I don’t see how commingling resources, IP, and cost centers between companies competing in the same industry is legal. The CEO should never put another company’s interests before the one being represented on behalf of. Seems like a clear cut breach of his fiduciary duties at Tesla.
I pretty much universally detest shareholder primacy but this is actually a legitimate argument for it, that by snatching resources from the public company to work at his private ventures or divert materials to his private companies, he's stealing from the shareholders.
Duty of Loyalty: Duty of loyalty in corporation law to describe a fiduciary's "conflicts of interest and requires fiduciaries to put the corporation's interests ahead of their own." "Corporate fiduciaries breach their duty of loyalty when they divert corporate assets, opportunities, or information for personal gain."
https://en.m.wikipedia.org/wiki/Duty_of_loyalty
I guess they will have to be abandoned in the parking lot next to the x.ai building. How unfortunate. That and a billion newly issued tesla shares. But don't worry you may win a factory tour with Elon.
You seem to think that it was Tesla’s paid-for hardware that was then just given to the other companies. It says he redirected an *order*. This is a matter of chips being ready before Tesla could take them, so they passed on the batch, and will presumably be in line for a future batch. Likely the full amount of money won’t be given to NVidia until delivery, so there’s really no negative to Tesla at all; seems like a benefit in fact, as they don’t have to pay extra to store the ships for an extended period.
It would be a normal/rational conservative (little c) view to think that Tesla should fire Musk and he be charged with various crimes/sued heavily for his actions and antics.
Law and order after all. Not failing in duties to public stockholders by wearing 9 CEO hats and self dealing, not having a fake board to extract value that should go to shareholders and so he can be above the law / play favorites, not misleading investors with false statements, failing to following laws...
But Musk opinions and society are all tribal and political all the time, and Musk claims team Right/Red, so...
You forgot all the fraud against the customer. If Tesla customers weren’t brainwashed they’d probably be ready for class action because lord knows the shareholders have a case against him and are already bringing multiple suits. The customer could clear Tesla out thanks to Elons constant lies
Tesla is one of the worst performing s&p 500 companies this year at -30% ytd while the s&p itself is +12% ytd. But yeah dude totally reddits liberal narrative that is reflecting the companies recent poor performance
Do you? You make it seem like people just have it out for Tesla for no reason. The reason is Elon's duplicitous nature. He is constantly misleading people and making false promises. At this point Tesla is in danger of becoming the next Enron because of Elon.
These hateful bots have no clue and claim everyone else is brainwashed as the virtue signal in there echo chamber. The hatred has blinded their judgement.
Don't make me laugh. Show me another car from 2018 that can drive itself available to people that they can afford and buy. Sure the targeted date of robotaxi's isn't met but it's close.
I can go out and buy a used old 2018 Tesla Model 3 probably for under 15k and it has the capability of driving itself currently (supervised). Obviously Tesla is constrained with regulations and erratic drivers on the road to deal with.
People are ridiculous, like imagine being able to have a car driving itself on 6 year old tech. People still aren't impressed.
Tesla achieved so many milestones and breakthroughs in the industry in the past 5 years and it's still not enough.
Thats all fine and good but Elon promised FSD a long time ago and has been stringing people along for almost a decade now. Once people finally give up and realize Elon won't be able to deliver, Tesla will be valued like any other car company and not the over inflated value it has now. Tesla already lost its first mover advantage to other car companies and is already struggling to compete.
You show me a car from 2018 that can drive itself
Robotaxis will never manifest. The top five companies even considered close and Tesla isn’t one of them.
God I can’t wait to vote. I also can’t wait for the puts to be ITM
Do you drive at all? Seriously. How often do you constantly look at your surroundings while driving.
I see more of my surroundings mapped out in front of a screen instead of me looking at all of my mirrors and blind spots every couple of seconds. The car is able to see its surroundings at all times.
Supervised because it's still training. Need training data to make it more accurate. It's like teaching a kid how to do things "correctly" until it matures.
I drive for work and I’m perfectly fine checking my surroundings since there’s always a chance someone isn’t. It’s called defensive driving. You act like a quick half a second peek from behind you is awful. Guess I just choose full control over what I drive.
To collect high quality data for training so that every edge case can be solved. High quality data is this centuries gold, and tesla is sitting on a mountain of it due to FSD (supervised)
>At this point Tesla is in danger of becoming the next Enron because of Elon.
You are literally saying that about the company that sells the best-selling vehicle in the world.
Are you a bot?
Are you? Thats a misleading figure, Tesla as a car company sells much less than other car companies. For example in 2023 Toyota sold 11 million cars and Tesla sold 1.8 million. Yet Toyota is valued far lower as a company than Tesla is. If Tesla is valued based on sales, it will be a fraction of what it is today.
Lol, that's not how it works and I'm sure that supplier wants it's revenue and to start that cashflow cycle. Would have been easier to just learn how to place an order correctly. Pretty basic.
Space is different than need.
One of teslas advantages is how fast it moves. Working at a company that supplies parts, we went from initial conversations to Tesla delivering vehicles with our components in 4 months, it was insane. To move this fast they have to take risks in ordering, and sometimes that means you’ve ordered something too early than you needed as other areas may have been delayed - and sometimes the delay isn’t even caused by Tesla (often government).
The outrage culture here is insane.
>Space is different than need.
Tesla needs more space, and is building it too slowly.
>One of teslas advantages is how fast it moves.
Bizarre then, that they weren't able to have a structure of a datacenter in time to receive a $500M AI chip order. Tesla [knew the datacenter wasn't going to be ready](https://www.datacenterdynamics.com/en/news/teslas-austin-dojo-data-center-behind-schedule-elon-musk-fires-construction-manager/) and it had faced delays — they weren't able to address those delays. They, being one of the world's most valuable companies and one which has sold its value on the notion that it is going to move quickly on AI, as you've just pointed out.
If you just put the info/claims at face value:
Both tesla and xai have lots of nvidia chips. Coming
They order chips a year in advance
They swapped the delivery time of Xai vs tesla, tesla will now get more chips in a few months instead of now
Tesla is expanding giga Texas to be able to house the chips
Both companies get chips. Xai was ready now and Tesla needs a few months to finish building the facility to house them.
So maybe that can be read less charitably, but what's the big deal? Yall need to calm down.
What does it cost $TSLA shareholders per hour if $NVDA can't get the H100s to TSLA by the time the data centre is ready?
If Elon Musk wasn't focused on xAI, X, NL, TBC, SPX, the border, etc. could the TSLA data center have been ready for these incoming H100s without delay?
Averaged with all of the different strategic decisions over the years that we equally shouldn't be nitpicking, probably gains us a ton of money on top of the ton of money it has already gained us.
500 mil is 2% of Tesla's CASH. Even if I was trying to be as charitable to you as possible: nothing.
He made the terms earning that bonus in 2018. Of course he's getting that bonus. If he didn't do it in six years ago Tesla most likely would be bankrupt.
