Elon Musk interview with billionaire investment legend Ron Baron (11.6.15)

0


Published on Nov 8, 2015
Elon Musk sits with Ron Baron from Baron Capital Management at the Baron Investment Conference.

Overview:
00:00. Introduction
03:50. Early days, motivation & oil industry FUD campaign
11:25. Birth and rise of Tesla
16:20. Huge Tesla factory
19:25. Tesla ambition – millions of cars
20:33. Gigafactory Government fundings
24:19. Gigafactory media incident
25:22. Battery technology outlook & costs
33:00. Tesla safety
40:13. SpaceX reusable rockets
44:15. Lyft vs. Uber
Q&A
46:20. Model 3 driving experience
48:50. Charging locations

0:00good morning
0:03my name is glad honey and I’m a research analyst at their in capital following to
0:11take an energy infrastructure sectors it is my distinct pleasure to introduce our
0:17next guest he’s a man who has been identified as everything from a
0:22supervillain to a superhero he doesn’t stop at changing our world as we know it
0:29he’s on a mission to change our galaxy Elon Musk
0:46company whose mission is to accelerate their worlds transition to sustainable
0:53transport in 2004 elam was a leading investor in Tesla’s first announced the
1:00ground and in 2008 when the company was near bankruptcy Elan became CEO in led
1:09its growth over five billion dollars of revenue today
1:18the company develop electric vehicles the roadster model S model ex the Model
1:28S has been described as a remarkable car that pays a new unorthodox course and
1:35it’s a powerful statement of American start-up ingenuity Model X which was
1:42recently launched has away time of over a year
1:48Tesla sold almost 200,000 vehicles electric vehicles to date
1:53test leads building a battery manufacturing plant codigo factory that
1:58will be ten times bigger than the largest Boeing facility producing
2:02Dreamliners interestingly Tesla is the largest battery consumer in the world
2:09surpassing consumer electronics companies like Samson and Apple you line
2:15is a scientist and inventor and designer and one of the world’s most innovative
2:22minds he’s helping to advance some of the world’s most disruptive technologies
2:27Tesla in the auto industry SpaceX in the aerospace industry and SolarCity in the
2:34power industry now please welcome elan and run for a conversation
2:46so when I started my career when I my first client told me that what was most
2:52important was finding someone who could realize degree make it happen and that’s
3:00been my whole career finding people in which to invest in whom to invest I was
3:04with Eric Schmidt recently he’s a chairman of Google and he’s one of his
3:09best friends and he was telling me that he regards Eli as a combination of water
3:15crisis there and Thomas Edison and I didn’t really know very much what walter
3:20Chrysler until I looked him up on google and and pretty dress you be compared to
3:25those two guys so so so again keeping with the hearing about investing in
3:31people so we’re investing in you and and and I think we’re talking about five
3:37billion dollars in revenues sure you believe this is just a very beginning so
3:42so I think it’s such a little bit before we get into the business on your
3:46background we started talking about that before so he came from South Africa your
3:51dad was an engineer and your mother my mother’s model and educationist and one
3:59of your brothers work with you to the first come together and so have you know
4:05I know I was also a founder of these games and the kind of games and then he
4:11was a founder of PayPal so the PayPal PayPal that’s old when public seven
4:17eight hundred million dollars though there Friday into eBay but ultimately
4:21fifty billion that presumably that has some impact on the way you think about
4:26things
4:28actually I actually was against the sale I wasn’t the sale but I was always
4:38largest you know the time but only have like 12 percent as everybody else really
4:44wanted to sell so we went for doing that but I think I think we probably
4:49shouldn’t yeah
4:53so so he’s reading about your history and and we spoken before obviously and
5:01about your interest in space and sustainable transport and solar energy
5:06goes come from
5:08well when I was in college I thought about what would most affect the future
5:16of humanity and I want to be involved in those the some of those areas and I
5:23thought there P
5:24things today that I came up with that would really affect our future as a
5:30civilization one of them was the internet and the other was sustainable
5:38energy consumption of that and the third was making life multi planetary and
5:47therefore were genetics and an ally and I don’t think I’ve been involved in
5:57those areas but I just those who are in the abstract of what I thought it would
6:01affect things and going back a little further I actually didn’t really expect
6:09to be involved in creating companies when I was in high school or middle
