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I can't emphasize us enough. You
know, if you get some digital superintelligence,

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it might be in charge of China
and said, are you and I'm

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not sure you would like that.
Well, it's actually gone reasonably close to

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what I would happen, which is
from that point roughly a fifty percent year

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over year compound annual growth, which
is a confidence that the Tales the Team

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is the fastest growing a large manufactured
object ever, which I think the second

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is like the model T back in
the day, so about a hundred years

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ago. So the Tales of Team
are very proud to work with them.

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They they're executed incredibly well, and
we anticipate something close to you know,

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percent growth to continue. So that
is very exciting, and it means that

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we should expect electrication of transport,
especially passenger vehicle, you know, quite

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quite quickly. It's because the normal
human instinct is to extrapolate on a linear

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basis, but really, if you
look at the curves, electric vehicles are

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growing exponentially. So I think that's
great news for those in the room.

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You have a lot of customers,
well, you have a lot of ev

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customers ready and saying you will have
many more. You know, and forgive

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me for waxing on a little bit
here, but sometimes asked, well,

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when will evs be most of the
cars? The important thing to remember is

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that you've got two billion cars and
trucks out there, so and about one

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hundred million for your new vehicle production, which kind of makes sense, so

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sort of a life of about twenty
years before a vehicle finally goes to the

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scrapyard. So even if if one
hundred percent elect vehicles were our new vehicle

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production was was electric today, will
still take twenty years to replace the fleet.

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So it's just important to bear that
in mind centers of new vehicle production

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versus versus total fleet. But I
think we're moving quickly to the point where

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and probably half of all new vehicles
made will be electric, and I think

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that's that's that's likely to happen,
I think before the end of this decade.

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But then this still quote another twenty
years beyond that, before that the

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fleet really becomes a majority EV So
yeah, and it's interesting because as we've

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done the analysis for California, right, we have an executive order that calls

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for all new vehicle sales being zero
emission by twenty thirty five. That's in

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mind with the forecast that we've had
in our own scenario analysis that's still puts

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US at about three quarters of passenger
vehicles being electric in twenty forty five when

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the stake is sent, and zero
to be off by a little bit.

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But I mean, I think that
the larger point is that man electricity is

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going to be extremely high. So
so I I, you know, hope

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it's good news. The you know, the if just do the rough back

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the envelope math, you need to
roughly triple electricity to get to equally electric

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economy. You know, roughly a
third of power is electric and then uh,

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you know these are very rough nubers. Roughly a third is spent in

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transportation of various kinds with with the
fossil fuels or hydrocoffins, and then roughly

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a third is heating. So even
assuming the the sort of current economy economic

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usage electricity of a capita being constant, you're looking at roughly a troubling of

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electricity demand and the so it's really
going to take a tremindous effort to address

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this demand. This is a sort
of you know, I think, very

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very good news for those producing electricity, but also entails a treminous kind of

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work ahead in new production capacity and
production capacity that is as sustainable as possible.

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Well, I mean, it very
requires a whole system to be ramping

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up. It's you know, you
are dealing with the storage side, and

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the vehicle side and the charging side, and we'll talk a little bit more

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about that a bit. Yeah,
we have the wires, but you know

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we need we need support from all
across the economy, right, absolutely,

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It's it's really, it's really very
much a joint effort. I think it's

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it's a it's a very very positive
future for the producers and distributors of electricity.

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Really couldn't ask for a better,
you know, growing market that's going

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to grow in a better way than
this. But it is a tremendous amount

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of hard work, as everyone here
knows, to actually put that generation in

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place and then transport it to where
where it gets used, and then dealing

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with the peaks and and and and
then taking advantage of the valleys of power

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production. I mean, that's really
where, like the tells, the Megapact

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that you're just alluding to is actually
incredibly helpful. Is in sort of peak

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shaving the grid based basically charging up
when you have excess power production and then

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and then releasing it when you have
insufficient power production where you want to peak

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shave. It's the you know,
I really believe that stationary battery packs are

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absolutely way to the way to go, and it is actually the fastest growing

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portion of the entire test the business. So we're so our vehicles growing in

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thirty percent a year, about our
stationary storage is growing at two to three

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hundred percent a year. So it's
really you know, it's it's a really

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big deal, really helpful, but
it's it's like it's just a obviously it's

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a battery at scale and a buffers
electricity. If you need electricity buffered,

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then it's a good product. Well
and well, we'll get back to electric

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vehicles heet in a minute. But
I remember where you and I spoke a

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number of years ago. You already
had that vision of global electrification. Yeah,

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and I think you've positioned your company
right with storage, pees with solar.

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So this integrated view of where the
market is going and how Tesla fits

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into Yeah. Yeah, well there's
I mean, there's pundamently three three pillars

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too, A sustainable energy future one
you know, one is sustainable energy generation,

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which is solar, wind, hydro. Actually, you know a fan

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of nuclear, of good, good
old vision, I think it is underrated.

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I mean, we can easily supply
all of the world's like Trusty with

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vision. But people I don't know
some of that. Sometimes they're understanding of

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physics is not amazing, and so
they get scared of things that shouldn't be

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sed gheto so so very much pros
basically any electricity we can say, okay,

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this is not going to meaningfully change
the chemistry of the climate notions you

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know, the atsmart oceans and so. So you got sustainable electricity generation one

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side. Then you've got stationary batteries
as the third pillar. Second pillar,

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which is needed for any kind of
intermittent electricity production, and by its nature,

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solar and wind are intermittent, so
batteries and solar and wind go together

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extremely well. And and then the
third pillar is electric transport. So get

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all three of those pillars going and
we have a sustainable futurists as long as

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the sun shiants and the wind blows, which is gave me a long time.

