1 00:00:00,020 --> 00:00:03,840 Josh: For the first time ever, cars are driving around a major American city with 2 00:00:03,840 --> 00:00:05,320 Josh: literally nobody inside. 3 00:00:05,680 --> 00:00:10,940 Josh: No driver, no passenger, no safety monitor, just software sensors and a steering 4 00:00:10,940 --> 00:00:12,260 Josh: wheel turning itself through the streets. 5 00:00:12,380 --> 00:00:15,040 Josh: But soon that steering wheel even is going to disappear. 6 00:00:15,340 --> 00:00:16,960 Josh: It's clear now that I think like 7 00:00:16,960 --> 00:00:20,220 Josh: autonomy isn't this abstract science fair project. It's an actual product. 8 00:00:20,440 --> 00:00:23,540 Josh: On the episode today, we're going to talk about how Tesla has been able to deploy 9 00:00:23,540 --> 00:00:26,900 Josh: these driverless tests starting in Austin, Texas, hopefully throughout the country 10 00:00:26,900 --> 00:00:29,740 Josh: very soon, and the two philosophies between the top competing companies. 11 00:00:29,740 --> 00:00:31,920 Josh: We have Waymo and Tesla, of course. 12 00:00:32,080 --> 00:00:34,400 Josh: And I think we're going to make the case that if Waymo was Uber, 13 00:00:34,820 --> 00:00:36,220 Josh: Tesla is more closer to iOS. 14 00:00:36,580 --> 00:00:40,900 Ejaaz: Josh, you've owned and have driven your Tesla for about eight years, right? 15 00:00:41,120 --> 00:00:46,800 Ejaaz: And I think for the last two years, you haven't even touched the steering wheel. Is that right? 16 00:00:46,900 --> 00:00:51,480 Josh: The progress of full self-driving has been remarkable, particularly over the 17 00:00:51,480 --> 00:00:53,240 Josh: last two years. I've had... 18 00:00:53,760 --> 00:00:56,440 Josh: These cars now with full-slope driving for eight years now. So I've seen the 19 00:00:56,440 --> 00:01:01,180 Josh: entire ramp up from very scary white knuckle driving to I feel like I could 20 00:01:01,180 --> 00:01:02,440 Josh: take a nap and it'll be totally fine. 21 00:01:02,580 --> 00:01:05,520 Josh: And the difference happened in the last two years because they switched over 22 00:01:05,520 --> 00:01:07,440 Josh: from hard-coded numbers. 23 00:01:07,460 --> 00:01:10,500 Josh: So they use like hard-coded C++ where if it saw a stop stein, 24 00:01:10,720 --> 00:01:12,240 Josh: it knew that it needed to stop. 25 00:01:12,440 --> 00:01:15,320 Josh: They switched over fully to neural nets. And that was the thing that made a 26 00:01:15,320 --> 00:01:18,640 Josh: difference. Once they switched to neural nets, the progress got unbelievable. 27 00:01:18,820 --> 00:01:21,360 Josh: And yeah, now there's, I don't even need to touch the steering wheel. 28 00:01:21,460 --> 00:01:23,700 Josh: It actually just drives me around anywhere I want to go. 29 00:01:23,800 --> 00:01:27,360 Josh: It parks in the parking lot. It backs out of the driveway. It's unbelievable. 30 00:01:27,800 --> 00:01:31,420 Ejaaz: What is like the longest journey you've done? Because you drive home like most 31 00:01:31,420 --> 00:01:32,860 Ejaaz: weekends, right? How long is that? 32 00:01:32,860 --> 00:01:36,840 Josh: Yeah, most of the time, like 50 miles, no problem. No oversights, door to door. 33 00:01:36,920 --> 00:01:40,440 Ejaaz: So it's navigating New York traffic and everything until it parks and your parents like- 34 00:01:40,440 --> 00:01:43,980 Josh: That's been the most impressive thing is the New York City navigation. 35 00:01:44,260 --> 00:01:47,160 Josh: Because it seems like everyone in New York City wants to get hit by a car. 36 00:01:47,320 --> 00:01:48,460 Josh: They're trying to get hit. 37 00:01:48,740 --> 00:01:52,400 Josh: And the fact that these cars are able to recognize that and navigate through 38 00:01:52,400 --> 00:01:54,480 Josh: all of that. And there's a lot of weird stuff that happens. 39 00:01:54,600 --> 00:01:57,120 Josh: There are cars parked in the middle of the road. There's people who are working 40 00:01:57,120 --> 00:01:58,460 Josh: on construction, giving hand signals. 41 00:01:58,600 --> 00:02:01,420 Josh: It's now capable of reading and understanding all these things and actually 42 00:02:01,420 --> 00:02:03,760 Josh: navigating through the world. And it's so impressive. 43 00:02:03,920 --> 00:02:08,000 Josh: EJS, we're going to have to, we'll have to record a video soon of us actually in a car doing a demo. 44 00:02:08,140 --> 00:02:11,560 Josh: Maybe we'll record a podcast in the car as it's driving because it really, 45 00:02:11,720 --> 00:02:14,820 Josh: it's truly remarkable. And if you haven't experienced it, it's tough to describe, 46 00:02:15,320 --> 00:02:19,940 Josh: But it is genuinely a full self-driving cyber cab out in production right now. 47 00:02:20,420 --> 00:02:25,180 Ejaaz: That's great. It's going to be like carpool karaoke, but just two nerdy guys talking about tech. 48 00:02:25,300 --> 00:02:29,460 Ejaaz: That's actually a good idea. Okay, let's get right into the news. 49 00:02:30,960 --> 00:02:34,860 Ejaaz: Something was spotted over the weekend in Austin, Texas, Josh. 50 00:02:35,080 --> 00:02:42,100 Ejaaz: And it was a normal regular Tesla Model Y, except there was no one in the front driving it at all. 51 00:02:42,100 --> 00:02:45,140 Ejaaz: And this was later confirmed by 52 00:02:45,140 --> 00:02:50,540 Ejaaz: Elon himself as the first test cases for unsupervised full self-driving. 53 00:02:50,680 --> 00:02:53,320 Ejaaz: Now, if you're new to this podcast or if you're new to Tesla in general, 54 00:02:53,720 --> 00:02:57,760 Ejaaz: Tesla's FSD or full self-driving is basically their autonomous driving program 55 00:02:57,760 --> 00:03:02,540 Ejaaz: or software stack that allows their cars to drive itself, similar to what Josh 56 00:03:02,540 --> 00:03:04,140 Ejaaz: has exactly explained, actually. 57 00:03:04,760 --> 00:03:11,700 Ejaaz: And why this is such a major leap forward is typically up until before the weekend, 58 00:03:11,700 --> 00:03:16,940 Ejaaz: these cars required at least one human person to be in the front seat. 59 00:03:17,060 --> 00:03:19,240 Ejaaz: They didn't need to be in the driver's seat, but they needed to be somewhere 60 00:03:19,240 --> 00:03:22,140 Ejaaz: in the passenger seat just in case the car got into any kind of an accident. 61 00:03:22,280 --> 00:03:26,280 Ejaaz: And it marks the transition from level two autonomous driving, 62 00:03:26,560 --> 00:03:29,700 Ejaaz: which is what Teslas have been fully capable of doing for a while now, 63 00:03:29,940 --> 00:03:34,280 Ejaaz: to level four, which is this driverless addition or rather subtraction. 64 00:03:34,720 --> 00:03:37,300 Ejaaz: And this worked out really well for the stock. 