WEBVTT - Elon Musk and President Trump Feud Impacts Tesla, SpaceX 0:00:02.520 --> 0:00:09.840 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.880 --> 0:00:15.880 where innovation, money and power collide in Silicon Valley and beyond. 0:00:16.040 --> 0:00:46.640 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:34.479 --> 0:00:38.040 Live Prince San Francisco. This is Bloomberg Technology coming up. 0:00:38.240 --> 0:00:41.040 Tesla in the crosshairs after the Trump Musk blow up 0:00:41.240 --> 0:00:43.839 led to one hundred and fifty billion dollar route. 0:00:43.600 --> 0:00:46.360 Plus what can it mean for space x elon Musk 0:00:46.440 --> 0:00:50.599 backpedaling after threatening to pull Dragon spacecraft from NASA missions? 0:00:50.920 --> 0:00:54.680 And is it the fastest growing software startup of all time? 0:00:54.960 --> 0:00:56.320 The company behind coding. 0:00:56.040 --> 0:00:59.400 Assistant Cursor cashes in on the AI frenzy with a 0:00:59.440 --> 0:01:03.440 close to ten billion dollar valuation. The first we check 0:01:03.480 --> 0:01:06.640 in on the stock of the moment, we were bound 0:01:06.760 --> 0:01:09.520 some We recoup about fifty billion dollars on the day, 0:01:09.560 --> 0:01:11.959 but over the course of the week we've lost one 0:01:12.040 --> 0:01:14.880 hundred and forty billion dollars in market cap for Tesla 0:01:14.959 --> 0:01:17.399 is now sub one trillion dollars. It is his worst 0:01:17.400 --> 0:01:19.960 week since February of twenty twenty five, right. 0:01:19.840 --> 0:01:21.880 And at one point in the session, the worst week 0:01:21.880 --> 0:01:23.880 going back to October of twenty twenty three. 0:01:24.200 --> 0:01:26.120 We need to talk more about what is happening. 0:01:26.200 --> 0:01:29.560 Let's go to DC to discuss it with Bloomberg's Balance 0:01:29.560 --> 0:01:33.440 of Power hosts Katie Lines. The latest reporting, Kaylee, is 0:01:33.480 --> 0:01:35.440 that in the whirlwind of the last twenty four hours, 0:01:35.480 --> 0:01:38.720 there will not be a conversation or phone call between 0:01:38.760 --> 0:01:40.880 Elon Musk and the President today. 0:01:42.319 --> 0:01:44.959 Yeah, that is what White House officials are signaling to Bloomberg. 0:01:45.040 --> 0:01:47.160 And despite the fact that there was reporting that some 0:01:47.360 --> 0:01:49.680 kind of call must happen, and there's been signaling from 0:01:49.680 --> 0:01:53.280 Elon Musk that he is willing to lower the temperature here. 0:01:53.360 --> 0:01:56.320 After someone posted on X at him yesterday that they 0:01:56.320 --> 0:01:58.280 should call off for a few days. He said that 0:01:58.400 --> 0:02:00.520 was good advice. And when Bill Ackman said that Trump 0:02:00.560 --> 0:02:02.040 and must need to make peace for the good of 0:02:02.080 --> 0:02:05.160 the country, Elon Musk responded, You're not wrong. So it 0:02:05.160 --> 0:02:06.720 does seem on at least one side, there is a 0:02:06.760 --> 0:02:09.119 willingness to lower the temperature here. It's unclear though, whether 0:02:09.200 --> 0:02:11.640 or not President Trump feels the same way as that 0:02:11.680 --> 0:02:13.959 same White House official that indicated no call would happen 0:02:14.040 --> 0:02:16.960 today also said that Trump is considering selling the Tesla 0:02:17.040 --> 0:02:19.720 that he purchased in that flashy White House event just 0:02:19.760 --> 0:02:22.640 months ago when these two were still incredibly tight. So 0:02:22.680 --> 0:02:24.960 if they can't fully mend fence this here, obviously, there 0:02:24.960 --> 0:02:27.920 are some major implications we have to consider. There is 0:02:27.960 --> 0:02:30.400 the political implication of whether or not Elon Musk will 0:02:30.440 --> 0:02:33.080 continue to attack what is supposed to be President Trump's 0:02:33.160 --> 0:02:36.520 landmark legislative accomplishment in his second term, this one big, 0:02:36.560 --> 0:02:40.080 beautiful bill. Well, Elon Musk's criticism may not actually change 0:02:40.080 --> 0:02:42.480 the odds of the legislation getting through Congress. At the 0:02:42.600 --> 0:02:45.600 very least, him broadcasting his views to hundreds of millions 0:02:45.600 --> 0:02:49.359 of people does damage Republican messaging around the deficit impact 0:02:49.440 --> 0:02:52.160 of this legislation. There's also Elon Musk's money to consider. 