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Well, I think you know this
idea of having a balance across these

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resources. It takes a lot of
tools in the toolbox. Let me get

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back to electric vehicles though, because
left to go a couple levels deeper here,

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we're talking some you know, a
few minutes ago, I think that

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was more on passenger vehicles. Well, let's talk a bit about about bigger

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once. So you know, we're
all excited to see the first Tesla semi

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trucks on the road in California,
and that means a lot in terms of

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the viability of trucking systems in the
future. We also have the us EPA,

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you know, proposed vehicle standards.
It could accelerate the medium and heavy

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duty electrification. We have California doing
its thing, as well as a number

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of other states. But ultimately the
vehicle need to be economical for fleet operators,

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and particularly in southern California where we
have all the traffic coming up from

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the ports. A lot of those
truck operators are not big fleets, right,

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they're small, mom and pop owners. So absolutely so, how how

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quickly are you thinking that freight movement
really goes electric and in a way that's

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affordable so that you can really serve
up that mix of owners something. Yeah,

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well, I think i'd certainly encourage
people to look at our semi truck

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presentations because in fact, the one
of the things we emphasize with electric semi

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truck is that's it's much more energy
efficient than a diesel truck, you know

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so, and I mean you get
things like the genitive breaking. So like

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let's say you're going over a mountain
range. Well, in diesel truck,

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you actually don't capture that the energy
of high too potential energy. You have

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to actually spend a lot of money
on expensive breaks going down the other side,

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so you run out of control.
So whereas an electric semi truck is

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able to recapture the energy gravitational potential
energy and actually when it goes down the

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other side does not overheat breaks and
back puts the energy back in the pack.

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So things like that are incredibly helpful
for the energy efficiency. And they

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just generally look the entire chain from
electricity production to take into account the efficiency

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of the energy produced, the energy
lust during transmission, energy lust during charging,

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and then see how many miles were
driven. You could take the same

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diesel that is used to power a
a truck, use it and burn it

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electricity and still be at least fifty
harm percent better with an electric semi truck

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then with an if you put that
diesel directly in the truck. I think

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that's in line. We were talking
earlier in our board meeting about just the

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efficient security. It's efficiency of electric
technologies, right, So it's a big

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part of the story here. Yeah, just fundamentally, combustion engines in a

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vehicle are constrained in massive volume,
so you have to you're therefore limited in

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how much efficiency, how much useful
energy you can extract from a fuel when

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you have a very constrained massive volume
for the truck. Whereas a power plant

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does not have the constraints of mass
volume. It can be heavier and bigger,

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obviously, and you can take the
waste heat and run a steam turbine,

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so can your sort of Carno.
Efficiency of a power plant is dramatically

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greater than if it's in a mobile
application like a vehicle, And even when

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taking into account transmission losses and charging
losses, that there's still don't account for

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the massive difference in efficiency of even
hydrocoffins being built at a power plant versus

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being used in a car, which
sets up thinking about, well, what's

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the transition there, but ultimately though
looking at a future that's electric. So

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we're all we're all agreeing on the
efficiency of the trucks. Let me state

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something that's plainly obvious. Bigger and
more trucks, bigger and more batteries,

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right, So let's talk about the
supply chain for batteries. And I want

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to say thank you because a number
of the folks here were able to get

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a tour of the Giga factory here
in Austin. Yes, and actually apologized

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I didn't probably answer your question with
respector trucks, because so semi trucks,

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because they do use a large battery, will be toward will be later than

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than other vehicles because we need to
have excess sufficient battery supply in order to

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have a battery that's you know,
maybe four or five times larger than it

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would be in a passenger car have
that be in in a semi truck.

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That's the reason why we haven't gone
to scale production of semi truck yet is

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because they're just worn't off batteries.
Now, as the battery problem is solved,

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we will go to volume production with
the semi truck and I'm pretty sure

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it tells will refers on this,
but we're expecting to reach volume production probably

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sometime next mute and the next year
is you know what we're waiting for.

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And again, because it's not going
to be overnight all the trucks become electric,

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because you have to reach a certain
percent of new semi trucks built then

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replace the fleet. The fleet is
you know, at least ten years old

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in the semi truck case, and
so you know, but I think it

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probably gets the fifty percent of new
semi trucks built within probably three or four

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years, eighty five years, and
then it's another ten fifteen years before you

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see most trucks be electric. So
that's I don't know, demand on on

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your perspective, that's either really soon
or far away or a little bit about

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Yeah. Yeah, So that's that
helps get a sense of the time scale

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here, I think a one level
level deeper though, and when you think

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about the actual underlying challenges in getting
that battery scale again, a gigafactor here

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seems like it's a great advancement in
terms of the manufacturing side. Yeah,

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but then how do you think about
the supply chain behind it the rare earth

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materials. Are you thinking about different
chemistries over time or other ways to make

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sure you're getting the suppot supplier batteries
you need for that kind of scale growth.

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Yeah, so the row materials are
not really an issue here, especially

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when you consider iron based cathodes.
So we think probably the most of the

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batteries made will be with an iron
cath Iron is extremely common. It's actually

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the most common element on Earth by
mass. Is is iron, second is

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oxygen. Everything else is in the
remaining roughly, so we have more iron

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that we were basically a rusty well
that's what Earth is, iron oxide,

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iron and oxygen, iron and oxygen
and a little some silicon and a few

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other things. But it's it's funny
that Earth is by mass almost two thirds

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iron and oxygen. So we're not
gonna run out of iron, that's for

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sure, and especially forestationary storage where
mass and volume are not that important,

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and iron based lithium ion cell.
So the thinking about lithiumy itself is like

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it's a lot of torque of lithium, but actually lithium is like the salt

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on the salad. It's not the
salad itself. So the costs tend to

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be predominate, and certainly the mass
of the fact predominates in the cathode,

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which is it's going to be a
metal, and the higher energy chemistries are

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tend to be nickel, and then
the lower and lower engine des chemistry will

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be iron. So to use nickel
for kind of long range stuff where where

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mass and volume really matter and you'd
use ironware it's less important. So medium

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range cars, stationary storage, iron
long range cars and aircraft would definitely be

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nickel. Well, let's let's talk
about how we actually charge all those batteries.