65 00:03:37,920 --> 00:03:42,440 Ejaaz: On monday's market open tesla closed at the highest weekly and monthly close 66 00:03:42,440 --> 00:03:48,420 Ejaaz: in tesla's history 475 dollars and 31 cents which is just insanely bullish it 67 00:03:48,420 --> 00:03:50,520 Ejaaz: was up five percent uh on the day end 68 00:03:50,520 --> 00:03:53,260 Josh: And it's funny because if you look at the stock you would think the whole world 69 00:03:53,260 --> 00:03:57,360 Josh: is aware of what's going on but the reality is this is not true this is a great 70 00:03:57,360 --> 00:04:00,880 Josh: visual that we have on the screen and for those listening it's basically it's 71 00:04:00,880 --> 00:04:04,300 Josh: a visual showing that the population of the u.s is 343 million people. 72 00:04:04,540 --> 00:04:07,620 Josh: Of that, 243 million are actual drivers. 73 00:04:07,900 --> 00:04:13,820 Josh: Of those 243 million, four of them are Tesla owners. And of the four million Tesla owners, 74 00:04:14,340 --> 00:04:16,960 Josh: only half a million people have actually used full self-driving. 75 00:04:17,280 --> 00:04:23,080 Josh: So the reality of this is that only 0.145% of the population have experienced 76 00:04:23,080 --> 00:04:28,360 Josh: the technological revolution that is being rolled out as we speak in real time 77 00:04:28,360 --> 00:04:29,800 Josh: to cities like Austin, Texas. 78 00:04:30,160 --> 00:04:33,400 Josh: And this, I believe, is going to lead to one of those moments, 79 00:04:33,740 --> 00:04:38,980 Josh: like the, oh my God, it's real moment, where things tend to advance very slowly. 80 00:04:39,000 --> 00:04:42,160 Josh: But if you're not in the know, it appears as if it's happening very quick. 81 00:04:42,160 --> 00:04:45,500 Josh: And there's a reality in which very soon, that someone's going to walk outside 82 00:04:45,500 --> 00:04:49,160 Josh: and get into a full self-driving car and freak out because they had no idea 83 00:04:49,160 --> 00:04:52,340 Josh: that this technology was even close to being ready, let alone here today. 84 00:04:53,000 --> 00:04:56,860 Ejaaz: What's really funny is of this 500,000 people that do know about it, 85 00:04:57,000 --> 00:04:58,520 Ejaaz: Josh, one of them is my auntie. 86 00:04:58,620 --> 00:05:01,200 Ejaaz: And I just texted her saying, hey, you need to give this thing a go. 87 00:05:01,280 --> 00:05:03,820 Ejaaz: And she replied, I'm terrified. I don't want to give it a go. 88 00:05:04,020 --> 00:05:07,720 Ejaaz: So even the people that do know about it are still kind of like they haven't 89 00:05:07,720 --> 00:05:11,440 Ejaaz: jumped the chasm across the chasm to yet to get there. 90 00:05:11,720 --> 00:05:14,820 Ejaaz: But Josh, I want to take a look at like what these things actually look like, 91 00:05:14,880 --> 00:05:17,860 Ejaaz: because they're not just rolling out this software upgrade, right? 92 00:05:18,080 --> 00:05:23,060 Ejaaz: It's going to become an entirely autonomous taxi service called the RoboTaxi. 93 00:05:23,710 --> 00:05:27,290 Josh: The cyber cab. And there's two parts of this story. So one of it is the software, 94 00:05:27,390 --> 00:05:28,090 Josh: one of it's the hardware. 95 00:05:28,370 --> 00:05:31,890 Josh: The hardware story is the cyber cab. The software story is the one that we just 96 00:05:31,890 --> 00:05:36,370 Josh: mentioned though, which is the existing fleet of 8 million Tesla vehicles that 97 00:05:36,370 --> 00:05:40,170 Josh: will be eligible to have this ability via over the air software update. 98 00:05:40,330 --> 00:05:43,950 Josh: So there is a person on this planet who is going to type a command into a computer, 99 00:05:44,470 --> 00:05:48,770 Josh: send this update to millions of cars, and overnight they will wake up and become 100 00:05:48,770 --> 00:05:50,430 Josh: fully autonomous cyber cabs. 101 00:05:50,550 --> 00:05:53,050 Josh: Now that is one thing, That is the existing fleet. 102 00:05:53,230 --> 00:05:57,710 Josh: The new fleet is what we're looking at on screen right now. That's the cyber cab, the robo taxi. 103 00:05:58,090 --> 00:06:02,010 Josh: This is the crown jewel of autonomy as we move into this next era. 104 00:06:02,130 --> 00:06:07,130 Ejaaz: Josh, sorry, I have to say this looks like a Hot Wheels car that I used to buy 105 00:06:07,130 --> 00:06:09,750 Ejaaz: as a kid. What is this? It's like it's like die cast. 106 00:06:10,150 --> 00:06:13,450 Josh: It's funny you say that because the Hot Wheels car that you had as a kid was 107 00:06:13,450 --> 00:06:16,290 Josh: made via die cast machine, which is injection molding. 108 00:06:16,570 --> 00:06:20,670 Josh: So basically you have this big metal mold you punch a bunch of this like hot 109 00:06:20,670 --> 00:06:23,790 Josh: molten stuff into it and then out pops this very cooled, 110 00:06:24,440 --> 00:06:27,160 Josh: um piece of a car and it looks like a car and what 111 00:06:27,160 --> 00:06:29,840 Josh: tesla's done is they've created this small die cast model that you 112 00:06:29,840 --> 00:06:32,580 Josh: use for your hot wheels back in the day but they made it 113 00:06:32,580 --> 00:06:35,700 Josh: into the biggest casting model in the planet and it's 114 00:06:35,700 --> 00:06:39,200 Josh: so large that it prints out actual full-size cars like the one you're seeing 115 00:06:39,200 --> 00:06:42,680 Josh: now which comes with a bunch of benefits because a lot of times if you have 116 00:06:42,680 --> 00:06:46,020 Josh: a car one of the pain points is your paint it scratches it's expensive to do 117 00:06:46,020 --> 00:06:50,140 Josh: there's no paint because it's injection molded the actual material that they 118 00:06:50,140 --> 00:06:53,380 Josh: mold it with is the color of the paint So there's no paint on this car. 119 00:06:53,660 --> 00:06:55,620 Josh: It's just the raw material that's on the outside. 120 00:06:55,920 --> 00:06:59,880 Josh: And because of that, there's other benefits like wires. There's miles and miles 121 00:06:59,880 --> 00:07:01,820 Josh: of wires in traditional cars and electronics. 122 00:07:02,160 --> 00:07:05,320 Josh: All of that's just printed right in. So it's this really efficient way of doing 123 00:07:05,320 --> 00:07:08,240 Josh: it, but it also has the second order effect of kind of looking like a spaceship. 124 00:07:08,480 --> 00:07:09,680 Josh: I don't know. I think it's pretty cool. 125 00:07:09,680 --> 00:07:15,580 Ejaaz: Okay, so do I. But of course, we can't really talk about cybercab or autonomous 126 00:07:15,580 --> 00:07:18,460 Ejaaz: driving without bringing up the obvious elephant in the room, 127 00:07:18,580 --> 00:07:20,620 Ejaaz: which is Waymo, which is already out there. 128 00:07:20,760 --> 00:07:24,640 Ejaaz: They have a paid taxi service, which does hundreds of thousands of paid trips 129 00:07:24,640 --> 00:07:27,140 Ejaaz: every week. It's just rolled out in London, my hometown. 130 00:07:27,920 --> 00:07:31,280 Ejaaz: And so the question that comes into mind is, can it compete? 