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Elon Musk Weekly News Update: Tesla, SpaceX, Neuralink, and More · Elon Musk Podcast

• 0:00
  We're going to be talking about the steps that Elon Musk is
• 0:03
  taking with the social media platform X.
• 0:06
  Now Musk aims to turn X into a multifaceted app akin to China's
• 0:10
  WeChat, where users can do basically everything from bank
• 0:14
  transactions to job hunting, from live streaming to shop in
• 0:19
  and even dating. All of these developments were
• 0:22
  revealed in a recent company meeting, throwing light on
• 0:26
  Musk's expansive vision for the future of the platform.
• 0:29
  But before we dive into this web of updates, let's break down the
• 0:32
  story into more digestible parts now.
• 0:35
  Part one is the evolution of Twitter beyond messaging, or X,
• 0:40
  if you want to call it that. Musk wants X to transcend its
• 0:43
  identity as merely a messaging app.
• 0:46
  No more tweets. During a recent meeting, he
• 0:48
  shared that the platform will soon offer a variety of features
• 0:51
  that allow users to perform an array of activities without
• 0:54
  needing to switch to other platforms or applications.
• 0:57
  We under score the need for a single platform that can
• 1:00
  accommodate numerous daily tasks and since its inception, X has
• 1:04
  incorporated several changes in its features and
• 1:07
  functionalities. Now the updates from the last
• 1:09
  few months reveal A trajectory toward becoming a one stop shop
• 1:12
  for social interactions. Recently, the platform
• 1:15
  introduced audio and video Calling Features, signaling its
• 1:19
  ambitious role to dominate the social media sector in the
• 1:23
  streaming media sector as well. Other platform has also improved
• 1:27
  its video streaming capabilities.
• 1:29
  Users can now benefit from an enhanced user interface
• 1:32
  featuring vertical scrolling, long video uploads and a more
• 1:36
  refined algorithm. All these elements have
• 1:38
  collectively contributed to making the platform increasingly
• 1:41
  versatile. Now, Musk emphasize that these
• 1:44
  updates are part of an ongoing process and over time users can
• 1:48
  expect the platform to continuously adapt and offer new
• 1:50
  functionalities and these updates will roll out in phases
• 1:54
  as mentioned in various reports from around the Twittersphere.
• 1:59
  Now, the company meeting also touched on X's role in
• 2:01
  supporting content creators like myself, and according to Musk,
• 2:04
  the platform has paid out over $20 million to creator since the
• 2:08
  middle of the current year. And the number of creators
• 2:10
  participating in the platform has also seen a substantial
• 2:13
  uptick. In the context of advertising.
• 2:16
  Musk discuss revenue sharing schemes that have positively
• 2:19
  impacted many creators. But platform's progressive
• 2:22
  strategies are designed to attract a growing community of
• 2:25
  talented individuals. And as the number of creators
• 2:29
  expands, Musk anticipates that the payout figure will also rise
• 2:33
  considerably. Moreover, the revenue share from
• 2:35
  ads has become a game changer for many creators.
• 2:38
  With such financial incentives, X is set to become an
• 2:41
  increasingly attractive destination for content creators
• 2:45
  now. Another significant revelation
• 2:47
  was the introduction of X hiring, a feature designed to
• 2:51
  compete directly with LinkedIn. Companies will be able to post
• 2:55
  job listings, collect resumes, and update candidates on their
• 2:58
  application status. And Musk expressed his own
• 3:01
  history of recruiting on the platform and how X hiring will
• 3:05
  be an ideal space for both employers and job seekers.
• 3:09
  Through the feature, X aims to transform into a professional
• 3:11
  networking platform. Musk highlighted the platform's
• 3:14
  potential to become a hub for talent acquisition and job
• 3:18
  placement. And with X hiring, the company
• 3:20
  has set its sights on revolutionizing how individuals
• 3:23
  search for jobs and how companies find the right talent.
