WEBVTT 1 00:00:00.560 --> 00:00:03.919 I think the most remarkable thing that we do have 2 00:00:04.000 --> 00:00:07.599 today is the Internet and access to all the world's 3 00:00:07.599 --> 00:00:11.759 information from anywhere, So that that's having a supercomputer in 4 00:00:11.839 --> 00:00:14.160 your pocket is I think something people wouldn't have predicted, 5 00:00:15.400 --> 00:00:19.399 you know, back to the future, So that that's the 6 00:00:19.519 --> 00:00:24.480 that's the biggest thing, and probably what they would be 7 00:00:24.559 --> 00:00:27.320 most surprised at is that we haven't progressed more in space. 8 00:00:28.480 --> 00:00:33.119 So the people would have expected, i think, to have 9 00:00:33.159 --> 00:00:37.799 a space hotel impact ots Clark and one, yeah, exactly. 10 00:00:38.640 --> 00:00:42.479 The twenty ten was really crazy, you know, space advancement, 11 00:00:42.719 --> 00:00:44.719 so it would like be going to Jupiter and that 12 00:00:44.799 --> 00:00:47.600 kind of thing. So that that's probably like the most 13 00:00:47.640 --> 00:00:50.359 surprising thing. Like particularly if you go back even further, 14 00:00:50.399 --> 00:00:55.079 if you say, in sixty nine when people first landed 15 00:00:55.159 --> 00:00:58.240 on the Moon, if you'd ask people, if you'd asked 16 00:00:58.240 --> 00:01:02.960 the public, what what would the situation be in twenty fifteen, 17 00:01:03.399 --> 00:01:05.560 I think they would imagine that where we would have 18 00:01:06.079 --> 00:01:08.400 a base on the Moon, a base on Mars, and 19 00:01:08.599 --> 00:01:10.439 be you know, all over the Solar system by now 20 00:01:11.159 --> 00:01:11.920 that's probably Vegas. 21 00:01:12.079 --> 00:01:12.519 What happened? 22 00:01:12.719 --> 00:01:15.519 I mean, is there any pattern even sense for where 23 00:01:15.599 --> 00:01:18.879 our dreams are and science fiction, realities drift from reality 24 00:01:18.959 --> 00:01:20.920 and where they are reality is there is there some 25 00:01:22.079 --> 00:01:24.640 reason you think, like because we have dreams today of 26 00:01:24.719 --> 00:01:25.920 where that you know that we're going to have these 27 00:01:25.959 --> 00:01:30.159 Mars colonies in their future And yeah, well unless something 28 00:01:30.239 --> 00:01:31.319 jumps to mind, let me let me I have a 29 00:01:31.359 --> 00:01:33.079 bunch of questions by the way, from the audience as well. 30 00:01:33.079 --> 00:01:34.760 Here I want to I want to move to something 31 00:01:34.760 --> 00:01:37.840 a little more current as we move forward in time. 32 00:01:38.000 --> 00:01:40.120 Twenty years ago when we first met, you were starting 33 00:01:40.159 --> 00:01:43.200 your first internet company of two, the one before PayPal, 34 00:01:43.640 --> 00:01:48.359 zip too, And I know that in your youth. 35 00:01:48.200 --> 00:01:50.879 You envisioned a variety of industries that needed to change. 36 00:01:52.079 --> 00:01:54.680 When you were pursuing your first one, did you imagine 37 00:01:54.680 --> 00:01:56.599 you would get to the next one and the next 38 00:01:56.640 --> 00:01:58.040 one or no? 39 00:01:58.200 --> 00:02:01.120 I mean to when in college, just thought, well, what 40 00:02:01.200 --> 00:02:02.560 are the things that I'd most likely to affect the 41 00:02:02.599 --> 00:02:06.359 future of humanity just in you know, at a macro level, 42 00:02:06.879 --> 00:02:09.360 And it just seemed like it would be like the 43 00:02:09.439 --> 00:02:15.800 Internet and sustainable energy making like multiplanetary and then genetics 44 00:02:15.919 --> 00:02:19.120 and AI and I thought the first three he worked 45 00:02:19.120 --> 00:02:22.000 on those that were like almost suddenly going to be good, 46 00:02:22.199 --> 00:02:25.960 and then the last two a little more dodgy. 47 00:02:26.280 --> 00:02:30.039 In terms of the net benefit. Yeah, and for the double. 48 00:02:29.879 --> 00:02:32.199 Edged sword, and you're not sure which edge is the worse. 