What should I say to my son?

My son lost interest to apply to college after knowing he doesn't have a chance to get in to Standford. He thinks he has tried very hard in high school and he doesn't want to work hard in a college like CalTech or Berkeley, as he was told the competition is very tough. He said he doesn't have a dream, he just wants to get a job and have fun. I told him he can go to a community college, he thinks I'm kidding, but i'm not.
What's wrong with him, how can I help?

Thanks!