SHARE, NOW $160, AND AT THAT TIME, HAD IT GONE FROM 40,000 CARS A YEAR TO 600,000 CARS A YEAR AND NOW DOING 1.8 MILLION SO BUSINESS IS THREE TIMES BIGGER. >> I REMEMBER WHEN YOU SOLD A FEW YEARS AGO, YOU SOLD THAT STAKE, YOU DID IT BECAUSE YOU WERE WORRIED ABOUT THE PORTFOLIO BEING TOO HEAVILY INVESTED IN ONE PARTICULAR STOCK >> UP 20 TIMES, YES. >> UP 20 TIMES DO YOU HIT THAT POINT AGAIN? DO YOU HAVE TO TRIM MORE BECAUSE YOU NOW HAVE $3 BILLION, WHAT DID YOU SAY $4 BILLION $3 BILLION AS OF 3:31 TODAY. IT MUST BE $4 BILLION. >> IT IS AROUND -- I DON'T KNOW, IT IS AROUND $3.5 BILLION, $4 BILLION, SOMETHING LIKE THAT THE. >> IT WASN'T THAT YOU DIDN'T BELIEVE? IT WAS TOO BIG OF AN INVESTMENT? >> YES, YES. AT SOME POINT, I THINK SPACEX IS GOING TO BE -- I THINK WE'LL MAKE 20 TIMES IN SPACEX OVER THE NEXT 15 YEARS. I THINK WE'LL MAKE IT QUADRUPLE IN THE NEXT SIX OR SEVEN AND CAN IT BE TOO BIG? SURE SO I'M ALWAYS WATCHING >> JUST BECAUSE YOU'RE MANAGING OTHER PEOPLE'S MONEY. >> BUT I DO THINK THAT WE'RE GOING TO GET A LOT MORE MONEY TO MANAGE, THEREFORE IT IS GOING TO GET DILUTED DOWN BY THE NEW MONEY COMING IN. ALWAYS THINKING ABOUT HOW LARGE THE POSITION SHOULD BE, YES. >> WHAT DO YOU THINK RIGHT NOW THE STOCK CAME OUT, THE EARNINGS THIS WEEK CAME OUT, IT WAS A DISAPPOINTMENT FOR THE QUARTER IT WAS THE WORST CASH FLOW QUARTER THAT THE COMPANY HAS SEEN IN ITS HISTORY, BUT THE STOCK WAS UP 12% BECAUSE ELON STARTED TALKING ABOUT WHAT HE SEES IN THE FUTURE AND THE IDEA OF BRINGING OUT CHEAPER CARS TO GO THROUGH THESE THINGS WHERE DO YOU STAND ON THE -- WHAT THE COMPANY SHOULD BE VALUED >> I KNOW JOE IS NOT A BIG BELIEVER IN ELECTRIC CARS. HE LIKES HIS PORSCHE BUT I THINK ALL THE CARS WILL BE ELECTRIC AND I THINK THE HYBRID IS A HOLDING OFF ACTION SO AUTOMOBILE COMPANIES DON'T HAVE TO LOSE MONEY ON THE ELECTRIC CARS BUT THE ELECTRIC CARS I THINK IS GOING TO BE ALL THE CARS 10, 15 YEARS FROM NOW I THINK HYBRIDS, I KNOW YOU LOVE HYBRIDS, THAT'S NOT GOING TO LAST EITHER. THEY'RE TOO EXPENSIVE AND NOT EFFECTIVE ENOUGH AND THEY'RE NOT GOING TO BE PART OF THE MIX EITHER IT WILL BE ALL ELECTRIC. AND SO WHAT I THINK IS GOING TO HAPPEN IS THAT THE REASON THE STOCK IS DOWN IS NOT BECAUSE OF THE QUARTER. THE REASON THE STOCK IS DOWN -- >> THE STOCK IS UP BECAUSE OF THE STUFF THAT HE SAYS. >> THE STOCK IS DOWN SO MUCH. >> IT IS DOWN 35% YEAR TO DATDATE UP 1% OVER THE COURSE OF THE LAST YEAR. >> YEAH. NOT SO EXCITING TO BE UP 1% IN A YEAR WHEN EVERYTHING IS, YOU KNOW, THE MARKET IS SO STRONG. SO, YOU KNOW, I DON'T RICH AND M NOT POOR BUT I'M NOT MAKING, I HAVEN'T MADE A