6:15school I actually was sort of physics and nuclear physics
6:23understand more about the nature of the universe but then things like the
6:30superconducting supercollider got cancelled and I thought well you know
6:34like what if I’m stuck in a situation like that and then that’s like some
6:39active government basically stops things and then I would be a waste of their own
6:46when it when I think about the course and so obviously you know if you’re
6:52using hydrocarbons in burning
6:54and wrecking the environment makes it tough to the diner in few pointed out
6:59unless we adapt to start to read
7:02monoxide and so so so so that’s your effort there but yeah actually in
7:11college my interest in sustainable energy was really good at the time was
7:17was really from the standpoint of of essentially running out of hydrocarbons
7:23to minor burn so there’s there’s a limited supply of oil in the ground and
7:29eventually would have to transition to something that sustainable because what
7:36we’re doing well for the ground were essentially
7:39accumulates solar energy that was bound up in plants and animals and that over
7:46hundreds of billions of years was turned into you
7:49oil and and and that’s that’s also a finite and if we run out of that and
7:57don’t have a good solution then they would be economic collapse into positive
8:02environmental concerns and is there was actually what sort of initiative by just
8:07isn’t sustainable energy and sort of logical if energy needs to be
8:13sustainable if it’s going to last for long term and then over time it became
8:18apparent that there was there was actually even more pressing concern
8:22which is that we’re quite materially changing the chemical constituents of
8:26the oceans and atmosphere and the way that humanity has grown up around the
8:32world is that with so much to me about cities settlements of pounds right along
8:39the coastline and the world is quite sort of delicate
8:46industry chemical balance and so that if we do take
8:52billions of tons of co2 that was buried deep underground and has been since in
8:58most cases the Precambrian hero when the most sophisticated thing was like a
9:03sponge and that would be it would be about experiments run so so it seems so
9:09obvious and we have all these power companies to make all these cars every
9:13year to burn gasoline and nobody wanted to do it white light weight to it so
9:20obviously read evidence in exon was in the paper about the impact they have on
9:26the environment and they hit it just like the cigarette companies in 1866
9:33same playbook the crazy thing is I’d recommend reading the book merchants of
9:38doubt cause the actual explored sometimes I just such a few hours and
9:44elsewhere
9:45sort of explored like what’s going on here and actually found that the oil gas
9:53israel’s actually using literally the same obvious as the tobacco industry
9:57like buying me not even the phone may strike some as school for silicon yes I
10:05mean just like they learned how to do it
10:08yeah absolutely and then the one we always involved with making was recalled
10:14thank you for smoking which recommend watching a fun movie and as he put it it
10:23sort of space on Facebook and it’s it’s it’s really get to the truth of the
10:32matter of like how this happens and what they do is essentially exploit out and
10:38serve even when you’ve got a situation where virtually every scientist on a
10:43agrees that this is that that global warming is real that adding billions of
10:50tons of carbon to the atmosphere and nurses is a bad idea
10:54you have a few
10:55to send and then the way they describe it as presented to the public is is not
11:02bad either 97 or 98 percent of scientists think what we’re doing is
11:07crazy but that but something that scientists disagree not know the
11:12scientists disagree about everything you will not find one perhaps if scientists
11:18you agree about anything but this is a very disingenuous argument so so so I
11:25understand that and then I go to be your plan and been there every three or four
11:31months now and I guess not very many people who are endless and will stream
11:36the 22 guys publish about yesterday I think very few have actually been there
11:40for the N word spoken to you but then when I going to plan and its other
11:46automobile plants also needs a lot of people not that many machines I see a
11:50plane destined to see a lot of machines not that many people and I look at it
11:56and it appears to me so I how do you build such a thing how could you
12:01everything you gonna be successful
12:03like how to do such a thing and then to immigrant kids you come here you do I do
12:08that work should will beginning of tuzla I didn’t think we would be successful I
12:15thought we were almost certainly fail and you put all the money you hadn’t
12:20people to test in this and you thought you feel ya
