RT Elon Musk (@elonmusk)@jamesdouma The FSD software update next month will be a major step-change improvement for rare conditions ...

Tesla's core business is struggling, and its futuristic product platforms are a long way from generating meaningful revenue. Tesla (TSLA 3.49%) is one of the world's largest manufacturers of electric vehicles (EVs), but its CEO, Elon Musk, is no longer focused on just selling cars. He's preparing the company for an autonomous future by directing its resources into its full self-driving (FSD) software, its Cybercab robotaxi, and its humanoid robot named Optimus. Musk believes Tesla will become the world's mo ...

Core Insights - The rise of artificial intelligence (AI) is projected to add $15.7 trillion to global GDP by 2030, driven by consumption-side effects and productivity improvements [1][2] Group 1: AI Market Dynamics - The AI market is experiencing significant growth, leading to substantial increases in the stock prices of public companies involved in AI hardware and applications [2][4] - Historical trends suggest that technological revolutions often lead to market bubbles, and AI may not be an exception, with some leading AI stocks potentially facing declines of 50% or more [4] Group 2: Palantir Technologies - Palantir Technologies is identified as a megacap AI stock that could see a significant decline due to its unsupported valuation despite being a strong business with unique AI-driven platforms [5][6] - The company's platforms, Gotham and Foundry, are growing at double-digit rates, but Palantir's price-to-sales (P/S) ratio was nearly 123, indicating bubble territory [8] - Concerns exist regarding the sustainability of government spending on defense, which is crucial for Palantir's profitability [9] Group 3: Tesla - Tesla is viewed as a company with significant challenges, including stalled EV growth and declining vehicle margins due to increased competition [14] - The company's earnings quality is questioned, as a large portion of its profits comes from automotive regulatory credits and net interest income, which may diminish in the future [15][16] - Leadership under CEO Elon Musk is seen as a liability, with unfulfilled promises impacting the company's market cap [17] Group 4: Nvidia - Nvidia is recognized as a leading company in the AI revolution, but its valuation is considered excessive, with a P/S ratio nearing 29 [23] - The company benefits from high demand for its GPUs, which are essential for AI-accelerated data centers, but faces competition from customers developing their own AI chips [19][22] - Historical patterns suggest that Nvidia could be significantly impacted if an AI bubble forms and bursts [21]