THE COMPANY WHO SAID, THEY ARE STILL WORKING ON THIS, ROBOTAXI IS GOING TO BE GETTING MORE ATTENTION, BUT WE ARE NOT DONE COMING OUT WITH LOWER-PRICED MODELS. >> ALL RIGHT. GREAT FEAR -- CLARIFICATION, SO, THANKS. LET'S TALK WITH STEVE WESLEY OF THE WESLEY GROUP, ALSO A FORMER TESLA BOARD MEMBER. WELCOME, BOTH OF YOU. STEVE, I AM TRYING TO FIGURE HOW HOW YOU GET OUT OF A -- IF YOU ARE TESLA, YOU GET OUT OF A PRICE COMPETITION, CHEAPER, CHINESE EV SITUATION, THROUGH PRICE CUTS, AND A CHEAPER CAR THAT HAS ASPECTS OF THE CURRENT PLATFORM. WHAT IS THE OPTIMISTIC SCENARIO HERE, STEVE, THAT YOU SEE? >> WELL, YOU HAVE GOT TO GET A $25,000 CAR TO MARKET. LET'S BE HONEST, THIS WAS A TERRIBLE QUARTER. YEAR OVER YEAR DECLINE IN QUARTER ONE SALES, POOR CYBERTRUCK NUMBERS, INCREASING COMPETITION FOR HYUNDAI, KIA, 49% DEPARTING -- DECLINE IN SHARE PRICE. ON TOP OF THIS, ELON MUSK IS PUTTING A HUGE PRESSURE ON THE AUGUST 8th ROBOTAXI EVENT. ANY LESS THAN EARTH SHATTERING NEWS AND NO $25,000 CAR, COULD TRIGGER A SALE OFF. RIGHT NOW, TESLA NEEDS TO FOCUS AND THEY NEED TO GET DATES FOR BRINGING THAT NEW $25,000 CAR TO MARKET. IF THEY DO THAT, THERE IS A SILVER LINING OUT THERE FOR THEM. >> YOUR PRICE TARGET ON TESLA IS MORE THAN 10 X UP FROM HERE. SO, WHAT IS IT THAT CONVINCES INVESTORS IN THIS SITUATION, THAT TESLA IS WORTH THAT? >> WELL, LET'S TALK ABOUT EARTH SHATTERING. I CAN'T THINK OF ANYTHING MORE EARTH SHATTERING THAN A CAR THAT DRIVES ITSELF. AND I THINK THAT IS EXACTLY WHAT PEOPLE SHOULD BE FOCUSED ON. SO, YES, OUR PREVIOUSLY PUBLISHED PRICE TARGET WAS $2000 PER SHARE BY 2027. WE ARE UPDATING THAT NOW, SO LOOK AT THAT RESEARCH. TWO THIRDS OF THE ENTERPRISE VALUE IN THAT YEAR COULD BE ATTRIBUTABLE TO THE ROBOTAXI NETWORK. TO IGNORE THIS, IS CRAZY, IN MY MIND. I THINK THIS TESLA WILL BE ONE OF THE GREATEST AI COMPANIES OF OUR GENERATION. BECAUSE OF THIS, WHAT IS IMPORTANT NOW, AS WE ARE HEARING THEY ARE INVESTING IN COMPUTE, AND COMPUTE RESEARCHES 130% FOR THE QUARTER. THEY CONTINUE TO INVEST IN COMPUTE. WE WANT THEM TO DO THAT BECAUSE THE WAY THEY HAVE TUNED THE FULL SELF DRIVING NEURAL NET ARCHITECTURE IS SUCH THAT HEY HAVE THIS AMAZING DATA SET, MILLIONS OF CARS ON THE ROAD, BUT 2 MILLION DRIVING MILES ON THE ROAD TO TRAIN FROM, AND BEFORE THEY WERE COMPUTE CONSTRAINED BUT THAT IS NOT THE CASE ANYMORE. BASICALLY, NEW PROBLEMS ARISE AND THEN YOU COMPUTE TO SOLVE IT, AND NOW THEY HAVE THAT OR AT LEAST HAVE LINE OF SIGHT TO HAVING THAT. I THINK THAT IS HUGE, SO I AM SUPER EXCITED FOR THE ROBOTAXI EVENT LATER THIS YEAR. >> STEVE, TO EVEN GET -- LET'S PUT THE REGULATORY APPROVALS THAT WILL BE NECESSARY ASIDE FOR A MOMENT. SO, TO EVEN GET TO TRUE AUTONOMOUS DRIVING AND THE REALIZATION OF THIS ON A MASSIVE SCALE IN A WAY THAT IS POTENTIALLY FINANCIALLY MEANINGFUL FOR TESLA, HOW MUCH HINGES ON THE FACT THAT YOU NEED A LOWER-PRICED CAR, YOU NEED SCALE, MORE VEHICLES ON THE ROAD, TO FULLY DEPLOY FULL SELF DRIVING AND TO FULLY REALIZE SOFTWARE AND SERVICES? >> YOU AND WHAT PHIL JUST SAID IS EXACTLY RIGHT. ROBOTAXI'S WILL BE THE BIGGEST DEAL IN THE WORLD, BUT THAT IS FIVE, 10, 12 YEARS OUT, THAT IS JUST ASPIRATIONAL THOUGHT. TESLA HAS TO FIGURE OUT WHAT THEY ARE DOING THE NEXT THREE YEARS AND THE SHORT ANSWER TO THAT IS THAT $25,000 CAR. FOR TESLA, FULL SELF DRIVING, IT IS EXTRAORDINARY AND TESLA AND WAY MORE OF THE LEADERS, LET'S GIVE THEM CREDIT. BUT, THEY ARE AT MAYBE 98%, 99%. BEFORE YOU HAVE FULL SELF DRIVING ROAD TAXES, YOU HAVE TO BE AT 99.999%. THAT IS YEARS OUT. TESLA HAS TO FILL THAT GAP. THERE IS A SILVER LINING HERE. LOOK, THEY STILL CONTROL 51% OF THE EV MARKET IN THE UNITED STATES, MORE THAN ALL OTHER COMPANIES COMBINED. THEY ARE DOMINANT IN EUROPE, THEY HAVE WORK TO DO IN CHINA, THAT IS WHY THEY ARE BRINGING PRICES DOWN. THEY CONTROL THE CHARGING NETWORK, LARGELY, IN BOTH AMERICA AND EUROPE. ALL OTHER AUTOMAKERS ARE GRAVITATING TO USE TESLA'S NETWORK AND I DO NOT THINK TESLA WILL BE BASHFUL ABOUT RAISING THE PRICES THERE, AND THEIR ENERGY DIVISION IS GOING TO GET RECORD. $6 BILLION LAST YEAR, SHOULD BE $10 BILLION FOR THE NEXT COUPLE OF YEARS. AND THERE IS A LOT OF TALK ABOUT THEIR NEW OUT OF BOX