49 00:02:33.280 --> 00:02:36.599 Interesting, So it would it seems like begging the question, 50 00:02:37.120 --> 00:02:39.039 are genetics and AI the ones that are ripe for 51 00:02:39.240 --> 00:02:41.560 students today they be thinking about as they look. 52 00:02:42.039 --> 00:02:42.400 They are. 53 00:02:44.680 --> 00:02:48.120 My cousin of your younger cousin who's just finishing up 54 00:02:50.120 --> 00:02:57.960 sort of physics and computer science degree. Actually Berkeley, we 55 00:02:58.439 --> 00:03:04.240 know and and he's uh, he says, everyone there is 56 00:03:04.719 --> 00:03:07.479 in the computer science department is working on AI. So 57 00:03:08.319 --> 00:03:09.879 I mean, I think we're going to see some crazy 58 00:03:09.919 --> 00:03:12.800 breakthroughs in the next few years on that front. 59 00:03:13.080 --> 00:03:13.280 Yeah. 60 00:03:13.439 --> 00:03:14.960 I want to come back to that later as we 61 00:03:15.039 --> 00:03:18.240 look more to your vision of the future, as you 62 00:03:18.319 --> 00:03:20.680 think back though to your younger self or you know, 63 00:03:20.919 --> 00:03:23.960 many of the people in the audience are themselves college 64 00:03:23.960 --> 00:03:27.479 students and either undergrad or grad programs, and are thinking 65 00:03:27.520 --> 00:03:29.960 about the world they're entering it. I'm curious this maybe 66 00:03:30.000 --> 00:03:32.680 an odd question, but one that I find fascinating as 67 00:03:32.719 --> 00:03:35.759 you think here today back to your younger self, is 68 00:03:35.800 --> 00:03:38.120 there any advice you wish you could have given your 69 00:03:38.159 --> 00:03:41.080 younger self in with hindsight given what you know now. 70 00:03:42.520 --> 00:03:44.319 Well, I mean I give like a lot of advice, 71 00:03:47.879 --> 00:03:48.759 a bunch of things like that. 72 00:03:48.919 --> 00:03:52.560 Yeah, I gotcha, But it's just in terms of how 73 00:03:52.599 --> 00:03:56.439 to think about a life trajectory perhaps, or how to 74 00:03:56.479 --> 00:03:57.319 pursue your passions. 75 00:03:59.520 --> 00:04:04.479 I'm reagonally happy with how things turned out, so it's like. 76 00:04:09.639 --> 00:04:10.199 Not trouble. 77 00:04:10.919 --> 00:04:14.680 Yeah, that's a good point, though, I. 78 00:04:16.839 --> 00:04:20.519 Don't think if there's anything, we'll let you. 79 00:04:20.959 --> 00:04:22.680 If something else to mind, let me know, but let me. 80 00:04:23.319 --> 00:04:25.639 I mean apart from the obvious, like just telling telling 81 00:04:25.680 --> 00:04:27.959 my younger self exactly how the future will unfold, which 82 00:04:28.000 --> 00:04:31.279 is but that that you know, wouldn't be that that's 83 00:04:31.319 --> 00:04:32.480 not exactly a buy or has. 84 00:04:32.439 --> 00:04:35.199 Been capsulated into non correctly more being wisdom. 85 00:04:35.279 --> 00:04:41.480 Yeah, yeah, exactly like wisdom. I mean, I mean there's 86 00:04:41.519 --> 00:04:43.120 there's there's a lot of things. I mean it's sort 87 00:04:43.160 --> 00:04:50.959 of I mean certainly, yeah, I mean, you know, listen, 88 00:04:51.199 --> 00:04:52.680 listen more to critical feedback. 89 00:04:54.879 --> 00:04:55.600 M Yeah. 90 00:04:56.920 --> 00:04:58.199 I mean, like a lot of things I learned in 91 00:04:58.240 --> 00:05:00.120 college actually were pretty helpful. I mean that, I the 92 00:05:00.160 --> 00:05:03.279 physics approach to thinking is very good, like the first principles. 93 00:05:02.879 --> 00:05:06.720 Approach, and you applied that broadly yeah, played. 94 00:05:06.560 --> 00:05:10.040 Applying the first principles approached to thinking is I think 95 00:05:10.480 --> 00:05:19.360 a good way to figure out a counterintuitive situations. And yeah, 96 00:05:19.360 --> 00:05:21.600 I thought that that was that was really a helpful 97 00:05:21.600 --> 00:05:22.120 thing to learn. 98 00:05:26.199 --> 00:05:26.639 That's good. 99 00:05:26.959 --> 00:05:27.839 Yeah, I mean. 100 00:05:29.439 --> 00:05:31.720 Yeah, sorry, no, no, I feel free to jump in 101 00:05:32.040 --> 00:05:33.759 because I don't know how i'd answer that question. 102 00:05:33.920 --> 00:05:35.439 I mean, yeah, what would you do? What would you 103 00:05:35.480 --> 00:05:36.439 tell your younger sel. 104 00:05:38.680 --> 00:05:41.160 It'll be all right, you weren't as darky as you think. 