to be top-notch experience. What they will do, I think, is transaction fees. You want to go to McDonald's, you want to buy something, you want to go to Starbucks, you want to buy something, you just say the words to Grock. Uh and then the Grock says, "Okay." And then when they they will get a cut, Tesla will get a cut. you will the owner will get a cut for every time the passenger does some sort of transaction. >> I hear you. Um what I'm trying to say though is for a certain segment of the population where you know paying 50 cents a mile may still be a lot, right? They're used to riding the bus or the train at some point down the road at scale you could offer to them basically you can ride the robo taxi for free but you're going to be subjected to advertising the entire time. [laughter] >> Right? That that's that's the trade-off that they could make. I don't think that's a near-term thing. I'm just saying that at scale once we've got robo taxis everywhere to make this available to everybody at any price point. >> Why [snorts] not? >> All right. I guess so possible. I mean that is what happening today, right? Buses have advertisements uh all over the place because that sub uh >> subsidizes the cost of the delivery of the service uh allows it to happen. So yeah. Okay. >> And you know what? When you're watching adver advertising that you are actually interested in, it's not so bad. The worst kind of advertising is things that you just have no interest in. And Tesla would have the ability through their app to know who their customers are. >> Your customers could probably tell them, "Hey, I'm interested in X, Y, and Z. >> Show me those ads." >> Shopping, right? Yeah. Yeah. I mean, what a perfect time. >> That's even better for them because now they've got ads being presented to people that actually want to see them and that makes it even more valuable. So, this is actually, I think, an amazing long-term opportunity. >> Yeah. Okay. I like it. Entertainment, I think, is huge. I mean uh you know how big is Netflix today? Well Tesla if you have this many vehicles and then it's you're capturing a person right cuz normally drive uh somebody did a calculation the time somebody's in a car it's like third place isn't it like the amount of time somebody spends in the car versus sleep versus uh you know work during the daytime. >> Yeah. >> Work and home is significant. And so that's why Apple wanted to build a car. That's why they all feel like they need to get into the car business. I think a lot of people are going to take cyber cab rides just just to have some peace and quiet [laughter] just to be somewhere that they can sleep, read, play games, you know, [clears throat] it's not even for the purpose of going anywhere. >> Where else can you find that kind of sanctuary in in a big city sometimes? >> Kind of kind of interesting. >> You have two more slides we haven't covered. Do you want to cover them or are they old? Yeah, this is one if you started out with uh $50,000 instead of uh instead of six. Um so even in that scenario where the the 50 cents a mile um because you're starting out with more vehicles initially, you you still get to build the fleet and you can still build a decentsized fleet and still have a economically profitable business. >> Okay. Even at 50 cents. Y >> yeah. >> Okay. And >> now in this case though, you can see that it's kind of on the fairness chart a little unfair. you're not making nearly as much as Tesla. So I think there could be a take rate adjustment in this model to make it even more more attractive. Can you answer the question CERN where people I ask this all the time CERN it's like okay if it is so lucrative like this and you can finance it anyways why does Tesla need you and me to buy the car just take most of it finance it run it yourself >> I think that Elon recognizes that they've got something that is so profound that this is going to basically take over transportation they have in this product such a lowcost vehicle that they can destroy all other forms of transportation, including vehicle ownership. And if you look at that end state, do you want to be the company that's making all the money from transportation in the world? Wouldn't that make you a massive political target? Wouldn't there be screams, rightly or wrongly, to break up this company? And so, I think Elon's getting in front of that and saying, "Okay, AI is going to be very disruptive, and we're seeing certainly with Uber drivers, it's going to put all them out of business. Why not give people an ability to earn income? >> Why not make them partners in this so that when and if those times come when the government comes calling and says you're too big, you can say, you know what, we've got a million people earning money on this. It's not just us. We've built this ecosystem where millions of people benefit from owning these cyber cabs. Why not do that? The company is going to make plenty of money on robo taxi. Do they really need to make every single last scent and put all the Uber drivers out of work and have all those people upset and give them no income? I think Elon's keenly aware of that risk. I think that's why they're doing it. >> That's a good answer. Um, what's your answer to how do you think Tesla will distribute this? Um, will you will I be able to buy a thousand cars, 30,000 cars myself, and will you still be able to buy it? I mean, there'll be too many people asking for it. Everybody in the world will want one if they can get one. How