Speaker 1: Bloomberg Audio Studios, podcasts, radio news, the.
Speaker 2: ARC and Vest CEO Kathy would one of Tensela's biggest bulls,
Speaker 2: the ev Maaker, the top holding in her flagship Art
Speaker 2: Innovation ETF, has this to say, I do not understand
Speaker 2: why Vest is a voting against Elon's pay package when
Speaker 2: they and their clients would benefit enormously if he and
Speaker 2: his incredible team meet such high goals. Kathy joint us
Speaker 2: Now for more, Kathy, thanks for making some time for
Speaker 2: us this morning. Good morning to you all. Do you think, Kathy,
Speaker 2: the incentives are well aligned?
Speaker 1: Yes, we do. I do not believe any company anywhere
Speaker 1: near this size has ever delivered a compound annual rate
Speaker 1: of growth for ebit dot, which is a bottom line
Speaker 1: number of forty one percent over ten years. No company
Speaker 1: has done that. So yes, indeed the incentives are aligned.
Speaker 1: If he and his team are able to deliver on
Speaker 1: that number, the stock is going to outperform enormously.
Speaker 3: Kathy, If by chance this proposal is rejected, would you
Speaker 3: consider shedding some of your TESLA position.
Speaker 1: So I'm happy that the prediction markets are at ninety
Speaker 1: to ninety five percent in terms of this is going
Speaker 1: through so we don't have to think about that clearly.
Speaker 1: If Elon left, we think about it in two ways. One,
Speaker 1: we think robotaxis, he has them at the starting gate
Speaker 1: as of June, and now they're rolling out, and that
Speaker 1: AI project is well underway. If he had left five
Speaker 1: years ago, three years ago, it probably wouldn't be anywhere
Speaker 1: near where it is. What we now think, though, is
Speaker 1: in order to capitalize on humanoid robots, which that's a
Speaker 1: much more difficult project. Yes, Elon's brilliance and the team
Speaker 1: he has attracted around him are going to be necessary
Speaker 1: to pull that off. Our price target twenty six hundred
Speaker 1: dollars in twenty thirty is ninety percent of that valuation
Speaker 1: is ROBOTAXI. We have very little for humanoid robots. If
Speaker 1: humanoid robots evolve as quickly as Elon things. Now, remember
Speaker 1: that's Elon time, but he already has a running start
Speaker 1: because robotaxis are robots, they're electric, they're powered by AI.
Speaker 1: Those are the three innovation platforms that will power humanoid
Speaker 1: robots as well. So he's ahead of the game on
Speaker 1: that one as well. But I do believe he's the
Speaker 1: right leader to bring that part of the story to
Speaker 1: life as well.
Speaker 2: Kathy, I've got to watcher this though. To follow up
Speaker 2: on Lisa's question, if you wouldn't sell if he wasn't CEO,
Speaker 2: then why should we pay him that much to be
Speaker 2: the CEO.
Speaker 1: What I'm saying is we would feel comfortable with the
Speaker 1: ROBOTEXI part of the model, but we would not be
Speaker 1: able to build with confidence the humanoid robot part of
Speaker 1: the model. So over time, of course, as the story
Speaker 1: would depend more and more on that leg of the story,
Speaker 1: we would be taking our position down.
Speaker 3: You talked earlier, Kathy, in the past couple of days
Speaker 3: about this reality check that's going on in the tech sector,
Speaker 3: and I understand that Tesla is sort of in its
Speaker 3: own place that you do hold them for the long term.
Speaker 3: How do you understand the reality check that's currently going
Speaker 3: on within a lot of the biggest tech stocks, and
Speaker 3: this sense of skepticism about whether they can keep growing
Speaker 3: at that rate versus the long term bullish bet.
Speaker 1: You know, I'm really happy that there is so much
Speaker 1: skepticism out there. Anyone who went through the late nineties
Speaker 1: will remember there was no skepticism, and we had valuations
Speaker 1: based on the number of eyeballs on a website maybe
Speaker 1: ten years from then. We're not seeing that right now.
Speaker 1: We are seeing Wait a minute, they're spending a lot
Speaker 1: of money on these data centers. This is a little
Speaker 1: bit of a different story than I was investing in,
Speaker 1: certainly in terms of when I say I the average
Speaker 1: investor was investing in with the mag six, those were
Speaker 1: just cash cows and had huge cash positions. Something's changing here.
Speaker 1: It's making the typical investor a little more I'll say skeptical.
Speaker 1: This is not just the cash register ringing anymore. This
Speaker 1: is wait, a big bet on the future. So I'm
Speaker 1: happy there's skepticism. I think it's a good thing.
Speaker 3: Are you buying right now? Are you seeing a skepticism
Speaker 3: as a chance to build some of your portfolio?
Speaker 2: Oh?
Speaker 1: Sure, you know. And probably the most undervalued part of
Speaker 1: our portfolios is in life sciences healthcare, because we think
Speaker 1: that is going to present the most profound application of
Speaker 1: AI out there, and yet it is highly underappreciated because
Speaker 1: you know, healthcare analysts aren't comfortable with tech, and tech
Speaker 1: analysts aren't comfortable with healthcare, and you know, we've got
Speaker 1: a very siloed ecosystem in terms of the way research
Speaker 1: is done at ARC. We're very focused on the technologies
Speaker 1: first and how they're going to scale across sector. So
Speaker 1: our analysts are organized by technology and we think there's
Speaker 1: a huge inefficiency there.
Speaker 2: Kathy, thanks for being so generous with your time this morning.
Speaker 2: We appreciate it. Counthy, with that the unconvested CEO only
Speaker 2: on mask of Tesla, and a whole lot more