131 00:07:31,620 --> 00:07:35,940 Ejaaz: And at least from a cost perspective, if that's the first framework we apply here, 132 00:07:35,940 --> 00:07:38,700 Ejaaz: robo taxis are just or like cybercams are 133 00:07:38,700 --> 00:07:41,660 Ejaaz: just way way cheaper we've pulled up a 134 00:07:41,660 --> 00:07:44,500 Ejaaz: graphic here which shows what you gotta keep scrolling 135 00:07:44,500 --> 00:07:47,260 Ejaaz: down yeah there's so many 136 00:07:47,260 --> 00:07:50,220 Ejaaz: which shows us what one million dollars worth 137 00:07:50,220 --> 00:07:53,260 Ejaaz: of waymo gen 6s which is their latest versus one 138 00:07:53,260 --> 00:07:58,160 Ejaaz: million dollars worth of tesla cybercams and uh you have about 10 waymos for 139 00:07:58,160 --> 00:08:02,820 Ejaaz: the price of one million dollars and for robo taxis or cybercabs you get five 140 00:08:02,820 --> 00:08:08,160 Ejaaz: and a half times more than that we've got 55 this is insane josh like the cost 141 00:08:08,160 --> 00:08:10,400 Ejaaz: must be like super cheap for these things and 142 00:08:10,400 --> 00:08:13,400 Josh: This makes all the difference so as we start to get into differences between 143 00:08:13,400 --> 00:08:17,160 Josh: waymo and tesla one of the most important things is the form factor what does 144 00:08:17,160 --> 00:08:19,100 Josh: it actually look like and why does it look that way 145 00:08:19,460 --> 00:08:23,040 Josh: Um, for those who are not familiar with the Waymo system, basically what it 146 00:08:23,040 --> 00:08:24,660 Josh: is, is the current way that it exists. 147 00:08:24,760 --> 00:08:28,460 Josh: And these are out on the road today is it's a Jaguar car that costs about $75,000, 148 00:08:28,460 --> 00:08:33,600 Josh: but then it costs an additional $100,000 to equip it with 29 cameras, 149 00:08:33,740 --> 00:08:37,480 Josh: five LiDAR sensors, and it's very custom. It requires a lot of human interfacing. 150 00:08:37,600 --> 00:08:40,620 Josh: So the net cost of those cars are about $175,000. 151 00:08:40,940 --> 00:08:43,840 Josh: What we're seeing on screen now is a much cheaper version of this car, 152 00:08:43,960 --> 00:08:45,180 Josh: the next generation Waymo, 153 00:08:45,440 --> 00:08:48,460 Josh: which they're hoping to get down to $85,000, but still 154 00:08:48,460 --> 00:08:51,600 Josh: does not compare to the cyber cab tesla cyber 155 00:08:51,600 --> 00:08:55,000 Josh: cab is looking to price itself at thirty thousand dollars per 156 00:08:55,000 --> 00:08:57,820 Josh: car and the reason this is important is because of 157 00:08:57,820 --> 00:09:00,480 Josh: the the cost per mile and we're going to get into cost per mile but the 158 00:09:00,480 --> 00:09:03,180 Josh: innovation that we're showing on screen now how they're able to do it is this 159 00:09:03,180 --> 00:09:06,500 Josh: thing called the unboxing process so easy as we briefly talked on the 160 00:09:06,500 --> 00:09:09,320 Josh: die cast process the casting how they're able to quickly mold them 161 00:09:09,320 --> 00:09:12,460 Josh: together the amazing thing the zinger here the big 162 00:09:12,460 --> 00:09:15,440 Josh: punch line is tesla is able to produce one of these cyber cabs 163 00:09:15,440 --> 00:09:18,380 Josh: every six seconds it'll roll off production line 164 00:09:18,380 --> 00:09:22,140 Josh: so if you're watching the end of a production line every six seconds a new car 165 00:09:22,140 --> 00:09:25,880 Josh: will be coming off of this line why because of the die casting and because of 166 00:09:25,880 --> 00:09:29,500 Josh: this unboxing process so typically when you assemble a car it goes down a singular 167 00:09:29,500 --> 00:09:32,820 Josh: production line it has to be assembled and then disassembled to paint it and 168 00:09:32,820 --> 00:09:36,820 Josh: then reassembled for final production this does it all in one shot it's assembled in six areas. 169 00:09:37,330 --> 00:09:40,790 Josh: Pressed together in one location and every six seconds a new one rolls off the 170 00:09:40,790 --> 00:09:43,690 Josh: line even if waymo gets this next version it's still going to be three times 171 00:09:43,690 --> 00:09:47,010 Josh: the cost of tesla cyber cab which has big downstream effects to you and i the 172 00:09:47,010 --> 00:09:50,650 Josh: user in how much it's going to cost to actually use these services i just. 173 00:09:50,650 --> 00:09:55,990 Ejaaz: Did some uh back of the napkin math and i figured if each waymo costs around 174 00:09:55,990 --> 00:10:02,490 Ejaaz: a hundred grand um if they wanted to deploy like let's say 500 000 more of these Waymo cars, 175 00:10:02,670 --> 00:10:06,730 Ejaaz: which is, you know, not crazy to think about, that would cost them $50 billion 176 00:10:06,730 --> 00:10:09,050 Ejaaz: worth of upfront CapEx, right? 177 00:10:09,370 --> 00:10:14,730 Ejaaz: Now, if they wanted to do this for Tesla, they could just push in a software 178 00:10:14,730 --> 00:10:19,190 Ejaaz: upgrade for just 10% of their existing fleet. 179 00:10:19,450 --> 00:10:23,650 Ejaaz: So I'm talking about cars that already exist, Josh. On the road right now, 180 00:10:23,770 --> 00:10:29,650 Ejaaz: there's like 5.5 million eligible Teslas that can get the software upgrade and 181 00:10:29,650 --> 00:10:32,810 Ejaaz: have the entire FSD benefits that we've just described to you, 182 00:10:33,170 --> 00:10:37,150 Ejaaz: just 10% of those can get that benefit right now from a single software push. 183 00:10:37,290 --> 00:10:41,390 Ejaaz: So it just goes to show that like Tesla versus Waymo is a completely different 184 00:10:41,390 --> 00:10:46,170 Ejaaz: beast because of the way that they've constructed FSD in this particular case. 185 00:10:46,330 --> 00:10:50,050 Ejaaz: And so it costs Tesla basically $0 because the customers that are purchasing 186 00:10:50,050 --> 00:10:53,310 Ejaaz: this, all fleet operators that want to buy these cars in the future can And 187 00:10:53,310 --> 00:10:59,350 Ejaaz: just do so for a cheaper cost, $30,000 versus 100 grand really kind of amplifies over time. 188 00:10:59,670 --> 00:11:03,470 Ejaaz: But Josh, I've noticed something, which is these robo taxis, 189 00:11:03,570 --> 00:11:06,770 Ejaaz: or rather the cybercabs, have only two seats in them. 190 00:11:07,170 --> 00:11:10,690 Ejaaz: When Waymo has five, surely the Waymo is better in that way, right? 