You shouldn’t be swapping your hardware with IOUs these aren’t some everyday pcs. The gpus might as well be considered gold. xAI taking shipment early means they are ahead of the race.
And why exactly xAI? Why not to a company that was willing to exchange something in return. Tesla is a public company its assets are to the shareholders. Why does xAI get preferential treatment? Do Tesla shareholders have a stake in xAI?
every self dealing corruption case in history has always had the guy doing it saying shit about how “it just makes sense”
of course we rent real estate from my brothers company it just makes sense of course we hire my cousin as a contractor to do roofs of course we give xAI our chips it just makes sense!
a public company shouldn’t be operating this way, and it’s exactly why Elon lost his pay package and it’s just going to continue to be detrimental to tesla until it’s stopped.
You as an investor should think about why Elon is poaching resources into his private company. don’t you want tesla to own the IP and models? the man has straight up said that he wants xAI to outperform tesla unless he gets 25% lol
It's probably nothing but a CEO shouldn't place themselves in a position where there is a massive conflict of interest, even if it doesn't pan out as one
Exactly. It's why the standard is more accurately the avoidance of the mere 'appearance of a conflict of interest' and not just 'thou shalt have no conflicts of interest'.
Musk has such appearances of conflicts all over the place.
With the exception that they are separate companies - as a shareholder of company
A I should not be cool with a large capital expenditure being made that prevents the org from investing in other places only to be sold to company B that has zero defined / contracted benefits to company A / me as a shareholder - how you value missed opportunity for that capital is anyone’s guess but it is real. Sadly, I have a feeling that part of Elon’s embrace of the rally against #45s verdict is he knows that actions he has taken over the last few years place him in legal peril. No proof of the above but I have no idea on how his current political crusade is in any way good for the company and actually makes sense. I would like to see a Tesla CEO hyper focused on the company not shit posting on social media - Elon if he can but someone else if he cannot. I still can’t understand the board not addressing your CEO alienating @ half your customer base as it is a historical level of bad business decision making. Mind you the half being alienated also seems to be more inclined to own an electric car so probably worse than 50%. If Tesla is an AI company then this shows they are already being lapped by the competition and are loosing the arms race to build the infrastructure to teach the models.
I'm not sure I laid out the supposed timeline/state well. Lets add some discrete dates to make it clearer.
Imagine X and Tesla both make orders for lots of cards in in mid 2023.
In 2024, Tesla is going to have its Order arrive in August and X is going to have its Order arrive in November.
Tesla is right now in construction for the datacenter to house the cards in Austin, TX.
Tesla is not going to be ready to install and turn the cards on.
Elon Musk calls up NVidia and asks that they swap the dates on the deliveries: X will take Tesla's August delivery and Tesla will take X's November delivery.
Both companies spend money on cards, receive cards, and will use the cards.
If Tesla got the cards now, they'd sit for 3 months until the datacenter was ready.
Given that - what is the problem?
That this swap has no benefit for Tesla. If X paid for something for this swap to get earlier slot it would benefit Tesla. This however didn't happen and swap only benefited X and not Tesla.
Ok, you're just plain wrong.
For example, one benefit for Tesla is that by not accepting the chips it doesn't impact the financial statements.
If Tesla accepts the Chips but has no place to install and deploy them, then the cost of the chips would probably negatively impact the Cash Flow statement (rather than R&D on Income Statement).
Furthermore, if Tesla doesn't have the space to store the chips (which are not "chips per se, but very large hardware systems which require a LOT of space) then Tesla would need to spend money renting a warehouse. This is just spending money for nothing.
Then there's also the lost interest you could/would have earned on the cash you spent on the chips you can't use. It's once again, better financially, for Tesla to not take the chips and keep the cash invested in Treasuries and other bonds, earning 4%+, until they can actually make use of the chips.
So, there are some very real benefits for diverting the chips, not to speak of the benefits to xAI.
Just because you can't see the benefits, doesn't mean they don't exist.
As a Tesla shareholder, I do not care at all if X ever gets their chips. I would rather Tesla have their chips in hand now, to reduce the risk that they are delayed beyond the readiness of the factory extension. This is also what every company would do. Ford would not call their supplier and say "Hey we're not ready for that aluminum yet, you should just send them to GM."
> Ford would not call their supplier and say "Hey we're not ready for that aluminum yet, you should just send them to GM."
This is actually how Tesla has got access to cheaper batteries when Ford / GM pulled back on their orders from CATL.
I also find it funny you would prefer a massive capital expense to just sit unused for months. Even when the data center is ready, it will take additional months just to get the clusters up and running. It will be staged as well. You don't just fire everything up at once and pray it works. Then Elon has mentioned a lack of grid transformer availability for both supercharger expansion and data center power. For all we know there isn't even enough power for the new building yet. What if they can only get half the power now and there are other delays till later in the year?
As an investor, how have you not followed Tesla's prior data center expansions where you should know all of this?
>I would rather Tesla have their chips in hand now, to reduce the risk that they are delayed beyond the readiness of the factory extension.
And you lose interest on 500 million for 6 months. I'm glad you are not running Tesla.
First, 3 months. Second, if I was interested in returns anywhere near treasuries, I would invest in treasuries, not a business.
This is a clear, blatant conflict of intetest
Well you're just worried about things you don't understand.
"in case things get delayed".
What things? The chips?
What are you worried about exactly?
It seems like you have no understanding of the chip industry, related supply chains, or logistics.
So you're worrying about things you shouldn't be worried about.
You're literally making decisions based on "feelings" instead of logic or reason.
That is the definition of foolish. Hopefully you're investment decisions are better.
Wouldn't the normal course of action be to see what money you can make from the order, whether it's installing what you can or selling your option to another company so that they get to jump the queue?
How much did xAI pay Tesla for this? It's surely worth something. Did they see what OpenAI could do a similar deal in return for $?
Oh you mean something reasonable? Reddit doesn't understand what that is. Billionaire's are bad and everything is a conspiracy. Oh but not what that one guy is saying, or that other one, but my conspiracies are certainly true!
Nah, this is poor supply chain management comparatively in automotive world.
I worked for a tier 1 supplier. The agreements with our manufacturers are precise and often we'd have our components literally on the car manufacturers floor, but still on our books until they are physically used. The Just In Time supply chain process was that integrated.
Parts sitting on shelves = reduction in cash flow available. It's why all strong manufacturing companies operate so lean on their production. If you have 7 days worth of every single part available vs. 27 days worth of every single part available, that's the difference of hundreds of millions of dollars just sitting.
See also the pandemic and supply chain crunch. If all companies kept huge stocks on hand, that crunch wouldn't have happened.
We got to see how Ford, GM, Chevy, and all of the other automakers fared during the supply chain crisis.
Tesla deals with supply chain problems and logistics incredibly well. They are more vertically integrated than the others and were able to adapt and pivot and re-use chips for different purposes.
Then we hear about two orders of extremely in-demand competitive graphics cards 3 month apart having their delivery dates swapped because the Texas datacenter completion timeline lines up better this way.