105 00:05:41.639 --> 00:05:44.240 Advice like that, nothing's really too actionable, don't worry about it. 106 00:05:44.920 --> 00:05:48.360 What just don't be so insecure about anything you're insecure 107 00:05:48.360 --> 00:05:50.120 about it. Yeah, I would probably the advice to myself, 108 00:05:50.279 --> 00:05:55.360 but let's move on. I'm not used to thinking about me, 109 00:05:56.240 --> 00:06:00.160 so you know, I may be roughly over generalizing here, 110 00:06:00.199 --> 00:06:02.439 but it seems to me that there's some often a 111 00:06:02.519 --> 00:06:06.600 trigger problem that generates in your mind a great solution 112 00:06:06.680 --> 00:06:08.000 for when you come up with a new companies. So, 113 00:06:08.360 --> 00:06:10.639 for example, when trying to negotiate with the Russians for 114 00:06:10.720 --> 00:06:13.959 launch capacity, the aha that at least you just build 115 00:06:14.000 --> 00:06:17.399 a better rocket to solve this problem comes forth, or 116 00:06:17.920 --> 00:06:20.480 when you deal with the commute on the floor or 117 00:06:20.519 --> 00:06:22.519 fire or whatever in la, it's like, my god, what 118 00:06:22.639 --> 00:06:24.879 is wrong with mass transit and perhaps hyperloop? 119 00:06:24.920 --> 00:06:25.600 And then you know, with. 120 00:06:27.199 --> 00:06:28.879 A variety of ideas, there seems to be some trigger 121 00:06:28.959 --> 00:06:31.160 something that's broken in the world that and you have 122 00:06:31.279 --> 00:06:32.240 the idea of how to fix it. 123 00:06:32.319 --> 00:06:35.360 And I guess what I'm curious about is not how. 124 00:06:35.319 --> 00:06:38.160 You've picked the areas of interest in the solutions, but 125 00:06:38.240 --> 00:06:41.560 how have you decided what not to fix? In other words, 126 00:06:41.600 --> 00:06:43.399 there's many things that need fixing in the world, and 127 00:06:43.560 --> 00:06:47.040 students here probably can think of a long list, many 128 00:06:47.079 --> 00:06:50.120 of which you could probably imagine solutions to using the 129 00:06:50.160 --> 00:06:53.439 physics first principle approach. But has there been any framework 130 00:06:53.560 --> 00:06:55.560 or idea if you've used to filter out what you 131 00:06:55.680 --> 00:06:57.759 don't do, what you don't pursue. 132 00:07:00.319 --> 00:07:03.959 Yeah, I mean, well if sort of followed what I 133 00:07:04.040 --> 00:07:08.519 did initially was you know, well, you go back to 134 00:07:08.600 --> 00:07:09.600 like college times. 135 00:07:09.600 --> 00:07:10.199 I was working on. 136 00:07:12.160 --> 00:07:15.199 Energy storage technologies for electric vehicles, and that's what I 137 00:07:15.279 --> 00:07:17.639 was going to pursue at Stafford actually was work on 138 00:07:19.079 --> 00:07:23.680 like advanced capacitors and batteries to improve the energy density 139 00:07:23.759 --> 00:07:28.199 for electric vehicles. And then the Internet was kind of happening. 140 00:07:28.480 --> 00:07:30.480 It was clear like the Internet was happening like back 141 00:07:30.560 --> 00:07:34.959 in like ninety four ninety five, and I wasn't sure 142 00:07:35.040 --> 00:07:37.399 if what I worked on in the PhD would actually 143 00:07:37.800 --> 00:07:38.439 be useful. 144 00:07:39.079 --> 00:07:40.800 So I was like, I was really concerned that if 145 00:07:40.839 --> 00:07:43.120 ice why timing or what was your intuition? 146 00:07:43.600 --> 00:07:46.240 Meaning I think like it could be academically useful, but 147 00:07:46.439 --> 00:07:50.519 not practically useful, Like I think it could result in 148 00:07:50.560 --> 00:07:54.399 a PhD and adding some leaf to the tree of knowledge, 149 00:07:55.079 --> 00:07:58.079 but then then discovering that, well, it's not really going 150 00:07:58.160 --> 00:08:01.360 to going to matter, Like that's you know, is it 151 00:08:01.560 --> 00:08:03.519 is it going to be a good enough thing to 152 00:08:03.600 --> 00:08:05.319 actually be used in electric vehicle? 