0:02:52.240 --> 0:02:54.840 He of course deployed some two hundred and ninety million 0:02:54.880 --> 0:02:57.400 dollars in the twenty twenty four election cycle, a lot 0:02:57.480 --> 0:03:00.600 of that toward the effort of getting President Trump re elected. 0:03:00.600 --> 0:03:03.000 But Republicans have to consider whether or not Elon might 0:03:03.120 --> 0:03:06.120 deploy that money to primary challengers. For example, if he 0:03:06.200 --> 0:03:08.400 decides he would like to punish those who go ahead 0:03:08.440 --> 0:03:10.280 and vote for this legislation, that will, of course, in 0:03:10.320 --> 0:03:13.200 addition to raising the deficit, lead to the rollback of 0:03:13.200 --> 0:03:16.880 ev credits that Tesla benefits from There's national security implications too, 0:03:16.919 --> 0:03:19.720 given that Musk and those working for him in DOGE 0:03:20.040 --> 0:03:23.200 were given access to government systems. It's unclear how far 0:03:23.280 --> 0:03:26.080 that access winter whe whether or not access for some 0:03:26.160 --> 0:03:28.640 of those individuals is going to be revoked. And then 0:03:28.680 --> 0:03:31.359 you get into, of course, the business implications as to 0:03:31.400 --> 0:03:34.359 whether or not government contracts, as President Trump threatened yesterday 0:03:34.560 --> 0:03:39.240 that Elon Musk's companies from SpaceX to others could actually do, 0:03:39.360 --> 0:03:42.680 actually benefit from need will actually go away. So there 0:03:42.680 --> 0:03:44.360 are many different layers to this. 0:03:44.480 --> 0:03:45.200 And while there is. 0:03:45.160 --> 0:03:47.240 A signal that maybe things have cooled down for now 0:03:47.240 --> 0:03:50.120 after what was an incredibly wild day yesterday, or this 0:03:50.240 --> 0:03:52.920 escalated very quickly, there's really no telling where this goes 0:03:52.920 --> 0:03:53.280 from here. 0:03:54.320 --> 0:03:57.120 What a thorough round up, Kaylie Lines. We appreciate it 0:03:57.120 --> 0:04:00.880 from Washington. Let's now bring in Bluemeg's Max Afkin from 0:04:00.960 --> 0:04:04.400 the Elon Inc. Team and Max, I just want to 0:04:04.400 --> 0:04:05.320 get your perspective here. 0:04:05.400 --> 0:04:05.520 Ron. 0:04:05.880 --> 0:04:08.800 We know how tough the president can be when he 0:04:08.880 --> 0:04:12.880 holds a grudge. Harvard's experienced it, universities have experienced it. 0:04:13.120 --> 0:04:14.040 But what about Elon. 0:04:14.160 --> 0:04:16.679 He's still got that vote going on on X about 0:04:16.680 --> 0:04:19.080 whether a new political party needs to be formed. Do 0:04:19.120 --> 0:04:20.640 we really think he's going to cool down from here? 0:04:21.240 --> 0:04:23.279 I think it would be in his interest to cool down. 0:04:23.320 --> 0:04:26.400 And I think the stock chart that you showed reflects 0:04:26.440 --> 0:04:31.560 that there is no universe that I can imagine anyway. 0:04:31.240 --> 0:04:33.880 Where Elon Musk maintaining this. 0:04:33.839 --> 0:04:36.880 Position where he's, you know, this kind of maximalist. We 0:04:36.880 --> 0:04:40.320 should impeach Donald Trump, start a new political party, you know, 0:04:40.440 --> 0:04:44.320 yesterday accusing Trump of being associated with Jeffrey Epstein. You know, 0:04:44.600 --> 0:04:47.560 like this, this is a point where he's going to 0:04:47.760 --> 0:04:53.839 start alienating MAGA aligned customers. And unfortunately for Tesla that 0:04:54.000 --> 0:04:57.640 is now an important contingent of their customer base because 0:04:57.800 --> 0:05:02.080 Elon Musk has already alienated the left leaning customers. So 0:05:02.120 --> 0:05:03.800 you're in this situation that is difficult. 