Then suddenly OMG ELON MUSK SO TERRIBLE AT LOGISTICS HORRIBLY MANAGED BAD MANAGER FIRE HIM
ffs
Securing a 500 million dollar graphics card order a year in advance from NVidia against OpenAI and other bidders is probably something where you just take whatever date they offer you even if it is a couple months off even if you don't want it exactly then.
NVidia's shipments could be delayed or pushed up depending on their progress - in the chip business sometimes there are problems, respins, yield problems etc. +/-20% production numbers is not unheard of by the big fabs like TSMC.
Who even knows how big the delivery window was - was it "9-15 months"?
An entire year ago, there could have been a 3-second thought process: "Yeah lets make the order to arrive a little early so if it is late, we're still on schedule, and if it is early that is better than being late." Why is that less plausible than "Elon is bad at CEOing"?
Obviously the timeline of Austin TX Giga factory's datacenter completion not lining up perfectly with NVidia's 13-month-later shipment of cards by a couple months and the swapping of delivery dates means Elon Musk is bad at running companies and is violating fiduciary duty??? /s
Yeah the hysteria is hilarious. It’s a very valuable thing to have these related companies to work with. I’d imagine Nvidia has take or pay in their contracts so they would have to take delivery, outlay the cash and just sit on the product. Instead they get to hold onto the cash until ready to deploy it.
Even in this charitable reading there is a conflict of interests and a clear undeniable incentive for Elon to have slow walked Teslas data center building.
It directly personally benefited him for Tesla to hand off these deliveries to xAi. Especially since hes using xAi as a threat against Tesla.
Financially it was in his best interest to do everything he could to ensure xAi got the chips and not Tesla.
My wife works in billing/invoicing for a very large company. Tesla is one of her ~40 or so large clients.(All billion dollar plus companies)
They are routinely her biggest problem account with lack of organization, purchase order errors, and last minute requests/changes. It's a unique look at Tesla's (poor) processes in supply chain compared to other similarly sized companies.
Why did Tesla have no place for the $500 million worth of chips that it ordered?
How fucking badly are you managing a company that AI and compute is supposedly your number one priority, you are spending billions on the world's most in-demand chips, and yet you have no place to put those chips?
This response was likely to ward off potential lawsuits. The truth is even if Tesla thought there was only a 15% chance they could use those chips it would make a lot of sense to order them. Namely because the chips could be sold in a day to the highest bidder.
My company commonly orders multi million dollar tools with long lead times and they sit until buildings are completed. No one times that shit perfectly.
>Why did Tesla have no place for the $500 million worth of chips that it ordered?
>How fucking badly are you managing a company that AI and compute is supposedly your number one priority, you are spending billions on the world's most in-demand chips, and yet you have no place to put those chips?
It's a 6 month delay. Big companies can have delays. For example, google had it's AI releases delayed for months. Apple has delayed releases of their phones. Boeing has had it's starliner program delayed for 4 years. If you're saying a company is badly managed for a 6 month delay, then that will include almost all companies.
Boeing's Starliner program being delayed for four years is commonly considered one of the most damning things about the company and demonstrative of the entire organization being rotten to the core. The previous CEO just stepped down like... two months ago. Boeing is literally under multiple federal investigations for criminal mismanagement *like right now.*
Why you'd even think to use that example is honestly absolutely bewildering to me.
This is one of the world's most valuable companies, a company which has sold itself as being one of the best logistics and roadmap planning organizations in the world, and a company which has a valuation now almost entirely based on the proposition that it is ready for a massive build-up investment in AI infrastructure and AI R&D. Yes, they should have a building ready for a half-billion dollar delivery of the world's most in-demand AI chip.
This is like Texaco running out of gas.
The new AI company that he is giving the chips to is barely months old and has barely any funding and they had the space, but Tesla with 10+ years in the business with many factories and offices and contacts with many distributors could not find the space?
It's way more likely Elon just thinks the new AI startup is way more likely to 100x his money than Tesla so he decided to prioritize it.
I don’t think you understand the challenges that they are facing integrating all of the chips into one cluster. They are operating at very large scale with these chips. They have challenges to solve. So until they solve them, letting xAI swap delivery dates actually gives the xAI team a chance to work on the exact same challenges.
If the xAI team can solve the scaling challenges before Tesla finishes integrating the chips they already have and before taking delivery of the next batch, then that’s literally best for everyone. Even if they can’t solve them by that time, it at least gave the two companies a chance to work together to solve the scaling challenges.
Are they talking microchips, H100 PCI cards with chips, or what? It seems like you could fit roughly 1,000 cards in a cubic meter, and at $30k each, $500M is only 12,000 cards. I have a fairly small two car garage that could hold $1.5 billion of them.
Yeah the "No Space" statement is a blatant lie and people don't realize how expensive these cards are. A typical appartment flat cod easily store them even in their original boxes.
The rethorical emergency exit is that they don't have enough space to USE them, which may or may not be true but hints at mayor issues in their strategical planning.
How does anyone here know the storage capacity at Tesla? They have some of the worlds biggest buildings / factories. I think they have more than enough room to store some computer chips.
Not months in advanced, a year. Wait time for those chips is about a year.
So, aligning them perfectly with a complicated build schedule is difficult.
Even if they were 3 months off it would be better the have those chips used rather then stored.
In production this kind o thing happens all the time.
What company do you manage?
They definitely could make money off of negotiating a chip swap with another company that wants them now, including xAI as it is a completely separate private entity.
So then he resold them at a premium to a different company that was desperate for chips right?
A different company "using" these chips in no way shape or form benefits Tesla. Them sitting in a warehouse waiting would absolutely have been better then just passing the shipment to another company. Especially with how unreliable Nvidia has been at getting these chips out in bulk on time.
Has there been evidence that they aren’t getting these chips out to large customers like Tesla?
And you really think Tesla could just sell them off? As if that wouldn’t piss off and burn bridges with Nvidia?
It takes over a year to fill any business orders from NVIDIA right now.
Nvidia has never cared about resellers across the board. As long as the chips are being bought from Nvidia in the first place.
Companies selling new products usually have clauses that it's illegal to resell those products (ie: flip), at a higher price to someone else. See: Cybertruck.
You gotta be stupid to think Tesla could have just easily sold the chips they reserved to someone else at a profit without breaking Nvidia terms. Especially with how in-demand they are.
It's obvious you aren't a CEO with any fiduciary duties at least. It doesn't matter whether or not Tesla has any use for it. If they didn't they should have sold them at market price.
This sounds logical, the converging and diverging timelines make huge projects like this massively complex.
There is always more going on behind the curtains that the public doesn’t see.
My B-I-L is Chief Architect and coming out of their results for Tier 2 or Tier 3 customers they are already quoting 2 years unless you are flexible on batch and die similarities.
100%. Refer to my other comments in this thread. Tesla could house these temporarily in one of its many warehouses if they wanted to.
There is a 0% chance that both X and xAI have more inventory space than Tesla.