153 00:08:05.519 --> 00:08:06.079 I wasn't sure. 154 00:08:06.279 --> 00:08:09.000 I mean, so it was like I was uncertain as 155 00:08:09.079 --> 00:08:11.680 to whether success was one of the possible outcomes, right, 156 00:08:11.839 --> 00:08:13.639 Like I thought maybe it was, but it wasn't sure. 157 00:08:13.800 --> 00:08:16.720 And and then I thought, well, if I watched the 158 00:08:16.759 --> 00:08:21.279 Internet get built while I'm doing this, that that that 159 00:08:21.360 --> 00:08:22.480 would be really frustrating. 160 00:08:23.279 --> 00:08:25.720 There's a sense of that eminent timing that like that 161 00:08:25.959 --> 00:08:27.879 was the time for the Internet, and maybe yeah, the 162 00:08:27.879 --> 00:08:29.240 other stuff could wait or be on the back. 163 00:08:29.519 --> 00:08:30.639 That's what we want to be your mind? Was it 164 00:08:30.680 --> 00:08:32.360 always there is like one day I'll get back to 165 00:08:32.440 --> 00:08:33.200 that or was it. 166 00:08:33.840 --> 00:08:35.519 Yeah, I thought probably i'd get back to it, and 167 00:08:35.919 --> 00:08:38.960 it did end up doing that. But yeah, I thought 168 00:08:39.080 --> 00:08:43.679 sort of the the Internet was happening, it like really 169 00:08:43.759 --> 00:08:46.559 taking off all the most people weren't aware of it 170 00:08:46.639 --> 00:08:52.960 in ninety five, and and so I figured, like electric 171 00:08:53.000 --> 00:08:56.279 vehicle technology, energy, story of technology will there'll be some 172 00:08:56.360 --> 00:08:59.240 sort of natural progression in that, and I could come 173 00:08:59.279 --> 00:09:02.399 back to it later. But the Internet, you know, it 174 00:09:02.519 --> 00:09:04.799 was it was really that was the moment to really 175 00:09:04.840 --> 00:09:08.440 do something. Although in ninety five it wasn't obvious that 176 00:09:08.759 --> 00:09:10.600 you could actually make any money on the Internet. This 177 00:09:10.879 --> 00:09:14.840 was like nobody until Netscape went public. I think at 178 00:09:14.840 --> 00:09:18.360 the end of ninety five, nobody even thought there was 179 00:09:18.519 --> 00:09:21.639 like you could make a valuable company on the Internet. 180 00:09:21.960 --> 00:09:23.519 It wasn't as obvious as it seems now. 181 00:09:23.879 --> 00:09:26.159 Yeah, like now it seems really obvious, but back then 182 00:09:26.279 --> 00:09:28.960 it was not at all. So it was really from 183 00:09:29.000 --> 00:09:31.440 the perspective of it wasn't like, oh, I want to 184 00:09:31.480 --> 00:09:34.159 make a bunch of money. It was actually from it's 185 00:09:34.200 --> 00:09:35.679 like I want to just be a part of fooling 186 00:09:35.720 --> 00:09:38.039 this thing that I thought was like like a nervous system. 187 00:09:38.120 --> 00:09:42.200 It was like previously people had communicated effectively by osmosis, 188 00:09:42.639 --> 00:09:47.440 and you know, you'd have like basically physically, you know, 189 00:09:47.600 --> 00:09:50.720 connect with somebody to really communicate. You're like a letter, 190 00:09:51.279 --> 00:09:56.559 like you said, letters like that on paper. And with 191 00:09:56.720 --> 00:09:59.759 the Internet, anyone who had a connection anywhere in the 192 00:09:59.759 --> 00:10:02.039 world would have access to all the world's information, just 193 00:10:02.120 --> 00:10:04.440 like sort of a nervous system in a like. So 194 00:10:04.679 --> 00:10:08.879 humanity was effectively becoming a super organism and qualitatively different 195 00:10:09.000 --> 00:10:11.919 than what it had been before, and so I wanted 196 00:10:11.919 --> 00:10:15.879 to be part of that. And yeah, so but but 197 00:10:16.159 --> 00:10:18.039 initially the goal was just to make enough money to 198 00:10:18.080 --> 00:10:21.360 pay the rent. It wasn't, you know, to do anything 199 00:10:21.399 --> 00:10:21.720 beyond that. 200 00:10:22.759 --> 00:10:24.399 And then it's many you know that much of that 201 00:10:24.519 --> 00:10:27.240 capital then got ploid back into your next businesses. 202 00:10:27.159 --> 00:10:30.679 Right right exactly exactly, so then they and then the Internet. 