LOT OF PROGRESS LAST THREE YEARS LIKE A RUBBER BAND I'M GOING TO CATCH UP AGAIN. WHAT I THINK ABOUT THE REASON STOCK IS DOWN IS PEOPLE ARE CONCERNED HE WAS GOING TO ABANDON THE IDEA OF HAVING A LOW-COST CAR AND GO ALL-IN TO ROBOTAXIS. THE REASON STOCK IS DOWN AND THEN, THERE WAS A REPORT IN REUTERS THAT SAID HE'S CANCELING THIS NEW FACTORY THAT'S GOING TO MAKE ROBO CARS, MAKE LOW-COST CARS, $25,000 CARS, COMPETITION FROM CHINA ONLY ONE COMPANY IN CHINA PROFITABLE, BY THE WAY BYD. BUFFETT'S COMPANY. WA WARREN'S COMPANY M FORD LOSES, EVERYONE LOSES ON THIS IT'S INTERESTING TALKING YESTERDAY ABOUT MOTORS MOTORS IN THE CAR COST $5,000 A CAR. THAT'S WHAT NORMAL, THESE 100-YEAR-OLD KPIPS WE COMPANIES WE CAN MAKE A MOTOR FOR $1,000. >> YOU NEED A BATTERY. >> COMBUSTION CARS, STAGNANT BUSINESS BECOMES AND USED TO OPERATING THE WAY THEY'VE ALWAYS OPERATED THEY DON'T LOOK FOR NEW WAYS TO OPERATE, OPERATING, ORIENTED TOWARDS MAKING THINGS CHEAPER. HE CAN DO THINGS FOR $1,000 OTHERS COST $5,000 AMAZING. IF YOU WANT TO BE AN, A GASOLINE CAR COMPANY. I'M POINTING OUT THAT PEOPLE GET ENTRENCHED AND DO THINGS WITHOUT TRYING TO MAKE THINGS BETTER, CHEAPER, FASTER ALL THE TIME WARREN -- MUNGER SAID SHOW ME INCENTIVES I'LL SHOW YOU HOW PEOPLE ACT THAT'S THE IDEA. INCENTIVE. WHAT'S THE INCENTIVE FOR SOMEONE 55, 60 -- GOT TO GET OFF THIS. THE IDEA, THAT'S THE REASON STOCK IS DOWN. >> WHAT'S THE REASON IT'S GOING TO GO UP >> GOING TO GO UP HUGE. >> WHEN? >> NOW NOW IS THE BOTTOM. WHAT THEY'RE DOING IS GOING INTO ROBOTAXIS AND GOING TO MAKE THE LOW-COST CARS. THEY'RE MAKING THE LOW-COST CAR EXCEPT EXCESS CAPACITY MAKE 3 MILLION, MAKE IT 1 MILLION 8. EXTRA CARS, EXISTING FACILITY, NO MORE CAPITAL, NOT MAKE DIRECT CARS AS CHEAPLY AS BEFORE, EXPECTED TO. OVERALL, THEY HAVE TO DO 5 MILLION NEW CARS. >> AND ROBOTAXI QUESTION THAT IS FUTURE OF THIS COMPANY AND A LOT OF VALUE IS RELIANT ON THAT. >> UH-HUH. >> THE QUESTION, WHAT DO YOU THINK GENUINE TIMING OF A ROBOTAXI RELYING ON CAMERAS ONLY THE QUESTION, CAN YOU DO IT WITH JUST CAMERAS RELATIVE TO WHAT WAYMO AND CRUZE HAVE DONE, USING RADAR, LiDAR AND THE RIG THAT LIVES ON THOSE VEHICLES? >> WE HAVE A SMALL INVESTMENT CRUZE TO SEE WHAT THEY'RE DOING AND WAYMO, THEIR CARS ARE $250,000. >> BECAUSE OF ALL THE SENSORS AND -- >> TRYING TO TAKE COST OUT FOR US, BASICALLY, ADVANTAGE WE HAVE RIGHT NOW AT TESLA, THEY HAVE -- SOLD 6 MILLION CARS. 3.5 TO 4 MILLION ARE COLLECTING DATA DATA IS VALUABLE DOUBLING THE AMOUNT OF COMPUTE EVERY 90 DAYS. >> I DON'T DISAGREE. A TIMING QUESTION HOW QUICKLY YOU CAN ACTUALLY PUT THEM INTO THE WILD >> I