are they going to decide? >> There's a difference between what I think will happen versus what I think should happen. >> What I think should happen is that you give people who are clearly going to be displaced by this. Call them Uber drivers. People that drive for a living. give them first shot at buying a cyber cab and starting to build a fleet to the extent that production's constrained. Okay? Give the people that have been most affected by this today an opportunity to make a living for themselves. That to me is the ideal. And then over time you you let everybody do it. What I think is most likely to happen is Tesla's going to make this available to certain preferred people in the company, either large shareholders or people that have been buying Teslas for years. Again, nothing wrong with that. I think that's fine. Companies do it all the time. They have their best customers. They want to treat them well. There's a lot of people in the Tesla community that I'm sure have reached out to Tesla and said, "We want to build a fleet." I'm aware of many. I'm aware of a company that has orders essentially for 10,000 vehicles. There are companies that have already have plans. We know of Mr. Green in in Europe that already has a fleet purchased fleet of 5,000 Model Y's and I'm guessing Model 3s. They've been an amazing customer of Teslas over the years. They should get an opportunity to build a fleet. that's what they've been wanting to do all along ever since this was talked about. So, there's a certain fairness in that, too. I I don't have any qualms with that. So, I don't know what approach they'll take. Maybe it's a combination of both. I don't know. Um, but I do think this is likely to be a very incredible opportunity for those that are able to participate. Now, by the way, these numbers work out pretty well, too, for Model 3, Model Y, Cybertruck. It's not just the Cyber Cab. The Cyber Cab is definitely the lowest cost vehicle. It's probably the one where the economics are the most rock solid, but I think there's a lot of utility in the Cybertruck and a robo taxi network. People need to carry stuff. So, the Cybertruck should command, you know, higher price per mile to make up for the higher costs, things like that. >> Okay. You've done a great job uh presenting everything. That was brilliant. I am doing one last thing while we're talking. I went back to this photo and I'm asking AI how many cars are in this photo. It's thinking. Go ahead. You tell me what's your best guesstimate. We'll see how good of a estimator you are. >> 142. >> Damn it. [laughter] Excuse me. You're pretty for good. [gasps] Grock says 1,000 cars realistic range from 950 to 1,50. You're in the You're in the magnitude ballpark. That was what matters. [laughter] >> I didn't I didn't fail the exponential test, Herbert. >> Wow. That's great, sir. What a great show. I mean, like you say, we we don't know all sorts of things. Uh, but this is there there are the things we do know, right? Sets this up to be a potential. Now, we don't know how Tesla's going to allow you to buy 20,000 cars per month. You probably not. There's a limit to how much you can do, but this whole thing about one being able to buy one each month, that that's very possible based on how much money you're getting in. So, and then whether or not Tesla will want to allow everybody to buy a cyber cap, it sounds like that that is what they were headed towards yet on the other side, you heard the CFO at the last earnings call said that they're going to be going to the to the market to borrow money, finance it. They're going to finance the growth in CyberCap. It could mean infrastructure support, but it could also mean buying a lot that they own themselves. Uh because this is their fleet. They are the ones. And then if you just assume, let's say, they're not going to sell everyone. Not every cyber cab you see on the street is going to be owned by somebody else other than Tesla co-owned. I think 50% of it is going to be Tesla owned. And then maybe 50% of it they they let other people buy. So now if you add that revenue to Tesla, that's where things get nutty. Tesla's revenue is crazy per month, per year. This is the fastest growing business ever ever created. That's right. No, I think the outlook here for Tesla is is pretty bright. Uh we of course we have issues of timing and scale and the slope of the ramp and all that kind of thing, but there is no doubt in my mind that this product is revolutionary, not just for what it does, but also in the financial sense. >> Mhm. >> For Tesla and for the people that are able to purchase labor caps. >> I mean, if you bring it down to a certain price point, I know you've done this work. We've we've had uh Tony SA we've had um uh others on a who's who's started to work this out. But what happens when transportation cost goes down to a dollar per mile? Cities will be changed. Yes. Parking lots will be changed. Uh people where people decide to live will be changed. Where where you work uh you can basically do the work in a cyber cam. [laughter] You can have that as your office uh you know for the day. the amount of death and accidents on the streets go way down. Massive health care savings, massive insurance savings. You don't need as many lawyers and and lawsuits. All those billboards, accident injury attorney billboards, you can do away with those. Put something nicer on the roads. There's so many things that are going to change. >> Society is is changed and well, I think