203 00:10:30.720 --> 00:10:33.159 It's also helpful because it's anything to do with software 204 00:10:33.360 --> 00:10:35.639 is a low capital endeavor. So I didn't have any 205 00:10:35.679 --> 00:10:38.679 money and just had a bunch of student dad, and 206 00:10:40.480 --> 00:10:44.399 so there's but software you can just write like by yourself, 207 00:10:45.000 --> 00:10:47.120 and you don't need a lot of atoms, like you 208 00:10:47.159 --> 00:10:50.159 don't need a lot of tooling and equipment, and so 209 00:10:50.240 --> 00:10:53.080 it's not capital intensive. So the ability to start a 210 00:10:53.159 --> 00:10:57.639 company if it's software related and it's the first company, 211 00:10:57.759 --> 00:10:59.039 is much much easier. 212 00:10:59.120 --> 00:11:02.559 Right, And it seems obvious now that of course the 213 00:11:03.080 --> 00:11:04.799 easier place to start, and then as you gained more 214 00:11:04.840 --> 00:11:08.279 of a personal reputation and had more personal capitalis some marmy. 215 00:11:08.279 --> 00:11:11.720 And I know SpaceX was almost what was entirely funded 216 00:11:11.759 --> 00:11:15.480 by Elon for its first period, partially from you know, 217 00:11:15.639 --> 00:11:18.320 and in an era when others probably wouldn't have funded 218 00:11:18.399 --> 00:11:19.679 it in those arrives to days. 219 00:11:19.879 --> 00:11:23.000 Well, actually, I mean with the precursor to to SpaceX 220 00:11:23.159 --> 00:11:26.159 was not the idea wasn't really to create a company. 221 00:11:26.399 --> 00:11:29.639 It was it was to try to figure out why 222 00:11:30.120 --> 00:11:35.879 we hadn't gone sent people to Mars. So so we 223 00:11:35.919 --> 00:11:40.600 went from sept to to PayPal and then and then 224 00:11:41.519 --> 00:11:43.559 going from paypals. So the next thing, I was sort 225 00:11:43.559 --> 00:11:47.039 of thinking, well, it is some way to reignite the 226 00:11:47.120 --> 00:11:51.399 dream of Apollo. And I thought, well, it was maybe 227 00:11:51.440 --> 00:11:54.360 a question of like we'd lost the will to explore it. 228 00:11:54.840 --> 00:11:57.360 But I actually think that that that my original premise 229 00:11:57.440 --> 00:11:59.120 was wrong. We had not lost the will to explore, 230 00:11:59.440 --> 00:12:01.720 but people did not think there was a way, and 231 00:12:01.799 --> 00:12:03.879 people don't think there's away. Then they just they won't 232 00:12:03.879 --> 00:12:06.159 bash their head against the wall continuously. They'll you know, 233 00:12:06.639 --> 00:12:10.559 they'll sort of give up. So but in the beginning, 234 00:12:10.600 --> 00:12:14.159 I thought it was a question of will, so that 235 00:12:14.480 --> 00:12:17.720 if we can send a small greenhouse to the surface 236 00:12:17.759 --> 00:12:20.320 of Mars, and you could, and you have seeds and 237 00:12:21.159 --> 00:12:23.559 nutrients l and you hydrated upon landing, and then you'd 238 00:12:23.639 --> 00:12:26.240 have this little greenhouse on the surface of Mars. And 239 00:12:26.759 --> 00:12:29.279 people tend to respond to precedence and superlatives. Nless will 240 00:12:29.279 --> 00:12:31.639 be the first life on Mars as far as we knew, 241 00:12:31.840 --> 00:12:34.360 whetherst that life's ever traveled. You have this great shot 242 00:12:34.399 --> 00:12:37.519 of green plants on a red background, and I thought, 243 00:12:37.559 --> 00:12:39.440 well that maybe that would get people excited about sending 244 00:12:39.480 --> 00:12:40.080 people to Mars. 245 00:12:40.279 --> 00:12:42.600 So the headlines were clear in your mind. Once you 246 00:12:42.720 --> 00:12:44.919 had success on what that would lead to catalyzed action. 247 00:12:45.399 --> 00:12:49.000 And actually the goal was to get the public excited 248 00:12:49.000 --> 00:12:52.799 about that and get NASA's budget increased, so that that 249 00:12:52.960 --> 00:12:56.519 was actually the original goal. And so I went to 250 00:12:56.759 --> 00:13:00.279 Russia to try to buy some ICBMs in two thousand one. 251 00:13:02.240 --> 00:13:03.360 It's an interesting experience. 252 00:13:04.679 --> 00:13:07.320 A lot of vodg, Yeah, a lot of vodka yeah. 253 00:13:07.240 --> 00:13:12.759 It's crazy, and I couldn't afford the regular rockets like 254 00:13:12.840 --> 00:13:17.200 the Boeing and luckhead rockets are too expensive and still are, yes, 255 00:13:17.480 --> 00:13:18.000 very expensive. 