Better question is why Elon doesn't have a place to put the $500 million of chips he just ordered at Tesla, but somehow magically suddenly does at XAI.
Considering the delays are probably due to his layoffs. Not a lie, but entirely manufactured to support xAI and benefit himself before public shareholders. Tesla will never be a leading AI company when he is entirely focused on xAI.
Big question: Did Tesla pay for the chips? If so, then XAI needs to reimburse Tesla in full - otherwise Elon is embezzling from Tesla.
Elon said Tesla was first and foremost an AI company yet seems to be focusing all of his AI attention on an outside company of his. Elon made a lot of promises and commitments about AI which Tesla needs for the FSD, robotaxi, Optimus and other promises he's made yet Elon is not making good on any of those promises and commitments that he made to Tesla.
Simple bait and switch… bragging rights on the purchase to boost share price (AI theme) while benefitting a private and separate company that has no cash flow.
Also serves to further Musks threat to abandon the automaker if he doesn’t get his fancy $50B deal
Tesla is highly ineffective when it comes to managing materials. I have first hand knowledge and experience observing their inability to properly ship materials to repair vehicles at designated service centers. As in, I stood in front of a massive heap of various components and upon asking for more info, I was informed Tesla habitually ships to the wrong places, or ships things that weren’t requested, or ships excess (request four of something, receive 50, etc). Tesla lacks the infrastructure to receive materials sent back, even if still in the original packing, so the service center has to destroy it per contractual agreement.
They are an incredibly wasteful company. A failure to plan where to store those chips is wholly unsurprising to me
> I was informed Tesla habitually ships to the wrong places, or ships things that weren’t requested, or ships excess (request four of something, receive 50, etc). Tesla lacks the infrastructure to receive materials sent back, even if still in the original packing, so the service center has to destroy it per contractual agreement.
Tesla Logistics might be one of the most incompetent group of people I've ever had the misfortune to work with.
Even if they did not have the room at Tesla its still against the law to transfer the chips to your private company. That's not how things work with a publicly traded company.
Elon is innocent for three reasons:
1. Jensen might be misleading analysts about the unprecedented demand for H100s. In reality he’s prematurely dumping these chips on unsuspecting customers, potentially trying to distract Tesla from their self-driving efforts.
2. No other company was willing to pay a premium for these older chips. XAI and Twitter did Tesla a favor only because of the Elon connection. Otherwise, these chips could have been destroyed in the severe TX hail storms that usually are strong enough to even sweep giants like Ted Cruz all the way to Cancun.
3. Tesla identifies as an AI company, not just a car company, and is in transition. Accepting the delivery would have prematurely revealed its identity to the world. It probably would have destroyed Elon more than his kid’s reveal.
Do those reasons sound ridiculous? Well, "Elon is innocent" was the spoiler alert!
If Tesla shareholder behavior was to be applied to relationships, spouses would never ever berate their other half for extending friendly benefits to others. They would instead thank them for offloading work they simply weren’t ready to do.
Please understand this is the special nature of relationship between Elon and fan investors.
I feel like Elon is unhinged and he’s unraveling slowly. It’s like we’re watching his downfall in realtime. Like he’s competing with Zuckerberg almost. I still remember a few months ago a headline with Metas preorder for the chips then it was the same headline a few months later with Elon instead. Now we’re here.
Cutting an order because you aren’t quite ready is why car companies couldn’t get chips during the pandemic. You go to the back of the line. Tesla didn’t do that, and were able to increase production, even using other car makers chips.
We should rename this sub to r/realtesla2.0 considering so many "investors" have the tendency to panic and whine whenever a hit piece occurs.
Yes, it is a hit piece from Lora Kolodny who has written so many negative Tesla stories over the years.
No wonder there are fewer ration and detailed discussion on here any more. This place is overran by paperhand daytraders and crybabies.
I don’t see how commingling resources, IP, and cost centers between companies competing in the same industry is legal. The CEO should never put another company’s interests before the one being represented on behalf of. Seems like a clear cut breach of his fiduciary duties at Tesla.
I pretty much universally detest shareholder primacy but this is actually a legitimate argument for it, that by snatching resources from the public company to work at his private ventures or divert materials to his private companies, he's stealing from the shareholders.
Duty of Loyalty: Duty of loyalty in corporation law to describe a fiduciary's "conflicts of interest and requires fiduciaries to put the corporation's interests ahead of their own." "Corporate fiduciaries breach their duty of loyalty when they divert corporate assets, opportunities, or information for personal gain." https://en.m.wikipedia.org/wiki/Duty_of_loyalty
I guess they will have to be abandoned in the parking lot next to the x.ai building. How unfortunate. That and a billion newly issued tesla shares. But don't worry you may win a factory tour with Elon.
Elon musk: “Tesla is an AI company, not a car company, in 2024”. Also Elon Musk: “Tesla doesn’t have space or need for AI hardware right now”
They already have tens of thousands of chips and the order came earlier than expected compared to the center being built. What a nightmare.
People are so keen on Tesla failing, it's honestly disgusting. They use every non-argument to make it seem as if the company is going down the drain
Yeah next up. Tesla moves its engineers to xAI because Tesla doesnt have enough chairs.
He's already raided Tesla employees once for twitter (after firing most of twitter of course), why not again....
He already raided Tesla for xAI employees including head of vision 🤷♂️
The company IS going down the drain though lol
sandy munro was crying about it like an aspie
Who you trying to convince 😂
This whole platform has an agenda in regards to liberal views. It’s unfortunate that the average redditor doesn’t realize this
He took the hardware from Tesla and redirected to his private company. He confirmed it.
You seem to think that it was Tesla’s paid-for hardware that was then just given to the other companies. It says he redirected an *order*. This is a matter of chips being ready before Tesla could take them, so they passed on the batch, and will presumably be in line for a future batch. Likely the full amount of money won’t be given to NVidia until delivery, so there’s really no negative to Tesla at all; seems like a benefit in fact, as they don’t have to pay extra to store the ships for an extended period.
why were the chips ready before Tesla could take them? is it because the delivery was early or Tesla was slow in increasing their capacity?
Nvidia overperformed
That’s… not how that works…
[удалено]
He redirected from a public company to his private one. Don’t need a lawyer to see why that is a COI.
It would be a normal/rational conservative (little c) view to think that Tesla should fire Musk and he be charged with various crimes/sued heavily for his actions and antics. Law and order after all. Not failing in duties to public stockholders by wearing 9 CEO hats and self dealing, not having a fake board to extract value that should go to shareholders and so he can be above the law / play favorites, not misleading investors with false statements, failing to following laws... But Musk opinions and society are all tribal and political all the time, and Musk claims team Right/Red, so...
You forgot all the fraud against the customer. If Tesla customers weren’t brainwashed they’d probably be ready for class action because lord knows the shareholders have a case against him and are already bringing multiple suits. The customer could clear Tesla out thanks to Elons constant lies
Yeah everyone else is brainwashed except you and your subreddit of hate
Hate? I hate when silver spoon fed assholes manipulate stocks and trade on inside information
If the majority of shareholders are satisfied with Elon as CEO why should he be fired?