0:05:03.839 --> 0:05:05.840 Now. Musk has cards to play, right. 0:05:05.880 --> 0:05:08.680 He has the money that he can donate, as we 0:05:08.800 --> 0:05:12.480 just heard. He also has this aerospace company, which you know, 0:05:12.680 --> 0:05:16.200 the US Trump can threaten to cancel contracts, but you know, 0:05:16.320 --> 0:05:19.599 as the Pentagon is construction constructed right now, and as 0:05:19.760 --> 0:05:23.800 NASA is constructed, they are depending on SpaceX for rocket launches. 0:05:24.000 --> 0:05:28.280 So he has cards to play, But I don't see 0:05:28.440 --> 0:05:31.880 how he can kind of maintain this pose without watching 0:05:32.200 --> 0:05:36.279 Tesla's stock decline further, without watching sales fall further. I mean, 0:05:36.320 --> 0:05:38.880 this is the most self destructive. 0:05:38.920 --> 0:05:40.440 I've covered Elon Musk for a very long time. 0:05:40.480 --> 0:05:42.480 This is the most self destructive that I have ever 0:05:42.520 --> 0:05:44.839 seen Elon musk Okay. 0:05:44.880 --> 0:05:47.320 Tesla says are up more than six percent in the session, 0:05:47.400 --> 0:05:50.400 but we remind ourselves that the stock fell fourteen percent 0:05:50.720 --> 0:05:53.880 as of yesterday's close. And while all of this was happening, 0:05:53.920 --> 0:05:58.159 something you mentioned was the core story President Trump's threat 0:05:58.680 --> 0:06:00.599 to cancel government tracks. 0:06:00.960 --> 0:06:02.880 And if you look at it from the Elon Inc. 0:06:03.080 --> 0:06:07.240 Lens Max, Tesla is the publicly traded proxy for sentiment 0:06:07.320 --> 0:06:13.080 towards Elon wright But since two thousands, Tesla SpaceX in 0:06:13.240 --> 0:06:18.080 aggregate have benefited from more than twenty billion dollars in grants, subsidies, 0:06:18.400 --> 0:06:22.080 and direct contracts. Explain that landscape to us, and what's 0:06:22.120 --> 0:06:24.839 at stake here if the President were to carry. 0:06:24.520 --> 0:06:25.359 Through with that threat. 0:06:25.480 --> 0:06:27.840 You know, That's why I'm reacting the way I'm reacting, 0:06:27.839 --> 0:06:29.559 and why I think there are a lot of people 0:06:29.560 --> 0:06:32.800 who still kind of expect, you know, maybe some reconciliation 0:06:32.920 --> 0:06:35.680 because Elon Musk has over the course of his career, 0:06:35.720 --> 0:06:39.040 as you just said, Ed, he has been really really 0:06:39.120 --> 0:06:43.640 effective at basically getting the federal government to give him money. 0:06:43.920 --> 0:06:47.040 And I think what we have been seeing and you 0:06:47.400 --> 0:06:50.440 saw this frustration coming out a little bit in the 0:06:50.440 --> 0:06:53.320 wake of the departure of Jared Isaacman, the person who 0:06:53.440 --> 0:06:56.560 Musk had hoped would be the NASA noominee, as well 0:06:56.600 --> 0:06:59.479 as the discussion around the ev tax credit, which is 0:06:59.520 --> 0:07:02.479 part of this tax bill that the Republicans are trying 0:07:02.520 --> 0:07:04.760 to pass. You saw a little bit of frustration I 0:07:04.760 --> 0:07:09.120 think from Elon Musk that although he's had tremendous influence 0:07:09.160 --> 0:07:11.600 and although he's begune to all the parties he's been 0:07:11.600 --> 0:07:14.680 in Mara Lago, Trump has led him, you know, basically 0:07:14.840 --> 0:07:17.160 it seems to do whatever he wants with DOJE, he 0:07:17.320 --> 0:07:20.600 hasn't actually been able to get the business priorities, and 0:07:20.920 --> 0:07:22.239 now of course is going to get harder. 