191 00:11:11,290 --> 00:11:15,730 Josh: Well, this chart begs to differ. This chart says that 90% of robo taxi trips 192 00:11:15,730 --> 00:11:20,910 Josh: have been with two people or less. so what the differences you're seeing is 193 00:11:20,910 --> 00:11:25,970 Josh: a hyper customized approach versus a traditional approach i guess we're like 194 00:11:26,340 --> 00:11:28,980 Josh: waymo is basically saying well we have the 195 00:11:28,980 --> 00:11:31,760 Josh: software but we don't really have the hardware so we're just going to take an existing car 196 00:11:31,760 --> 00:11:35,080 Josh: strap some sensors on it and apply our super fancy software tesla's 197 00:11:35,080 --> 00:11:38,120 Josh: taking a total first principles approach so looking at this and saying well 198 00:11:38,120 --> 00:11:41,860 Josh: if nine out of ten trips are with two people or less let's just strip out the 199 00:11:41,860 --> 00:11:45,080 Josh: back seat and make the car even more efficient and more cost effective so the 200 00:11:45,080 --> 00:11:49,340 Josh: cyber cab only has two seats in it for two passengers whereas the waymo has 201 00:11:49,340 --> 00:11:53,560 Josh: five people so the assumption is that you will mostly need it for two people. 202 00:11:53,680 --> 00:11:57,740 Josh: If you need it for five, well, maybe get a Waymo or just get two cyber caps, 203 00:11:57,900 --> 00:12:00,540 Josh: because I mean, the idea is that they will be cheap enough that you can get 204 00:12:00,540 --> 00:12:02,820 Josh: a couple for the price of one Waymo ride. 205 00:12:03,020 --> 00:12:09,320 Ejaaz: I saw this amazing breakdown of Tesla versus Waymo by Marcelo and I've pulled 206 00:12:09,320 --> 00:12:13,680 Ejaaz: up his tweet and he goes, let's talk about scale first. 207 00:12:14,020 --> 00:12:18,060 Ejaaz: Waymo just reported over 100 million fully autonomous miles driven, 208 00:12:18,320 --> 00:12:22,280 Ejaaz: while Tesla has 6.8 billion 209 00:12:22,940 --> 00:12:27,540 Ejaaz: full self-driving miles driven, over 10,000 miles per minute. 210 00:12:27,700 --> 00:12:30,600 Ejaaz: And if you're wondering how on earth they were able to get this scale, 211 00:12:30,780 --> 00:12:35,100 Ejaaz: it's because the existing 5.5 million Teslas that are eligible for this FSD 212 00:12:35,100 --> 00:12:39,920 Ejaaz: upgrade gets input data every time a human takes it for a drive. 213 00:12:40,100 --> 00:12:45,040 Ejaaz: So its data can get fed back to its single generalized neural network that trains 214 00:12:45,040 --> 00:12:50,700 Ejaaz: FSD and gets fed to every single other Tesla that is operational on the planet 215 00:12:50,700 --> 00:12:54,820 Ejaaz: that has this FSD software, which is just the coolest thing ever. 216 00:12:55,160 --> 00:13:00,840 Ejaaz: It's ridiculous. Yeah. So it says here that Tesla has 5.1 million cars with 217 00:13:00,840 --> 00:13:03,980 Ejaaz: the AI4 computer chip, which is just like kind of like the base chip. 218 00:13:04,280 --> 00:13:06,380 Ejaaz: Actually, Josh, you were telling me before we started recording this that it's 219 00:13:06,380 --> 00:13:09,340 Ejaaz: actually a chip prior to this that is also capable for this, 220 00:13:09,420 --> 00:13:11,140 Josh: Right? They're going to be building software for that one as well. 221 00:13:11,260 --> 00:13:12,200 Josh: So they'll all be eligible. 222 00:13:12,660 --> 00:13:19,800 Ejaaz: Okay. Okay. So that would mean that Tesla's fleet is 2,000 times larger than 223 00:13:19,800 --> 00:13:22,660 Ejaaz: Waymo's when it comes to like a mile advantage. But wait. Today. 224 00:13:23,100 --> 00:13:28,020 Ejaaz: Yeah, today. Today. And then it goes, Tesla's FSD miles driven is growing at 225 00:13:28,020 --> 00:13:31,120 Ejaaz: over 10,000 miles every minute. That is crazy. 226 00:13:31,480 --> 00:13:34,600 Ejaaz: Waymo is doing 450,000 paid drives per week. 227 00:13:34,700 --> 00:13:38,980 Ejaaz: So the average Waymo ride is about six miles in length. This means Waymo is 228 00:13:38,980 --> 00:13:43,660 Ejaaz: collecting 2.7 million miles of data every week from its paid rides. 229 00:13:43,820 --> 00:13:48,500 Ejaaz: That's only 268 miles per minute versus Tesla's 10,000 miles per minute. 230 00:13:48,600 --> 00:13:52,300 Ejaaz: Josh, if I'm like an analyst looking at this from an investment perspective, 231 00:13:52,540 --> 00:13:56,900 Ejaaz: also from a customer experience and safety, like which car do I trust more when 232 00:13:56,900 --> 00:13:57,780 Ejaaz: it comes to autonomous driving? 233 00:13:57,900 --> 00:14:00,160 Ejaaz: It's going to be the one that has the most experience and mileage. 234 00:14:00,460 --> 00:14:02,040 Ejaaz: How does Tesla lose this? 235 00:14:02,690 --> 00:14:07,510 Josh: I don't believe they do in any reality, and I'm not sure it's particularly close. 236 00:14:07,890 --> 00:14:11,790 Josh: If you look at Waymo's strategy, it very much feels like they're shipping a 237 00:14:11,790 --> 00:14:17,390 Josh: service where they have this full self-driving software, but they don't own the full stack. 238 00:14:17,610 --> 00:14:19,850 Josh: And therefore, they're not able to manufacture cars quickly. 239 00:14:20,070 --> 00:14:23,490 Josh: And they also haven't really approached it correctly because theirs is very 240 00:14:23,490 --> 00:14:25,490 Josh: expensive. They have LiDAR sensors, which we're going to get into. 241 00:14:25,690 --> 00:14:30,910 Josh: And they also have it geofenced. So the way that Waymo expands is they have to first scan a region, 242 00:14:30,990 --> 00:14:33,750 Josh: get a high detailed map, and then they have to go city by 243 00:14:33,750 --> 00:14:36,450 Josh: city and it takes a very long time for this to roll 244 00:14:36,450 --> 00:14:39,290 Josh: out whereas the reality is tesla they're more shipping instead 245 00:14:39,290 --> 00:14:42,730 Josh: of a service they're shipping a model and their bet is that this vision first 246 00:14:42,730 --> 00:14:47,070 Josh: system plus the fleet data plus this continuous trading data gives you autonomy 247 00:14:47,070 --> 00:14:52,330 Josh: that is not specific to a city but generalized so then you take that technology 248 00:14:52,330 --> 00:14:56,890 Josh: and then you wrap it into a service but the reality is that when tesla rolled 249 00:14:56,890 --> 00:14:58,170 Josh: out their service in Austin. 250 00:14:58,450 --> 00:15:02,530 Josh: I believe Waymo had been there for already about 136 days. 251 00:15:02,810 --> 00:15:07,770 Josh: And in 42 days, Tesla was able to four times the original Waymo size because 252 00:15:07,770 --> 00:15:11,530 Josh: they have this generalized way of doing it where the neural network is smart 253 00:15:11,530 --> 00:15:15,090 Josh: enough to go anywhere in the world and drive fully autonomously. Whereas Waymo is not. 254 00:15:15,430 --> 00:15:18,410 Josh: Waymo not only has the hardware stack, but they don't have the software that 255 00:15:18,410 --> 00:15:20,770 Josh: can scale because they haven't gone deep in these neural nets. 256 00:15:20,930 --> 00:15:25,330 Josh: And the funny thing with neural nets, just a quick aside, is that they're trained 257 00:15:25,330 --> 00:15:27,810 Josh: learning based on what they see instead of programming them. 258 00:15:27,930 --> 00:15:31,090 Josh: So previously, they would program a car to stop at a stop sign. 259 00:15:31,490 --> 00:15:34,670 Josh: But the car was never told that in this new version. It was inferred that. 260 00:15:34,910 --> 00:15:37,930 Josh: But when it was reading drivers, it was watching drivers drive. 