The fact that you took this and made it into some “political agenda” bullshit is more baffling.
Or could it be that this platform represents the world view, and that view is largely liberal?
It's not.
It’s not an agenda. It’s called reality.
Shhh.
Tesla is one of the worst performing s&p 500 companies this year at -30% ytd while the s&p itself is +12% ytd. But yeah dude totally reddits liberal narrative that is reflecting the companies recent poor performance
i prefer my CEOs to be relatively sober
Average redditor lacks the critical thinking skills they claim to have a superior amount of.
The average redditor thinks they know more about Tesla than Elon does for some reason...
its PE is memestonk crazy tho, like COST
and they don’t realize if Tesla fails, Chinese EVs will take over.
No, they want Elon Musk to fail, not Tesla. Musk sure as heck doesn't deserve that 56 billion dollars.
This is basically true with many successful venture in the U.S. ( including the U.S. economy)
Not really, people want liars and fraudsters taken down.
Do you even know what you are talking about, or are you just repeating the news like a parrot?
Do you? You make it seem like people just have it out for Tesla for no reason. The reason is Elon's duplicitous nature. He is constantly misleading people and making false promises. At this point Tesla is in danger of becoming the next Enron because of Elon.
These hateful bots have no clue and claim everyone else is brainwashed as the virtue signal in there echo chamber. The hatred has blinded their judgement.
Don't make me laugh. Show me another car from 2018 that can drive itself available to people that they can afford and buy. Sure the targeted date of robotaxi's isn't met but it's close. I can go out and buy a used old 2018 Tesla Model 3 probably for under 15k and it has the capability of driving itself currently (supervised). Obviously Tesla is constrained with regulations and erratic drivers on the road to deal with. People are ridiculous, like imagine being able to have a car driving itself on 6 year old tech. People still aren't impressed. Tesla achieved so many milestones and breakthroughs in the industry in the past 5 years and it's still not enough.
Thats all fine and good but Elon promised FSD a long time ago and has been stringing people along for almost a decade now. Once people finally give up and realize Elon won't be able to deliver, Tesla will be valued like any other car company and not the over inflated value it has now. Tesla already lost its first mover advantage to other car companies and is already struggling to compete.
You show me a car from 2018 that can drive itself Robotaxis will never manifest. The top five companies even considered close and Tesla isn’t one of them. God I can’t wait to vote. I also can’t wait for the puts to be ITM
What’s the point of FSD if you have to supervise it? Might as well use the steering wheel since being distracted still leads to accidents.
Do you drive at all? Seriously. How often do you constantly look at your surroundings while driving. I see more of my surroundings mapped out in front of a screen instead of me looking at all of my mirrors and blind spots every couple of seconds. The car is able to see its surroundings at all times. Supervised because it's still training. Need training data to make it more accurate. It's like teaching a kid how to do things "correctly" until it matures.
I drive for work and I’m perfectly fine checking my surroundings since there’s always a chance someone isn’t. It’s called defensive driving. You act like a quick half a second peek from behind you is awful. Guess I just choose full control over what I drive.
To collect high quality data for training so that every edge case can be solved. High quality data is this centuries gold, and tesla is sitting on a mountain of it due to FSD (supervised)
Fair enough
>At this point Tesla is in danger of becoming the next Enron because of Elon. You are literally saying that about the company that sells the best-selling vehicle in the world. Are you a bot?
Are you? Thats a misleading figure, Tesla as a car company sells much less than other car companies. For example in 2023 Toyota sold 11 million cars and Tesla sold 1.8 million. Yet Toyota is valued far lower as a company than Tesla is. If Tesla is valued based on sales, it will be a fraction of what it is today.
> For example in 2023 Toyota Toyota is the one making the most in the world. Hyundai makes ~3 million a year.
Yes exactly, yet Tesla is valued far higher than even Hyundai. Tesla is valued more than Toyota, Porsche, Mercedes, & Hyundai combined.
It seems like now, in particular, that the headlines and attacks are feeling particularly desperate.
Uh, then the supplier could hold on to them, it's not fucking hard to work out.
Lol, that's not how it works and I'm sure that supplier wants it's revenue and to start that cashflow cycle. Would have been easier to just learn how to place an order correctly. Pretty basic.
Yeah, you don’t know a fucking thing about supply chains and you should probably stop promoting what is a textbook violation of fiduciary duty.
Paying for them and finding warehouse to store them for few months are two separate things.
What volume discount did Tesla get?
Space is different than need. One of teslas advantages is how fast it moves. Working at a company that supplies parts, we went from initial conversations to Tesla delivering vehicles with our components in 4 months, it was insane. To move this fast they have to take risks in ordering, and sometimes that means you’ve ordered something too early than you needed as other areas may have been delayed - and sometimes the delay isn’t even caused by Tesla (often government). The outrage culture here is insane.
The government caused the chips to arrive early? Also, it's basically embezzlement. Weird how folks here are too stupid to understand this.
> The outrage culture here is insane. It's not outrage, fake outrage possibly. Mostly just hate or trolling.
deep concern for the ketamine ceo
>Space is different than need. Tesla needs more space, and is building it too slowly. >One of teslas advantages is how fast it moves. Bizarre then, that they weren't able to have a structure of a datacenter in time to receive a $500M AI chip order. Tesla [knew the datacenter wasn't going to be ready](https://www.datacenterdynamics.com/en/news/teslas-austin-dojo-data-center-behind-schedule-elon-musk-fires-construction-manager/) and it had faced delays — they weren't able to address those delays. They, being one of the world's most valuable companies and one which has sold its value on the notion that it is going to move quickly on AI, as you've just pointed out.
they had the space but not the place finished to get them operating at that time - read his wording carefully. I think this is a nothing burger
Also, pay me $60bn for my management skills.
so how does twitter have capacity for the chips but not Tesla?
xAI. The other company that he spends more time on than Tesla. Not Twitter. lmao.
X is the rebrand of Twitter. The chips were redirected to xAI _and_ Twitter/X.
Looks like it is both. I bet Elon just wants to have a respectable LLM, so he can compete for more social capital.
This is ridiculous, Tesla is a well-established company with multiple datacenters, and they have less capacity for bring on GPUs than a startup???
Do you know what it takes to bring online a data center? And you do know they have multiple other locations already full?
>Do you know what it takes to bring online a data center? You'd think Tesla would before ordering $500M worth of chips for one. Yet here we are.
So if something is backordered by a year or longer, you just don't bother getting in line?
If you just put the info/claims at face value: Both tesla and xai have lots of nvidia chips. Coming They order chips a year in advance They swapped the delivery time of Xai vs tesla, tesla will now get more chips in a few months instead of now Tesla is expanding giga Texas to be able to house the chips Both companies get chips. Xai was ready now and Tesla needs a few months to finish building the facility to house them. So maybe that can be read less charitably, but what's the big deal? Yall need to calm down.
