In late 2016, Tesla severed ties with Mobileye and had to rebuild the vision stack from scratch. Just 2 years later, Tesla’s solution is vastly better than Mobileye. Intel then acquired Mobileye for $15B. 2/5
Tesla’s new full self-driving chip also vastly outperforms NVDA’s. This too was achieved in just a few years, starting with close to zero in-house chip design capabilities. NVDA’s market cap is $116B and automotive is a big part of their story. 3/5
Tesla only spent $1.5B in R&D last year. It covered autonomy SW & HW, Model Y, Semi, Roadster, Pickup, Solar roof, mfg automation, cell/powertrain research, Supercharger v3, and Tesla Energy. Other automakers spent $7-10B each. 4/5
GAAP accounting treatment of R&D is just plain wrong for a company like Tesla. This is the most productive use of capital the world has ever seen. It is the fundamental reason why Tesla will continue to win. 5/5 @elonmusk $TSLA
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