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And back in twenty fifteen you describe
the need for fast charging to help

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long distance travel work, even as
most of the charging, we think it

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ends up happening at home. So
you built a supercharger network. I think

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it's still the benchmark in terms of
public ev charging out there. You've made

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some really big announcements recently. You've
been fun to watch with Forward and more

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recently with GM. Just curiously,
you know, why are you opening up

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the network? You know, how
do you see this creating competitive advan they've

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been working with with others. Well, I don't know if it is a

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competitive advantage but it might be actually
competitive disadvantage. But the the purpose of

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Talesla from the beginning has been to
accelerate the advent of sustainable energy, and

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so you know, we're and I've
been very clear with that. Even when

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we went to IPO, I said, hey, look, some of the

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things we do may not be you
know, super profit maximizing, so don't

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invest if that's a problem. Cars
tool to sell our stock. If that's

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a problem. On the other hand, we'll make up for it with some

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epic products. So I think on
balance will be okay. And we were

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in public at I think one point
roughly just over one and a half billion

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dollars, so improve since then,
Yeah, you know, I made some

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progress. You know some of the
things that maybe we could have done that

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were not totally profit optimizing. I
mean, we've open sourced all of our

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patents, so anyone can use our
patents, which is pretty unusual. So

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you know, it's and I mean
mostly do the patents just to stop like

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patent trolls and people people are doing
blocking actions. So we'll do a patent

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and then make it open so that
there's because like patents are like a minefield,

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you know, it's just like you
don't want those a clear path to

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the future of sustainability. And then
you know, as far as opening up

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our network, I actually don't even
know if this is actually, you know,

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a good thing for treasure or a
bad thing. I mean, I

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think it's morally right, but it's
whether it's financially smart race to be seen.

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But it was it would you know
it was something that that would help

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the rest of the industry go electric, So we opened it up. And

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so we don't want to use it
as kind of a world garden or competitive

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weapon. It's if it's something that
would help advance sustainable energy, will do

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it. Let's say powerful statement about
the commitment to sustainability exchanges. I'm curious

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salon and doing and taking that step. Might it also influence how you think

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about the evolution of your own charging
networks? So for example, I think

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some of the other charging networks might
have higher U voltages for fast charging.

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Is that something that you think would
then lead you to migrators at or do

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you think you're in the right suite
spot? Well, it depends on which

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cars. If we're talking about here, there's there's a maximum rate of which

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you can charge a pack. So
you know, if you want to see

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that rate, it's not it's not
relevant to that particular vehicle. You know,

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our latest superchargers will do of a
three hundred Yeah fair to kill abots

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each other, we had to go
back to some more planning. If yeah,

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exactly, so big big cable or
very high voltage, we just crank

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it up to a million volts.
Look at the same cables, electuisity joke.

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Yeah. So yeah, if you
I mean that our squared our heating

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is real can really get you,
but you just crank up the vaultage.

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So yeah, I mean it's three
fifty kilobots. I mean you really are

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exceeding the rate which almost any battery
can it can take an actually charge without

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damaging the battery. So I think
we're will be found on out front.

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Our voltage for a long time has
been roughly four hundred volts plus NINUS thirty

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and with the next generation, we're
doubling that to the eight hundred volts.

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So I mean, there's there's it's
it's not it's not as big a game

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as it may seem, but it's
you know, it's slightly better. So

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our our super chargers will be able
to operate it either four hundred or eight

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hundred volts and just you know,
impedence matched to whatever the vehicles that's once

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be charged. Well again, it's
a really fascinating move and it will be

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interesting to see how other OEMs you
know, approach the Ford and GM announcements.

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Yeah. Like I said, we're
you know, really just trying to

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do the right thing here, and
you know it's there with gym Folly and

250
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very arter that you know, we
will support GM and Ford cars on an

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equal footing note you know, special
status for test the vehicles and that kind

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of thing. It's got to be
fair. Sots talk about more will stick

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to it. It sounds like it's
in line with making your patents open source,

254
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right Yeah. Yeah, Well all
of those chargers are going to drive

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the need for a lot of infrastructure
on our side of the grid. Yes.

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Actually, I can't emphasize enough.
We need more electricity. How much

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electricity you think you need is more
than that is needed. I show you

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if you're thinking traveled this incremental production
capacity of electricity, Yes, definitely.

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You have as rooms fast as possible. Amen, So you have a room

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full of folks here. Some of
folks are you members of EI regulated utility

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folks. There's suppliers here, vendors. It's a whole community that's that's needed

262
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here to make this happen. We
also need to support of government, right

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and so it's been exciting to see
the IRA funding. We're talking about this

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earlier today. Irai j a transformational
for the US. Yeah, but we

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still need more help, right than
getting permitting, inciting reform for example,

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to get the steal in the ground. I feel I feel the same way

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like it's it's man. I mean, we're like practically leaking construction illegal in

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this country, especially in California.
I mean, you know, no offense.

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I lived there for a long time
and I still I still spend I

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still spend a lot of time in
California, FI and I am still pro

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California. Not easy sometimes, remember
I am a California And I mean it's

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you know, even then, you
know what I'm talking about that being recorded.

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I mean, I mean, try
getting a permit to radio kitchen in

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LA. I mean it's a forget
no deal, but but you know what

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that is. It is really something
we're all dealing with. The Crosshill States

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it's federal permitting. At state levels, it's like we're just like you know,

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gullibus travels and each one of those
regulations by themselves maybe not so bad,

278
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but it's like a like you've got
a thousand, ten thousand little strings,

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you know, holding the Giant of
America down, frankly from a regulatory

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standpoint. So that so that it's
one part that we need to solve and

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appreciate testless engagement and policy space what
you've done. Yeah, there's another part

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of this, which is the collaboration
between utilities and our customers, whether it's

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Tesla or somebody else. I was
out in in Barstow, California recently,

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See territory, and I was seeing
the upgrades that our team was making to

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accommodate the large super charger station because
you know, Barstow, for those of

286
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you who don't know, smack between
the drive between La and Las Vegas,

287
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right so popular spot for charging.
I've charged there, So I think this

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one's going to open, you know, right right following weekend or something something.