256 00:13:18.240 --> 00:13:22.679 That's sorry, Wait me jump in here for a second. 257 00:13:22.679 --> 00:13:26.559 Because the anecdote you brought up of wanting to change 258 00:13:26.759 --> 00:13:29.559 government policy and inspire the world to have a MARS 259 00:13:29.639 --> 00:13:32.639 program if you will, whether it's popular uprising or or 260 00:13:32.639 --> 00:13:34.960 space programs at the government level, I think it's a 261 00:13:35.000 --> 00:13:37.840 fascinating anecdote because in a sense what you were saying 262 00:13:37.960 --> 00:13:40.399 is I, as an individual, want to start an entity, 263 00:13:40.480 --> 00:13:45.320 business or otherwise that will catalyze change even beyond the company. 264 00:13:45.039 --> 00:13:49.519 Level or the industry level. And I see apparallel in other. 265 00:13:49.799 --> 00:13:52.639 Initiatives you've taken on in that if you look at 266 00:13:53.519 --> 00:13:55.600 the goal of Tesla under your leadership, it is to 267 00:13:56.360 --> 00:13:59.200 share the transition to all vehicles being electric, not just 268 00:13:59.679 --> 00:14:03.320 the cars that currently are produced by Tesla, and with 269 00:14:03.440 --> 00:14:06.759 Powerwall and Solar City, arguably the description is one of 270 00:14:07.000 --> 00:14:11.159 ushering in a wholesale shift to renewable energy. Many of 271 00:14:11.200 --> 00:14:14.919 the solutions required wouldn't be provided by the companies you're starting, 272 00:14:15.960 --> 00:14:17.879 and so as I, as I deal in entrepreneurship, as 273 00:14:17.919 --> 00:14:21.000 a venture capitalist every day we see this incredible scope 274 00:14:21.039 --> 00:14:25.279 of ambition here that is breathtaking, like change the world 275 00:14:25.360 --> 00:14:27.879 with Steve Jobs and others talk about it in a company, 276 00:14:28.559 --> 00:14:31.360 maybe shifting an industry, but we're talking about shifting like 277 00:14:31.519 --> 00:14:34.080 the entire zeitgeist of the world in a sense, and 278 00:14:34.200 --> 00:14:35.440 maybe eventually other worlds. 279 00:14:36.320 --> 00:14:37.639 So my question is do you. 280 00:14:39.000 --> 00:14:43.600 Start always in your mind with that as a like 281 00:14:43.679 --> 00:14:45.080 I said, like, where's the starting point? 282 00:14:45.200 --> 00:14:46.000 Is it? Okay? 283 00:14:46.039 --> 00:14:49.320 I see this arc of a story like the Mars example, 284 00:14:49.639 --> 00:14:52.279 or renewable energy, and then do you pull back to 285 00:14:52.639 --> 00:14:55.639 where's the best product to get it unstuck? 286 00:14:55.759 --> 00:14:57.679 Like why isn't this happening? And like if I solve 287 00:14:57.759 --> 00:15:00.840 that problem then it unlocks value. How does that happen 288 00:15:01.440 --> 00:15:02.000 in your mind? 289 00:15:03.120 --> 00:15:03.320 Sure? 290 00:15:03.480 --> 00:15:09.240 So, I mean I should say, like when when we 291 00:15:09.360 --> 00:15:12.759 started SpaceX and Tesla, I mean I really thought the 292 00:15:12.799 --> 00:15:15.159 probability of success was very low. I mean it wasn't 293 00:15:15.240 --> 00:15:17.360 like I think, oh, we'll definitely be successful. I thought 294 00:15:17.639 --> 00:15:21.840 I thought we'd be like maybe ten percent likely. Well yeah, 295 00:15:23.279 --> 00:15:25.120 and in the case, we came very close to both 296 00:15:25.159 --> 00:15:28.360 companies not succeeding. In two thousand and eight, you know, 297 00:15:28.440 --> 00:15:32.039 we had the we'd had three failures of the SpaceX rocket, 298 00:15:33.159 --> 00:15:39.279 so we're zero for three. We had the crazy financial recession, 299 00:15:39.360 --> 00:15:43.759 like the Great Recession, the Tesla financing round of falling 300 00:15:43.799 --> 00:15:46.039 apart because like pretty hard to raise money for. 301 00:15:46.399 --> 00:15:47.399 The startup car company. 