For growth in $TSLA, consider …
There is a lot of Tesla FSD news out there. One story is that FSD might be a game changer and may be the catalyst for a higher stock price. This could be true, but based on my personal experience, FSD is a very tuff nut to crack and it could be a long time happening. Regulatory changes may be needed. Insurance companies may have their say. Perhaps a very slow uptake.
BUT, for stock growth potential, consider the Tesla Optimus.
Themes: Tesla is a constant optimizing machine. The cars, the software, the factories. Tesla is also as vertically integrated as possible. For Optimus, Tesla manufacturers in house all Optimus parts, minimizing cost and dramatically reducing the speed of designing and implementing improvements Tesla is a leader in AI software (primarily for cracking the FSD challenge). Optimus will rely heavily on AI and FSD training, especially for mobility which will be a core need for Optimus. Again, access to in-house software and in real time improvement is a massive benefit. Regulatory and insurance obstacles - none.
Robotics is already deployed in a substantial portion of car construction. Like those big arms that dip the big parts in paint and that sort of thing. And Tesla, has made great improvements there. Consider the giga-presses which have many advantages which contribute to lower overall construction steps and therefore costs. You may notice many other car manufacturers are trying to employ giga-presses. Tesla led the way and the others are now following. A common theme.
But the Optimus robot is different. With the human form, Optimus can begin to take on many more of the assembly steps. In fact automotive assembly is intended to be the initial proving ground for the robot. Later phases include selling Optimus for the rest of the world for various uses. A topic for another day.
Consider the deployment of Optimus in a Tesla factory and the financial impact.
Optimus:
- can never get tired
- does not need coffee breaks
- can be programmed to do “every” job in the factory (or will be re-programmed in a few minutes with OTA updates as required)
- can, probably with battery swaps (or inductive flooring), operate 24 hours per day, 365 days per year.
- might be able to repair itself
- does not require:
- a salary
- employment insurance
- pension payments
- vacation pay
- a cafeteria
- parking
- Christmas Parties
- health care insurance and other benefits
- sick time
- union payments (and it cannot be unionized and hold strikes)
- admin human resources staff to manage salaries, pensions and other benefits
- legal staff (which are required as needed for human employee legal challenges)
- washrooms / toilettes and sinks (water usage will decline)
- For some shifts, the building heat / cooling may not be required.
And there is more.
For the last few years, the Tesla Model Y has looked the same, but there has been constant improvements “under the hood.” Notable is the reduction (and I think standardization) of fasteners, saving time, effort and cost now, but certainly paving the way for Optimus assembly. This is following Elon’s philosophy “that the best part is no part.” Assembling much of a Tesla model Y is now like a simple LEGO project. See article at the end of this missive.
Elon has recently said two Optimus will be deployed in a factory sometime this year. A test case from which to learn, modify and perfect. The Tesla way.
A History of Winning.
If it is not convincing that Tesla will again, be years ahead of the competition, consider that when Tesla made the Roadster, Model S, 3 and Y, the other car manufacturers were already making cars and initially, much better constructed cars. In a decade Tesla made a better product and made no commercials, Teslas sell by word of mouth and reputation and the result ? Tesla Model Y was the best selling car in the world in 2023 (https://www.jato.com/resources/media-and-press-releases/tesla-model-y-worlds-best-selling-car-2023?fbclid=IwZXh0bgNhZW0CMTEAAR0aS0GbfGQPHvgm02biH1Afpqv_FahOuLFihTBiPAX_9FgvFDv3eXSDk1E_aem_iMMCA98_mLuiYbWJdLII0A).
Both Tesla and the others were making cars but it was Tesla that excelled.
Finally consider who is doing what:
Name “any” car manufacturer, other than Tesla, that has a mission (or is rumoured) to create anything like Optimus to work in the assembly area. (ohh, and is already doing the homework to pair it with ultra-efficient robot-ready car assembly
PS. As I finished off polishing thus article, Morgan Stanley put this out (https://ca.investing.com/news/stock-market-news/teslas-humanoid-opportunity-is-bigger-than-autonomous-cars--morgan-stanley-3478146). We see the potential with the same OPTIMism.