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Charges are like major power, droll
serious and so so they are,

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and that means we need good collaboration. One of the things that EI has

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done is reach out to the customer
community, whether it's charging companies, whether

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it's large fleet operators, to get
that collaboration. But I'm curious, from

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your perspective, what more do we
to be doing to collaborate better with you

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and with the OEMs and you know
with frankly, you're charging competitors because we

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need everybody to get this ecosystem going. Well, I guess anything we can

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do to make me grow faster would
be would be great, and obvious is

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not all in your hands. There's
there's a lot of permitting and whatnot that

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has to happen. But but I
really can empasize enough. We're at,

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like I think, a very exciting
juncture for electricity providers, which is that

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the demand for electricity is going to
go, is going exponential and well,

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like I said, roughly roughly trouble
where it is today to get to a

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fully sustainable economy. So so I
think I would just be courtious about extrapolating

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from the past, because the future
is not like the past. The future

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is is a massive increase in electricity
demand and it's going to take everything we've

305
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got to just keep up with it. So I think speed, like just

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figure out like how do we move
faster, how do we have fast deployment

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of electricity? And that's the whole
everything matters, from generation to transmission to

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the local substation. And I understand
there's like like quite a long lead time

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on like stepped down transformers. So
man, I hope tells doesn't have to

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make those too, but look forward
to it. We need more of them.

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Yeah. Well, well, I
mean, my my my challenge to

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this the Megapact team is like,
okay, guys, look, let's try

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to get it to where you just
take the big cables, the power cables

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and you just blogging in you know, no substation. You know that'd be

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sweet. You know, you just
just take the big metal wire and climb

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it down here and you're done.
Engineers talked a little bit about that.

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00:27:03.319 --> 00:27:06.359
I mean, it's it's totally doable. You know, if you don't go

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too crazy on the voltage, it's
totally doable. You know, you do

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start having these like you know,
can't have the wires too close together because

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00:27:12.000 --> 00:27:18.480
we're arking limits and stuff. But
but but generally, like if they look

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00:27:18.480 --> 00:27:26.599
at MEGAPAC deployments, one of the
limiting factors is the substation equipment to do

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voltage step up, you know,
And and so we're just looking at like,

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okay, how can we make what
are all the things that slow us

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down to getting to a sustainable energy
economy and then we just tackle whatever appears

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to be the biggest issue. And
and I think, as we'll know,

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we also have these sort of consumer
side of power wall which is obviously it's

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very tiny compared to the megapac,
but it's also very can be very helpful

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in a neighborhood for balancing power and
offer having having the power walls operate collectively

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to smooth out the power in a
neighborhood, which we've got working quite well

330
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in Australia at this point. And
I believe we've got some test efforts in

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California as well. I thank you
we do with sc virtual power plant efforts.

332
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PGNA has m as well. That's
a good transition tour I wanted to

333
00:28:18.319 --> 00:28:22.039
go next, or just when you
think about that interaction with the customer,

334
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Clearly we are interesting interacting with the
customer. You are as well. It

335
00:28:26.480 --> 00:28:30.759
can be through virtual power plants.
I'll throw in by directional charging into the

336
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equation too, right, So you
put all these things together, technologies enabling

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some different relationships with the customer.
What's your vision for you know, how

338
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how that evolved server that experience.
Well, like I can empsize enough that

339
00:28:45.279 --> 00:28:56.440
we're just going to hit constraints on
electricity production and transmission on mass across the

340
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boards. That's why I'm like,
I know, obviously it takes time to

341
00:29:00.759 --> 00:29:07.319
plant, form and permit and build
a new power generation plant, but I

342
00:29:07.599 --> 00:29:11.799
that's why I'm encouraging important to start
now. I'm not sure what your plans

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are for future electricity demand, but
it's going to be I'm pretty sure it's

344
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gonna be much higher than what what
what you currently think electricity man is going

345
00:29:21.960 --> 00:29:26.039
to be. Well, I mean
necessarily must be three times what it is

346
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today in order of us to have
a sustainable energy future. So that means

347
00:29:30.160 --> 00:29:34.039
power plants, transmission. I mean
there's obviously some I think that's not this

348
00:29:34.240 --> 00:29:38.920
this to some degree, we can
improve the power throughput of some of the

349
00:29:38.960 --> 00:29:45.079
lines by jacking up the voltage.
You know, make me requires separating cables

350
00:29:45.119 --> 00:29:52.039
a bit more, but I obviously
need to step up to step down transformers

351
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different cables too. So just we
have an area here called the hub with

352
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a number of companies that have different
technologies. We had Gates join us yesterday,

353
00:30:00.599 --> 00:30:04.680
and you know, with a number
of the companies that breakthrough, energy

354
00:30:04.720 --> 00:30:10.640
of interest is supporting. One of
those was a company that's making a cable

355
00:30:10.720 --> 00:30:15.759
that can carry a lot more capacity. Right, So I agree that all

356
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those technologies will be important. By
the way, as we do the analysis

357
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for California wide, we do see
a future where California gets in at zero

358
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and twenty five and it's not quite
fully electrified. It's mostly electrified because other

359
00:30:30.000 --> 00:30:33.440
other tools in the toolbox. And
that's that's at least a sixty percent increasing

360
00:30:33.519 --> 00:30:37.559
load, whereas it has been flat
for decades now. So it's coming,

361
00:30:37.839 --> 00:30:42.079
we agree, Okay, So I
like, I think that's that's basically that's

362
00:30:42.240 --> 00:30:48.640
it will be much more low than
that maybe, yeah, by like a

363
00:30:48.640 --> 00:31:00.640
lot like yeah, we're doing in
our head are it's just everything's gonna be

364
00:31:00.640 --> 00:31:04.200
electric. And I think the actually
the average power users for a person is

365
00:31:04.200 --> 00:31:10.680
going to increase, affair. But
I means an interesting thing to consider it

366
00:31:10.759 --> 00:31:18.839
is like he is total power used
by humans on average over time, you

367
00:31:18.880 --> 00:31:22.079
know, and you say, like
you go from not that long ago when

368
00:31:22.119 --> 00:31:26.519
the best we could do is kind
of make a campfire. So you say,

369
00:31:26.759 --> 00:31:33.519
and I'm talking like electricity and thermal
energy per human was extremely tiny.

