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Game in your Tesla?

This newsletter covers some details on the recently announced AMD and Tesla partnership that hopefully will bring gaming from your couch to (in the future) your autonomous driving car. Let's go back to when Musk tweeted this…

Obviously, Elon Musk is a complete wildcard when it comes to his tweets. It’s hard to decipher nowadays what tweets to take seriously or ones to completely ignore. But in all reality, this will likely come to fruition as we see below.

$AMD Partnership

During AMD's Computex 2021 keynote, AMD CEO Lisa Su revealed that the upcoming $TSLA Model S and Model X will have an AMD Ryzen Processor and AMD RDNA 2 GPU.

Does the RDNA 2 GPU Sound familiar? It should if you are a big-time gamer and love AMD products. RDNA 2 powers the PS5 & Xbox Series X which were launched this past year and have been an absolute hit. The RDNA 2 placed inside of the Tesla will kick in when AAA games are being played on Tesla's infotainment system (fancy word for the car screen entertainment system) and will provide up to 10 teraflops of computing power. This is quite a punch of power and will be much needed for these complex infotainment systems in Tesla’s vehicles.

What is a Teraflop?

The teraflop (“TFLOP”) is a mathematical measurement of a computer's power. 10 TFLOPs means you can compute 10 trillion calculations a second.

Xbox Series X = 12 TFLOPs

PS5 = 12.28 TFLOPs

in comparison to... PS4 = 1.84 TFLOPs or the PS4 Pro = 4.2 TFLOPs

Will it play Doom?

Yes, and much more - around 10 TFLOPs without a doubt will be no issue when it comes to handling AAA games. The goal of this in my mind is to solve the "what do you do while charging your Tesla?" issue. Sit back and play your favorite games of course while your car is at the charging station. In reality, this will probably be just the beginning of entertainment systems coming out for EV vehicles while charging. We might even see an ecosystem of businesses revolve around charging systems. You might even see me setting up a lemonade stand at these stations they will likely be so crowded in the future.

Bear Case

Pump the brakes. With everything, there are always possible shortcomings. There is no word if, or when, these chips will get into the Model Y or Model 3.

The Tesla Model Y and Model 3 are the much cheaper alternatives to the refreshed Model S ($80,000) and Model X ($90,000) Teslas that this technology is being introduced. On top of this, those prices for the S and X were not including full self-driving which is a $10,000 package. It’s safe to say you need a hefty bag to be able to game in your car currently.

Chip Shortage

Obviously, the price of the vehicle is always a factor but something that has been heating up incredibly over the past year is the global chip shortage. Will AMD be able to supply the chips needed in these Teslas over the upcoming years? CEO of AMD Lisa Su stated recently that "this is just a megacycle the semi-industry has to go through" and according to Tomshardware "It's the type of thing she says she has watched the industry go through similar periods of demand far outpacing supply throughout her career". For the full article covering how AMD is approaching the chip shortage check out this great article here.

Still long $AMD (not advice)

In my opinion, this just brings more victories for AMD. As usual, Lisa Su continues to make the right moves over and over. I guarantee you AMD jumped at the sight of that Elon Musk tweet in 2020 and did everything it could to be the top pick for that partnership. I love how AMD has positioned itself in the future of gaming/e-sports and in the same way AMD has for consoles been the number one player I hope they push to be the number one player for EV infotainment systems.

Full disclosure: I own both $AMD and $TSLA and currently have no intent on selling.

I hope everyone has a great weekend 😊

Everything in this article was not financial advice, I know nothing.

If you know someone who is interested in $AMD or $TSLA consider giving it a share…

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TWITTER DROP