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General Discussion: 2018 Investor Roundtable

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I believe this belongs in the investor thread so right here as its a matter that helps to evaluate and assess the real value of Tesla. So far the market has disregarded the value AP can bring and its also a prerequisite for ride services which will one day likely unlock another large bucket of revenue and create a new moat as well.

About the presentation: I really enjoyed it and would have loved if he would have gone deeper. One element he did not touch on is the way how neural nets work and decide. Thats an very interesting process that differs from the old way of coding as well. No doubts this approach is way closer to how our brain works and for me has a much higher likelihood to create superior results. However its a long way to go and 11 months is nothing in that respect.

I remember a Video where a BMW Manager explained that the defined 36 scenarios where they program their system to behave right. I did ask myself how you can put the entire world of driving with an uncounted amount of scenarios into 35 and believe if you perfect them, you can cover all. Thats just not realistic from my point of view.

Do we know how others (GM, Audi ect.) are doing it?

GM/Cruise has been training their neural nets for a long time. Their underlying approach is the following:
(1) Identify all objects in sight, fixed and moving.
(2) Calculate their current trajectories, creating a model of moving things
(3) Attempt to identify what sort of things they are
(4) Attempt to extract additional information (like "That guy is giving hand signals telling me to go this way")
(5) Calculate a safe trajectory which won't hit anything (assuming everything keeps moving on the same trajectory, with some additional margin for error) and implement it.

They are using "deep learning training" for #1 and #3. I'm not quite sure how they're doing #2, but probably the same. They're probably doing the same for the specialized results they need for #4.

Humans are involved in (A) identfiying new situations which the AI needs to be trained on, (B) identifying additional information which must be extracted (like the aforementioned attempt to read hand signals), and (C) following the car around with a notepad in order to identify such situations
 
"Autobahnfest" implies hours of driving at high speeds with just minutes of stops, something which the incumbent diesel ICE does _very_ well - as in 1000 km in six hours (in my own experience).


Note they did the test with a pretty empty battery. I would love to see the same test redone with a full battery. Is consumption really only 182 Wh/km since last charge ? I Wonder how much of that was at legit autobahn speed, thats less than 300 Wh/mile.
 
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Huh? Maybe I'm missing something, but autonomous vehicles are also narrow AI.
No. They're pretty broad AI. This is the point I've been making for a very long time. The driving environment is *extremely uncontrolled* and a driving AI has to deal with all kinds of weird nonsense, like trees down across the road, sinkholes, airplanes landing on the freeway, etc. etc.

AlphaGo doesn't have to deal with the opponent surreptitiously moving pieces or knocking the game board over; that might be more comparable to a driving AI.
 
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No. They're pretty broad AI. This is the point I've been making for a very long time. The driving environment is *extremely uncontrolled* and a driving AI has to deal with all kinds of weird nonsense, like trees down across the road, sinkholes, airplanes landing on the freeway, etc. etc.

AlphaGo doesn't have to deal with the opponent surreptitiously moving pieces or knocking the game board over; that might be more comparable to a driving AI.

Sure, but narrow in the sense that the AI is still focused on a singular problem or task and not trying to approach or surpass human intelligence in a general sense.

I agree the autonomous driving problem is exponentially more complex than any game.
 
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By the way, while we're on the subject of German EVs, I hope and I pray the Model 3 P will be "autobahnfest", meaning able to cruise over extended periods at higher speeds [100+ mph] on the Autobahn. As Elon Musk stated that it'll beat its competition in every respect, I take it that includes track times, hence hopefully also superior battery pack cooling.

Battery cooling is not the issue with the Model S&X. The problem is the drive unit. Specifically the rotor, which is very hard to cool. The Model 3 doesn't use an induction motor for the rear, so it won't have any need to cool the rotor.

People that have taken Model 3s to the track have reported no thermal limiting even after several laps. (The biggest problem is that the stock brake pads just aren't up to the task, but the Model 3 P is supposed to come with better brakes.)
 
  • Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, the 10-Q is an SEC filing that must be filed quarterly with the US Securities and Exchange Commission.
Are you really that old?
Try again. If you read the Securities Exchange Act, you'll find it says nothing about 10-Qs. It's in some subsequent regulation. Do your homework!
 
so , apparently no cobalt at all needed for the next generation of the batteries.

elon just stated so on twitter. also using only 3% currently

Elon Musk on Twitter

Yeah, when you read about the *next* generation of batteries... take it with a grain of salt. Don't be surprised if they're still using some cobalt.

But the 3% cobalt now, which is best of class, is good enough to remove cobalt supply as a worry. And I'm sure they'll reduce it further.
 
“There isn’t a better element than nickel to increase energy density, and there isn’t a better element than cobalt to make the stuff stable,” says Umicore chief Marc Grynberg.

This is of course a quote from a major nickel-cobalt mining executive -- talking his book. Nothing wrong with that, but he is certainly not an expert.
 
Shorts had been planning on new shares being added through equity raises. Now they're getting shares taken away by Musk instead, and who knows how many purchases he's going to make? With the recent spike in SpaceX' value he could easily buy a billion dollars worth.

Huh. This is pure speculation, mind you... but they do say it's good to spread out your purchases when buying a lot of stock in one company...

May 7th: $10 million
June 12th: $25 million

Maybe this isn't going to be the last purchase.