0:07:22.280 --> 0:07:22.440 Now. 0:07:22.440 --> 0:07:24.680 Like I said, I don't think the government is just 0:07:24.680 --> 0:07:28.040 going to unilaterally cancel SpaceX contracts, but the government has 0:07:28.120 --> 0:07:30.840 leverage over Elon Musk, and Trump is signaling that he's 0:07:30.880 --> 0:07:31.600 wanting to use it. 0:07:32.280 --> 0:07:35.960 What I reported with our DC colleagues is that Isaacsman's 0:07:36.000 --> 0:07:39.720 nomination was canceled because of his relationship with Elon Musk 0:07:39.760 --> 0:07:43.040 and a White House official called Sergio Gore who did 0:07:43.040 --> 0:07:44.160 not like Elon Musk. 0:07:44.360 --> 0:07:46.080 And that's in copy on Bloomberg dot com. 0:07:46.080 --> 0:07:49.880 Bloomers. Max Chafickin of Elon Inc. Fantastic, Thank you very much. 0:07:49.960 --> 0:07:52.040 I want to go to Nancy Tengler. She's CEO and 0:07:52.120 --> 0:07:56.080 CEO of Laffer. Tengler investments about one half billion dollars 0:07:56.240 --> 0:08:01.640 in assets, but a significant holding of Tesla Sheff Nancy. 0:08:02.440 --> 0:08:06.040 Is what we saw in Tesla's stock yesterday Thursday, the 0:08:06.160 --> 0:08:10.680 drop in fourteen percent. Is it the market betting against 0:08:10.880 --> 0:08:14.760 Musk himself as opposed to whatever they feel about the 0:08:14.800 --> 0:08:18.280 long term thesis of Tesla. 0:08:18.400 --> 0:08:21.240 I don't know, Ed, I thanks for having me. I 0:08:21.240 --> 0:08:23.520 think part of what we saw yesterday is what we 0:08:23.560 --> 0:08:25.240 always see in the short term, and that is that 0:08:25.360 --> 0:08:28.440 the algorithms read the headlines, then the shorts jump in, 0:08:28.480 --> 0:08:31.640 and this is the stock and the guy that everyone 0:08:31.720 --> 0:08:34.400 loves to short. So I mean, I'm not saying I 0:08:34.440 --> 0:08:38.640 think this was well advised what Elon did, but I 0:08:38.679 --> 0:08:43.000 do think the fundamentals ultimately will trump this issue if 0:08:43.040 --> 0:08:48.079 you will no pun And that's important because this might 0:08:48.120 --> 0:08:50.679 be a great entry point we had, you know, we'd 0:08:50.720 --> 0:08:53.480 bought in at it again to our holdings on March tenth. 0:08:53.520 --> 0:08:55.520 And I think the stock was training about two forty 0:08:56.360 --> 0:09:00.120 that looked really smart until yesterday. But that's a and 0:09:00.440 --> 0:09:02.800 I think you do want to add it on in 0:09:02.840 --> 0:09:06.080 the volatile periods because Musk has a habit of teetering 0:09:06.160 --> 0:09:09.800 on the edge of destruction and then pulling himself back 0:09:10.160 --> 0:09:12.840 in the nick of time. He has said himself he's 0:09:12.880 --> 0:09:15.760 wired for war, and he often shoots himself in the foot, 0:09:15.960 --> 0:09:18.480 and clearly he's not wrong about that. 0:09:20.000 --> 0:09:21.079 The shooting in the foot. 0:09:21.440 --> 0:09:27.280 How prolific could that get in terms of getting robotaxis 0:09:27.360 --> 0:09:30.559 and a cybercab on the road and implicating that long 0:09:30.640 --> 0:09:32.480 term thesis that so many people hold. 0:09:33.760 --> 0:09:36.880 Yeah, I don't think it will. I mean, Caroline, I 0:09:36.920 --> 0:09:42.280 don't know. But because President Trump's equally unpredictable. I was 0:09:42.320 --> 0:09:44.560 reading a story about one of his previous advisers who 0:09:44.600 --> 0:09:47.360 had given him all the judicial nominees in his first term, 0:09:47.400 --> 0:09:50.160 and he called him a sleezebag who hates America. So 0:09:50.200 --> 0:09:53.839 he has a habit too of embracing people and then 0:09:53.920 --> 0:09:57.559 disengaging and not only disengaging, but saying some pretty rough 0:09:57.600 --> 0:10:00.679 things about him. So, but that said, I do think 0:10:00.760 --> 0:10:05.120 that what the administration understands is they do need productivity 0:10:05.200 --> 0:10:08.880 driven growth to make this tax bill work, and a 0:10:08.880 --> 0:10:11.840 good portion of that is pointed at Elon Musk and 0:10:11.559 --> 0:10:16.720 his efforts and initiatives, including Robotaxi. I expect that next week, 0:10:17.040 --> 0:10:21.360 after the Robotaxi announcement, unless something ridiculous happens, that we 0:10:21.440 --> 0:10:24.120 will be talking about something else as it relates to Tesla. 