12:29through the basic logic I mean how to come out of paper was fortunate to have
12:39about a hundred eighty million dollars and I thought well let’s put a lot of
12:44money you know if if I am going to assign half of this to SpaceX has loads
12:51for city and also have the other half and I’ll be fine and you told your wife
12:57if it doesn’t work with her parents basement I did I was yeah hopefully
13:03kidding it’s not it’s not great enterprise basement yeah yeah that’s you
13:15like that but things so I thought you know so I figure I probably lose the
13:23money but good try and it’s kind of important with doing but then as time
13:31went by and the company’s needed more money and then we hit that really tough
13:35recession of 2008 09 which was super bad for the quarter 3 p.m. at Christ the go
13:42bankrupt so I was like man if I don’t invest everything if if if I miss
13:50everything there’s a chance and that will suit me best everything there was
13:56no chance to win Super that recession is no way this could have existed we gonna
14:02buy billion dollar plan for fifty million dollars that’s true but they
14:04came here a bit later but yeah but the the real key thing was was 2008 will
14:10even from 2007 to 2009 but the two-year period was super bad and we’ve made so
14:20many mistakes the beginning of Tesla that we basically have to recapitalize
14:23the company was completely in 2007 almost every decision was wrong so when
14:32we created the company and I gotta give credit here for the beginning for AC
14:39Propulsion which is a little caught up in Southern California created an
14:44electric sports car and it was actually based on on on AC Propulsion sort of
14:51idea if I was trying to convince AC propulsion to commercialize electric
14:58sportscar commercialize the prototype of the done but they’ve had no interest in
15:02doing that and hopefully convince them said look I’m just happy with myself and
15:10then they said well you know this and other people also want to do it
15:14join in with them I said ok let’s assume that most guys don’t get enough credit
15:21that it’s a cool stuff with electric sports car before tests thats with
15:26that’s what you’re thinking about using engine and electric or should you use
15:31electric power level that was that was pure electric sports arena hopes as they
15:37quite complex and it’s like many soap opera episodes but you could be a part
15:41of it but another issue created a pure electric sports car for the T zero just
15:51a demo but they would just not interested in commercializing their
15:55stuff and said look a like this really needs to reassure people broadly what
16:01are sincere and caring people through phases but I do so you can see we go
16:10back to supplant master plan that we have that in Fremont California I never
16:15expected that we have this plan but it’s amazing place yeah
16:19and make me feel like it’s kind of cool which is better than we thought we would
16:25have got that plant that’s one of the biggest plants in the world I think it’s
16:31sort of like my footprint I mean I think it’s likely view the third or fourth
16:35biggest how many square feet by what happens with you
16:41yeah so that’s what hundreds how many acres under roof yeah the General Motors
16:53building just TV prospective General Motors building which is where the Apple
16:56stories that one block its 150 acres yeah it’s crazy you could go camping in
17:02there
17:05I get takes you a long time for provoking one side to the other bikes
17:12the factories just get around a bit faster and when we first got this which
17:19was actually it was a bit later as in early 2010 and we thought man is no way
17:27we’d ever get that but also plan because it costs too much and reno much money
17:35but then as a result of the recession the plant which was joined by Jim and a
17:42Toyota had to close down the street that is sort of a long story independent has
17:52left so they’re going out of town and I’m just gonna be empty and there was
17:55maybe gonna turn it into like a mall or something like that but it’s gonna be
18:01empty for a long time and we have approached Toyota said like look you
18:10know we’ll take it off your hands
18:15much was featured on the street where were actually apparently also electric
18:26rav4 program and they were also their investment at the IPO so they better
18:34stop here
18:35$40 and $50 at a $17 share price so it worked out for them but we were amazed
18:45that that they’re they’re willing to move forward and do it and but for us it
18:52was so tiny of the time and it was like magic mic you’re like this little band
18:56for slippery and it’s like somebody says well as the giants like alien
19:01dreadnought that you can have for pennies on the dollar and you have no
19:06idea how it works like where the controls how to use this thing and that
19:14that’s what we were up to 225 at a point where automotive plants were not with