If Musk starts buying $15 million every month, it would be $90 million more by the end of the year. Or if he bought $20 million each month, it would be $120 million more.

I do estimate it would require buying $4.2 billion to cause a true short squeeze, rather than a mere short-covering rally, however.
 
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Remember when he kept buying SCTY shares....
Yeah. He ended up buying out the whole company (using Tesla). He's also talked repeatedly about how he would prefer if Tesla were privately held.

Is he going to pull a Henry Ford and buy out all of his minority shareholders -- that is, us -- for cash in a personal LBO?

I'd be disappointed. :( I mean, I'd make a lot of money but I'd have to invest it somewhere else then.
 
Yeah. He ended up buying out the whole company (using Tesla). He's also talked repeatedly about how he would prefer if Tesla were privately held.

Is he going to pull a Henry Ford and buy out all of his minority shareholders -- that is, us -- for cash in a personal LBO?

I'd be disappointed. :( I mean, I'd make a lot of money but I'd have to invest it somewhere else then.

I could do some real research on leveraged buyouts, but... more fun to ask you! :) What could such a scenario potentially look like in your mind? How would it happen, what kind of prices would you see minority investors being bought out at? Would be my first rodeo....
 
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Informative, but disappointing.

'Tobler bought a roof of around 2,000 square foot, with 40 percent of installed tiles solar. That costs around $50,000 once the federal solar Investment Tax Credit is factored in, and it produces around 9.85 kilowatts of power — which Tesla told Tobler was “the biggest system we have available.”

'“My understanding is that with the Tesla solar roof, we can’t get a system bigger than this anyway,” Tobler says.

'If you were dreaming of blowing all your cash on a super-powerful solar roof, you’ll have to think again. Not that it would have been a particularly wise investment.'

I am very disappointed, since I was dreaming of blowing a huge wad of cash on a super-powerful solar roof. ;) I guess I'll just have to get conventional solar panels instead. :(

Surely Tesla should want the "As much solar as possible, money is no object" market? Hopefully they'll unveil the Solar Roof equivalent of the Roadster 2.0 soon... :D
 
I could do some real research on leveraged buyouts, but... more fun to ask you! :) What could such a scenario potentially look like in your mind? How would it happen, what kind of prices would you see minority investors being bought out at? Would be my first rodeo....
Geez, I don't know. Basically Musk would have to borrow something in excess of 60 billion dollars. (That's assuming $360 stock price and no further dilution, so it would be even more than that.) I don't even know where he'd borrow it from, so it *sounds* implausible... but...
 
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Geez, I don't know. Basically Musk would have to borrow something in excess of 60 billion dollars. (That's assuming $360 stock price and no further dilution, so it would be even more than that.) I don't even know where he'd borrow it from, so it *sounds* implausible... but...

Or get a deep pocketed buddy to back him in buying out the minority shareholders, and having a "new" Tesla that only has a half dozen or so shareholders (private!). I hear Warren's got a pile of cash and is looking for a good place to get it invested. And he does like the energy and transportation sectors....

My off-the-cuff guess is that a buyout offer is going to be closer to $800 than $400 if it were to happen this summer. Personally, I would probably still vote No to an offer of $800, but I wouldn't be surprised if enough of the minority shareholders would vote yes to an offer of $800 that I'd be selling as well.

Of course, if there WERE an offer to buy out all the shares at $800 each, the short shares would be in a world of hurt and likely be unable to escape at <$800 per share :) Which would make a buyout at $800 unlikely to work as well.
 
Geez, I don't know. Basically Musk would have to borrow something in excess of 60 billion dollars. (That's assuming $360 stock price and no further dilution, so it would be even more than that.) I don't even know where he'd borrow it from, so it *sounds* implausible... but...

Since he already owns close to 30% of the shares, doesn't he really only need to buy out enough of the common stock to equal 50%+, so potentially only ~22% of $60B ... ~$13.5B?
 
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Since he already owns close to 30% of the shares, doesn't he really only need to buy out enough of the common stock to equal 50%+, so potentially only ~22% of $60B ... ~$13.5B?

"As of May 7, 2018, Musk reportedly owned 33.6 million shares of Tesla"

The Top Tesla Shareholders

That is less than 20%. Plus a few more he recently purchased.
 
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Yes -- storage growth should be crazy fast. He said that for the next five years, each year Tesla will produce more storage than every year before that combined, which works out to almost doubling each year for the next five years. Given the demand and the compelling economics, IMO it could easily be much more than that.
To equal all prior years requires doubling every 8 months.the rest ar
The Leaf, yes. The Zoe is more questionable. 31k sold in 2017 isn't particularly great. And it doesn't have DC fast charging.

If I would give credit to anyone beyond Tesla and Nissan, BAIC is probably it, with over 80k sales. The cars aren't that great, but at least they are cheap. Alternatively, Hyundai is doing great things. The Ioniq and Kona are fairly attractive cars. Fast charging, low energy consumption, affordable pricing and surprising amounts of features (like cooled seats!). But still relatively low volume. The BMW i3 could also be mentioned, and the GM Bolt.

Renault is pretty far down my list, basically.
The rest of these are just ev’s Compliance cars for companies and consumers. Tesla’s are best is class cars, competing for 100 million in annual car sales. They might compete with Tesla, but they don’t compete against the rest of the market. This is what bears don’t get. One of the things bearsvdont get.
 
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