0:10:25.640 --> 0:10:28.040 What's interesting is we're talking about something else that relates 0:10:28.080 --> 0:10:30.160 to Elon. We're going to talk more about the space 0:10:30.240 --> 0:10:32.360 part of the equation later in the show, Nancy. But 0:10:32.360 --> 0:10:34.880 it's interesting that there's some debt being shocked by Walgan 0:10:34.920 --> 0:10:39.160 Stanley right now for Xai, and it went on for 0:10:39.280 --> 0:10:42.240 sale basically yesterday. We wonder what the sentiment is like 0:10:42.320 --> 0:10:45.240 in terms of shift. Would you want to be adding 0:10:45.720 --> 0:10:48.120 at this point? You said, maybe it's smart, but would 0:10:48.160 --> 0:10:50.520 you want to be adding exposure to all things Elon 0:10:50.600 --> 0:10:51.160 at this moment? 0:10:52.400 --> 0:10:54.280 So we have a pretty full position, and there's a 0:10:54.320 --> 0:10:57.760 reason this stock is not in our twelve Best Ideas portfolio, Caroline, 0:10:57.800 --> 0:11:01.000 because it is inherently bald, and a lot of it 0:11:01.040 --> 0:11:04.000 has to do with Elon, So I would say if 0:11:04.040 --> 0:11:06.400 you don't own it. And we have some clients who 0:11:06.559 --> 0:11:09.200 have asked us to buy positions for them today, which 0:11:09.240 --> 0:11:13.079 we will do in their non managed accounts, but effectively, 0:11:13.120 --> 0:11:16.240 I'm going to wait and if we see what we 0:11:16.320 --> 0:11:18.560 need to see next week and the stock doesn't bounce, 0:11:18.920 --> 0:11:23.520 then we may actually add to it, just discreetly, not 0:11:23.920 --> 0:11:26.439 in a big way, because it's a four percent position 0:11:26.679 --> 0:11:28.400 or it was yesterday, so call it three and a 0:11:28.440 --> 0:11:30.719 half today, and that's about as much as we want 0:11:30.720 --> 0:11:33.240 to own of this stock in our growth portfolio. 0:11:33.920 --> 0:11:35.239 Let's go back to Robotaxi. 0:11:35.559 --> 0:11:39.040 This is the thesis from Bloomberg Intelligence, our in house 0:11:39.080 --> 0:11:41.760 analysts about what the events of the last twenty four 0:11:41.760 --> 0:11:47.680 hours mean, and they argue specifically that it will result 0:11:47.720 --> 0:11:52.559 in a protracted rollout of Robotaxi, because the whole trade 0:11:52.679 --> 0:11:55.760 was based on the idea that Musk's proximity to the 0:11:55.800 --> 0:12:01.280 President would result in favorable legislation or federal level policy 0:12:01.320 --> 0:12:02.640 that would help Robotaxi. 0:12:03.040 --> 0:12:05.240 Where do you stand on that, Nancy. 0:12:05.760 --> 0:12:08.520 Yeah, And I think that's that's that's the risk, and 0:12:08.520 --> 0:12:11.280 that's that's one of the reasons that we're not jumping 0:12:11.320 --> 0:12:14.920 in here the regulatory environment. But I would also point out, 0:12:15.160 --> 0:12:18.960 you know, all the tech CEOs sort of did their 0:12:19.559 --> 0:12:23.280 homage to the administration and to the President in particular, 0:12:23.320 --> 0:12:26.160 and it hasn't really resulted in much good news from 0:12:26.200 --> 0:12:29.360 a regulatory standpoint. In fact, you could argue it's resultant 0:12:29.400 --> 0:12:36.160 in none Apple Google Meta. So I think that I'm 0:12:36.240 --> 0:12:40.160 hopeful that cooler heads will prevail, that the technology will 0:12:40.200 --> 0:12:42.640 be seen for what it is. And you know, if 0:12:42.679 --> 0:12:47.040 you look out that the Robotaxi would be the lowest 0:12:47.040 --> 0:12:50.200 cost per mile provider, there's only two way MO and 0:12:50.240 --> 0:12:52.920 it comes in significantly below And so I think there's 0:12:52.960 --> 0:12:58.240 a lot of reasons to support this technology. But you 0:12:58.280 --> 0:13:02.079 know that these are two unique individuals. 