19:22much to this plan ultimately is going to be able to do have a main course here I
19:27think I think half way of cars and we go beyond happily force them but that’s not
19:32really the dream I mean long-term I really want to try to do several million
19:38cars yeah I mean what we now define 50,000 this year and 75,000 next year we
19:45took the several million and we think about folks wagon 10 million to $10
19:53general motors eight or nine million profit margins a fraction of what we
19:58think we can do better than that
20:02well i mean i guess i mean i three possible 30 possibly other question I
20:10think over time if we continued to great products and we keep our cost structure
20:17competitive then I think he knows what the ultimate do you need a lot of these
20:23plans
20:24yes many plants many auto plants and many factories I think they did a
20:31factory this do that when you get factories in nevada 4 billion five and
20:37it’s expecting it to be roughly five billion dollar investment to get to full
20:43production of the test tells those providing a roughly fifty sixty percent
20:48of that over time and then strategic partners like Panasonic a number of
20:52others are providing the other house and then he gave us a billion in tax credits
20:57for savings or something the whole tax thing drives me crazy
21:05its quarterback yeah it sounds much better than it is actually the first
21:11time I heard that there was 1.3 billion was at the press conference announcing
21:16the deal like really how do we get to 1.3 what we actually got with the
21:24vibrate gave us some free land but the state of arousal and so this is not a
21:31not for Supply yeah there’s a lot of Nevada and then they also agreed to
21:40build a connecting highway on the southbound
21:45that connects to Carson City but they’re gonna be that anyway so I don’t think
21:48like that should be included out what they gave us and then they repurposed I
21:57think eighty million dollars of tax credits that was going to the insurance
22:03company insurance companies or something
22:05repurposed out to us but that’s the only sort of thing that we can actually
22:10monetize and then and then they also gave us relief on sales and use tax or
22:20equipment in the factory and depending on what type of situation see the ten or
22:26twenty years for the sales tax abatement so if you assume that we we fully use
22:33the sales and use tax abatement which requires building which was actually
22:37capital equipment in excess of five billion dollars over twenty years and
22:41you add all of that it has to 1.3 billion three in fact that the
22:49contribution in this 100% see the factory factory by student body is less
22:54than 5% and then there and then they have roughly 1 percent contribution of a
22:58twenty years so so presumably for them to you because he’s getting better jobs
23:04it’s a no-lose proposition for the states I mean as the saying goes the
23:10house always wins and like the vital understand the house ok
23:15nobody is the house
23:19it’s like the only way for us to actually have the sales tax credits
23:26meaningful is if pressed to have enormous numbers of machines and
23:31enormous numbers of people operating those machines and Mississippi Nevada
23:35Nevada speculation was that there but they were at their return on their tax
23:41credits would be somewhere between 80 and 100 percent times so it’s like a
23:50good feel for the state so so so that the battery plant that’s the plan kids
23:58is done without a lot of without any I understand public viewing of what we
24:08doin inside a factory and there were some reports so far and there’s been
24:15some reporters I guess a couple or three weeks ago that’s nothing to our property
24:19that like right over to about people trying to kill us guys yeah it was
24:25pretty crazy wife what it’s got a bit overzealous and then I seen that they
24:32panicked and actually trying to kill her employees but but they paid it run over
24:37to her place which is but you know what they’re trying to try to get away and so
24:43they’re out of its about guys like what they liked the danger zone too serious
24:47but but yeah that’s that’s like not cool
24:53so so so so we think it’s important enough to not let anyone see what we’re
24:59doing inside and other people trying to figure out what’s going on and obviously
25:05not a nightclub and so so what it is what I think that is not knowing much
25:13about technology how things work is that so we’re making that kind of a battery
25:17that although the general rubric of the game covers many types of chemistry’s I
25:26mean really broad range of things of batteries that use lithium as the ion
25:31transport so whatever you described herein is going to go over my head but
25:34my question is how do we know we’re making such investments that what we’re