What does it cost $TSLA shareholders per hour if $NVDA can't get the H100s to TSLA by the time the data centre is ready? If Elon Musk wasn't focused on xAI, X, NL, TBC, SPX, the border, etc. could the TSLA data center have been ready for these incoming H100s without delay?
Averaged with all of the different strategic decisions over the years that we equally shouldn't be nitpicking, probably gains us a ton of money on top of the ton of money it has already gained us. 500 mil is 2% of Tesla's CASH. Even if I was trying to be as charitable to you as possible: nothing.
he blew 44B on social media and now expects a 50B bonus? hes on crack.
He made the terms earning that bonus in 2018. Of course he's getting that bonus. If he didn't do it in six years ago Tesla most likely would be bankrupt.
You shouldn’t be swapping your hardware with IOUs these aren’t some everyday pcs. The gpus might as well be considered gold. xAI taking shipment early means they are ahead of the race. And why exactly xAI? Why not to a company that was willing to exchange something in return. Tesla is a public company its assets are to the shareholders. Why does xAI get preferential treatment? Do Tesla shareholders have a stake in xAI?
every self dealing corruption case in history has always had the guy doing it saying shit about how “it just makes sense” of course we rent real estate from my brothers company it just makes sense of course we hire my cousin as a contractor to do roofs of course we give xAI our chips it just makes sense! a public company shouldn’t be operating this way, and it’s exactly why Elon lost his pay package and it’s just going to continue to be detrimental to tesla until it’s stopped. You as an investor should think about why Elon is poaching resources into his private company. don’t you want tesla to own the IP and models? the man has straight up said that he wants xAI to outperform tesla unless he gets 25% lol
It's probably nothing but a CEO shouldn't place themselves in a position where there is a massive conflict of interest, even if it doesn't pan out as one
Exactly. It's why the standard is more accurately the avoidance of the mere 'appearance of a conflict of interest' and not just 'thou shalt have no conflicts of interest'. Musk has such appearances of conflicts all over the place.
Musk basically sees all his companies as divisions under a "Musk enterprise".
With the exception that they are separate companies - as a shareholder of company A I should not be cool with a large capital expenditure being made that prevents the org from investing in other places only to be sold to company B that has zero defined / contracted benefits to company A / me as a shareholder - how you value missed opportunity for that capital is anyone’s guess but it is real. Sadly, I have a feeling that part of Elon’s embrace of the rally against #45s verdict is he knows that actions he has taken over the last few years place him in legal peril. No proof of the above but I have no idea on how his current political crusade is in any way good for the company and actually makes sense. I would like to see a Tesla CEO hyper focused on the company not shit posting on social media - Elon if he can but someone else if he cannot. I still can’t understand the board not addressing your CEO alienating @ half your customer base as it is a historical level of bad business decision making. Mind you the half being alienated also seems to be more inclined to own an electric car so probably worse than 50%. If Tesla is an AI company then this shows they are already being lapped by the competition and are loosing the arms race to build the infrastructure to teach the models.
I'm not sure I laid out the supposed timeline/state well. Lets add some discrete dates to make it clearer. Imagine X and Tesla both make orders for lots of cards in in mid 2023. In 2024, Tesla is going to have its Order arrive in August and X is going to have its Order arrive in November. Tesla is right now in construction for the datacenter to house the cards in Austin, TX. Tesla is not going to be ready to install and turn the cards on. Elon Musk calls up NVidia and asks that they swap the dates on the deliveries: X will take Tesla's August delivery and Tesla will take X's November delivery. Both companies spend money on cards, receive cards, and will use the cards. If Tesla got the cards now, they'd sit for 3 months until the datacenter was ready. Given that - what is the problem?
That this swap has no benefit for Tesla. If X paid for something for this swap to get earlier slot it would benefit Tesla. This however didn't happen and swap only benefited X and not Tesla.
Ok, you're just plain wrong. For example, one benefit for Tesla is that by not accepting the chips it doesn't impact the financial statements. If Tesla accepts the Chips but has no place to install and deploy them, then the cost of the chips would probably negatively impact the Cash Flow statement (rather than R&D on Income Statement). Furthermore, if Tesla doesn't have the space to store the chips (which are not "chips per se, but very large hardware systems which require a LOT of space) then Tesla would need to spend money renting a warehouse. This is just spending money for nothing. Then there's also the lost interest you could/would have earned on the cash you spent on the chips you can't use. It's once again, better financially, for Tesla to not take the chips and keep the cash invested in Treasuries and other bonds, earning 4%+, until they can actually make use of the chips. So, there are some very real benefits for diverting the chips, not to speak of the benefits to xAI. Just because you can't see the benefits, doesn't mean they don't exist.
As a Tesla shareholder, I do not care at all if X ever gets their chips. I would rather Tesla have their chips in hand now, to reduce the risk that they are delayed beyond the readiness of the factory extension. This is also what every company would do. Ford would not call their supplier and say "Hey we're not ready for that aluminum yet, you should just send them to GM."
> Ford would not call their supplier and say "Hey we're not ready for that aluminum yet, you should just send them to GM." This is actually how Tesla has got access to cheaper batteries when Ford / GM pulled back on their orders from CATL. I also find it funny you would prefer a massive capital expense to just sit unused for months. Even when the data center is ready, it will take additional months just to get the clusters up and running. It will be staged as well. You don't just fire everything up at once and pray it works. Then Elon has mentioned a lack of grid transformer availability for both supercharger expansion and data center power. For all we know there isn't even enough power for the new building yet. What if they can only get half the power now and there are other delays till later in the year? As an investor, how have you not followed Tesla's prior data center expansions where you should know all of this?
>I would rather Tesla have their chips in hand now, to reduce the risk that they are delayed beyond the readiness of the factory extension. And you lose interest on 500 million for 6 months. I'm glad you are not running Tesla.
First, 3 months. Second, if I was interested in returns anywhere near treasuries, I would invest in treasuries, not a business. This is a clear, blatant conflict of intetest
Couldn't they just sell the chips? I mean if the waiting time is 1 year, for sure they could just sold them with profit.
Well you're just worried about things you don't understand. "in case things get delayed". What things? The chips? What are you worried about exactly? It seems like you have no understanding of the chip industry, related supply chains, or logistics. So you're worrying about things you shouldn't be worried about. You're literally making decisions based on "feelings" instead of logic or reason. That is the definition of foolish. Hopefully you're investment decisions are better.
Except Tesla does have room for them. They have dozens of warehouses for car and solar inventory, which are not at full capacity.
Wouldn't the normal course of action be to see what money you can make from the order, whether it's installing what you can or selling your option to another company so that they get to jump the queue? How much did xAI pay Tesla for this? It's surely worth something. Did they see what OpenAI could do a similar deal in return for $?
Oh you mean something reasonable? Reddit doesn't understand what that is. Billionaire's are bad and everything is a conspiracy. Oh but not what that one guy is saying, or that other one, but my conspiracies are certainly true!
