Part 5/8:
Baron emphasized that Tesla is concentrating on becoming a monopoly in full self-driving (FSD) technology, which he anticipates will become a standard feature in all vehicles, similar to how power windows are ubiquitous today. He confidently predicted that as FSD technology rolls out, it will provide massive revenue streams at impressive gross margins.
This forward-thinking approach has led Baron to advise looking beyond traditional automotive metrics and focusing on Tesla’s software capabilities. He believes that Tesla is transitioning into a major player in the software industry, which will skew industry standards and reshape the automotive landscape.