• 3:27
  And live video streaming is another feature that Musk plans
• 3:30
  to integrate into the platform. He believes that live video
• 3:33
  could be particularly useful for various public events, including
• 3:37
  sports and political activities and things like Spacex's rocket
• 3:41
  launches of the new Starship that should be launching in a
• 3:45
  few months now. And rather than relying on
• 3:47
  traditional media outlets, users will be able to watch live
• 3:50
  streams directly from the scene. And in addition, Musk hinted any
• 3:54
  dating feature called X dating. While the specifics are still
• 3:58
  under wraps, it's clear that X aims to become a platform where
• 4:02
  people can forge connections of all kinds, including romantic
• 4:05
  ones, and this proposed functionality reflects Musk's
• 4:08
  ambition to make X an all-encompassing platform for
• 4:12
  social engagement. When during this meeting, Musk
• 4:15
  also floated the idea of converting X into a subscription
• 4:17
  service, costing just $1.00 per year.
• 4:20
  This proposed change aims to combat the problem of AI bots
• 4:24
  manipulating the platform, and Musk defended the affordability
• 4:27
  of the subscription, calculating it down to mere cents per day.
• 4:31
  Finally, the company also has plans to introduce X Wire, a
• 4:35
  news distribution service that could challenge established
• 4:38
  platforms like PR Newswire. Musk sees this as a logical step
• 4:43
  considering the platform's extensive reach and the user
• 4:46
  engagement of X. Also, don't forget about XS
• 4:49
  platform for banking. We're not sure what that is
• 4:53
  going to be about in the future. Is it going to be all digital?
• 4:55
  Is going to be crypto? Will you be able to get a debit
• 4:58
  card or a credit card through X? That wasn't mentioned in this
• 5:01
  call, so we'll keep you up to date with that as soon as we
• 5:05
  hear something. Next up, we're going to take a
• 5:08
  look at a little political talk that Elon Musk had with Rishi
• 5:12
  Sanak. Now Elon Musk he's hosted by
• 5:15
  Sanak in a conversation that seamlessly blends AI and
• 5:18
  government policy. Now Sage is set against the
• 5:21
  backdrop of an AI intelligence safety summit, with the Prime
• 5:25
  Minister facing critique for giving the floor to Musk's
• 5:28
  musings which eclipse the Summit's achievements.
• 5:31
  The British political scene found itself in an
• 5:33
  unconventional spotlight as Prime Minister Rishi Sanak took
• 5:37
  a step away from the halls of governments to engage in a
• 5:40
  public dialogue with Elon. The rendezvous, coming on the
• 5:42
  heels of a significant AI safety summit at Bletchley Park, was
• 5:46
  poised to direct the nation's attention to EU KS role in AI
• 5:50
  regulation. However, the resulting media
• 5:53
  stir centered less on the summit's outcomes and more on
• 5:56
  the spectacle. That's Elon Musk now.
• 6:00
  Musk spoke of a world where the concept of work is
• 6:02
  revolutionized, humanoid companions become commonplace,
• 6:06
  and AI fueled friendships emerge.
• 6:09
  While this Vista was offered by Musk, it steered the public
• 6:13
  discourse, overshadowing a signed agreement aimed at
• 6:17
  tempering the fervent pace of AI development intended to
• 6:21
  safeguard human competition. Now, in the wake of the summit,
• 6:24
  criticism from political corners emerged, with Labour
• 6:27
  representatives voicing concerns over the Prime Minister's
• 6:30
  intentions. They argued that the event was a
• 6:33
  missed opportunity for the UK to assert its regulatory stance on
• 6:36
  AI. Instead, the summit's residence
• 6:39
  was diminished by Musk's dominating presence, which some
• 6:43
  perceived as a platform for Sanak to Curry favor with the
• 6:46
  corporate Titan for future prospects.