302 00:15:47.480 --> 00:15:51.759 If GM and christ are going bankrupt, like it's partly 303 00:15:51.799 --> 00:15:54.840 for the upside, Yeah, it's that was a tricky one. 304 00:15:56.279 --> 00:15:59.639 And you know, unfortunately, at the end of two thousand 305 00:15:59.639 --> 00:16:01.639 and eight, the fourth launch which was that was the 306 00:16:01.720 --> 00:16:05.320 last launch we had money for worked for SpaceX and 307 00:16:06.679 --> 00:16:08.759 and then we closed the Tesla finance ground is you know, 308 00:16:09.320 --> 00:16:12.279 Christmas Eve two thousand and eight, last hour of the 309 00:16:12.320 --> 00:16:13.480 last day that it was possible. 310 00:16:13.840 --> 00:16:16.080 Yeah, thanks to you for those that don't know, the 311 00:16:16.120 --> 00:16:20.480 most extraordinary act of entrepreneurial zeal and commitment I've ever 312 00:16:20.679 --> 00:16:23.600 seen where Elon personally saved Tesla in those hours, like 313 00:16:23.639 --> 00:16:25.759 when no one else would write a check, he spoke 314 00:16:25.840 --> 00:16:29.000 for it all and that flipped the mentality from fear 315 00:16:29.120 --> 00:16:32.159 to greed and everyone joined the bandwagon and everything changed 316 00:16:32.200 --> 00:16:35.720 from you know, divoting into the ground to success. But 317 00:16:35.840 --> 00:16:38.519 you were willing to go like net negative personally of 318 00:16:39.039 --> 00:16:41.519 isn't that your net worth? And it's it's a remarkable story. 319 00:16:42.559 --> 00:16:46.080 Thanks for supporting. By the way, those much appreciate it. 320 00:16:46.440 --> 00:16:48.600 We were happy to fall right behind in line. But 321 00:16:49.399 --> 00:16:49.960 it was all him. 322 00:16:51.679 --> 00:16:55.919 So I guess on this this idea though the big picture, 323 00:16:56.120 --> 00:16:58.639 I'm curious in the way I heard you just now 324 00:16:58.720 --> 00:17:01.600 describe the greenhouse and the headlines is interesting. Do the 325 00:17:01.720 --> 00:17:05.400 marketing headlines flash through your mind as you introduce new 326 00:17:05.440 --> 00:17:07.519 products that are a step to a much grander vision. 327 00:17:08.960 --> 00:17:11.359 I'm curious because it seems like it has two purposes. 328 00:17:11.160 --> 00:17:14.319 Like getting employees, customers, everyone really gung ho about the vision, 329 00:17:14.920 --> 00:17:16.759 but it also makes it larger than life in so 330 00:17:16.839 --> 00:17:17.319 many ways. 331 00:17:18.079 --> 00:17:20.960 Well, I mean, if you're trying to convince the public 332 00:17:21.079 --> 00:17:23.119 to do something, you have to say, Okay, how's this 333 00:17:23.240 --> 00:17:23.680 going to read? 334 00:17:24.640 --> 00:17:26.759 And what message are we going to try to convey? 335 00:17:27.640 --> 00:17:28.680 What will people respond to? 336 00:17:28.759 --> 00:17:30.480 What would I respond to if I was, you know, 337 00:17:30.640 --> 00:17:33.680 sort of an objective member of the public, And so 338 00:17:33.799 --> 00:17:36.400 that's that's really you know, if if you're trying to 339 00:17:36.440 --> 00:17:38.680 change people's minds or get people fired up about something, 340 00:17:39.480 --> 00:17:41.640 then you got to think, Okay, what what's that message? 341 00:17:41.720 --> 00:17:43.359 What's going to get them really excited? 342 00:17:44.640 --> 00:17:46.200 And that's really good advice, by the way, for all 343 00:17:46.200 --> 00:17:49.400 the engineering students here, as I was a one as well. 344 00:17:50.880 --> 00:17:53.480 I'm curious there's as an adjunct sometimes to these grand 345 00:17:53.559 --> 00:17:57.279 visions like making humanity a multiplanetary species, or shifting us 346 00:17:57.359 --> 00:18:00.839 to renewable energy, or making all the equals electric, that 347 00:18:01.440 --> 00:18:04.279 has a purpose driven element to it. There's a higher 348 00:18:04.400 --> 00:18:06.960 calling than the quarterly bottom line. In fact, there was 349 00:18:07.000 --> 00:18:09.839 a Tesla quarterly report I remember famously where the opening, 350 00:18:10.000 --> 00:18:13.279 the literally opening line was, while profits are not a 351 00:18:13.319 --> 00:18:17.440 priority common you know, nevertheless. 