370
00:31:33.599 --> 00:31:37.960
If you even go back two hundred
years, we literally had to you know,

371
00:31:38.480 --> 00:31:45.079
burn what are called locally to gain
heat. There was no electricity,

372
00:31:47.960 --> 00:31:52.160
you know. So and even if
you take all of the like all the

373
00:31:52.200 --> 00:31:56.119
steam engines to everything, and divide
that by total number of humans, power

374
00:31:56.359 --> 00:32:01.519
usage per human thermal electrical otherwise was
a minuscule two hundred years ago and even

375
00:32:01.599 --> 00:32:07.559
less three hundred years ago. Now
it is incredibly high, and it is

376
00:32:07.720 --> 00:32:14.400
rising. And this is and you're
going to see I think a lot of

377
00:32:14.640 --> 00:32:20.839
electricity usage by the sort of neural
net data centers as well. There's a

378
00:32:20.920 --> 00:32:28.559
heavy power draws. So in fact, I think one of the scaling constraints

379
00:32:28.640 --> 00:32:36.160
for AI is going to be power
availability. That there are quite power hungry.

380
00:32:36.559 --> 00:32:45.279
So you've got you've got basically average
energy usage for a person increasing dramatically

381
00:32:45.000 --> 00:32:52.599
and a transition from burning hydrocobbins to
things that are more sustainable. Anyways,

382
00:32:52.599 --> 00:32:55.799
the point is it's going to be
three x current, and I think that

383
00:32:55.839 --> 00:33:05.359
three x number is probably probably have
around fish. So this is the thing

384
00:33:05.359 --> 00:33:13.920
about exponential growth, is it really
it's counterintuitive and well you know, actually

385
00:33:14.880 --> 00:33:23.680
exponentials are to tend to be kind
of sort of underestimated, just you know

386
00:33:23.720 --> 00:33:29.839
it just there's a long tradition of
that. It's cell phones, other technologies

387
00:33:29.920 --> 00:33:31.720
that yes, you know, humans
have not been able to see escalating.

388
00:33:32.559 --> 00:33:37.640
You know, this this brings up
a different question area around some of the

389
00:33:37.640 --> 00:33:40.039
other places where electrification is going to
play a role. So we know,

390
00:33:40.079 --> 00:33:44.559
we spent a long time talking a
lot cars, but you know, building

391
00:33:44.559 --> 00:33:51.000
electrification maybe another important tool to help
reduce emissions over time. You know,

392
00:33:51.000 --> 00:33:53.359
again, California different from other states, but we think that we're going to

393
00:33:53.400 --> 00:33:59.119
see something like, you know,
thirty percent of all buildings needing heat bumps

394
00:33:59.160 --> 00:34:02.480
to get to the twenty already targets
of the state has yet by twenty five.

395
00:34:05.480 --> 00:34:09.159
How much focus are you putting on
the building side of electrification right now?

396
00:34:09.159 --> 00:34:14.039
And is that a place where you
think testam I go, uh,

397
00:34:14.280 --> 00:34:16.599
well, we have the power wall, which is but that's that's somewhat more

398
00:34:16.599 --> 00:34:22.840
of a support. Yeah, that's
like a for homes, homes and small

399
00:34:22.840 --> 00:34:30.800
businesses. Its powerwall. I would
certainly appreciate support from utilities with bringing powerwalls

400
00:34:30.840 --> 00:34:36.519
online. And one of the you
know, selling points of a power wall

401
00:34:36.679 --> 00:34:44.400
is to give the homes like some
amount of protection against brown out, blackout

402
00:34:44.400 --> 00:34:49.679
type of thing. But sometimes we
we we do get some up pushback from

403
00:34:49.760 --> 00:34:54.639
utilities about enabling a sort of cut
off switch because if if you don't if

404
00:34:54.719 --> 00:34:59.400
if you don't cuttle power to if
you if the grid loses power, then

405
00:34:59.639 --> 00:35:01.679
point you just send up say if
you've got, if you've got, you're

406
00:35:01.760 --> 00:35:06.119
approaching electricity you know, back onto
the grid, and it's kind of pointless.

407
00:35:06.599 --> 00:35:13.000
It doesn't doesn't work. So we
would appreciate some support in approving and

408
00:35:13.039 --> 00:35:19.760
installing the backups, which which really
just enables homeowners to have power for whatever

409
00:35:19.760 --> 00:35:23.920
reason. There's there's the grids down
for some reason. So that would be

410
00:35:24.039 --> 00:35:31.440
most most appreciated and we'll continue to
engage in that. Also from the utility

411
00:35:31.480 --> 00:35:35.920
side, I want to make sure
we're managing you know, safety reliability issues,

412
00:35:35.960 --> 00:35:38.880
but you know, it's making sure
we're understanding the technology and engaging with

413
00:35:38.920 --> 00:35:44.559
your team to work through the details. Yeah, so but I maybe it's

414
00:35:44.679 --> 00:35:46.599
it could be pretty helpful. And
then like I said, the powerbls,

415
00:35:47.599 --> 00:35:52.519
you know, operating collectively and help
to stay alize the grid in a particular

416
00:35:52.599 --> 00:35:58.159
neighborhood. I do think like local
power generation, uh, you know,

417
00:35:58.199 --> 00:36:04.960
basically rooftop solar and and with an
accompanying battery pack is a helpful part of

418
00:36:05.559 --> 00:36:10.440
solving the energy problem because there's a
lot of neighborhoods where it's hard to get

419
00:36:10.719 --> 00:36:15.000
incremental power to that neighborhood because you
need like more substations, you need more

420
00:36:15.480 --> 00:36:20.920
you know, overhead wires, and
then you know, in a lot of

421
00:36:21.039 --> 00:36:25.440
places that can be extremely difficult to
achieve, you know because just from opposition

422
00:36:25.519 --> 00:36:34.519
from people not wanting additional electricity wires
overhead and not wanting to expand substations.