• 6:49
  And on the stage of Lancaster House, the Prime Minister
• 6:51
  conducted the interview, extending plaudits to Musk
• 6:54
  without touching on the contentious topics such as
• 6:56
  Musk's Recent decisions impacting global affairs and
• 7:00
  Sinac's demeanor during the interaction prompted
• 7:03
  commentators to question the balance of power displayed
• 7:05
  between state and corporate interests.
• 7:08
  The encounter between Sinak and Musk transcended the formalities
• 7:11
  of a typical political interview, though delving into
• 7:14
  the social shifts impending from a is ascension.
• 7:18
  Musks for warnings of job obsolescence and sentient robots
• 7:22
  were met with a blend of trepidation and acceptance by
• 7:25
  the Prime Minister, who maintained the importance of
• 7:27
  work for personal fulfillment. Now the discussions also
• 7:31
  ventured into the regulatory sphere, with Musk advocating for
• 7:35
  oversight amidst his critique of certain regulatory approaches.
• 7:40
  Now, this intersection of government oversight and
• 7:42
  technological freedom underscored a complex dialogue
• 7:46
  on the future role of AI, and the conversation between the
• 7:50
  Prime Minister and Elon transitioned to critical
• 7:52
  responsibilities that governments hold in the wake of
• 7:55
  a IS expansion. Musk, once a proponent of
• 7:58
  unfettered tech innovation, now advocates for a more measured
• 8:02
  approach to AI development, emphasizing the necessity for
• 8:06
  oversight. He suggests a quote referee, A
• 8:09
  regulatory body or a framework to ensure AI developments
• 8:13
  aligned with human values and safety.
• 8:15
  This concept of regulation is not the stifle innovation, but
• 8:18
  the safeguard against unintended consequences that could arise
• 8:22
  for such potent technology. So not colligning with this
• 8:25
  viewpoint shared his commitment to positioning the UK at the
• 8:28
  forefront of crafting international standards that
• 8:31
  would foster both advancement and ethical considerations in
• 8:34
  AI. The dialogue at Lancaster House
• 8:36
  also delved into the transformative potential that AI
• 8:39
  holds for education and for personal life.
• 8:42
  Musk, revealing a personal antidote about his son's social
• 8:45
  challenges, underscored the positive impacts that AI could
• 8:48
  have, such as offering companionship to those who
• 8:51
  struggle with traditional social interactions.
• 8:54
  This peak into Musk's private life lend A humanizing angle.
• 8:57
  To him, reframing AI is not just an economic or philosophical
• 9:01
  consideration, but as a technology with the potential to
• 9:04
  touch individual lives deeply and beneficially.
• 9:08
  Now they both concurred on the prospects of AI and
• 9:10
  revolutionizing education and visionizing it as an ultimate
• 9:15
  patient tutor capable of customizing.
• 9:18
  Learning to each child's unique pace and style must did not shy
• 9:22
  away from highlighting the disruptive nature of AI on the
• 9:25
  workforce. In a world where AI could assume
• 9:28
  roles from mental tasks to complex problem solving, the
• 9:31
  traditional concept of work faces an existential threat such
• 9:35
  as a profound change that sparks a deeper question about human
• 9:39
  purpose and fulfillment in the post labor society.
• 9:43
  And Musk suggests that the fabric of daily life may undergo
• 9:47
  A radical shift in the future. We're finding meaning becomes
• 9:51
  the new human endeavor. In the absence of job related
• 9:53
  identities, the interaction concluded with a touch of
• 9:57
  levity. Despite the heavy topics
• 9:59
  discussed, a cynic jokingly acknowledged Musk's less than
• 10:02
  rosy portrayal of humanoid robots.
• 10:05
  This rare form of engagement between a world leader and a
• 10:07
  tech mogul offered an unusual but vital public examination of
• 10:12
  a IS trajectory. With Musk's predictions and
• 10:15
  Synuck's inquiries, the event captured the collective
• 10:18
  anticipation apprehension surrounding AI, leaving the
• 10:22
  audience to ponder the balance between embracing technological
• 10:25
  marvels and preserving the essence of the human experience
• 10:29
  real quick before we get started.
