Tyler Crowe

Tesla expects to invest $2 billion in Elon Musk's private XAI, their AI startup.

And it announced it would discontinue production of its S and X models so it can repurpose its Fremont plant for building Optimus robots.

Guys, I feel like I read a 10-K just listening to the transcript and trying to get through all of this.

It's been huge moves and a lot of announcements from Tesla.

I see it as two ways of looking at it.

Either one, Tesla is pushing all of its chips into the autonomy, robot, and AI table.

damn the torpedoes, we're going this way.

Or two, these ambitious announcements might be papering over the fact that its auto business is a little bit in decline and its financials are not what they were.

Now, of those two camps, which one are you in?

Or is maybe there's some secret third camp that I'm missing here?

Yeah.

If you want to add to it, too, there was the Tesla Semi that was supposed to be unveiled somewhat a long time.

There's been a lot of missed deadlines here.

Here's my thought, and I'd like to get your take.

I'm probably, of the three of us, the most skeptical of the group on Tesla's ability to pull this off.

But it has about $44 billion in cash on the books, and its free cash flow is

It's there, but it's kind of dwindling.

So that kind of pegs it with $20 billion in capital expenditures.

That's like two years of investing, give or take, before these robo-taxi and robot bets really need to start paying off in a big way, in a cash flow sort of sense, unless we have to go to the market and add something to it.

Do you believe that we will see a fully realized version of either, whether it be taxis or humanoid robots, in that two-year window?