25:40building in that factory is going to persist and why is it that in a hundred
25:45years so we do also two things you’re sending things out of the atmosphere at
25:49the Galaxy lol universe claims and yet four hundred years we haven’t been able
25:55to build a battery that goes from more than 300 miles helping how is it
26:01possible that we haven’t been able to spend money on that and if that’s the
26:04case because no one’s paid attention to it and all of a sudden we come along and
26:07potentially going to try to reduce the weight in the existing batteries and use
26:11maybe silicon and having a 300 mile battery 2002 how do we worry that what
26:16we’re building it can get obsolete also the reason is better at this point we
26:22have quite a good understanding of all the battery technologies in the world
26:27could be some small laboratory that things super secret but generally what
26:33people investing battery technologies try to do is they pushed as the first
26:38and foremost cause we’re the biggest lithium-ion consumer in the world to
26:42anyone who wants to build a battery has new ideas you can come to us before they
26:45going to be their biggest customer so if somebody event something the obvious
26:51choice to license the two or is is tuzla and so we try to take things seriously
26:58as possible but made which we track right now about sixty different efforts
27:04from the world development
27:06batteries and you know some of them hold some long-term promise but we rewrite
27:14all of them on from a 125 is we should be doing business with them and one is
27:23complete BS how many flights over 53 currently there’s no food no one in this
27:33one even in the four like this that might go from a 32 of 44 means we should
27:38we should be in like preliminary discussions so what’s what’s going to
27:42change the technology this could enable us to have these different we can have
27:46something ten years it’s gonna be unusual battery that’s gonna be able to
27:49do a thousand miles in a way that does presently I don’t think we’ll have quite
27:54pleased about much improvement and actually at the most likely would not
27:59like technically right now for us to do see a 500 mile range are we could have
28:06to do that right now with part part batteries but the declines to be too
28:12high and the useful load impact on the vehicle me too I’m so happy to have to
28:16pull up part of the trunk and the front and the front and rear of truck without
28:21trees would have to pitch to LeBron passenger room but I remarried car right
28:26now I remember each car in the current form factor I think that’s you know
28:36probably less than 10 years away within the same volume and roughly the same and
28:41then we would drive the cost the kilowatt hours to 1,500 that’s because
28:46we’re doing what
28:48that’s just because we’re doing scale because we’re using different materials
28:52because we’re changing chemistry how do we do that yes we are quite substantial
28:59improvements in the
29:01total pac energy density so this is the cell energy density and then as you
29:06those cells together in a pack you have to figure out how to do that safely we
29:13were able to reduce to pack energy does this will make i think quite significant
29:17profits indicating the package does that put the thing that’s most important
29:22really is the cost because a lot of people that driving but alas the one of
29:31the current say to avoid a Model S will do over 300 miles right now at
29:37sixty-five miles an hour so that’s that’s enough range for most people it’s
29:44and then you get the supercharger way to recharge very very quickly with
29:49supercharger work that’s now ubiquitous throughout the country
29:52let’s by customers to cross-country trips la you’re not using a support
30:00network so this really help you have freedom of travel this point and
30:04certainly provides the battery pack range are important but the thing that’s
30:09really important is reducing the cost per kilowatt hour so that we can do that
30:16with existing
30:17yes yes we are going to make some technology improvements as well to the
30:22fundamental cell chemistry and so they to the way that the battery modules and
30:28packs are organized but the fundamental focus is on cost per unit of energy and
30:37that that’s so that’s that’s what the big factories about it’s it’s it’s
30:43taking economies of scale as far as far as we can possibly imagine 22 very
30:49extreme level of sportsmanship and that’s what gets a two hundred and
30:52that’s what they said lower than 100 $100 until I
30:58we can’t comment on exact price numbers but I mean that’s not that that’s
31:09approximately you know that’s in the ballpark of what we’re aiming for and
31:14that’s it’s important to cut the places they cost per kilowatt hour at least by
31:1830% with the factory and our aspiration of course is to do better than 30%
31:23Costco what our doctrine in order to achieve the 50% cost reduction for the
