Elon Musk is trying highlight the value that robotaxis could bring, says RBC Capital's Tom Narayan

THE EV MAKER FILED TO SEAL THE TERMS FROM THE PUBLIC INCLUDING COMPENSATION FEES PAID TO THE FAMILY. TESLA WILL AVOID A TRIAL AROUND THE TECH NATIONALNOLOGY AHEAD O ROBOTAXI LAUNCH IN AUGUST. AND MARTIN EBERHART SAID HE IS AMAZING IN HIS WORDS THAT TESLA GETS AWAY WITH ROLLING OUT AUTONOMOUS DRIVING GIVEN THE HISTORY OF FATAL ACCIDENTS. HIS WORDS ON THIS. THE STOCK WAS UP 5% JUST ON THE IDEA THAT ROBOTAXIS ARE COMING IN AUGUST AND THAT IS SOMETHING WE WILL TALK ABOUT RIGHT NOW. JOINING US TO DISCUSS THIS IS TOM, THE GLOBAL AUTO ANALYST AT RBC CAPITAL MARKETS. TOM, THANKS FOR COMING IN TODAY. >> GOOD MORNING. >> THIS WAS BIG NEWS AS FAR AS THE MARKET WAS CONCERNED AS FAR AS THE ROBOTAXIS HAVING A DATE. >> IT IS NOT A SURPRISE FOR INVESTORS WHO ARE LONG TESLA STOCK. CERTAINLY ANALYSTS WITH BUY RATINGS ON IT. IT IS 60% OF MY VALUATION. ROBOTAXIS, AUTONOMIES, FSD TO SOME EXTENT. >> SELF DRIVING. >> ASSISTED DRIVING. ROBOTAXI IS LEVEL FOUR. DRIVES YOU COMPLETELY. >> THE IDEA THAT IT IS COMING IN AUGUST. DOES THAT HINGE ON THE VALUATION? IS THIS SOMETHING THAT YOU COULD BE A LITTLE FLEXIBLE? THAT HAS BEEN THE KNOCK BEFORE WITH THE TIMELINE IS LAID OUT AND NOT MET. DO YOU THINK THE SAME THING WITH THE VALUATION CALL? >> MY VALUATION IS BASED ON A NEW TARGET AND DISCOUNT THAT BACK AND APPLY A MULTIPLE SIMILAR TO FSD. IF IT IS AUGUST 8th OR NEXT YEAR -- ROBOTAXIS WILL NOT BE MAINSTREAM FOR A LONG WHILE. I DO SEE WHY HE'S DOING IT. HE'S TRYING TO HIGHLIGHT THE VALUE THIS COULD BRING. IT'S HUGE. >> WHEN DO YOU THINK IT COULD ROLLOUT ON THE STREETS? >> WE HAVE A ROBOTAXI SERVICE IN SAN FRANCISCO WITH WAYMO. I DON'T THINK IT IS IN SCALE ANY TIME SOON. >> THE DIFFERENCE AND I'M CURIOUS. THERE IS A VIEW AMONG THE COMMUNITY THAT THE REASON WHY THE WAYMO AND CRUISE PRODUCTS WORK IS BECAUSE THEY USE LIVE RIGHT NOW. YOU ROLL YOUR EYES. THIS IS THE WHOLE THING. IT IS A LASER POINTED IN PLACES AND THAT GIVES YOU FEEDBACK ABOUT WHAT IS AROUND YOU. ELON DECIDED HE WANTS THIS WITH CAMERAS AND WITHOUT THE RADAR. IT IS A DIFFERENT APPROACH. AS A RESULT, THERE ARE SOME PEOPLE WHO HAVE A VIEW THAT IS NOT FULLY READY FOR PRIMETIME SELF DRIVING. THAT'S THE QUESTION. MY QUESTION TO YOU IS DO YOU BELIEVE THE ROBOTAXI VERSION OF TESLA IS SOLELY ON CAMERAS OR A SHIFT IN STRT ATEGY? >> THAT IS WHAT FSD IS BASED ON. COULD HE PIVOT TOWARD USING