0:13:03.000 --> 0:13:05.040 I think it's important to pull out point out that 0:13:05.120 --> 0:13:08.080 actually Musk was quite consistent over a number. 0:13:07.760 --> 0:13:11.280 Of months that he would be fine if EV subsidies 0:13:11.280 --> 0:13:12.280 were killed or cut. 0:13:12.720 --> 0:13:14.720 He said it in July, he said it in December, 0:13:14.920 --> 0:13:17.600 he said it more recently, and Trump said it at 0:13:17.600 --> 0:13:22.320 March's Cabinet meeting. Does that factor in for you his 0:13:22.440 --> 0:13:25.240 position on that, Yeah, yes. 0:13:25.080 --> 0:13:27.320 I mean I thought that was disingenuous of the President 0:13:27.440 --> 0:13:29.880 yesterday to say that he saw that the ev mandates 0:13:29.920 --> 0:13:32.960 were gone, and that's what drove him crazy. I think 0:13:32.960 --> 0:13:37.040 that was the direct quote. He has been consistent. I 0:13:37.120 --> 0:13:42.720 agree with his position on that it supports the weaker manufacturers. 0:13:42.840 --> 0:13:47.000 It doesn't necessarily support the industry leader. The Tesla buyer 0:13:47.120 --> 0:13:51.920 is really not influenced by the mandate, and most don't 0:13:51.960 --> 0:13:57.280 qualify because of the income limitation. So I think Elon 0:13:57.600 --> 0:14:01.040 is a smart businessman, and what really frustrated him was 0:14:01.040 --> 0:14:03.280 the fact that the government is not run like a business. 0:14:03.520 --> 0:14:06.839 So you make the logical, you have the logical discussions, 0:14:06.840 --> 0:14:10.360 and then the government goes on this giant snowball rolling 0:14:10.360 --> 0:14:14.640 down a hill. So I'm hopeful that we will see 0:14:14.800 --> 0:14:17.680 things settle down and that next week I'm hoping we'll 0:14:17.679 --> 0:14:21.160 be talking about Robotaxi and how amazing it is. I 0:14:21.200 --> 0:14:24.160 live in Weymo Land. It's pretty exciting what's going on 0:14:24.400 --> 0:14:28.720 and what Amazon is doing with robots delivering packages. They 0:14:28.760 --> 0:14:30.760 could be getting out of a robotaxi for all I know. 0:14:32.680 --> 0:14:36.520 Let's just go to sentiment on buying a Tesla though, Nancy, 0:14:36.920 --> 0:14:39.840 because this I think is what's caught many off guard. 0:14:39.920 --> 0:14:44.560 Europeans are incredibly angry about some of the political leanings 0:14:44.600 --> 0:14:47.000 that Elil Musk has had, and it's affected sales. 0:14:47.080 --> 0:14:48.720 It would seem it hasn't. 0:14:48.440 --> 0:14:51.080 Just been the production hole and the wait for a 0:14:51.120 --> 0:14:53.520 new model. Why missing that borne out in may numbers. 0:14:53.560 --> 0:14:56.720 So will this implicate who buys Tesla's going forward? 0:14:57.720 --> 0:15:00.360 That's a great question, Caroline. You know it's interesting is 0:15:00.400 --> 0:15:03.080 that by D has been taken to task by the 0:15:03.080 --> 0:15:07.680 Communist Party for lowering prices because they're in an inflationary environment, 0:15:08.040 --> 0:15:11.200 and so I find that super interesting. Will that open 0:15:11.320 --> 0:15:15.560 up some space for Tesla again in China? It could. 0:15:15.600 --> 0:15:19.280 I mean they've called it rat race competition at the 0:15:19.320 --> 0:15:22.280 Communist Party, calling out the CEO. So we may see another, 0:15:22.800 --> 0:15:27.680 you know, another instance where the public market is invaded 0:15:27.680 --> 0:15:29.960 by the Communist Party, and that may help. But I 0:15:30.000 --> 0:15:32.000 don't think people are going to get over this soon. 0:15:32.160 --> 0:15:34.800 I think they will eventually get over it. But he 0:15:34.840 --> 0:15:37.760 needs to dial down the rhetoric and the drama and 0:15:37.840 --> 0:15:41.080 get back to the business of you know, optimists and 0:15:41.560 --> 0:15:45.360 robotaxi and full self driving. That is what people own 0:15:45.440 --> 0:15:48.520 the stock for, and for his brilliance and genius, of course, 0:15:48.560 --> 0:15:50.680 but not for the historyonics. 