352 00:18:16.599 --> 00:18:19.400 Exactly, And I was struck by it at first, and 353 00:18:19.480 --> 00:18:20.240 it did occur. 354 00:18:20.039 --> 00:18:22.920 To me that it's not like a miss some sort 355 00:18:22.920 --> 00:18:25.440 of misdirected fiduciary question. To me, it seems like, how 356 00:18:25.559 --> 00:18:28.599 could you lead an industry transition if your business model 357 00:18:28.880 --> 00:18:31.000 was worse than what's already there, Meaning like if you 358 00:18:31.039 --> 00:18:35.279 weren't more profitable in the long term and a better business, 359 00:18:35.279 --> 00:18:36.200 why would anyone shift? 360 00:18:36.279 --> 00:18:39.200 Right? So it almost seems like, look, the right purpose profits. 361 00:18:38.839 --> 00:18:43.960 Follow, Yeah, well, if if your makeup if the you know, 362 00:18:44.119 --> 00:18:47.079 if the output is more valuable than the inputs, which 363 00:18:47.119 --> 00:18:49.920 is really that's that's that's profit, Like the output is 364 00:18:49.960 --> 00:18:54.279 more valuable in the input that that says you're have 365 00:18:54.319 --> 00:18:59.160 a useful company. So now in a high growth scenario 366 00:18:59.519 --> 00:19:02.720 you have a lot more inputs for future outputs, so 367 00:19:02.799 --> 00:19:05.640 that you have negative cash flow and lack of profitability 368 00:19:05.759 --> 00:19:09.440 and which we currently have a tesla. But in the 369 00:19:09.480 --> 00:19:11.799 long term, of course that has to be that that 370 00:19:11.920 --> 00:19:13.920 has to be fixed, that they can't be negative cashlow 371 00:19:13.920 --> 00:19:17.920 in long term and that there needs to be a 372 00:19:18.039 --> 00:19:22.079 net positive output, which is sort of profits in the 373 00:19:22.119 --> 00:19:24.920 long term. But in the short term when this hyprowth 374 00:19:25.559 --> 00:19:27.559 that doesn't it isn't the most sensible thing. 375 00:19:27.920 --> 00:19:30.720 And then there's also related things like open sourcing, patents 376 00:19:30.799 --> 00:19:33.240 and acts that to me relate to the purpose. 377 00:19:33.880 --> 00:19:35.480 Let's let the whole lot of industry do this. 378 00:19:35.599 --> 00:19:38.000 And so I'm curious, what do you see from your 379 00:19:38.039 --> 00:19:41.240 mantage point as the benefits of a purpose DRITN company, 380 00:19:41.359 --> 00:19:45.240 Meaning when you have this thing that every employee and 381 00:19:45.279 --> 00:19:47.920 customer knows is the purpose of the company, how do 382 00:19:48.000 --> 00:19:50.119 you see that flowing through to benefits for the company? 383 00:19:51.519 --> 00:19:52.079 Well, I think. 384 00:19:53.519 --> 00:19:56.839 I think having a purpose suddenly is going to attract 385 00:19:56.920 --> 00:20:01.119 the very best talent in the world, because if people 386 00:20:01.240 --> 00:20:05.640 can if there's something that's intrinsically enjoyable and the francial 387 00:20:05.640 --> 00:20:07.960 awards are good. But then also it's something that's going 388 00:20:08.000 --> 00:20:10.400 to genuinely change the world, then that's I think that's 389 00:20:10.400 --> 00:20:14.359 a pretty powerful motivator. And but I don't think like 390 00:20:14.480 --> 00:20:17.000 everything needs to change the world, you know, I mean honestly, 391 00:20:17.680 --> 00:20:19.799 like there's lots of like useful things that people do, 392 00:20:20.000 --> 00:20:22.720 and I mean I think really it should be like 393 00:20:22.799 --> 00:20:27.000 a usefulness optimization, like just say, like, is what I'm 394 00:20:27.039 --> 00:20:29.119 doing as useful as it could be? 395 00:20:29.640 --> 00:20:32.480 You're talking about the goal of an organization or in general. 396 00:20:32.599 --> 00:20:36.720 Yeah, and you know, just even if something isn't changing 397 00:20:36.759 --> 00:20:39.359 the world, if it's making people's lives better, I think 398 00:20:39.400 --> 00:20:43.559 that's that's great. And you know, if even if something 399 00:20:43.640 --> 00:20:46.480 is like making only people's lives only slightly better, but 400 00:20:46.559 --> 00:20:48.519 it's a large number of people, think kind of like 401 00:20:48.559 --> 00:20:51.200