• 10:31
  If you want to continue to support the show outside of just
• 10:35
  listening to it, if you want to help us grow the studio and make
• 10:38
  more shows and make the production quality better, our
• 10:42
  Patreon is the way to do it, go to patreon.com/stage Zero.
• 10:48
  The next topic is SpaceX Starship, which is approaching
• 10:51
  its second liftoff recently across an important milestone.
• 10:55
  The Federal Aviation Administration, or the FAA, has
• 10:58
  concluded its safety review of the rocket.
• 11:01
  This is an essential step toward ensuring that the Starship is
• 11:04
  ready to fly again with minimal risk to public health and
• 11:07
  property. However, the road to a second
• 11:10
  launch is not completely clear yet.
• 11:12
  The FAA is still in the process of conducting an environmental
• 11:16
  review, and it's working with the US Fish and Wildlife
• 11:18
  Service. This review pertains to the
• 11:21
  Endangered Species Act and is critical to getting the final
• 11:23
  license that would allow SpaceX to launch Starship once more.
• 11:28
  Now, Starship isn't an ordinary rocket, it's the biggest and
• 11:30
  most powerful rocket ever built. And to provide some perspective,
• 11:34
  the full assembly includes 2 elements, the Super heavy
• 11:37
  booster and the Starship upper stage, collectively towering at
• 11:41
  about 400 feet tall. Now this giant has flown only
• 11:46
  one time so far in that flight didn't go entirely as planned,
• 11:50
  and not its first Test flight. The vehicle faced several issues
• 11:53
  after liftoff, including a failure in the separation of its
• 11:56
  two stages. Ultimately, SpaceX had to
• 11:59
  intentionally detonate the vehicle over the Gulf of Mexico,
• 12:03
  and the FAA initiated A mishap investigation soon after, which
• 12:07
  concluded on September 8th, but noted that additional work was
• 12:10
  required for SpaceX to secure another license for liftoff.
• 12:14
  And in light of these initial hiccups, SpaceX has been
• 12:17
  meticulous in their preparation for the next launch.
• 12:20
  Part of this involved implementing corrective actions
• 12:22
  that would impact public safety, and according to the FAA, SpaceX
• 12:26
  needs to apply for and receive a modified license that
• 12:29
  encompasses all safety, environmental, and other
• 12:32
  relevant regulatory requirements.
• 12:34
  The FAA's update doesn't stop at safety considerations.
• 12:38
  The ongoing review focuses on environmental aspects,
• 12:41
  specifically the water deluge system the SpaceX installed
• 12:44
  beneath Starbase's orbital launch mount after the April
• 12:48
  test flight. And why the water Dillard
• 12:51
  system, though the system is engineered to guard the mount
• 12:53
  from the extreme forces exerted by the Super Heavies 33 Raptor
• 12:58
  engines and during the first Test flight, these engines
• 13:00
  blasted out a significant crater beneath the mount and this new
• 13:04
  system aims to prevent a similar occurrence.
• 13:07
  And while the environmental review is still in progress,
• 13:09
  SpaceX is optimistic for the flight number 2.
• 13:13
  The company and the CEO, Elon Musk have stated the Spacex's
• 13:16
  Starship has passed all its pre launch test and is ready to go
• 13:20
  pending final approvals. Now this brings us to the topic
• 13:24
  of regulatory oversight and space exploration, A somewhat
• 13:27
  contentious issue, but one that is undeniably important.
• 13:31
  Regulatory bodies like the FAA aren't merely obstacles, they're
• 13:34
  guardians of public environmental safety.