0:15:52.320 --> 0:15:54.600 And therefore, do you think you're going to get enough 0:15:54.640 --> 0:15:57.800 of his attention, particularly on the humanoid robot side of 0:15:57.800 --> 0:15:58.320 the equation. 0:15:59.680 --> 0:16:02.280 I mean, what Tesla has said is that they're going 0:16:02.320 --> 0:16:05.600 to have thousands in their factories coming up. That would 0:16:05.600 --> 0:16:07.440 be a good thing, Caroline, because you know, we have 0:16:07.440 --> 0:16:11.000 fought as much as the President talks about bringing manufacturing 0:16:11.040 --> 0:16:14.280 back to America, we have five hundred thousand manufacturing jobs 0:16:14.280 --> 0:16:17.240 that have gone unfilled. It's hard to turn that one 0:16:17.240 --> 0:16:19.960 around when for years we were shrinking the manufacturing base. 0:16:20.240 --> 0:16:24.160 The solution is robots, not across the board, but in 0:16:24.200 --> 0:16:27.360 a good instance, and they are a very productive way 0:16:27.640 --> 0:16:32.360 of producing things. So just as AI is writing AI code, 0:16:32.400 --> 0:16:34.760 I think the robots will build the robots, and we'll 0:16:34.800 --> 0:16:38.640 see manufacturing plants use more and more robotics. That's a 0:16:38.680 --> 0:16:41.160 good thing, and I think Tesla will be at the 0:16:41.160 --> 0:16:43.880 center of that, as well as energy storage. 0:16:45.000 --> 0:16:47.520 If anything's come out of the events of the last 0:16:47.520 --> 0:16:50.120 twenty four hours, it's to remind us of the deficit. 0:16:50.360 --> 0:16:51.400 Nancy listened to this. 0:16:52.960 --> 0:16:53.800 We can debate. 0:16:54.000 --> 0:16:56.880 He didn't get his trillion, he or probably one hundred 0:16:56.880 --> 0:16:59.880 billion or so in terms of cuts, but he worked. 0:17:00.200 --> 0:17:04.679 He was part of Doorge. It was right after the inauguration. 0:17:04.440 --> 0:17:04.960 We had do it. 0:17:05.040 --> 0:17:08.320 So I think I think some of this is as 0:17:08.320 --> 0:17:11.080 he's looking at this one big beautiful bill seeing that 0:17:11.440 --> 0:17:15.959 really the tax cuts are temporary. So is Musk trying 0:17:16.000 --> 0:17:18.280 to highlight the deficit issue again. 0:17:18.800 --> 0:17:21.160 Remember this was all about the big beautiful bill, That's 0:17:21.160 --> 0:17:23.920 where it started. Is Musk putting the emphasis back on 0:17:23.960 --> 0:17:25.000 the deficit helpful? 0:17:25.080 --> 0:17:25.399 Nancy? 0:17:26.520 --> 0:17:28.800 I actually think it is. I think a lot of 0:17:28.840 --> 0:17:32.120 what he's done has changed the narrative, whether you support 0:17:32.200 --> 0:17:36.919 dose or not. It's shine a light on the profligate 0:17:36.960 --> 0:17:40.720 spending in Washington. And I think what most Americans took away, 0:17:41.080 --> 0:17:43.560 And just like if you just start with Harvard, why 0:17:44.000 --> 0:17:48.880 is the government giving an educational or institution that has 0:17:48.920 --> 0:17:55.679 a endowment sorry of fourteen billion dollars, whatever it is, 0:17:55.720 --> 0:17:57.680 Why are we giving them hundreds and millions of dollars 0:17:57.720 --> 0:18:00.159 every year? Those are good debates to have, and there 0:18:00.200 --> 0:18:02.160 may be a very good reason, But I don't think 0:18:02.200 --> 0:18:05.480 most people think that the government is efficient with their 0:18:05.520 --> 0:18:08.840 tax dollars, and so to change to start that debate, 0:18:08.920 --> 0:18:10.680 then to see it, you know, do the work, see 0:18:10.720 --> 0:18:14.320 it unwound. Really with this tax bill which is long, 0:18:14.400 --> 0:18:16.359 un spending, I don't like it either. I don't think 0:18:16.400 --> 0:18:18.280 it's a very good bill. I think that they could 0:18:18.280 --> 0:18:20.879 have done better. They obviously don't think they could have. 0:18:21.680 --> 0:18:24.760 I'm not there, but I think that's that's really what 0:18:24.880 --> 0:18:28.600 he's focusing on, and that's important. Thirty seven trillion dollars 0:18:28.640 --> 0:18:33.400 is debt is nothing short of suicidal in my view. 0:18:34.920 --> 0:18:37.880 Last sort of posts from you know Musco are about 0:18:37.880 --> 0:18:40.720 a slim, beautiful bill and Nancy Tangl We appreciate it. 0:18:40.800 --> 0:18:44.560 CEO and CIO of Leffetengra Investments, Happy weekend to you. 0:18:45.200 --> 0:18:46.840 Now coming up Anisphere. 