No Surprise at NVIDIA or Rivian
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No real surprise with Nvidia and their numbers. You know, sometimes markets will swing in very, very violent directions based upon a statement, a word or two that’s put out in a transcript. And that’s there’s always a risk of that. We saw that recently with Lyft and how a number was there’s a typo there and sent the stock through the roof came back down. Anyway, Nvidia.
all the companies that they do business with that they’re selling to have already told you that they’re spending more money on their chips. These companies are all in on AI. We talked about layoffs and essentially that’s what’s happening. That transition is being made. People are being replaced with computers. Many jobs that…
I use Google as an example. There are advertisers, people placing ads and whatnot in various different websites and how to go about doing it. A lot of things that were driven by human beings are going to be driven by AI. That’s just the reality of what’s going on. And this is nothing new. People worry about it’s the end of the world as far as jobs are concerned. Jobs.
will pop up, jobs will change. I take a look at my industry and the staff that was necessary back in the 1990s to do what I do for a living compared to today. And it’s just, it’s different. Just is, you know, you don’t have the massive support staff and the myriad of sales assistants and all of the things and the runners and all of this stuff that was existed back then, they don’t exist anymore. It’s gone, it’s gone. You know, the businesses change. And all of these companies let you know.
that’s what they’re doing, that’s what’s happening at this point in time. So there’s no surprise as far as Nvidia is concerned and you take a look at the markets and how they’re going to react to that today. Also no surprise when it comes to EVs. Rivian came out, they’re cutting their workforce by 10%. Their production levels widely missed.
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estimates also as well, Lucid. I remind everybody this was one of these disruptor companies not too long ago. The overall market valuation of Rivian was greater than Ford, Stellantis, and GM combined. Combined! And you would actually have Wizards of Smart pundits come on TV and justify this ridiculous valuation.
um the uh chief executive here the rj scaring we firmly believe in the full electrification of the automobile automotive industry you can believe that dude just like people can believe that the earth is flat
You keep believing, okay? Not happening, buddy. It’s not happening. And you make a pretty fricking expensive vehicle. Go online. I mean, it is, it’s a neat car. There’s no doubt about it. Very nice. But it’s a luxury item that you’re losing money on.
You know, every single one of these things that you sell, you’re losing money on. And I actually did a little homework myself. Went to some model I could get quickly. And I was curious, curious to see what it would cost just to lease it for three years, 10 ,000 miles a year. This is a over $70 ,000 car. You’re putting.
seven thousand bucks down and the lease is five hundred and fifty bucks a month.
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And I’m like, wait a second. So I subtracted, I subtracted the down payment, came to 64 ,000 and then you extrapolate, you know, the monthly payment over 30 months, 20 something. And I’m like, wait a second, you mean to tell me that this car is gonna only depreciate in three years? It’s an electric vehicle by 30 grand? I’m sorry, it’s absurd. Basically, they’re giving these crazy leases out just like Ford has given out these insane leases, insanely cheap leases.
that make no economic sense if you’re trying to make money, if you’re to be profitable, to get these things out the door. They need to move cars. Whereas you move over to Lucid, another high, super high -end EV where they’re losing money on every single one of them, they don’t even bother leasing those cars. They’re not gonna even try. I get that they’ll be a loss that they’re gonna end up taking. Anyway, neither here nor there.
Again, you see the divergence in what works and what doesn’t work. And again, all the fantasies and all of the nonsense and all the crap that is supported by government or pushed by government will inevitably fail. Now you can say Nvidia is a chip company. Okay, chips act. All of these chips companies, all companies are all the same. They’ll gladly put their hand out and say, you’re gonna give me money? I’m not gonna say no to it.
I’m not going to say no to it. And we’ve already talked about this podcast this past week with Biden’s chips Ahoy. They want to cancel plant. They cancel plant no skin off their back. Watchdog on Wall Street .com.