LIGHT AR? SURE. HE CHANGED HIS MIND BEFORE ON THINGS. >> THAT IS IN TERMS OF GETTING THINGS OUT ON THE STREET. >> IT IS DEPENDING ON WHERE WE HAVE THE PRODUCTS. IS IT GEO? WE HEARD MOBILIZE WHICH IS BUILDING WITH VW AND THAT USES LIGHT AR. IT ADDS A LAYER OF REDUNDANCY. IT IS FIS NOT 100% NECESSARY. YOU HAVE TO REENGINEER CITIES TO MAKE IT WORK IN THE FUTURE. >> REENGINEER CITIES HOW? >> IMAGINE THE ROBOTAXI IN THE CHAMPS ELYSÉES. YOU HAVE IT IN LONDON WITH CERTAIN TYPES OF VEHICLES OR PEDESTRIANAREAS ARE SEPARATED. CITIES ARE GOING TO CHANGE DRAMATICALLY IN THE SEVERAL YEARS AGO DECK ADES. >> THERE HAVE BEEN PROBLEMS ALONG THE WAY AS THE FORMER CEO AND CO-FOUNDER OF TESLA STATED. YOU HAVE GM ROLLING OUT THEIR TAXIS WITH SAFETY DRIVERS NOW BECAUSE OF ACCIDENTS. GRAND SCALE, IS IT GOING TO BE SAFER EVENTUALLY? PROBABLY. YOU HAVE PEOPLE WHO CAUSE ACCIDENTS ALL THE TIME, BUT THE LIABILITY FACTOR WILL WEIGH IN ON THE MANUFACTURERS OF THE CARS. >> THAT HAS BEEN THE REAL OVERHANG OF THE DIFFICULTY. BMW SAYS AS SOON AS IT KILLS H HUMANS, WE'RE FINISHED. >> YOU STILL HAVE TO LIVE WITHIN THE LEGAL FRAMEWORK AND THE OUTRAGE OF THE FAMILY THAT LOSES SOMEONE. >> WHAT ABOUT THE OTHER PEOPLE? >> I ASKED ELON THIS QUESTION SPECIFICALLY WHICH IS WHAT IS THE POLITICALLY PALATABLE NUMBER OF PEOPLE WHO WILL DUE IN AMERICA BECAUSE OF THE COMPUTER WILL MALFUNCTION? THAT IS THE FUNDAMENTAL QUESTION. IF YOU BELIEVE 30,000 PEOPLE DIE IN A VEHICLE EVER SINGLE YEAR IN AMERICA AND I TOLD YOU 5,000 PEOPLE WOULD DIE EVERY YEAR IN AMERICA, BUT A COMPUTER WOULD DO IT BECAUSE IT MALFUNCTIONED, WOULD YOU SAY THAT IS A GOOD OUTCOME OR IS THAT ACCEPTABLE TO YOU? I DON'T KNOW. IT'S NOT CLEAR. IF YOU GOT THE NUMBER FROM 30 OR 20, I DON'T THINK THAT WOULD BE POLITICALLY PALAAPALATABLE. >> WE KNOW 94% OF ACCIDENTS ARE CAUSED BY HUMAN ERROR. THAT NUMBER WON'T GO FROM 30,000 TO 5,000. IT WILL BE SMALLER. OTHER CITIES HAPPENED WITH AVIATION. TONS OF CRASHES EARLY ON. TRAINS. OVER TIME -- >> THAT'S THE LOGICAL DR. SPOCK VIEW. LOGIC DOESN'T PREVAIL. WHEN THERE ARE DEEP POCKETS BEHIND IT, THAT'S WHAT THE LAWYERS WILL GO AFTER. FOR THE FAMILY THAT LOSES, I UNDERSTAND THE DR. SPOCK MENTALITY. THAT IS NOT HOW IT PLAYS OUT. >> WE WILL GET THERE EVENTUALLY. LOOK AT CHINA THEY ARE MOVING FULL STEAM AHEAD WITH IT. THAT'S THE

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Id: GsHP63rF_Ps

Length: 7min 7sec (427 seconds)

Published: Tue Apr 09 2024