423
00:36:34.559 --> 00:36:39.559
So there's a sort of a solution
to there's where where local solar and local

424
00:36:39.599 --> 00:36:47.800
storage helps alleviate some some very thorny
situations where you just can't it's extremely difficult

425
00:36:47.800 --> 00:36:52.519
to get more power to that neighborhood. So a little bit of local power

426
00:36:52.559 --> 00:36:57.280
generation is pretty helpful. In fact, when when we do our analysis for

427
00:36:57.360 --> 00:37:00.000
California, we see the state needing
to add something like eighty giggle, what's

428
00:37:00.000 --> 00:37:05.039
the bolt power renewables and thirty giggle
what's of boll power storage? We're also

429
00:37:05.039 --> 00:37:09.960
counting on thirty giggle what's it distributed
renewables and ten gigs distributed storage. We

430
00:37:10.039 --> 00:37:13.800
see, we need all the tools
in the toolbox for what for it's coming

431
00:37:13.800 --> 00:37:16.079
out exactly. Yeah, well,
you know, one other touch points you've

432
00:37:16.079 --> 00:37:22.760
had with our sector has been the
work that you're doing here in Texas.

433
00:37:22.360 --> 00:37:28.440
Where as I understand it, your
you announced an energy retail business with a

434
00:37:28.480 --> 00:37:32.920
subscription program right that allows powerable customers
to I think it's a thirty dollars monthly

435
00:37:32.920 --> 00:37:38.079
flat feet. Yeah, I mean, we're trying different experiments, so we

436
00:37:38.519 --> 00:37:44.440
don't know what actually makes sense,
but we're trying different experiments and see what

437
00:37:44.440 --> 00:37:49.199
what might work. So yeah,
for sure, trying to figuet like power

438
00:37:49.199 --> 00:37:55.119
walls or working together help stabilize the
grid, which they can reflect on that

439
00:37:55.159 --> 00:38:04.519
many times now, and some megapact
which is great at the sort of utility

440
00:38:04.599 --> 00:38:10.599
or heavy industry level. So yeah, it seems, you know, we're

441
00:38:12.440 --> 00:38:17.400
just trying to help foster or sustainable
energy future, and it's going to take

442
00:38:17.559 --> 00:38:25.800
many, many, many different technology
solutions and different arenas to solve this kind

443
00:38:25.800 --> 00:38:35.880
of tripling of electricity demand and provision
problem. Well, let me let me

444
00:38:35.920 --> 00:38:38.519
shift topics a little bit. And
you mentioned AI earlier in the context of

445
00:38:38.840 --> 00:38:46.719
being one of those drivers of electricity
load increases, but you've also been pretty

446
00:38:46.760 --> 00:38:51.880
outspoken about both the potential and the
risk of AI. I think a number

447
00:38:51.920 --> 00:38:55.000
of us are moving really quickly right
now with use cases and how we use

448
00:38:55.079 --> 00:39:00.000
it. I'll given one example at
Edison. Last year, we did almost

449
00:39:00.039 --> 00:39:05.159
two hundred thousand asset inspections and high
wildfire risk areas using drones, just generating

450
00:39:05.239 --> 00:39:07.519
terabytes of data, you know,
a great ability to capture images all around.

451
00:39:07.760 --> 00:39:10.559
There's no way humans could process all
those images. So we've been using

452
00:39:10.599 --> 00:39:15.360
an AI enabled tool to down select
the images that we're going to look at.

453
00:39:15.719 --> 00:39:19.000
Looking at other use cases right now, but we recognize ours risk too,

454
00:39:19.039 --> 00:39:22.719
So love your thoughts about you know, broadly across the industry, and

455
00:39:22.760 --> 00:39:27.440
then if you think about our sector, how should we be thinking about AI

456
00:39:27.559 --> 00:39:34.400
from your perspective and both the opportunities
in the risks there? Well, I

457
00:39:34.400 --> 00:39:40.000
mean I've had many stupiless nights thinking
about AI, So I am worried about

458
00:39:40.079 --> 00:39:45.239
AI. On the downside, you
know, I just it's sort of a

459
00:39:45.280 --> 00:39:52.559
technology like like nuclear It's extremely powerful, but it could get out of hand.