the the debate is whether or not you're going to see more cars and more traffic or less cars and less traffic. And that I don't know. I think Elon kind of says it might actually turn out to be more cars still like happen. >> I think it's messy because you got the combination of human-driven vehicles with these efficient autonomous vehicles and the mix of all that could be kind of messy. But at some point once you kind of get over this hump and you have fewer and fewer human-driven vehicles, it's going to be a quieter smoother transportation system. Eventually, if you had a city where apart from emergency vehicles, all if it was all autonomous, you no longer need stop signs or traffic lights, vehicles feather themselves through the intersections. So, that's that's the long-term dream. The the the path from here to there is a little bit of a messy one, unfortunately. Well, the the long-term dream that Elon has uh outlined is a boring company [clears throat] creates all sorts of pathways underneath and then you don't see cars on the street anymore. They all be reclaimed as parks and entertainment areas and you know, beautiful views, gorgeous living areas, maybe things like that. Uh and then the cars pop in from down there. You don't need the traffic that's taking up valuable land. >> Yes. And I think also before that, some cities may say, "Well, this is an autonomous only street or streets." And if you're going to drive a human-driven vehicle, you're you're restricted to these streets. So those kinds of things, too, I think we'll see. >> And and of course, you can live anywhere now. You don't need to be near the urban center. You don't need to have the highway crap that we all did here in the United States where you're >> living you have to take a highway to get somewhere traffic bumper to bumper. you you live further away now because you know if you're still required at least you can work while you're traveling so the office doesn't care so much you know because you're working because you're not physically driving anymore and you're not ex you're not tired >> it's it was funny for me this morning I went to downtown Austin to see the cyber cab and I don't ever go down to downtown Austin during rush hour and I'm so glad I don't have to because I that would be brutal for me but I had FSD in my truck drive me down and it was just a relaxing experience even though it was bumper to buff for traffic. >> Mhm. And then once you're truly unsupervised where you could actually work or you can actually uh do uh watch a movie or you can sleep then that is when it's just you know >> that's right >> wake me up when I get there or or >> you know my car my my movie is ended. Okay. >> Yep. >> Huge show. Thank you. That was eyeopening. Very surprising. the numbers do get nutty. Uh people and you chose the most conservative number. So if you're a viewer, take a look at his assumptions. As he always likes to say, make the changes yourself. He gives you the model. We don't know which one, but you at least he's laid it out the template. If he's missing something important, let us know. We didn't take this in consideration. It turns off the whole business model is complete crap. Maybe there's something there. Identify it. Let us know. But otherwise, just move the numbers around if you don't agree with something. That's why I did that. Um, thank you sir. You do great work. Thanks. >> Appreciate it. >> I've created a website that is the most comprehensive resource for the Tesla investor. Please check it out. Simply go to my website at herbert.com.

What if buying one Cybercab could eventually turn into an entire fleet? Buying a Tesla? Use this referral link and get $500 to $1K off. My daughter: https://ts.la/amanda443323 Cern Basher is a chartered financial analyst running his own investment advisory firm called BrilliantAdvice providing wealth management services. Follow Cern on X: https://x.com/CernBasher Some viewers ask where they can learn more about investing in AI, Space and Robotics. Reach out to me here: https://forms.gle/T5BgT11s1ucLQsebA NOTE: I’m not involved in offering investments and don’t provide advice. But for general informational purposes, I can share the names of independent firms people can research on their own. Become a Patreon: https://www.patreon.com/brighterwithherbert Become a YouTube Channel Member: https://www.youtube.com/channel/UC4DBLlq1x0AKmip1QJUcbXg/join Your support means alot! ❤️ My website: https://www.HerbertOng.com 15+ modules of resources for the $TSLA Investor + free TESLA Milestone Tables Let's get brighter! Website: www.herbertong.com X: @herbertong Disclaimer: All content on this channel is for discussion and illustrative purposes only and should not be construed as professional financial advice or recommendation to buy or sell any securities. All views expressed are personal opinion as of date of recording and are subject to change without responsibility to update views. No guarantee is given regarding the accuracy of information on this channel. Neither host or guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered. Author is invested in multiple Humanoid companies and is long TSLA and other stocks at time of original video publish date. #Tesla #ElonMusk #TeslaNews #investing #teslabot #technology #AI #TeslaFSD #teslastockanalysis #TeslaUpdate #ElonMuskNews #EV #FSD #TSLA #robotaxi #autonomousdriving #TeslaStock Merch: $TSLA Black Hat: https://tinyurl.com/yc5fe3fz $TSLA White Hat: https://tinyurl.com/bdd9v96m