Assembly article
There is a lot of Tesla FSD news out there. One story is that FSD might be a game changer and may be the catalyst for a higher stock price. This could be true, but based on my personal experience, FSD is a very tuff nut to crack and it could be a long time happening. Regulatory changes may be needed. Insurance companies may have their say. Perhaps a very slow uptake.
BUT, for stock growth potential, consider the Tesla Optimus.
Themes: Tesla is a constant optimizing machine. The cars, the software, the factories. Tesla is also as vertically integrated as possible. For Optimus, Tesla manufacturers in house all Optimus parts, minimizing cost and dramatically reducing the speed of designing and implementing improvements Tesla is a leader in AI software (primarily for cracking the FSD challenge). Optimus will rely heavily on AI and FSD training, especially for mobility which will be a core need for Optimus. Again, access to in-house software and in real time improvement is a massive benefit. Regulatory and insurance obstacles - none.
Robotics is already deployed in a substantial portion of car construction. Like those big arms that dip the big parts in paint and that sort of thing. And Tesla, has made great improvements there. Consider the giga-presses which have many advantages which contribute to lower overall construction steps and therefore costs. You may notice many other car manufacturers are trying to employ giga-presses. Tesla led the way and the others are now following. A common theme.
But the Optimus robot is different. With the human form, Optimus can begin to take on many more of the assembly steps. In fact automotive assembly is intended to be the initial proving ground for the robot. Later phases include selling Optimus for the rest of the world for various uses. A topic for another day.
Consider the deployment of Optimus in a Tesla factory and the financial impact.
Optimus:
- can never get tired
- does not need coffee breaks
- can be programmed to do “every” job in the factory (or will be re-programmed in a few minutes with OTA updates as required)
- can, probably with battery swaps (or inductive flooring), operate 24 hours per day, 365 days per year.
- might be able to repair itself
- does not require:
- a salary
- employment insurance
- pension payments
- vacation pay
- a cafeteria
- parking
- Christmas Parties
- health care insurance and other benefits
- sick time
- union payments (and it cannot be unionized and hold strikes)
- admin human resources staff to manage salaries, pensions and other benefits
- legal staff (which are required as needed for human employee legal challenges)
- washrooms / toilettes and sinks (water usage will decline)
- For some shifts, the building heat / cooling may not be required.
And there is more.
For the last few years, the Tesla Model Y has looked the same, but there has been constant improvements “under the hood.” Notable is the reduction (and I think standardization) of fasteners, saving time, effort and cost now, but certainly paving the way for Optimus assembly. This is following Elon’s philosophy “that the best part is no part.” Assembling much of a Tesla model Y is now like a simple LEGO project. See article at the end of this missive.
Elon has recently said two Optimus will be deployed in a factory sometime this year. A test case from which to learn, modify and perfect. The Tesla way.
A History of Winning.
If it is not convincing that Tesla will again, be years ahead of the competition, consider that when Tesla made the Roadster, Model S, 3 and Y, the other car manufacturers were already making cars and initially, much better constructed cars. In a decade Tesla made a better product and made no commercials, Teslas sell by word of mouth and reputation and the result ? Tesla Model Y was the best selling car in the world in 2023 (https://www.jato.com/resources/media-and-press-releases/tesla-model-y-worlds-best-selling-car-2023?fbclid=IwZXh0bgNhZW0CMTEAAR0aS0GbfGQPHvgm02biH1Afpqv_FahOuLFihTBiPAX_9FgvFDv3eXSDk1E_aem_iMMCA98_mLuiYbWJdLII0A).
Both Tesla and the others were making cars but it was Tesla that excelled.
Finally consider who is doing what:
Name “any” car manufacturer, other than Tesla, that has a mission (or is rumoured) to create anything like Optimus to work in the assembly area. (ohh, and is already doing the homework to pair it with ultra-efficient robot-ready car assembly
PS. As I finished off polishing thus article, Morgan Stanley put this out (https://ca.investing.com/news/stock-market-news/teslas-humanoid-opportunity-is-bigger-than-autonomous-cars--morgan-stanley-3478146). We see the potential with the same OPTIMism.
Assembly article