• 13:37
  And the FAA safety and environmental reviews serve to
• 13:39
  mitigate risks not just to human life, but also to wildlife and
• 13:42
  natural habitats. And the role of the US Fish and
• 13:45
  Wildlife Service in the FAA's environmental review is
• 13:48
  particularly noteworthy. They're reviewing the project
• 13:52
  under the Endangered Species Act.
• 13:54
  Considering how Spacex's activities could potentially
• 13:56
  affect endangered species around the launch site, this is another
• 14:00
  layer of responsibility the SpaceX has to navigate before
• 14:03
  Starship can rise again. And with the FAA safety review
• 14:07
  concluded, SpaceX is one step closer to making history yet
• 14:10
  again. But what can we anticipate next?
• 14:13
  Well, assuming the environmental review doesn't reveal any
• 14:15
  insurmountable issues, we can expect Starship to fly
• 14:18
  relatively soon, and this upcoming launch is significant.
• 14:22
  For SpaceX and the entire field of space exploration, Starship
• 14:25
  isn't just another rocket. It's a fully reusable spacecraft
• 14:29
  designed to carry people to Mars and beyond.
• 14:31
  It represents a critical element in the future of interplanetary
• 14:35
  travel, potentially revolutionizing how we think
• 14:38
  about living and working beyond Earth.
• 14:42
  You can put gigantic satellites in this, and other spacecraft,
• 14:46
  satellites, anything in this thing.
• 14:48
  It's gigantic. So Spacex's Starship has
• 14:51
  successfully crossed this vital milestone with the FAA's
• 14:54
  conclusion of its safety review. However, another significant
• 14:59
  barrier, the environmental review, still stands, and
• 15:02
  hopefully they get it done somewhat soon.
• 15:05
  The outcome will determine whether SpaceX receives the
• 15:07
  green light for Starship second ever liftoff, or if we're going
• 15:11
  to have to wait for SpaceX to do some more adjustments.
• 15:14
  Now we're going to focus on the monumental strides being taken
• 15:17
  in the Artemis program to land humans back on the moon.
• 15:21
  With Artemis 1 successfully completed and Artemis 2 on track
• 15:24
  for a late 2024, possibly 2025 launch, the space community is
• 15:30
  buzzing with anticipation. Now, the key person responsible
• 15:33
  for this moon landing endeavor is Doctor Lisa Watson Morgan,
• 15:37
  the manager of the Human Landing System Program at NASA's
• 15:41
  Marshall Space Flight Center. Now our conversation Today,
• 15:45
  we'll look at the hurdles and the opportunities presented by
• 15:47
  both SpaceX and Jeff Bezos's company, Blue Origin, as they
• 15:52
  develop Landers that could soon be making history.
• 15:55
  Now Doctor Lisa Watson Morgan is sort of the linchpin when it
• 15:59
  comes to the mission of landing humans back on the moon.
• 16:02
  She's working on some hefty challenges, but as she puts it
• 16:05
  right now today, I don't see anything that's stopping us.
• 16:08
  Watson Morgan appreciates the innovation SpaceX has
• 16:11
  contributed, particularly with its advancements in rocket
• 16:14
  capabilities. Now, Spacex's partnership with
• 16:17
  Blue Origin and Lockheed Martin experience from their Orion
• 16:21
  program also bodes well for the Artemis missions in the future.
• 16:25
  But the excitement doesn't come without a dose of realism, as
• 16:29
  the senior director of human spaceflight programs at SpaceX,
• 16:32
  Benji Reed, put it during a fireside chat.
• 16:35
  Launch is signal and everything else is noise.
• 16:39
  The emphasis is on doing rather than theorizing, on testing
• 16:42
  rather than speculating. It's this hands on approach
• 16:45
  that's shaping the HLS program's future.
