Tesla will struggle to grow at projected rate, says IMI President

But first we have to put in mind that it's it that is four times the gross domestic product from Namibia. Now there are 70 to 80 countries of the world which have less gross domestic product than Elon Musk has got as this package. And you know, bearing in mind it's stock options, but it's given power from 13% to 20%. So obviously the shareholders are very much more confident in having Musk heavily involved. I mean, that's the bit which is the real message that they, they have that confidence and therefore are prepared to do that. But it's a staggering amount of money. Suppose there's, there's so much, there's so much of A fear factor as well that could be in play here. I mean, allow me to do a little bit of the maths here, Tim, if you if, if you will, Jim, sorry. So Kathy Wood suggests that $2600 in five years is pretty much the the price that she anticipates for this one. That stock is currently at 18247 as we're just putting up there. So it would need to grow 1325% in five years time. Ultimately, just to give you a like this year NVIDIA grew from 362 to now sitting at around 130 bucks. That's 3480% grown in that five year period. But NVIDIA has latched on to something that is a generational change in technological advancements. Can Tesla do the same in any way, no matter what Elon Musk brings to the table? I think it's going to struggle because it, especially if it comes to the car industry that fundamentally at the moment it, it depends a lot on the US policy. Obviously, the Biden administration is pushing back against China. Obviously, China controls 95% of the world's supply of batteries and the raw materials that go into them. So they have a very strong position and the Biden administration has been very prominent in pushing back against that. You know, the 100% tariffs, all this sort of thing. Now in Europe, they said the, the switch that happened just was it day, day before yesterday when they're talking about 30% tariff when Chinese vehicles coming in. So there's obviously a lot of money that could be made in the US by Tesla on the in the car side. The competition is going to be very much more intense in Europe unless Europe starts putting up some very strong barriers against producers like BYD. And so I think there's AI think it's more to do with the shareholders having confidence in Musk making the right decisions regarding the the future, especially on the car side of the business. Jim, when it comes to the focus for the future, AI clearly coming and that's going to have some sort of impact, we think possibly around autonomous and the focus seems to be around autonomous vehicles, whether on the road or in the sky at the expense potentially of a low cost vehicle. I mean, I pitched a question deal on mass the other week and he very much swerved around any confirmation of that low cost mass market vehicle coming to market. What do investors really want? Do you think where's the upside going to be? Would it be around a low cost mass market EV or is the get better around autonomous? Well, it does depend very much on the green mandates and the 0 emission mandates there are certain governments are putting in. If they're going to go for the 0 emission mandate, then you're going to have to concentrate a bit on the low end of the market to keep the people in electric vehicles. That's going to be obviously a factor and the high end doesn't really have too much impact on that. The the difficulty everybody is facing is over security. You know, it's all very well saying you can have an autonomous vehicle, but if somebody can hack into it, then, you know, the whole idea of driving and having somebody else controlling your car, you know, it becomes a big factor. Elon Musk himself recalled 2 million cars in the States for a recall. None of them came back to a car dealership. They were all controlled, adapted remotely. And so I think that's becomes another factor that people, it's almost like an elephant in the room that nobody's talking about that you can have all this stuff, but if somebody can hack into it, then you've got a real factor. The car industry is fairly porous when it comes to security generally.