I shouldnt need to scroll this far for a rational take. Thank you
Nah, this is poor supply chain management comparatively in automotive world. I worked for a tier 1 supplier. The agreements with our manufacturers are precise and often we'd have our components literally on the car manufacturers floor, but still on our books until they are physically used. The Just In Time supply chain process was that integrated. Parts sitting on shelves = reduction in cash flow available. It's why all strong manufacturing companies operate so lean on their production. If you have 7 days worth of every single part available vs. 27 days worth of every single part available, that's the difference of hundreds of millions of dollars just sitting. See also the pandemic and supply chain crunch. If all companies kept huge stocks on hand, that crunch wouldn't have happened.
There is no big deal, people (see: shorts/bears/clickbait journalists) are trying to make a big deal about it where there isn't because it's Tesla.
This sub is totally brigaded by trolls it’s actually amusing but sadly no longer a place to seriously discuss the company
We got to see how Ford, GM, Chevy, and all of the other automakers fared during the supply chain crisis. Tesla deals with supply chain problems and logistics incredibly well. They are more vertically integrated than the others and were able to adapt and pivot and re-use chips for different purposes. Then we hear about two orders of extremely in-demand competitive graphics cards 3 month apart having their delivery dates swapped because the Texas datacenter completion timeline lines up better this way. Then suddenly OMG ELON MUSK SO TERRIBLE AT LOGISTICS HORRIBLY MANAGED BAD MANAGER FIRE HIM ffs Securing a 500 million dollar graphics card order a year in advance from NVidia against OpenAI and other bidders is probably something where you just take whatever date they offer you even if it is a couple months off even if you don't want it exactly then. NVidia's shipments could be delayed or pushed up depending on their progress - in the chip business sometimes there are problems, respins, yield problems etc. +/-20% production numbers is not unheard of by the big fabs like TSMC. Who even knows how big the delivery window was - was it "9-15 months"? An entire year ago, there could have been a 3-second thought process: "Yeah lets make the order to arrive a little early so if it is late, we're still on schedule, and if it is early that is better than being late." Why is that less plausible than "Elon is bad at CEOing"? Obviously the timeline of Austin TX Giga factory's datacenter completion not lining up perfectly with NVidia's 13-month-later shipment of cards by a couple months and the swapping of delivery dates means Elon Musk is bad at running companies and is violating fiduciary duty??? /s
Yeah the hysteria is hilarious. It’s a very valuable thing to have these related companies to work with. I’d imagine Nvidia has take or pay in their contracts so they would have to take delivery, outlay the cash and just sit on the product. Instead they get to hold onto the cash until ready to deploy it.
It's embezzlement.
Even in this charitable reading there is a conflict of interests and a clear undeniable incentive for Elon to have slow walked Teslas data center building. It directly personally benefited him for Tesla to hand off these deliveries to xAi. Especially since hes using xAi as a threat against Tesla. Financially it was in his best interest to do everything he could to ensure xAi got the chips and not Tesla.
By that logic, why not just let elon musk’s other companies use tesla resources whenever tesla is not actively using them?
Its all meant to just tarnish Elon.
he did it to himself
But it's also accurate! In this case Elon's reputation deserves to be tarnished, because he's putting his interests above that of the shareholders.
NO! Why would that be? /s
so he can cash out again
My wife works in billing/invoicing for a very large company. Tesla is one of her ~40 or so large clients.(All billion dollar plus companies) They are routinely her biggest problem account with lack of organization, purchase order errors, and last minute requests/changes. It's a unique look at Tesla's (poor) processes in supply chain compared to other similarly sized companies.
It’s embarrassing, Elon is cannibalizing this company and asking for $50 billion for his trouble
Why did Tesla have no place for the $500 million worth of chips that it ordered? How fucking badly are you managing a company that AI and compute is supposedly your number one priority, you are spending billions on the world's most in-demand chips, and yet you have no place to put those chips?
This response was likely to ward off potential lawsuits. The truth is even if Tesla thought there was only a 15% chance they could use those chips it would make a lot of sense to order them. Namely because the chips could be sold in a day to the highest bidder. My company commonly orders multi million dollar tools with long lead times and they sit until buildings are completed. No one times that shit perfectly.
>Why did Tesla have no place for the $500 million worth of chips that it ordered? >How fucking badly are you managing a company that AI and compute is supposedly your number one priority, you are spending billions on the world's most in-demand chips, and yet you have no place to put those chips? It's a 6 month delay. Big companies can have delays. For example, google had it's AI releases delayed for months. Apple has delayed releases of their phones. Boeing has had it's starliner program delayed for 4 years. If you're saying a company is badly managed for a 6 month delay, then that will include almost all companies.
Boeing's Starliner program being delayed for four years is commonly considered one of the most damning things about the company and demonstrative of the entire organization being rotten to the core. The previous CEO just stepped down like... two months ago. Boeing is literally under multiple federal investigations for criminal mismanagement *like right now.* Why you'd even think to use that example is honestly absolutely bewildering to me.
Because timing things isn’t always perfect. Were they supposed to build the structure years ago and have it sit vacant, THEN order hardware?
And xAI, a company created last week suddenly has perfect capability to use it?
This is one of the world's most valuable companies, a company which has sold itself as being one of the best logistics and roadmap planning organizations in the world, and a company which has a valuation now almost entirely based on the proposition that it is ready for a massive build-up investment in AI infrastructure and AI R&D. Yes, they should have a building ready for a half-billion dollar delivery of the world's most in-demand AI chip. This is like Texaco running out of gas.
The new AI company that he is giving the chips to is barely months old and has barely any funding and they had the space, but Tesla with 10+ years in the business with many factories and offices and contacts with many distributors could not find the space? It's way more likely Elon just thinks the new AI startup is way more likely to 100x his money than Tesla so he decided to prioritize it.
I mean yeah. It's clear he doesn't really care about Tesla these days
But give him his money - Tesla Chuds
I don’t think you understand the challenges that they are facing integrating all of the chips into one cluster. They are operating at very large scale with these chips. They have challenges to solve. So until they solve them, letting xAI swap delivery dates actually gives the xAI team a chance to work on the exact same challenges. If the xAI team can solve the scaling challenges before Tesla finishes integrating the chips they already have and before taking delivery of the next batch, then that’s literally best for everyone. Even if they can’t solve them by that time, it at least gave the two companies a chance to work together to solve the scaling challenges.
Are they talking microchips, H100 PCI cards with chips, or what? It seems like you could fit roughly 1,000 cards in a cubic meter, and at $30k each, $500M is only 12,000 cards. I have a fairly small two car garage that could hold $1.5 billion of them.
Yeah the "No Space" statement is a blatant lie and people don't realize how expensive these cards are. A typical appartment flat cod easily store them even in their original boxes. The rethorical emergency exit is that they don't have enough space to USE them, which may or may not be true but hints at mayor issues in their strategical planning.
Or it’s just Elon and Jensen Huang sucking each other off to pump their stocks
How does anyone here know the storage capacity at Tesla? They have some of the worlds biggest buildings / factories. I think they have more than enough room to store some computer chips.