• 16:48
  Now, the next big task for Watson Morgan and her team is
• 16:52
  Spacex's Starship. It's designed to serve as the
• 16:55
  upper stage of a two stage rocket, and tests are underway
• 16:59
  at Starbase near Boca Chica Beach in South Texas, and every
• 17:03
  test flight is another step closer to making moon landings a
• 17:05
  reality. However, Watson Morgan expresses
• 17:09
  concern about Spacex's very tight schedule, emphasizing that
• 17:13
  test flights are critical to hardware development.
• 17:17
  Now. Regulatory issues also play a
• 17:18
  role in shaping the HLS program. For instance, SpaceX is pending
• 17:23
  approval from the US Fish and Wildlife Service due to concerns
• 17:27
  about the water deluge system added to the Starship launchpad.
• 17:30
  And regulatory milestones may seem mundane and boring, but
• 17:34
  they're very essential for maintaining the integrity of
• 17:37
  space missions and ensuring environmental stewardship.
• 17:42
  Now, it's not just about rockets and Landers, though.
• 17:44
  It's about the meticulous work behind the scenes, the people
• 17:47
  that are in this from medical kit testing to training, system
• 17:50
  delivery and crew displays, every aspect is being looked
• 17:54
  into and worked on right now. And Watson Morgan highlighted
• 17:58
  that while the world is captivated by spectacular tests
• 18:01
  and giant rockets being launched, her team is working
• 18:04
  closely with SpaceX to address all mission unique milestones.
• 18:09
  Now this is the Blue Origin part, the Jeff Bezos part.
• 18:13
  And while SpaceX has been in the spotlight, Blue Origin is also
• 18:16
  playing a role in the HLS program.
• 18:19
  Headed by a national team that includes industry giants like
• 18:22
  Lockheed Martin, Boeing, and others, Blue Origin is
• 18:25
  developing the Blue Moon Mark Two Lander, their MK2.
• 18:30
  This Lander promises to be a game changer, capable of
• 18:33
  transporting up to 30 metric tons in One Direction.
• 18:37
  Now Watson, Morgan and our team are dividing their attention and
• 18:40
  resources equally between SpaceX and Blue Origin.
• 18:43
  It's always good to have a backup, to have two different
• 18:46
  systems in case something fails, and they're recognizing the
• 18:49
  unique challenges and technologies each company brings
• 18:52
  to the table. Now Blue Origin is working with
• 18:54
  hydrogen as fuel, unlike Spacex's methane, but both need
• 18:59
  to solve similar engineering challenges like propellant
• 19:02
  transfer. Spacex's Dragon spacecraft has
• 19:06
  already been a successful venture for the company and
• 19:09
  docking many times with the International Space Station and
• 19:11
  taking numerous humans into space.
• 19:14
  Now the insights gained from Dragon's operations are now
• 19:17
  being applied to Starship. Both SpaceX and Watson Morgan
• 19:20
  appreciate the overlap in tech in lessons that can be shared
• 19:24
  between the two spacecraft. And Watson Morgan draws
• 19:26
  parallels between the HLS program and the Commercial Crew
• 19:30
  Program or the CCP. She noted that the HLS program
• 19:34
  also borrows ideas of having unfettered access to the
• 19:37
  contractors and providers base data to streamline decision
• 19:41
  making and enhance efficiency, and this approach allows her and
• 19:45
  her team to resolve issues much faster, a critical factor in
• 19:49
  keeping the program on schedule. Now as we look ahead to 2024,
• 19:53
  though, the propellant transfer demonstration is going to be a
• 19:56
  huge step forward that could significantly affect the
• 19:59
  trajectory of future missions. Successfully demonstrating this
• 20:03
  tech not only gets us closer to the moon, but also opens doors
• 20:07
  for future solar system exploration.
• 20:10
  Doctor Lisa Watson Morgan is particularly focused on this
• 20:13
  test, as it'll lay the foundation for subsequent
• 20:16
  missions, ensuring that both SpaceX and Blue Origins
• 20:19
  technology can effectively operate in lunar conditions.
• 20:22
  And beyond propellant transfers, Watson, Morgan and her team are
• 20:27
  also deeply invested in the human factors of these missions.