261 00:15:38,190 --> 00:15:41,450 Josh: The cars just kept rolling through the stop signs because no one really stops at a stop sign. 262 00:15:41,650 --> 00:15:44,990 Josh: So FSD started rolling through stop signs. And then the Highway Safety Committee 263 00:15:44,990 --> 00:15:48,150 Josh: got really upset because they were like, wait a second, your full self driving 264 00:15:48,150 --> 00:15:50,070 Josh: software isn't following the rules. It's rolling through stop signs. 265 00:15:50,210 --> 00:15:53,810 Josh: So they had to actually create artificial data of humans stopping. 266 00:15:54,170 --> 00:15:56,790 Josh: That way you could teach the car to stop and actually follow the rules because 267 00:15:56,790 --> 00:15:58,230 Josh: it was too much like a human. 268 00:15:58,950 --> 00:16:01,830 Ejaaz: This was really the big bet that 269 00:16:01,830 --> 00:16:05,330 Ejaaz: elon made almost a decade ago which is uh visual 270 00:16:05,330 --> 00:16:08,250 Ejaaz: data or vision learning uh in a single 271 00:16:08,250 --> 00:16:11,730 Ejaaz: neural net is way better than slapping a 272 00:16:11,730 --> 00:16:14,770 Ejaaz: bunch of detectors and sensors on a car he 273 00:16:14,770 --> 00:16:18,990 Ejaaz: thought maybe like if we just get visual input you could train a car much more 274 00:16:18,990 --> 00:16:23,630 Ejaaz: faster and when we look at the stats today 10 000 miles per minute uh across 275 00:16:23,630 --> 00:16:29,310 Ejaaz: an entire fleet of 5.1 million cars versus 268 miles or whatever that stat was 276 00:16:29,310 --> 00:16:31,730 Ejaaz: for Waymo. It's just obvious at this point. 277 00:16:32,010 --> 00:16:37,150 Ejaaz: But I did read that for a while, Elon was using LiDAR for Tesla cars. 278 00:16:37,250 --> 00:16:41,150 Ejaaz: In fact, I think he uses it to pre-train, and I say pre-train intentionally 279 00:16:41,150 --> 00:16:44,430 Ejaaz: here because it sounds like he's training a model for his Tesla cars, right? 280 00:16:44,510 --> 00:16:47,750 Ejaaz: He doesn't exclusively not use LiDAR. He does use it. Is that right? 281 00:16:47,990 --> 00:16:51,990 Josh: This is the most commonly wrong misconception about Tesla, where everyone believes 282 00:16:51,990 --> 00:16:55,810 Josh: that Tesla hates LiDAR. And the reality of it is that it is just not true. 283 00:16:56,010 --> 00:17:00,650 Josh: And it hasn't been spoken much, but the idea is that they do use LiDAR quite 284 00:17:00,650 --> 00:17:05,130 Josh: extensively, actually, and they like LiDAR as a sensor in the training time. 285 00:17:05,290 --> 00:17:08,930 Josh: So when cars are out collecting training data, when they're testing these things, 286 00:17:09,250 --> 00:17:10,570 Josh: the cars have LiDAR strapped to them. 287 00:17:10,650 --> 00:17:13,190 Josh: In fact, if you see any of these vehicles driving around that they've been running 288 00:17:13,190 --> 00:17:17,350 Josh: demos on, they have these big LiDAR things on top and they're really collecting a lot of data. 289 00:17:17,570 --> 00:17:21,970 Josh: The arbitrage opportunity occurs during test time when you actually package 290 00:17:21,970 --> 00:17:23,870 Josh: up these learnings and you deploy to the fleet 291 00:17:24,280 --> 00:17:27,880 Josh: They've taken what they've learned from the LiDAR and they have removed it, 292 00:17:28,000 --> 00:17:31,000 Josh: but they've compressed it into a way that the car can do just with cameras. 293 00:17:31,160 --> 00:17:35,520 Josh: So the car benefits from the safety of LiDAR in training, but does not require 294 00:17:35,520 --> 00:17:37,620 Josh: it in production when it's out in the real world driving. 295 00:17:37,920 --> 00:17:40,940 Josh: And that arbitrage that they're collecting is huge because the cost of these 296 00:17:40,940 --> 00:17:44,340 Josh: sensors is tens of thousands of dollars per car that they're removing. 297 00:17:44,560 --> 00:17:48,320 Josh: And the idea is that, well, if a human eyeball can see, and if we as humans 298 00:17:48,320 --> 00:17:52,920 Josh: can drive anywhere, then cameras with, what is it? I think there's eight cameras 299 00:17:52,920 --> 00:17:55,540 Josh: on these cars now with eight eyeballs can not only see much better, 300 00:17:55,620 --> 00:17:57,360 Josh: but they can then therefore drive much better than we can. 301 00:17:57,500 --> 00:18:00,100 Josh: And it doesn't require all the extra sensors that cost so much money. 302 00:18:00,660 --> 00:18:06,680 Ejaaz: Yeah, the more I learn about this, Josh, I keep seeing Waymo or LiDAR specifically 303 00:18:06,680 --> 00:18:08,800 Ejaaz: as this really kind of clunky mechanism. 304 00:18:08,980 --> 00:18:12,800 Ejaaz: And this isn't to kind of like crap on it. But if you kind of like, 305 00:18:12,960 --> 00:18:18,960 Ejaaz: think about this over the long term, it just seems that Vision scales way easier 306 00:18:18,960 --> 00:18:20,960 Ejaaz: and way better, like higher fidelity. 307 00:18:21,180 --> 00:18:25,580 Ejaaz: Like if I am Waymo and let's say we enter a new city or a city gets like an 308 00:18:25,580 --> 00:18:31,300 Ejaaz: extension or a new district, you now need to go map out that entire area, update your sensors. 309 00:18:31,600 --> 00:18:35,780 Ejaaz: Your sensors won't work as well in fog or during the dark as Vision does. 310 00:18:35,980 --> 00:18:39,660 Ejaaz: It just seems to have so many of the odds stacked against it. 311 00:18:39,800 --> 00:18:44,480 Ejaaz: I kind of think of it as, not to put my AI hat on all the time, 312 00:18:44,640 --> 00:18:48,500 Ejaaz: but it sounds like LiDAR is kind of like used for pre-training. 313 00:18:48,660 --> 00:18:51,740 Ejaaz: So it's like to train the corpus or the base level of the model. 314 00:18:52,080 --> 00:18:56,160 Ejaaz: Elon's kind of approach with visual learning is the post-training, 315 00:18:56,300 --> 00:18:59,700 Ejaaz: the reasoning, which typically so far for the last at least six months has made 316 00:18:59,700 --> 00:19:01,880 Ejaaz: AI models way, way more smart. 317 00:19:02,000 --> 00:19:04,680 Ejaaz: Like that's the kind of analogy that at least applies for me here. 318 00:19:04,980 --> 00:19:08,360 Josh: Yeah, no, that's absolutely right. And the point that you made earlier I think 319 00:19:08,360 --> 00:19:12,140 Josh: is an important one because if you asked any analyst on the street or if you 320 00:19:12,140 --> 00:19:16,380 Josh: asked any person on the street who's winning the cyber cab robo taxi wars currently 321 00:19:16,380 --> 00:19:18,740 Josh: the clear and obvious answer is Waymo they have, 322 00:19:19,430 --> 00:19:23,330 Josh: orders of magnitude more rides. They actually have a lot more cars than cyber 323 00:19:23,330 --> 00:19:26,650 Josh: cabs that are in the world actually giving people autonomous rides. 