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☕️ Tesla’s Dojo team – why now and what it means for your money

Aug 08, 2025

Howdy! 👋

Premarket trading has all three averages in the green.

I wouldn’t hold my breath that they will stay that way for the balance of the day because yesterday’s sizzle to drizzle fade tells me there’s some folks who are keen to take profits.

Whenever that happens, there’s a good case to be made for an end of the day “liquidity sweep” – meaning rapid price movement that’s typically orchestrated by large traders or market makers toward the close.

I’m good either way and encourage you to be, too.

If there’s a run higher, the stocks I own will help lead the way (which is why I own ‘em).

And if there’s a drop, then that brings stocks I want to own back within range (and I can snap up shares in a few if I like what I see).

Meanwhile, the playbook doesn’t change.

A lot of folks get caught up thinking it does, but they fail to grasp the distinction between investing in the future based on what’s likely to happen longer-term and trying to avoid shorter-term risks they can’t control based on what might.

It’s the difference between probabilities and possibilities, something the OBA Family knows very well as a critical element in the pursuit of profits.

Put another way.

Missing opportunity is always more expensive than trying to avoid risks you can’t control.

Here’s my playbook.

1 – 5 Tesla’s Dojo Team is sent packing

Reports are flying this morning that Elon Musk has sent Pete Bannon and the entire Dojo supercomputer team packing. (Read)

Why would he do that?

How does this impact Tesla?

What does that mean for your money?

Let’s talk.

Why Musk has disbanded Dojo

The official story being reported in the news is that Musk struck deals with the likes of Samsung to produce more A16 chips, so the inference is that he’ll rely on more external partners to get the job done. (Read)

That makes sense but here’s what I think is really going on.

For one thing, the Dojo team has experienced delays and more recently an exodus of what may be 20+ people to form a new startup called DensityAI. A brain drain.

For another, companies like Nvidia, AMD and Samsung offer super-high-performing GPUs and other related hardware, systems, etc. “off the shelf” which – my guess – has probably made Unka Elon take a hard look at whether or not he wants to continue to spend gobs of money developing his own proprietary supercomputer.

My understanding is that the Dojo project was increasingly reliant on Nvidia hardware including a 50,000 unit H100 training cluster and plans for 16,000 H200 GPUs, too.

No doubt that didn’t sit well.

Musk may speak in vagaries that drive Wall Street batty and conspiracy theorists positively straight up the proverbial wall, but his track record is one of extremely pragmatic thinking.

This is consistent with past decision-making.

If I had to make a guess, I’m betting that Musk took a hard look at everything when he returned to what I call “War Time” footing after departing the Beltway and didn’t like what he saw.

So, rather than let a project that isn’t matching up to expectations live on as most companies would, he’s made a unilateral decision to forge a faster, more direct path forward.

How this impacts Tesla

If my understanding of what’s happening is correct – and I think it is – I believe that Musk will charge on not just go forward.

The Dojo team isn’t being cleared out, at least not entirely like the press is implying.

What’s actually happening is that key people are being reassigned and resources redeployed to other Tesla data center and computing projects including, most notably, the Cortex AI supercluster in Austin.

This suggests that he’s going right for the jugular – FSD software and related logic, Optimus, Robotaxi, as well as what I call “inference AI.” And if he needs to use off the shelf hardware, so be it.

I’ve had to make similar decisions during the course of my own career – albeit on a much smaller scale – particularly when it comes to computational research into stock market pricing and finding the next big winners.

Outsourcing or at least ready-to-use hardware allows him to press forward faster while removing the cost, intellectual burden and time required to meet his objectives.

That, too, is consistent with where I see Tesla going.

The company hasn’t been about cars for a long time. This move reinforces my contention that Musk’s broader, higher-level goals are 100% intact.

I’ve always believed that Tesla’s true advantage is in the data, not the hardware, and if he can double down on AI by speeding up time to market and reducing costs even if it increases external supplier dependency, then this is a win.

The revenue immediacy just went up exponentially imho.

What this means for your money

Musk may be a lot of things to a lot of people, but stupid isn’t one of ‘em.

I believe that he is acutely aware of the need to refocus, to rebuild his teams and, above all, to maintain investor confidence which has been shaken to the core for many.

At the same time, this move reinforces another contention of mine.

That Musk has always prioritized speed and efficiency even when it requires making big, bold moves that others perceive as gambling. And even if it means giving up on or materially changing “pet” projects like Dojo.

The naysayers are undoubtedly going to bill this as a failure saying that Musk got too distracted or that the move highlights internal problems that are not being disclosed. And I get it because there’s probably an element of truth to both.

My take is different.

I actually think this move is going to be great for the stock AND the brand over time.

Leveraging proven tech is a powerful part of maximizing results, reducing risk, bypassing cost and uncertainty while – yep – potentially dramatically expanding margins, too.

All are key to the longer-term narrative.

I hope I’ve got enough shares! 🤔