00:00 Speaker A

What is the better buy, Nancy, Palantir or Tesla? Or should you have both of these names in your portfolio because they’re both strong AI plays?

00:10 Nancy

I mean, if I had to tip the scale, I would say uh Tesla is probably our favorite and that’s why it’s in our 6 for 26. It is the transformative AI leader. Uh it’s not just um full self-driving, but it’s also robotics and even if you look beyond that in the X in the XAI investment the company is making of per shareholder approval. We think all of that is super powerful and we’d love to get a, you know, a a bite at the space business when they when they IPO. So I I I think this is a company that has a vision unlike and it’s the CEO, obviously, unlike any other company that we own.

01:07 Speaker A

How much of a factor on Tesla is Elon’s $1 trillion pay package? I mean, how do you grade that? Because that could be, even for the world’s richest person, that could be something highly motivating.

01:18 Nancy

Well, I think he’s internally motivated. If you read Walter Isaacson’s biography, he said, uh Elon said, I I’m programmed for war. And that is that is when he is at his best. He often teeters on the edge of disaster, pulls back just in time and then uh delivers on what many thought were ridiculous uh promises. And sometimes they’ve not happened in a timely fashion for sure. But if you look at at at what he is he is envisioning, it’s not just um EVs, obviously. I mean the car numbers are disappointing, but think of Tesla’s EV business to um to to to the AI portion of the business, what Apple’s handset business was to services in the ecosystem. And so Apple’s, you know, had many years of underperformance in terms of delivering growth in the handset business, but they were growing the services business at a rapid pace and and continue to do so. So, so we think he is the story. He delivered on the last sort of absurd levels of um uh incentives for the company and uh is now actually going to get paid for that. It isn’t the money for him, I think it’s the control.