0:18:46.960 --> 0:18:50.200 It's the maker of the popular AI coding assistant Cursor. 0:18:50.480 --> 0:18:51.879 You've got to have heard of it. You might have 0:18:52.040 --> 0:18:52.280 used it. 0:18:52.280 --> 0:18:54.200 It's got a new valuation a nine point nine billion 0:18:54.280 --> 0:18:56.800 dollars to swing with the CEO Michael Truell. Next, this 0:18:56.880 --> 0:19:06.600 is a blue Bow Technology. 0:19:09.200 --> 0:19:12.720 The company behind the popular AI coding assistant Cursor has 0:19:12.720 --> 0:19:16.080 a new valuation nine point nine billion, just three years 0:19:16.359 --> 0:19:18.360 after it was launched and says it's bringing in five 0:19:18.400 --> 0:19:22.200 hundred million dollars in annualized revenue. Michael Truel is any 0:19:22.240 --> 0:19:26.680 Sphe's CEO, and he joins us. Now your name comes 0:19:26.720 --> 0:19:29.760 up a lot all the time, not just here in Silicon. 0:19:29.480 --> 0:19:30.240 Valley, everywhere. 0:19:31.040 --> 0:19:35.159 The growth that you've seen in the platform has been rapid. 0:19:36.840 --> 0:19:38.800 This is a finance story, you know. 0:19:38.760 --> 0:19:42.240 It's a funding, it's a access to capital. But what 0:19:42.280 --> 0:19:43.760 I want to ask you is what the true motivation 0:19:43.880 --> 0:19:46.600 behind it was. Did you need the money or was 0:19:46.640 --> 0:19:48.320 it just because of the interest. 0:19:47.920 --> 0:19:49.080 In you from the outside. 0:19:50.440 --> 0:19:53.479 Well, the goal for us with building Cursor is to 0:19:53.560 --> 0:19:56.080 invent a very new way to build software, right and 0:19:56.280 --> 0:19:58.800 I think that the product that we built today is 0:19:58.840 --> 0:20:00.760 just the very start of that. I think that over 0:20:00.760 --> 0:20:03.919 the next five years we have a chance to invent 0:20:03.960 --> 0:20:06.439 a style of programming that looks very different from how 0:20:06.440 --> 0:20:09.520 you build software today, one that's much higher level and 0:20:09.600 --> 0:20:12.199 more productive. And it's just still down to defining what 0:20:12.320 --> 0:20:14.240 you want to show up on the computer and how 0:20:14.280 --> 0:20:14.639 you want the. 0:20:14.640 --> 0:20:15.359 Software to work. 0:20:15.880 --> 0:20:17.199 And we have a long way to go there, and 0:20:17.240 --> 0:20:19.280 there's a lot of research and development to do to 0:20:19.320 --> 0:20:22.639 get there. And so we took on this capital to 0:20:22.880 --> 0:20:25.119 invest in frontier AI coding research. 0:20:26.400 --> 0:20:30.640 What is unique about Cursor, how it was written relative 0:20:30.680 --> 0:20:33.680 to what Claude is offering with their similar tool, Windsurf 0:20:33.720 --> 0:20:35.600 and other similar platforms. 0:20:36.640 --> 0:20:41.840 Well, the EPI models created by folks like Anthropic and 0:20:41.880 --> 0:20:45.280 Gemini and open Ai are fantastic and our big parts 0:20:45.320 --> 0:20:49.280 of Cursor and the power the technology under the hood, 0:20:49.520 --> 0:20:52.840 alongside custom models that we developed to that are specifically 0:20:53.000 --> 0:20:57.639 very good at parts of programming. And so at this point, 0:20:57.680 --> 0:21:00.439 Cursor is powered by an ensemble of models. Some of 0:21:00.440 --> 0:21:03.560 them are API, a lot of them are custom, and 0:21:04.160 --> 0:21:06.080 we do over half a billion model claus per day 0:21:06.080 --> 0:21:07.000 on our customer models. 0:21:08.240 --> 0:21:10.200 And it's that ensemble of models. 0:21:09.960 --> 0:21:15.280