Part 6/12:
Basher draws parallels with Nvidia, which experienced a tough period before exploding in value. Nvidia’s aggressive investment in AI and data center infrastructure—despite short-term earnings dips—was the key to its rapid ascent from a $6-8 billion quarterly revenue company to over $40 billion. Its stock surged from around $11 to over $172, exemplifying how strategic long-term investments can ultimately yield extraordinary returns.
Investors who stayed the course, despite the short-term setbacks, reaped significant rewards as Nvidia’s AI ambitions materialized.
Tesla’s Capital and R&D Expenditure
Tesla’s spending patterns reflect its growth imperative:
- Capex: Over $50 billion since 2012, primarily invested in factories, machinery, and energy infrastructure