WAS JUST IN CALIFORNIA. I WAS -- LAST SUNDAY IN VALE, WHAT THEY'RE DOING WITH A.I., CAPITAL SPENDING SUNDAY IN MONDAY IN SPACEX IN LAST WITH ENGINEERS, FINANCE PEOPLE. AFTERNOON WENT TO TESLA WITH THE AUTONOMOUS DRIVING PEOPLE AND ALSO THE COMPUTE PEOPLE. THEN AFTERWARDS, RON, NICE TO SEE HOW -- UNBELIEVABLE. THE FIRST 11 VERSIONS WERE, HAD TO BE DESIGNED SO THEY HAD TO CODE EVERY SINGLE THING THAT HAPPENED. >> RIGHT NOW ALL A.I. >> IMPOSSIBLE. THEREFORE WEREN'T MAKING PROGRESS TWO, THREE YEARS. AND NOW WHAT'S HAPPENED, VERSION 12, ALL OF THIS ENORMOUS AMOUNTS OF DATA, COMPUTE TO FIGURE OUT -- HUMANS CAN'T DO IT -- COMPUTE TO FIGURE EVERYTHING OUT. NOW YOU'RE ON THE VERGE WITH AUTONOMOUS DRIVING IN YOUR CAR SAID, OKAY SHOW ME. WE DO THE FEW HOURS, COUPLE, THREE HOURS. BEFORE I GO BACK TO NEW YORK I SAY, OKAY. I WANT TO SEE HOW IT WORKS GO INTO A PARKING LOT GET INTO THE CAR AND I HAVE AN ANALYST WITH ME AND THEN THEY HAD THE COMPUTE PERSON AND THEY HAD AL, YOU KNOW, INVESTOR PERSON. SITTING IN THE CAR WHERE YOU WANT TO GO I WANT TO THE SEE STEVE JOBS' HOUSE. OKAY PUNCH IN THE ADDRESS GET INTO THE CAR CAR DRIVES AROUND. BY ITSELF. ALL WE DID PUNCH IT IN DRIVE AROUND IN THE PARKING LOT. GOES TO THE ROAD TRAFFIC GOING BOTH WAYS. IT LOOKS BOTH WAY LOOKING FOR ENTRY TO GET IN. GETS AN ENTRY. PULLS IN, MAKES LEFT-HAND TURN DRIVES RIGHT BEHIND CARS IN FRONT OF US. STOP SIGN. CAR STOPS, GOES. SECOND CAR STOPS, GOES PULL UP TO THE STOP SIGN CAR LOOKS BOTH DIRECTIONS, MAKE AS RIGHT-HAND TURN JUST DRIVES. ALL OF A SUDDEN IT'S A PEDESTRIAN CROSSING THE STREET THE CAR STOPS TO LET THE PEDESTRIAN CROSS THE STREET. THE PEDESTRIAN, I DON'T KNOW IF I WAS SET UP IN THIS PEDESTRIAN WAVES AND THEN THE CAR STARTS GOING AGAIN THEN IT PULLS UP AND MAKE AS LEFT-HAND TURN AND THEN GOES IN FRONT OF STEVE JOBS' HOUSE A NICE HOUSE JUST A HOUSE, THOUGH I WAS EXPECTING "A HOUSE!" A HOUSE. STOPPED IN FRONT OF THE HOUSE. THAT HOUSE AND -- HE DOESN'T WIFE DOES. HOUSE NEXT DOOR AND THEN LOOKS LIKE THREE QUARTERS ACRE FOR A SALE NEXT DOOR FOR $15 MILLION AND WE GO BACK DROVE ALL BY ITSELF. ALL BY -- >> TAKE ME TO STEVE JOBS' HOUSE. >> ALL BY ITSELF WHAT'S GOING TO HAPPEN IS THAT I THOUGHT THE IDEA HAD BEEN THAT YOU ARE GOING TO SELL A LOT OF CARS SO AS A RESULT OF THAT ONCE THEY HAVE THOSE CARS THERE YOU'LL SELL AUTONOMOUS DRIVING HE SAID THE OTHER DAY NEGOTIATING TO SELL AUTONOMOUS DRIVING FOR SOME OTHER CARS, TOO. NO ONE HAS A COMPUTE, NO ONE HAS THE DATA. >> THAT'S THE LONG-TERM THING. TESLA IS EVERYWHERE. >> IF MAKING CARS. MAKE $7,000 IN PROFIT A CAR SELLING $35,000 MINUS THE