31:28model 3 which is about a 20 percent smaller car and so would require for the
31:34same range twenty percent less energy that that means to get the full 40
31:39percent we need another 30 points coming from economies of scale which I’m
31:44actually very confident we would she have been at the factory
31:49what we’re doing is consolidating the production of the prac away from the the
31:53raw materials like cars coming in from from the mines like real cars of raw
31:58materials from the mines and then I’ll come quickly finish battery packs and
32:04this is actually never been done before so the batteries at least and what we’re
32:10able to 22 during this process is massively improve the cost of the of the
32:18of the census else in the paths because today if you were to trace the movement
32:25of the raw materials from when their mind and go through the various refining
32:30steps around the world and eventually put in a cell phone in that cell
32:34eventually is put into a module and a pack and a political car and then
32:38delivered to somebody that the raw material that molecule from the Mayan is
32:44doing around the world trip like three times it’s really crazy and they’re even
32:49steps of the process where it is converted first into one big opportunity
32:55for you
32:59so many things so jeffrey katzenberg someone from the way and he had a
33:07well-publicized accident in his testicle are a week ago or two weeks or a month
33:13ago when someone went through a stop light and a big SUV hit in that would be
33:20miles an hour and he said he’d be tested course saved his life and he said yes
33:27and he said it was just the most amazing thing so so here this guy well-known
33:33great publicity then do something on the internet it says to someone who’s
33:37driving along in the car was about to smash into them and the car and he
33:42didn’t see it and of course what and stopped turned around stopped and and so
33:48so here we have this safety much safer car than the other cars yes and I
33:56presume you know him and his mom Cindy tom tom tom is in his sixties and his
34:05mom Cindy I guess you won’t say how old she is but she’s more than sixties
34:10and so he drove his car to her house and she said I like this course she kept the
34:16car so so one of things it’s interesting to me is that I just you talk about
34:25safety but you don’t really say your promotion is this is a secret score ever
34:31I mean I know he say it but isn’t that an unbelievable opportunity to to
34:36promote to cheetah democrats are foreign to get more CDs buying senior pictures
34:41are compensated times children yeah I read that in fact in designing the Model
34:48S and the model acts safety was are absolutely paramount goal and you know
34:55my fight my family will be in the car my friends families if if if I didn’t do
35:04everything possible to maximize safety and so they went wrong I couldn’t live
35:08with myself so so we spent an enormous Lancet I’m on safety and the whole car
35:21is architected for for maximum safety and I rarely have we have physics and
35:27outside here which is very very important so there and I’ll just real
35:33briefly like whites i think is the car stickers hear things like cars of 5
35:38stars out of 5 starsbest not an actual statistical number
35:45$66 billion stars
35:50there’s an actual probability of injury which is that that’s the number that’s
35:58most important and the public entry you people look it up it’s sort of buried in
36:04the in the public transport website but they have to reach individual court yet
36:08every every car has a combined probability of injury and the Model S is
36:15still there were three years ago it still has the most probably the history
36:19of any car ever tested and that’s just not passive safety and then we have the
36:23active safety as well and the reasons basically are that because the the car
36:31does not have a big steel engine block in the front it we have a front trunk as
36:35well as real truck as they let requires that they’re actually coaxial with the
36:40with the axles so when you have a high-speed frontal collision what really
36:45matters is force of a distance it was just like jumping into a pool from up
36:49from a high high diving water something into a pool you’d want eighty pool and
36:56one without rocks in it
36:59really accommodating the same thing for a car
37:07what people don’t realize just like I think you think of that having a steel
37:10engine block is protecting you accept that it when you hit something you’re
37:13going sixty miles an hour so it’s tough being you that is important and so that
37:19deceleration distance is incredibly important or another way the length of
37:24the crumple zone is extremely important and the crumple zone on the front of the
37:29Model S is two to three times greater than that of any other prints which
