Elon Opens a Restaurant, Strikes a Chip Deal, Dreams of Robots

Key takeaways

Tesla's recent earnings call signaled challenges ahead, with sales down and regulatory hurdles looming.
Neuralink aims for rapid growth and innovation, targeting 20,000 implants per year by 2031, though skepticism about timelines persists.
Elon Musk's diner in Hollywood and Boring Company's Nashville project reflect his diverse business strategies but also invite public critiques.
A passionate community of Tesla owners and investors actively supports Musk's initiatives, demonstrating a unique blend of consumer loyalty and investment engagement.

Summary

Tesla's Earnings Call: The Good and the Bad

The episode kicks off with discussions about Tesla's recent earnings call, which revealed a challenging quarter for the company. Elon Musk acknowledged potential struggles ahead, noting a possible rough period for sales. However, analysts observed that despite the downturn, fan engagement and belief in Musk's vision (often referred to as 'Musk magic') continue to fuel excitement among investors. The conversation shifts to the regulatory environment affecting Tesla, particularly the upcoming expiration of the $7,500 electric vehicle tax credit, and how it might impact profits.

Neuralink's Progress: From Trials to Predictions

In an intriguing segment, the podcast delves into Neuralink's advancements in brain implants. A Bloomberg health reporter provides insights into Neuralink's ambitious goal of deploying 20,000 implants annually by 2031, projecting significant revenue from the technology. The conversation highlights the innovative potential of Neuralink's products, such as the telepathy implant that allows users to control devices with their thoughts, as well as plans for addressing vision loss through a bionic eye. Still, skepticism lingers regarding the FDA's approval process and the realism of Neuralink's timelines.

Elon Musk's Entrepreneurial Ventures: From Diners to Tunnels

Hosts Max Chafkin and Dana Hull explore Musk's latest endeavors, including the recently opened Tesla diner in Hollywood and the Boring Company's project to create a tunnel system in Nashville. The diner, while receiving enthusiasm for its innovative concept, has faced backlash, indicative of the growing critique surrounding Musk's businesses. Meanwhile, the Boring Company secured a contract expected to relieve traffic congestion without taxpayer funding, showcasing Musk’s continuing influence in infrastructure projects.

Public Reception and Community Engagement

The podcast wraps up by examining the fervent community surrounding Tesla and Musk's ventures, especially evident at Tesla Owner events where fans express unwavering support. Despite mixed opinions in public discourse, there remains a loyal following that intertwines car ownership and stock investment. This community aspect is highlighted as critical to understanding the relationship between Musk and his audience.

Show notes

The growing blowback from years of spreading conspiracy theories, embracing far-right political causes and attempting to dismantle the US government (with calamitous results for millions) might have finally taken its toll on Elon Musk and his companies. Or perhaps not.

Last week’s Tesla earnings call ended on a somber note, with world’s richest man declaring his struggling and divisive electric car company could have “a few rough quarters” ahead. With revenue down 12% and the political climate for electric vehicles darkening courtesy of his former boss in the White House, who can blame him?

But nothing is ever absolute when it comes to the world’s most famous living native of South Africa. Mere days later, Tesla announced a new $16.5 billion chip deal with Samsung, and over the weekend a now-jolly Musk proclaimed in his usual hyperbolic manner that Tesla might rake in $30 trillion per year from sales of its humanoid robot (yes, with a T). Oh, and on July 21, Tesla opened its first diner in the heart of Hollywood. Alongside a $9 grilled cheese sandwich and a contentious, four-story movie screen, protests immediately followed.

On this week’s episode Max Chafkin discusses all the latest Tesla news with Bloomberg’s Elon Musk reporter, Dana Hull. The duo also welcome Bloomberg health reporter Ike Swetlitz to hear about the latest from Neuralink, Musk’s brain implant company. In the spirit of Musk’s dreams of robot trillions, that company proclaimed it expects $1 billion in annual revenue by 2031, with chips inserted into 20,000 brains annually. Currently, the number is nine. But maybe a bionic eye will prompt second looks.

Also, Chafkin and Hull take a look at the latest news from Musk’s tunnel company Boring, which just scored a deal to drill a passage in red state Tennessee, from downtown Nashville to the city’s airport. If history is any guide, there might be a hiccup or two.

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