324 00:19:26,790 --> 00:19:31,150 Josh: But the truth is that it does not scale quickly. 325 00:19:31,470 --> 00:19:35,210 Josh: In fact, the earlier Waymo rides, they were giving rides over a decade ago. 326 00:19:35,950 --> 00:19:40,850 Josh: The difference in approach between the two allows Tesla to scale so much faster. 327 00:19:41,010 --> 00:19:45,050 Josh: So while Waymo has a very clear and obvious lead now, it is very clearly and 328 00:19:45,050 --> 00:19:46,750 Josh: obviously deteriorating rapidly. 329 00:19:47,170 --> 00:19:51,310 Josh: And by this time next year I suspect that lead will be zero if not they will 330 00:19:51,310 --> 00:19:55,470 Josh: be behind by a significant margin and it's all due to this pre-training post-training 331 00:19:55,470 --> 00:19:58,610 Josh: phase and just the way that they're really considering all these things from 332 00:19:58,610 --> 00:20:00,750 Josh: first principles the vertical integration they're building the car they have 333 00:20:00,750 --> 00:20:04,530 Josh: the software stack and it's ready to go in any place in the world that has roads. 334 00:20:05,210 --> 00:20:10,110 Ejaaz: Yeah, I think one really cool unlock of all of this, Josh, is that transport 335 00:20:10,110 --> 00:20:14,470 Ejaaz: is just going to be reduced to a cheap commodity that anyone can access. 336 00:20:14,730 --> 00:20:17,550 Ejaaz: And, you know, you don't need to blow tens of thousands of dollars on a car. 337 00:20:17,770 --> 00:20:21,470 Ejaaz: You can just hop into a cyber cab and get from A to B. 338 00:20:21,650 --> 00:20:25,690 Ejaaz: I was looking into the economics cost behind this and roughly with the new Model 339 00:20:25,690 --> 00:20:31,870 Ejaaz: Y RoboTaxi, it'll run at about at a cost of 60 cents per mile. 340 00:20:31,870 --> 00:20:35,870 Ejaaz: So let's say Tesla decides to charge $1 per mile. 341 00:20:36,430 --> 00:20:41,350 Ejaaz: Tesla will pocket a 40% margin per mile, which is way, way higher than any kind 342 00:20:41,350 --> 00:20:43,650 Ejaaz: of ride-hailing service that exists today. 343 00:20:43,770 --> 00:20:47,210 Ejaaz: And it just goes to show that the investments that Elon made a decade ago really 344 00:20:47,210 --> 00:20:52,470 Ejaaz: translates into both economical and scalable costs for his models today. It's just super cool. 345 00:20:52,890 --> 00:20:55,430 Josh: Yeah, and there's this important distinction to be made with this post, 346 00:20:55,550 --> 00:20:59,050 Josh: where that 60 cents per mile is referencing the cost per mile of a Model Y. 347 00:20:59,390 --> 00:21:01,770 Josh: That's the car that I drive. That's the car that is publicly available. 348 00:21:01,870 --> 00:21:05,790 Josh: The Cybercab, when it starts production in Q2 of next year, brings that cost 349 00:21:05,790 --> 00:21:11,110 Josh: per mile from 60 cents down to 20 cents because the cost to produce the car is much lower. 350 00:21:11,270 --> 00:21:15,490 Josh: The efficiency, the cost per kilowatt, the amount of range that the car will 351 00:21:15,490 --> 00:21:17,570 Josh: get per kilowatt of energy is much lower. 352 00:21:17,750 --> 00:21:20,570 Josh: It's the most aerodynamically efficient car in the world. 353 00:21:20,790 --> 00:21:23,870 Josh: It's the most efficient car in the world, and it's built that way from the ground 354 00:21:23,870 --> 00:21:27,770 Josh: up. So that cost drops even lower, which brings Tesla's margins much higher. 355 00:21:28,050 --> 00:21:31,250 Josh: And what's funny is, I mean, comparing against Waymo, some of 356 00:21:31,250 --> 00:21:34,110 Josh: these rides the shorter ones cost up to five to six dollars per 357 00:21:34,110 --> 00:21:36,930 Josh: mile with typical trips costing up to three dollars 358 00:21:36,930 --> 00:21:39,630 Josh: per mile and the tesla team has a 359 00:21:39,630 --> 00:21:44,810 Josh: very clear trajectory to reaching 60 cents per mile today but 20 cents per mile 360 00:21:44,810 --> 00:21:50,130 Josh: by the end of next year and 20 cents relative to six dollars is a gigantic delta 361 00:21:50,130 --> 00:21:53,890 Josh: that starts to really change the unit economics of how we move things around 362 00:21:53,890 --> 00:21:58,990 Josh: the earth as a whole when things cost 20 cents to transport per mile privately and 363 00:21:59,150 --> 00:22:03,810 Josh: Um, that begins to change things. Like it starts to make it economically viable 364 00:22:03,810 --> 00:22:07,770 Josh: or even economically incentivized to never even need to own a car because the 365 00:22:07,770 --> 00:22:11,490 Josh: ownership cost of owning a car will be higher than it would be to just call 366 00:22:11,490 --> 00:22:13,930 Josh: up one of these cyber caps to take you anywhere you ever want to be in the world. 367 00:22:14,090 --> 00:22:15,210 Josh: And that doesn't include delivery. 368 00:22:15,410 --> 00:22:18,810 Ejaaz: I just don't see a world where people are forced to buy cars in the future. 369 00:22:18,910 --> 00:22:22,090 Ejaaz: I just think it'll be, I don't want to say everything becomes a subscription, 370 00:22:22,090 --> 00:22:27,170 Ejaaz: but it seems like people will just kind of like go on a paper ride basis. Yeah. Yeah. It could be. 371 00:22:27,170 --> 00:22:30,930 Josh: Like the ballers in the future will own their own cyber cabs and they'll have 372 00:22:30,930 --> 00:22:35,390 Josh: their own custom matted out fancy like tits, but they're not driving it. 373 00:22:35,490 --> 00:22:37,650 Josh: There's no steering wheel or pedals in this car. 374 00:22:37,790 --> 00:22:41,830 Josh: And that's probably the difference is it will become economically unviable for 375 00:22:41,830 --> 00:22:44,210 Josh: most to have a car, nor will they want one. 376 00:22:44,330 --> 00:22:48,050 Josh: Who wants to spend their time driving when you could just be driven around by a private chauffeur? 377 00:22:48,050 --> 00:22:52,670 Ejaaz: Yeah, it's funny. We went from having to buy your own car and drive it to, 378 00:22:52,670 --> 00:22:56,710 Ejaaz: oh, get someone to drive for you to get no one to drive you. 379 00:22:56,810 --> 00:22:58,050 Ejaaz: And it's your own personal space. 380 00:22:58,170 --> 00:23:01,630 Ejaaz: And it's going to be cheaper per ride, which is awesome. 381 00:23:01,870 --> 00:23:06,150 Ejaaz: But despite all of this, if I went to my friends today, and I have, 382 00:23:06,310 --> 00:23:08,750 Ejaaz: and I've said like, look how cheap this is, look how affordable it's going to 383 00:23:08,750 --> 00:23:11,810 Ejaaz: be. their number one bit of criticism for Tesla specifically, 384 00:23:12,010 --> 00:23:13,750 Ejaaz: Josh, has been around safety. 385 00:23:13,910 --> 00:23:14,750 Ejaaz: They're like, oh, I've seen a 386 00:23:14,750 --> 00:23:17,630 Ejaaz: bunch of these viral videos go around where Tesla's crashed or something. 