37:33means that the impact attenuation is two to three times square then anyone with
37:40her family they want to buy one of these cards instead of against illegal they
37:44definitely if that this is if safety is a concern I for sure every subject very
37:54true it is the safest car by far the accident that jeffrey was where he was
38:02joined by this will be its that’s a side-impact collision that the reason
38:10that side-impact collision on the yes is so much better than another car is
38:14because the main structural component is the battery pack in the bullpen so
38:20effective for plan effectively acts as a big share plates to transfer the load
38:26from a side-impact into the rest of the car so that the whole car roofs sideways
38:32in a in a side-impact collision but what happens in a classic card game because
38:40you’ve got the big sea lanes are blocked in the front you got a huge portion of
38:43the mass in the front seat and and and the rest of the quarries is relatively
38:48weak you certainly have just sheet metal in in on this on the side of the car and
38:55on the floor plan of the car so that the effects of side-impact the load transfer
39:02for against the car
39:05to the rest of the massive the car is weak and as a result the side impact
39:10distance is dramatically greater that the net result is that you are much
39:16safer a site in fact so charges to a couple more questions and I’ll open it
39:21up everyone else but so I safety space taxi driver so so safety with all these
39:28other automobile companies having one safety issue after another not just this
39:33commission a problem but also about breaks in about it I’m sorry breaks he
39:40was out of batteries I’m sorry I guess me tanks why so when we have a car that
39:48existing that is for school in the atmosphere in addition as many say why
39:54don’t you think people have moved more rapidly to adopt technology which will
39:58offer to give them for free
40:01the pants if I think they actually there are a number of companies use the
40:06patents so it’s starting yeah yeah that’s one question number two is facing
40:13SpaceX and welcome back to over to SpaceX when I was a kid it was a
40:17television program called captain video and
40:24channel 5
40:27and the rocket will go up and fly around and come back and and then in the
40:32nineteen sixties we started going out into orbit and go to the moon and the
40:39rocket testing will take off the stage one after another
40:42would fall off like you and me and my first thought when I was happening to
40:45really understand why that would happen and now your idea is that haiti’s
40:51rockets 15 stay together and we could do ninety nine 51 something like that and
40:57therefore we can do it for one or two or three percent is expensive as we get it
41:02before I didn’t want to get up before I was actually in the rocket industry
41:09people have thought about reliability for a very long time and it’s it’s it’s
41:16just happens that its gravity is quite strong and it is just barely possible to
41:25get reasonable pillar to over it with an expendable rockets that he had
41:31reusability then that tends to get negative people to open sea camp that he
41:37do it so you gotta do two things really advanced technology so as far as the
41:45answers the airframe avionics the recovery systems like landing legs and
41:55the respect capability makes the Crockett such that if it was a pure
42:05expendable more difficult get approximately 40 study more than four
42:09percent of its bailout master albert had put this in perspective Norma rocket
42:13gets about two percent of its payload mass thought it was very small number
42:16but if if so if you can push that 22 percent to more like four percent on
42:26expand what basis and they’d be really efficient in the way that the
42:29reused takes place such that the reuse penalty is only maybe half a fast so you
42:36still haven’t met Taylor to over 2 percent that’s essentially what’s needed
42:42to achieve reusability and SpaceX has been out of power for 13 years and
42:50haven’t yet achieved its and I thought they were done thus far as evolutionary
42:56not revolutionary but I think we’re within shouting distance of this I think
43:01within the next year will be able to land the rocket in town we will tell and
43:08the rocket just not intact
43:11exciting videos are you want to watch the and but I think we’re close to
43:23landing at intact and then we need to examine the rocket once we get it back
43:27to see what needs to be strengthened over strengthened things that we don’t
43:32need to as much mass appeal to reusability with the with the rocket and
43:39so these things are not there are obvious to people on board with rockers
43:47revenge because of Iraqis to build it is sixty million dollars and the cost of
43:54the propellants fuel and oxygen and support is only about $250,000 now over
44:01$3,000 thereabouts but it’s basically yeah it’s it’s only it’s about as