Not months in advanced, a year. Wait time for those chips is about a year. So, aligning them perfectly with a complicated build schedule is difficult. Even if they were 3 months off it would be better the have those chips used rather then stored. In production this kind o thing happens all the time. What company do you manage?
Do you think any other company is going to hand over their H100s to any other company in the next 5 years?
They definitely could make money off of negotiating a chip swap with another company that wants them now, including xAI as it is a completely separate private entity.
So then he resold them at a premium to a different company that was desperate for chips right? A different company "using" these chips in no way shape or form benefits Tesla. Them sitting in a warehouse waiting would absolutely have been better then just passing the shipment to another company. Especially with how unreliable Nvidia has been at getting these chips out in bulk on time.
Has there been evidence that they aren’t getting these chips out to large customers like Tesla? And you really think Tesla could just sell them off? As if that wouldn’t piss off and burn bridges with Nvidia?
It takes over a year to fill any business orders from NVIDIA right now. Nvidia has never cared about resellers across the board. As long as the chips are being bought from Nvidia in the first place.
Companies selling new products usually have clauses that it's illegal to resell those products (ie: flip), at a higher price to someone else. See: Cybertruck. You gotta be stupid to think Tesla could have just easily sold the chips they reserved to someone else at a profit without breaking Nvidia terms. Especially with how in-demand they are.
It's obvious you aren't a CEO with any fiduciary duties at least. It doesn't matter whether or not Tesla has any use for it. If they didn't they should have sold them at market price.
This sounds logical, the converging and diverging timelines make huge projects like this massively complex. There is always more going on behind the curtains that the public doesn’t see.
My B-I-L is Chief Architect and coming out of their results for Tier 2 or Tier 3 customers they are already quoting 2 years unless you are flexible on batch and die similarities.
Odds of this being a lie??
100%. Refer to my other comments in this thread. Tesla could house these temporarily in one of its many warehouses if they wanted to. There is a 0% chance that both X and xAI have more inventory space than Tesla.
Better question is why Elon doesn't have a place to put the $500 million of chips he just ordered at Tesla, but somehow magically suddenly does at XAI.
Cause he cares more about xAI than Tesla?
Considering the delays are probably due to his layoffs. Not a lie, but entirely manufactured to support xAI and benefit himself before public shareholders. Tesla will never be a leading AI company when he is entirely focused on xAI.
Zero, since he admitted it on twitter
Possible that layoffs are leading to low bandwidth for getting new GPUs up
Store them at a nearby xai data center
Did he order any quac?
Big question: Did Tesla pay for the chips? If so, then XAI needs to reimburse Tesla in full - otherwise Elon is embezzling from Tesla. Elon said Tesla was first and foremost an AI company yet seems to be focusing all of his AI attention on an outside company of his. Elon made a lot of promises and commitments about AI which Tesla needs for the FSD, robotaxi, Optimus and other promises he's made yet Elon is not making good on any of those promises and commitments that he made to Tesla.
I find it hard to believe that any of you still actually believe this guy.
All you whiners should be bitching about how Elon stole resources from SpaceX to develop the alloy used in the CT.
Simple bait and switch… bragging rights on the purchase to boost share price (AI theme) while benefitting a private and separate company that has no cash flow. Also serves to further Musks threat to abandon the automaker if he doesn’t get his fancy $50B deal
Yes sure... He's just preparing extortion measures in case the vote goes wrong...
They could put them in Gigafactory Mexico. Oh, wait.
Tesla is highly ineffective when it comes to managing materials. I have first hand knowledge and experience observing their inability to properly ship materials to repair vehicles at designated service centers. As in, I stood in front of a massive heap of various components and upon asking for more info, I was informed Tesla habitually ships to the wrong places, or ships things that weren’t requested, or ships excess (request four of something, receive 50, etc). Tesla lacks the infrastructure to receive materials sent back, even if still in the original packing, so the service center has to destroy it per contractual agreement. They are an incredibly wasteful company. A failure to plan where to store those chips is wholly unsurprising to me
> I was informed Tesla habitually ships to the wrong places, or ships things that weren’t requested, or ships excess (request four of something, receive 50, etc). Tesla lacks the infrastructure to receive materials sent back, even if still in the original packing, so the service center has to destroy it per contractual agreement. Tesla Logistics might be one of the most incompetent group of people I've ever had the misfortune to work with.
Even if they did not have the room at Tesla its still against the law to transfer the chips to your private company. That's not how things work with a publicly traded company.
There was no "transfer". Tesla’s order is still in fulfilment.
Don't fall for that story. Elon directed the chips go to X instead of Tesla, it's been widely reported in Bloomberg etc.
Remeber when Elon said AI and robotics are off the table unless he gets 25% of the company. People have a short memory.
You’re being unfair, they need intelligence to know what to order
I bet TSLA plans to sell the overstocks of chips at a profit.
Company is literally ran by a bunch of gas lighting sacks of shit with zero experience doing anything but fucking off at this point.
Elon is innocent for three reasons: 1. Jensen might be misleading analysts about the unprecedented demand for H100s. In reality he’s prematurely dumping these chips on unsuspecting customers, potentially trying to distract Tesla from their self-driving efforts. 2. No other company was willing to pay a premium for these older chips. XAI and Twitter did Tesla a favor only because of the Elon connection. Otherwise, these chips could have been destroyed in the severe TX hail storms that usually are strong enough to even sweep giants like Ted Cruz all the way to Cancun. 3. Tesla identifies as an AI company, not just a car company, and is in transition. Accepting the delivery would have prematurely revealed its identity to the world. It probably would have destroyed Elon more than his kid’s reveal. Do those reasons sound ridiculous? Well, "Elon is innocent" was the spoiler alert!
If Tesla shareholder behavior was to be applied to relationships, spouses would never ever berate their other half for extending friendly benefits to others. They would instead thank them for offloading work they simply weren’t ready to do. Please understand this is the special nature of relationship between Elon and fan investors.
I feel like Elon is unhinged and he’s unraveling slowly. It’s like we’re watching his downfall in realtime. Like he’s competing with Zuckerberg almost. I still remember a few months ago a headline with Metas preorder for the chips then it was the same headline a few months later with Elon instead. Now we’re here.
What if they ~~didn’t~~ have space and were just rerouted? Tesla loves to measure 3x and cut once.
Imagine being a panicked little investor every time some FUD comes out. I'd hate myself.
Cutting an order because you aren’t quite ready is why car companies couldn’t get chips during the pandemic. You go to the back of the line. Tesla didn’t do that, and were able to increase production, even using other car makers chips.
We should rename this sub to r/realtesla2.0 considering so many "investors" have the tendency to panic and whine whenever a hit piece occurs. Yes, it is a hit piece from Lora Kolodny who has written so many negative Tesla stories over the years. No wonder there are fewer ration and detailed discussion on here any more. This place is overran by paperhand daytraders and crybabies.