460
00:39:53.519 --> 00:39:59.599
And so I have been struggling with
this question for a long time of

461
00:39:59.639 --> 00:40:08.360
what do mitigate AI existential risk?
And I've been a big proponent actually a

462
00:40:08.360 --> 00:40:15.960
regulation of at least some having some
oversight by the government, you know,

463
00:40:15.000 --> 00:40:21.239
acting as kind of a referee to
make sure that AI companies don't go do

464
00:40:21.320 --> 00:40:25.639
super dangerous things and nobody's even watching
them, or there's there's no there's no

465
00:40:25.719 --> 00:40:31.400
sort of agent of the public,
which is really you know, regulation when

466
00:40:31.400 --> 00:40:37.079
it's done done right, is they're
trying to oversee the good of the public

467
00:40:37.000 --> 00:40:42.599
and make sure that companies don't kind
of cut corners or break rules or do

468
00:40:42.719 --> 00:40:45.880
things that would endanger the public.
And this is the origin of the FAA,

469
00:40:46.079 --> 00:40:54.360
and it's various regulatory organizations that exist. And now those regulatory agencies only

470
00:40:54.360 --> 00:40:58.639
came into being after a lot of
people died, you know, a lot

471
00:40:58.639 --> 00:41:01.880
of things went wrong. So with
AI, I don't think we can afford

472
00:41:01.960 --> 00:41:07.000
luxury of like waiting until it goes
wrong, you know, so I think

473
00:41:07.039 --> 00:41:14.199
we need to be preemptive on this
front. So I've had had a number

474
00:41:14.239 --> 00:41:21.880
of conversations with world leaders, you
know, including you know, personior people

475
00:41:22.320 --> 00:41:25.599
in China, and it's around the
world Europe. I'm actually heading to Europe

476
00:41:27.440 --> 00:41:34.880
tomorrow have some AI safety conversations with
with some of the country leaders there.

477
00:41:37.639 --> 00:41:39.239
Is because I think, I think
this is the kind of thing where the

478
00:41:39.280 --> 00:41:46.400
world needs to work together on AI
Safety's it's a really big deal. I

479
00:41:46.440 --> 00:41:59.960
can't emphasize this enough. So I
was someone encouraged by China's willingness to engage

480
00:42:00.079 --> 00:42:05.440
AI regulation. And I did point
out that you know, if you get

481
00:42:05.480 --> 00:42:08.400
some digital superintelligence, it might be
in charge of China and said, are

482
00:42:08.440 --> 00:42:16.159
you and I'm not sure you would
like that that that that argument seemed to

483
00:42:16.199 --> 00:42:23.199
resonate. Well, you know,
since you're bringing out of China, you

484
00:42:23.239 --> 00:42:30.719
know, you're very active there,
also active with government leaders. A little

485
00:42:30.719 --> 00:42:36.320
ass script here, but as you
think about US China relationship and how it

486
00:42:36.519 --> 00:42:38.679
helps navigate or hurts, and as
we don't trying to navigate whether it's AI,

487
00:42:38.840 --> 00:42:44.719
whether it's a competitiveness for your products
both in the US and Chinese markets,

488
00:42:45.639 --> 00:42:50.079
how are you thinking about how that
evolves and what's the endgame here in

489
00:42:50.159 --> 00:42:58.519
terms of being able to work at
both markets. I don't know what the

490
00:42:58.559 --> 00:43:07.039
endgame is, but I can say
the mid game is going to be spicy.

491
00:43:09.719 --> 00:43:15.280
Have you with your operations in China? Have you do you feel like

492
00:43:15.280 --> 00:43:23.000
we've enjoyed good support and are you
comfortable with that in virtual property? Yeah,

493
00:43:22.199 --> 00:43:27.679
we've actually gotten very good support in
China. Tells it has the only

494
00:43:28.360 --> 00:43:35.360
fully barn owned car factory in China, and we do very well in the

495
00:43:35.400 --> 00:43:40.400
domestic market in China, and our
you know, our shang Hi factory is

496
00:43:40.559 --> 00:43:45.800
our highest per pointing factory globally.
So it's a it's very impressive team that

497
00:43:45.840 --> 00:43:52.440
tells it has in China. The
work ethic there is incredible, so,

498
00:43:52.960 --> 00:44:00.880
you know, I think it very
interesting future the you know, we aren't

499
00:44:01.159 --> 00:44:06.320
entering a phase where US will not
be the biggest economy in the world.

500
00:44:07.519 --> 00:44:10.239
And there's nobody alive today who can
remember when the United States was not the

501
00:44:10.239 --> 00:44:16.480
biggest economy in the world. So
it is it's gary a little probably discomforting

502
00:44:16.599 --> 00:44:23.400
at first to a lot of people
to have China be probably you know,

503
00:44:23.519 --> 00:44:30.599
two or three times the size of
the US economy. So it's already higher

504
00:44:30.599 --> 00:44:35.480
than the industrial output. Manufactual output
is already significantly higher than the US,

505
00:44:35.920 --> 00:44:39.800
and that will increase. And they've
had a significant investment focus in electric vehicles.

506
00:44:40.719 --> 00:44:45.480
Yes, China is actually, of
any large country, the most board

507
00:44:45.559 --> 00:44:52.559
leading with sustainable energy. So they
have massive solar projects when projects and have

508
00:44:52.679 --> 00:44:58.519
done the most with respect to electric
vehicles of any large country. Of smaller

509
00:44:58.559 --> 00:45:02.599
countries, norways leader, but for
any logic for a large economy, it's

510
00:45:04.480 --> 00:45:08.239
China set far the most forward leaning
for sustainability. Well, let me pull

511
00:45:08.320 --> 00:45:12.880
up from Tesla and you do have
a few other places where you spend your

512
00:45:12.880 --> 00:45:20.119
time. Yeah, so so you
know, and I mentioned introducing you with

513
00:45:20.199 --> 00:45:23.480
SpaceX, Twitter boring company Neuralink,
which is really exciting. I saw you

514
00:45:23.760 --> 00:45:30.920
at some approvals recently offering free brand
shipping. As you leave the conference,

515
00:45:30.920 --> 00:45:35.920
can I suggest a few folks to
go first app here. You won't feel

516
00:45:35.920 --> 00:45:43.199
a thing, you know, joking
aside, you're making a personal choice to

517
00:45:43.280 --> 00:45:47.199
spend time across these is there is
there a common thread in terms of mission

518
00:45:47.440 --> 00:45:52.679
across all of these And you know, and what what excites you most of

519
00:45:52.679 --> 00:45:57.679
about your portfolio? Well, I
mean the aspiration with these various things is

520
00:45:57.760 --> 00:46:04.239
to maximize the probi The future is
good for civilization. So it's, you

521
00:46:04.320 --> 00:46:06.559
know, the future is just a
set of probabilities, like we don't know,

522
00:46:07.039 --> 00:46:09.159
you know, for sure what's going
to happen, but degree we can

523
00:46:09.239 --> 00:46:15.039
check the probabilities towards a positive future
for civilization. I think we want to

524
00:46:15.079 --> 00:46:22.119
do that. And me, this
is really just you know, if you're

525
00:46:22.199 --> 00:46:29.159
sort of long term thinker at all, it's this is naturally what one should

526
00:46:29.159 --> 00:46:30.760
want to do, because you know, how can we really exist in the

527
00:46:30.800 --> 00:46:35.239
absence of civilization. I mean,
you can see what it's like just watch

528
00:46:35.719 --> 00:46:38.920
you know, Naked and afraid is
what it is when you don't have civilization.

