Elon's endgame w/ Tesla & SpaceX is very clear... The idea is to bring the cost of transportation, labour & energy to near 0 He's doing it by building a connectivity & inference cloud in space that powers billions of robots on earth This is how $SPCX gets to a $100 TRILLION market cap, as Elon me mentioned yesterday Whether the 2 companies merge or not (my guess is they do), they have already built the ground work for this master plan to be fulfilled: - Tesla builds and powers the Robots (humanoid, vehicles, etc.) - SpaceX builds the compute and connectivity from Space Let's start with what's being built at SpaceX then I will explain how this connects with whats being built at Tesla 1. Starpship: Giant reusable rockets at massive scale and cost efficiencies (100s of rocket launches/year). He needed to first make getting to space cheap enough so it would be feasible to build products in Space 2. Starlink: Connect the world's devices to a distributed wifi system that works globally with no dead zones through 100s of thousands of satellites orbiting the earth 3. Starmind: Build a distributed inference cloud (compute), which is powered by the Sun and cooled in space and beam it back to earth via Starlink So, essentaily what Elon is building with SpaceX is a global internet and compute system that can enable AI and Robotics anywhere in the world Now let's talk about how this fits with Tesla $TSLA is building the "devices" (aka robots) that will need to use the global internet and compute system 1. Autonomus Vehicles (Cyberabs, Robtaxis, Semi's): A global transportation system that is powered by batteries and runs autonomously through AI, lowering the cost of transportation to near 0 overtime 2. Humanoid Robots: A global workforce that can replace all blue collar work, lowering the cost of labour to near 0 overtime 3. A global energy network: hundreds of thousands of batteries and battery chargers, linked to various energy sources (more and more of that being renewable overtime), postioned in stratgic places to charge all of the these robots (humanoids, AVs, etc.), lowering the cost of energy to near 0 overtime Tesla has built / is building the manufacturing and AI capabilties for all of this to work globally, however, for this to work at scale with millions or even billions of robots (humanoid/AVs), the world needs better connectivity and orders of magnitude more compute. This is exactly the problem SpaceX is solving for Tesla Both companies require infinite amounts more chips to make this all a reality, which is why Tesla and SpaceX joined to launch Terrafab. The largest building in the world and likely to become the the largest chip manufacturer in North America (maybe globally) The impact of what these two companies are building is a world of abundance, where the costs of energy, transportation and labour become a rounding error. The most deflationary impact to ever hit the world This is also why Elon continues to say that SpaceX will become a $100T company, as the combination of SpaceX and Tesla will generate trillions in revenue and easily become the largest valued company on earth The timelines of all of this working at scale is unknown, but many pieces of the puzzle are already being set in place and beginning to make a real impact... ask anyone who owns a Tesla and uses FSD today Full disclosure: SpaceX and Tesla remain core positions in my Milk Road PRO portoflio and I continue to DCA dips in both companies when the market gives me the opportunity. I'm an analyst at Milk Road and you can check out my real-time portfolio here:show more