387 00:23:17,950 --> 00:23:20,590 Ejaaz: And the truth is, that's just not true. 388 00:23:20,990 --> 00:23:29,210 Ejaaz: In fact, recently, Tesla Cybertruck specifically was rated as one of the safest vehicles out there. 389 00:23:29,310 --> 00:23:32,770 Ejaaz: And if you just dig into the data beyond just that award, 390 00:23:32,950 --> 00:23:38,150 Ejaaz: you'll see that for every 6.36 million miles driven, as is demonstrated in this 391 00:23:38,150 --> 00:23:44,050 Ejaaz: tweet of where people were using autopilot technology, only one crash came from 392 00:23:44,050 --> 00:23:46,430 Ejaaz: all of those rides, which is just insane. 393 00:23:46,630 --> 00:23:50,850 Josh: This is an important point. Being in a Tesla that is full self-driving is the 394 00:23:50,850 --> 00:23:53,250 Josh: safest experience on the road, period. 395 00:23:53,820 --> 00:23:59,860 Josh: There is no safer car and there is no safer software than the current Tesla stack. 396 00:24:00,000 --> 00:24:03,080 Josh: And this is important because if we are making this transition, 397 00:24:03,360 --> 00:24:05,280 Josh: people need to be highly incentivized to do so. 398 00:24:05,600 --> 00:24:09,200 Josh: And one of the largest causes of death, I don't remember the numbers off the 399 00:24:09,200 --> 00:24:13,180 Josh: top of my head, but it is an astronomical amount of people that die every year to car crashes. 400 00:24:13,580 --> 00:24:17,620 Josh: And with this new software stack combined with these Tesla cars, 401 00:24:17,740 --> 00:24:21,460 Josh: like you just mentioned, they're the number one crash safety tested cars in 402 00:24:21,460 --> 00:24:23,100 Josh: the world every year since inception. 403 00:24:23,100 --> 00:24:26,260 Josh: Across the line even that big metal stainless 404 00:24:26,260 --> 00:24:29,440 Josh: steel cyber truck is safer than your like 405 00:24:29,440 --> 00:24:32,500 Josh: honda pilot or whatever you're driving around today by like a 406 00:24:32,500 --> 00:24:35,720 Josh: lot in fact they invented a brand new rating 407 00:24:35,720 --> 00:24:39,280 Josh: just for these cars because they're so much safer and that's 408 00:24:39,280 --> 00:24:42,160 Josh: one part of it but the second is the software when you're driving you're a 409 00:24:42,160 --> 00:24:45,100 Josh: human who makes errors who only has two data points that can process 410 00:24:45,100 --> 00:24:47,760 Josh: them so quickly and that variance happens a lot 411 00:24:47,760 --> 00:24:50,680 Josh: by distractions or whether you're tired or not and with 412 00:24:50,680 --> 00:24:53,460 Josh: a full self-driving robo taxi like this there's eight 413 00:24:53,460 --> 00:24:56,360 Josh: sensors that are always on that have a full 360 picture of everything 414 00:24:56,360 --> 00:24:59,340 Josh: all at once and this has happened to me on multiple occasions where a 415 00:24:59,340 --> 00:25:02,580 Josh: car will come from behind you and kind of swerve into your lane and and your 416 00:25:02,580 --> 00:25:05,220 Josh: first urge is to turn out of the way but you don't know if there's a car in 417 00:25:05,220 --> 00:25:08,420 Josh: the lane next to you the cyber cap has all of this in real time and they're 418 00:25:08,420 --> 00:25:12,100 Josh: able to keep you so much safer so that's why you see these numbers where miles 419 00:25:12,100 --> 00:25:15,620 Josh: driven per one accident is getting higher and higher and higher because more 420 00:25:15,620 --> 00:25:18,680 Josh: people are using it and it's getting better and it is the clear and obvious 421 00:25:18,680 --> 00:25:22,560 Josh: safe winner for yourself or your loved ones to put them in this. 422 00:25:22,700 --> 00:25:27,320 Ejaaz: Josh, I want to move on to what the future is going to look like, 423 00:25:27,340 --> 00:25:33,960 Ejaaz: because I don't think this story is just about autonomous driving or even like a robo taxi service. 424 00:25:34,180 --> 00:25:38,160 Ejaaz: I think this is going to completely change the way we kind of interact with 425 00:25:38,160 --> 00:25:41,600 Ejaaz: one another and the way we deliver items and do a whole bunch of other stuff 426 00:25:41,600 --> 00:25:45,560 Ejaaz: that isn't just about sticking someone in a driver's seat and getting from point A to B. 427 00:25:45,960 --> 00:25:49,000 Ejaaz: A few things that are at the top of my head is 428 00:25:49,360 --> 00:25:53,120 Ejaaz: Cars are typically seen as a depreciating asset, right? As soon as you buy the 429 00:25:53,120 --> 00:25:56,640 Ejaaz: car, it goes down like what, 20% in value or something ridiculous like that. 430 00:25:56,920 --> 00:26:03,220 Ejaaz: With this new version of a car, it starts becoming an investment asset that earns money for you. 431 00:26:03,320 --> 00:26:08,720 Ejaaz: Okay, what the hell do I mean by that? Well, think about all the hours you don't drive your car, Josh. 432 00:26:08,940 --> 00:26:13,440 Ejaaz: It could be out there doing a number of different activities. 433 00:26:13,760 --> 00:26:17,220 Ejaaz: Number one, it could be an autonomous Uber driver, which takes someone in your 434 00:26:17,220 --> 00:26:21,180 Ejaaz: local area from A to B and you collect a revenue or a fee off of that, right? 435 00:26:21,460 --> 00:26:25,800 Ejaaz: The other thing is last mile delivery is the most painful point of any kind 436 00:26:25,800 --> 00:26:27,500 Ejaaz: of delivery experience, right? 437 00:26:27,880 --> 00:26:31,800 Ejaaz: And so it could just simply be a thing that picks up a package and drops it off. 438 00:26:31,880 --> 00:26:34,020 Ejaaz: Someone kind of like opens your door and picks it up. Now, of course, 439 00:26:34,140 --> 00:26:37,900 Ejaaz: people might be initially uncomfortable with these kinds of ideas because it's 440 00:26:37,900 --> 00:26:40,940 Ejaaz: like, I don't want to let my personal kind of vehicle be out there. 441 00:26:41,120 --> 00:26:44,440 Ejaaz: But if it's earning you tens of thousands of dollars a month, 442 00:26:44,560 --> 00:26:48,000 Ejaaz: which is like what one estimate I saw earlier on before, as we were prepping 443 00:26:48,000 --> 00:26:52,020 Ejaaz: for this episode, seems to suggest, I feel like people would end up kind of 444 00:26:52,020 --> 00:26:53,280 Ejaaz: utilizing something like this. 445 00:26:53,420 --> 00:26:57,000 Ejaaz: And before I pass it on to you, the second thing that really excites me, Josh, is 446 00:26:57,440 --> 00:27:01,280 Ejaaz: I think traffic is going to reduce, dude, because of this. 447 00:27:01,640 --> 00:27:04,940 Ejaaz: Like imagine where everyone kind of subscribes to this and kind of gets in the 448 00:27:04,940 --> 00:27:07,680 Ejaaz: car when they need to, to go from point A to point B. 449 00:27:08,020 --> 00:27:12,460 Ejaaz: You technically don't need to park a car at any given point. 450 00:27:12,600 --> 00:27:13,820 Ejaaz: You can have a fluid motion. 