529
00:46:43.559 --> 00:46:50.400
It's a civilization pretty great. So
I think we want to keep it

530
00:46:50.440 --> 00:46:58.159
going and you know, and and
keep advancing civilization. So I think we

531
00:46:58.719 --> 00:47:02.320
can we should try to expand the
scope and scale consciousness such that we are

532
00:47:02.360 --> 00:47:07.559
better able to understand the universe and
now places in it. So I would

533
00:47:07.599 --> 00:47:15.159
call, you know, my philosophy
of phlosophy of curiosity. And while we

534
00:47:15.199 --> 00:47:22.239
will all die as individuals civilization and
continue very poor, very very long time

535
00:47:22.679 --> 00:47:28.199
billions of years or more, so
we should try to make sure that happens.

536
00:47:28.239 --> 00:47:31.519
So these various things that are doing, are trying to shift the probability

537
00:47:31.519 --> 00:47:36.239
of future being good. Now,
I hope that's It may turn out that

538
00:47:36.320 --> 00:47:39.400
some of these things. The road
to hell is paved with good intentions,

539
00:47:39.920 --> 00:47:45.039
so hopefully, you know, those
good intentions to not translate to something bad.

540
00:47:45.079 --> 00:47:47.920
But I think the road to hell
is is mostly paved by bad intentions.

541
00:47:49.760 --> 00:47:52.000
And you know, once in a
while there's a good intention of paving

542
00:47:52.039 --> 00:47:57.440
stone in there, but the intent
is to maximize probably the future is good

543
00:47:57.440 --> 00:48:00.199
for civilization. So with in a
case, so say your link it's like,

544
00:48:00.239 --> 00:48:05.679
well, how does that affect things? It's like, well, if

545
00:48:05.679 --> 00:48:14.039
we are to link the sort of
the path of the AI too human,

546
00:48:14.079 --> 00:48:19.719
well then what are the what what
could act to impair that that linkage?

547
00:48:19.760 --> 00:48:24.119
And we're getting pretty esoteric here,
but one of the issues is the bandwidth

548
00:48:24.199 --> 00:48:30.800
between your cortex and your computer or
your AI, the AI extensive extension of

549
00:48:30.800 --> 00:48:37.599
yourself. And if that bandwidth is
too low, then the computer will simply

550
00:48:37.639 --> 00:48:44.159
be bored. You will you know, as bandwidth I guess very low,

551
00:48:44.239 --> 00:48:52.119
you effectively have a very thin stroll
between yourself and the AI extension of yourself.

552
00:48:52.400 --> 00:48:55.000
Now, now we're already cybulks when
you think about the fact that your

553
00:48:55.039 --> 00:49:00.840
phone and your computer are an extension
of yourself, and probably you know,

554
00:49:00.480 --> 00:49:05.920
I think most people if you forget
your phone somewhere, it's like having missing

555
00:49:06.000 --> 00:49:09.280
limb syndrome, you know, and
you're like patting your pockets, and it's

556
00:49:09.320 --> 00:49:14.519
like the phone is basically an extension
of yourself, starting with you don't know

557
00:49:14.559 --> 00:49:17.400
anybody's phone number anymore? Yes,
right, exactly. I had just like

558
00:49:19.719 --> 00:49:23.920
nightmare like where I was stuck at
a party and someone else was taking my

559
00:49:23.960 --> 00:49:29.079
phone and and and so I had
their phone, but I can't use it.

560
00:49:29.880 --> 00:49:35.000
And then they were like, so, well, well who should recall

561
00:49:35.039 --> 00:49:40.440
I'm like, I don't know anyone's
number, so you don't even know who

562
00:49:40.480 --> 00:49:44.639
to call. How do you it's
supposed to happen to what's happen a lot,

563
00:49:44.679 --> 00:49:46.360
you know, It's like you don't
know anyone's number, and you have

564
00:49:46.840 --> 00:49:52.320
they've put your phone, and you
can't call whatever, anuver or anything,

565
00:49:52.760 --> 00:50:01.280
and you're just Stuckcause I like that
idea of increasing the bandwidth between the computer

566
00:50:01.320 --> 00:50:05.639
assistant and the brain, but apparently
we also need a safety lock to make

567
00:50:05.679 --> 00:50:08.760
sure we don't lose the computer in
the process. Elon, this has been

568
00:50:08.880 --> 00:50:14.719
terrific and I hope that it's not
another eight years before we see her here.

569
00:50:15.360 --> 00:50:19.880
Appreciate all the efforts you have and
frankly the symptom and you provided around

570
00:50:19.880 --> 00:50:24.519
trying to improve humanity and recognizing that
the collaboration that we have between our sector

571
00:50:24.599 --> 00:50:30.119
and your company it's critical to helping
humanity deal with climates help. Thank you

572
00:50:30.159 --> 00:50:35.440
so much for doing and please know
we're all stand ready to continue to partner

573
00:50:35.559 --> 00:50:39.119
to make this transition a real thing. Everybody, let's thank Elon very much

574
00:50:44.800 --> 00:50:46.400
and thank you so much