SAYING THE COMPANY STILL HAS
MASS MARKET APPEAL.
TWITTER'S REACH ARED 32, A 3%
GAIN.
>>> ELON MUSK, WELL, HE'S STILL
OPTIMISTIC ABOUT PRODUCING 6,000
MODEL 3s A WEEK BY THE END OF
JUNE.
LUKE VENTURES MANAGING PARTNER
GENE MUNSTER IS WITH US.
ALL RIGHT, GENE, I THINK TESLA
HAS A TERRIFIC PRODUCT.
EVERYBODY LOVES THE TESLA CAR.
EVERYBODY LOVES IT.
BUT THEY CAN'T GET IT TO MARKET.
AND THEY'RE FACED WITH THESE
CONSTANT NEGATIVE HEADLINES.
I CAN'T THINK OF ANOTHER COMPANY
WITH A PRODUCT AS GOOD AS THE
TESLA WHICH IS IN SUCH SERIOUS
FINANCIAL TROUBLE AS TESLA.
>> SO THE IT IS A GREAT
PRODUCT -- IT IS A GREAT
PRODUCT, STUART, EXACTLY.
I DON'T OWN A TESLA, BUT EVERY
TESLA OWNER TELLS YOU HOW GREAT
THE PRODUCT IS, AND I THINK
THAT'S AN IMPORTANT TELL ABOUT
THE FUTURE OF THIS COMPANY.
THEY HAVE A LOT OF NEGATIVE
HEADLINES, AND I'M GOING TO
ATTEMPT TO TRY TO CUT THROUGH
SOME OF THAT NOISE QUICKLY HERE.
THIS WEEK THE STORY WAS THE
MODEL 3 PRODUCTION WHICH, AS YOU
SAID, IS THE CRITICAL ELEMENT
INVESTORS ARE FOCUSED ON SHUT
DOWN, AND THAT'S A NEGATIVE.
THAT WAS GENERALLY THE STORY.
BUT THE REALITY IS, IS THAT THE
SHUTDOWNS ARE PART OF RAMPING
PRODUCTION.
WHEN YOU HAVE A FACTORY LINE, IN
ORDER TO IMPROVE THE EFFICIENCY
AND SPEED OF IT YOU HAVE TO
ACTUALLY STOP THE LINE TO ADD
ROBOTICS TO IT.
SO IN OUR FINANCIAL MODEL FOR
TESLA, WE ACTUALLY HAVE BUILT IN
THESE STOPPAGINGS.
SO I THINK THAT THIS IS ALL PART
OF THE BIGGER PLAN.
I THINK THEY WILL EVENTUALLY GET
THROUGH ALL THIS MANUFACTURING
PAIN AND GET TO A POINT WHERE
THEY'RE PRODUCING THE MODEL 3 AT
SCALE.
STUART: OKAY.
DOES IT EVER WORRY YOU THAT ELON
MUSK, HE'S GOT PROBLEMS WITH
TESLA IN PRODUCTION, AND THEN HE
GOES OFF AND STARTS TALKING
ABOUT SOMETHING ELSE.
HE'S BUILDING ROCKETS, FOR
EXAMPLE, OR HE'S DIGGING TUNNELS
UNDERNEATH LOS ANGELES.
DOES THAT WORRY YOU A LITTLE
BIT?
>> THAT PIECE DOES, AND THE
REASON IS THAT ELON MUSK -- LOVE
HIM OR HATE HIM -- IS AN
IMPORTANT PART OR THE MOST
IMPORTANT PART TO THIS STORY IN
TERMS OF MOTIVATING AND
ATTRACTING TALENT AND REALLY
SETTING THE PACE FOR THE
COMPANIMENT HE'S GOT A LOT OF
OTHER PROJECTS.
HE'S BEEN VERY CLEAR WITH
INVESTORS THAT HIS FIRST PASSION
IS TESLA, AND HE'S GOING TO SEE
THAT THROUGH.
IT IS THE BIGGEST RISK TO THE
STORY.
STUART: BUT YOU'RE STICKING WITH
IT.
YOU LIKE TESLA, YOU LIKE THE
COMPANY.
OVERALL, YOU THINK IT'S GOING
PLACES, DON'T DUMP IT BASICALLY.
>> YEAH.
I THINK IT'S GOING TO BE A WILD
RIDE, BUT THIS IS ONE OF THE
BEST UPSIDES OF ANY LARGE CAP
TECH IN THE NEXT FIVE YEARS.
STUART: OKAY.
WE HEAR YOU, GENE MUNSTER.
HOW ABOUT THIS?
AMAZON, THEY'VE ANNOUNCED
THEY'VE GOT 100 MILLION PRIME
SUBSCRIBERS.
THAT IS A HUGE NUMBER, MASSIVE
CASH FLOW.
I DON'T THINK THERE'S ANYTHING
TO STOP THEM.
I DON'T SEE HOW THEY'RE GOING TO
BE REINED IN OR BROKEN UP, DO
YOU?
>> I DON'T.
IT'S REALLY HARD TO SEE HOW THIS
CAN GET OFF TRACK.
TO PUT IT INTO PERSPECTIVE, THIS
100 MILLION PRIME SUBS, MOST
INVESTORS AND ANALYSTS HAD
EXPECTED THIS TO BE ABOUT A 90
MILLION NUMBER, SO IT WAS
SLIGHTLY HIGHER THAN THAT.
BUT YOU LOOK AT 5 BILLION
PACKAGES SENT TO PRIME-ENABLED
PACKAGES, THEY DELIVERED MOST
LIKELY CLOSE TO 8 BILLION
PACKAGES.
NOW, STUART, THERE'S 7.6 BILLION
PEOPLE IN THE WORLD, THAT MEANS
AMAZON'S EFFECTIVELY DELIVERING
ONE PACKAGE PER PERSON IN THE
WORLD.
THESE ARE JUST STAGGERING
NUMBERS.
AND HERE'S THE MOST CRAZIEST
PART OF IT ALL, IT'S JUST
STARTING.
IT'S ONLY ABOUT 15% OF WHAT'S
BOUGHT IS BOUGHT ONLINE.
WHEN YOU BECOME A PRIME MEMBER,
YOU SPEND ABOUT THREE TIMES
MEASURE NON-PRIME MEMBERS --
MORE THAN NON-PRIME MEMBERS.
STUART: GENE MUNSTER STICKING