451 00:27:14,380 --> 00:27:17,940 Ejaaz: Traffic always flows at the right speed. No one's held up in traffic trams. 452 00:27:18,120 --> 00:27:19,900 Ejaaz: To your earlier point, no one gets into accidents. 453 00:27:20,260 --> 00:27:23,980 Ejaaz: It just seems like a better world in general. No more parking lots in Manhattan. 454 00:27:24,480 --> 00:27:29,240 Josh: Yeah. Also think about how it reshapes the actual surface of the cities that we live in today. 455 00:27:29,760 --> 00:27:33,320 Josh: Like, Ijaz, if you've ever been to MetLife Stadium or any sort of stadium, 456 00:27:33,860 --> 00:27:36,900 Josh: 90% of the footprint of the stadium is parking. 457 00:27:37,100 --> 00:27:40,060 Josh: It's almost the entire thing. There's miles of parking lots. 458 00:27:40,180 --> 00:27:43,920 Josh: And this is true with a lot of cities and even suburban areas where so much 459 00:27:43,920 --> 00:27:45,280 Josh: space is dedicated to parking. 460 00:27:45,400 --> 00:27:49,840 Josh: And in the case that you no longer need to park a car because there is these 461 00:27:49,840 --> 00:27:53,800 Josh: autonomous cybercamps that are rolling around, it actually alters the face of 462 00:27:53,800 --> 00:27:58,240 Josh: these cities. And those parking lots become either productive or parks, 463 00:27:58,280 --> 00:27:59,380 Josh: and both of which are great. 464 00:27:59,580 --> 00:28:03,460 Josh: You can either build more beautiful buildings or more green spaces that aren't 465 00:28:03,460 --> 00:28:07,200 Josh: required as opposed to these like really dingy parking lots. 466 00:28:07,420 --> 00:28:11,520 Josh: And the other thing is, to your point, Ejaz, about the appreciating asset. 467 00:28:11,660 --> 00:28:15,780 Josh: There's a lot of people, I guess more of the ambitious cab drivers, 468 00:28:16,120 --> 00:28:21,840 Josh: have been buying up cheaper Teslas with full-slub driving licenses in anticipation 469 00:28:21,840 --> 00:28:24,200 Josh: of being able to turn their fleet into an autonomous vehicle. 470 00:28:24,200 --> 00:28:26,480 Ejaaz: Operators that already ahead of the game. 471 00:28:26,820 --> 00:28:31,820 Josh: A lot of these new taxi companies are driving around in Teslas and that's not an accident. 472 00:28:32,420 --> 00:28:35,280 Josh: One, it's because the cost per mile is so low but two, there's a 473 00:28:35,280 --> 00:28:39,760 Josh: world in which by next year they don't need to have a driving workforce anymore 474 00:28:39,760 --> 00:28:43,480 Josh: and that autonomous workforce just becomes net productive without any of the 475 00:28:43,480 --> 00:28:47,320 Josh: human expenses and it becomes this really interesting business model as well 476 00:28:47,320 --> 00:28:52,560 Josh: where your car is actually an appreciating asset or if anything a net neutral 477 00:28:52,560 --> 00:28:53,860 Josh: asset or if you want to buy a car. 478 00:28:54,470 --> 00:28:59,070 Josh: You could let it go for 85% of the time that it's idle and have it actually make you money. 479 00:28:59,190 --> 00:29:03,290 Josh: The last final point about this, and this is to tie back to AI, 480 00:29:03,530 --> 00:29:06,950 Josh: is the distributed compute part of this story also. 481 00:29:07,250 --> 00:29:10,390 Josh: Because these AI chips, we talked about this on previous episodes, 482 00:29:10,530 --> 00:29:13,070 Josh: AI5, AI6 are incredibly powerful. 483 00:29:13,250 --> 00:29:17,150 Josh: And these cards are sitting idle 85% of the time. So that's a lot of idle compute 484 00:29:17,150 --> 00:29:20,250 Josh: that can talk to each other, that can possibly have second order effects when 485 00:29:20,250 --> 00:29:23,590 Josh: it comes to training AI models or inference or whatever. So there's a lot of 486 00:29:23,590 --> 00:29:24,890 Josh: open-ended possibilities. with this. 487 00:29:25,190 --> 00:29:28,710 Ejaaz: For that Harry Potter fans out there, I think the dark mark has officially been 488 00:29:28,710 --> 00:29:30,090 Ejaaz: released on LiDAR, Josh. 489 00:29:31,410 --> 00:29:35,630 Ejaaz: Elon called it back in 2019, right? He said that, you know, LiDAR is great, 490 00:29:35,810 --> 00:29:39,570 Ejaaz: but it's eventually going to be the thing that kind of kills Waymo and prevents 491 00:29:39,570 --> 00:29:41,230 Ejaaz: autonomous driving companies from ever winning. 492 00:29:41,470 --> 00:29:46,010 Ejaaz: Vision is the future. And, you know, after this conversation, I think he's right. 493 00:29:46,150 --> 00:29:49,010 Ejaaz: And the future is just going to be so cool. 494 00:29:49,150 --> 00:29:53,110 Ejaaz: Like we haven't even spoken about the other little company that Elon operates, 495 00:29:53,530 --> 00:29:58,630 Ejaaz: XAI, which is going to integrate Grok and frontier level AI intelligence into the car. 496 00:29:58,730 --> 00:30:01,810 Ejaaz: So right now with a Christmas update, I believe you told me, 497 00:30:01,950 --> 00:30:02,870 Josh: Josh. I got it yesterday. 498 00:30:03,530 --> 00:30:07,730 Ejaaz: Right. You could literally speak to your car and say, hey, can you get me from point A to B? 499 00:30:08,130 --> 00:30:10,890 Ejaaz: And in the middle of that journey, you could be like, hey, can you stop off 500 00:30:10,890 --> 00:30:14,290 Ejaaz: at this other gas station? I need to pick up A, B and C. 501 00:30:14,570 --> 00:30:19,570 Ejaaz: It's just, it's so cool. And like my mind, I think can't fully capture the immersive 502 00:30:19,570 --> 00:30:21,990 Ejaaz: process that this is going to result in. 503 00:30:22,780 --> 00:30:27,740 Ejaaz: It's super cool. I'm excited to see what happens. I think it is pegged to start 504 00:30:27,740 --> 00:30:32,740 Ejaaz: rolling out CyberCap, Robotaxi Service in 2026 in the summer. 505 00:30:33,180 --> 00:30:38,360 Ejaaz: That's at least the news headlines that I saw, Josh. It might be delayed in a classic Elon style. 506 00:30:39,240 --> 00:30:43,720 Ejaaz: But this is exciting. This technology is here right now. 500,000 people know 507 00:30:43,720 --> 00:30:46,500 Ejaaz: about it. Now you guys, you listeners know about it too. 508 00:30:47,200 --> 00:30:52,080 Ejaaz: Limitless, we try and strive to bring you the latest in news and insights. 509 00:30:52,080 --> 00:30:55,660 Ejaaz: Josh and I spend a lot of time learning about this stuff and sometimes testing 510 00:30:55,660 --> 00:30:56,380 Ejaaz: out the products themselves. 511 00:30:56,620 --> 00:30:58,920 Ejaaz: Josh, eight years of experience, two years not touching his steering wheel. 512 00:30:59,020 --> 00:31:00,840 Ejaaz: Come on, he hasn't got into a single accident just yet. 513 00:31:01,220 --> 00:31:05,900 Ejaaz: So if you want to hear more about these types of things, turn on your notifications, 514 00:31:06,420 --> 00:31:08,000 Ejaaz: subscribe to us, give us a rating. 515 00:31:08,200 --> 00:31:12,460 Ejaaz: All of this helps us massively. And we will see you in the next one.