44:09expensive as safe fueling up seven forty-seven ok my last question is
44:15hoover so this into your conference call and ask whether we could be asked you
44:23that but but but I love you actually ready to make any announcements in that
44:30area but my question is do this another company is much smaller than Hooper
44:35called left and I guess it’s Carl Icahn investor in that and i think is too and
44:43so my question is that what is it about hoover’s business that will make him
44:49immune from being attacked attacked by leftist lift have a chance against you
44:54really an expert in that some kind of scale that they have it makes it
45:01impossible for somebody to get to my question i think is probably
45:05I realize I’m expect no time thinking about it but my impression that this is
45:12the pressure with like whoa competence is that this is true for both over in
45:17left that’s what I like I can see ok so you don’t take some questions now is
45:24that okay and and then afterwards I’m sure that you know you have a couple of
45:30test this out on the mall and I’m not getting permission to sell them but but
45:35if you sign up for a test drive and we know about it and we will send you a
45:42present so you can get that afterwards but meantime questions I should mention
45:48that just reminded that there’s actually
45:5321 that is able to test drive today we’ve actually is arranged a special VIP
46:00just just few guys which is still the most are calm stepparent I’ll call ya so
46:09it’s just thank you
46:15number six
46:18hi I had the pleasure of test driving a sick just the other night so it was five
46:27minutes in new york city traffic but yeah I know you’re not doing a whole lot
46:34about the model 3 at this point but I’m just curious what you’re willing to say
46:39about the experience of driving a $35,000 so model 3 as compared to
46:46driving a Model S
46:47sure well as the Model S and the axe will be out kind of premium high-end car
46:55and we will try to leave with new technologies in the SPX so that that
47:03would be the advantage of the SPX but the three will be a small of about 20%
47:11smaller comparable in size to say 3 Series BMW or Audi April and but it’s
47:20it’s going to have a very similar deal 222 BS and it’ll it’ll be epic quakes
47:28operation good driving feel good handling and for the size of the vehicle
47:35great cargo space yes yes because it’s got a truck in the front rank in the
47:43back of the vehicle cargo space of the S is anywhere from fifty to a hundred
47:50percent more than that then that been a gasoline car basayev external dimensions
48:01you’re the one thank you so much for joining us think it is fantastic
48:07are you as well everybody else here enjoy hearing from you you were in the
48:12adventure
48:24charging stations right outside the door but I notice there are always full those
48:32are charging stations and the great synergy restaurant about charging
48:40stations and now I get extra business so I hope they’re paying you to put in bus
48:44stations but I i have you know what I wanna get to is a technical question
48:49interesting article about in rhode charges you know take your pick it can
48:54be inducted BRF is there any potential for that in terms of you know if there
49:01is is test involved are engaged
49:04looking for doing something with that I actually I think that’s unlikely to
49:10occur gets its really gonna be just long-range battery and then and then and
49:17then vote charging case occurred people’s business and then that’s really
49:23eighty to ninety percent of charging ten percent of charging its long distance
49:27which is what we have the the Super charges you can travel anywhere in the
49:31country
49:32actually this great road trip with my kids from LA to mount rushmore it’s up
49:38to you travel around the country
49:41freedom and a bit but I think locations that are not home or business and not
49:52long distance that there will be a small amount of charge america’s but it’s in
49:56the south by percent category that’s nice to have but it’s not it’s not
50:00needed for you
50:02for utility of the car
50:04oK so that’s that’s right
50:09aspiration actually has to put the charging stations somewhere where you
50:13can meet you can be happy then go and have a nice meal and grab a coffee and
50:19be on your way so that we can do some shopping so that I apologize to everyone
50:24I had the time and I didn’t realize that we were running over I thought that this
50:28was a bad time we talk in more time for questions would you be able to answer
50:32some questions to align can stay here for a bit
50:37there’s entertainment it’s now starting in three venues he need left in you we
50:43have a Steve Martin and Martin Short for comedy on the right thing you we have
50:49Michael Buble and a center Tony Bennett and Lady gaga
50:56pretty cool right

Ron Baron Tesla