• 20:30
  Training astronauts to adapt to the conditions in a lunar Lander
• 20:34
  is not a simple task, and simulations are being run to
• 20:37
  prepare them for every conceivable scenario.
• 20:41
  Now mock Landers are being used to fine tune not just the
• 20:43
  astronauts actions, but also the technology that will be on board
• 20:47
  that they'll be using to pilot this craft to the moon.
• 20:50
  What's also interesting is the pace at which these developments
• 20:53
  are happening. With the target of 2024 for
• 20:56
  Artemis 2, there's little room to delay Pro.
• 20:59
  SpaceX and Blue Origin are involved in rigorous testing,
• 21:02
  from propellant storage to flammability tests within crew
• 21:05
  cabins, to make sure everything is set for these lunar missions.
• 21:09
  And these tests are becoming increasingly complex, involving
• 21:12
  not just individual components but integrated systems, a
• 21:15
  crucial step forward for the actual flights and Watson.
• 21:19
  Morgan holds weekly meetings with Blue Origin and more
• 21:21
  frequent ones if necessary to ensure that the program stays on
• 21:24
  track. And these check insurance are
• 21:27
  more than just status updates. Their collaborative sessions of
• 21:30
  a team where problems are identified, solutions proposed
• 21:34
  and action items are assigned and delivered.
• 21:38
  And with the countdown to 2024 right around the corner, there's
• 21:41
  a sense of urgency but also a collective determination to make
• 21:45
  history once again. Next, we're going to be diving
• 21:48
  into some recent challenges that Tesla has faced in the stock
• 21:52
  market, which has raised questions about the stability of
• 21:55
  the EV sector as a whole. And in less than two weeks,
• 21:59
  Tesla shares have plummeted nearly 20%, and this drop has
• 22:03
  had a ripple effect casting down on the future of the electric
• 22:06
  vehicle industry. There's been a chain reaction of
• 22:09
  concerning statements from auto manufacturers, Wall Street
• 22:12
  analysts and key suppliers like Panasonic and ON Semiconductor.
• 22:17
  But before we get into that, I want to tell you about our
• 22:20
  Patreon. It's the way that we can keep
• 22:22
  the lights on here at the show. If you go to patreon.com/stage
• 22:28
  Zero, that's the name of our studio, Stage Zero, You can help
• 22:32
  us out and we can continue doing these shows every single day.
• 22:36
  So that again is patreon.com/stage Zero.
• 22:41
  It's down in the description below too.
• 22:43
  So what's causing this downturn? Could this be a sign of slowing
• 22:47
  demand for electric cars, or is there more to the story?
• 22:50
  Now, we're going to be unpacking this issue in about 5 separate
• 22:53
  segments. Today, we're going to be
• 22:54
  exploring the factors that are affecting Tesla stock in the
• 22:58
  state of the EV market, labor unions and what this could mean
• 23:02
  for the future of automotive technology.
• 23:05
  Now, the downturn in Tesla stock was initially triggered earlier
• 23:08
  this month when the company adjusted its growth expectation
• 23:11
  during its third quarter earnings call.
• 23:14
  This surprised many investors and was soon followed by ominous
• 23:17
  statements from global automakers and Wall Street
• 23:19
  analysts alike. Panasonic, a major battery
• 23:22
  supplier, and ON Semiconductor, a key chip maker for the EV
• 23:26
  industry, also issued warnings about the state of the market.
• 23:30
  The collective alarm has cast a shadow not just on Tesla, but
• 23:33
  also on the US automotive sector as a whole.
• 23:37
  Interestingly, Morgan Stanley analyst Adam Jonas positive that
• 23:41
  the billions of dollars invested in the EV sector it could
• 23:44
  actually be destroying value rather than creating it.
• 23:47
  And while the traditional automotive market is also
• 23:49
  struggling mainly due to the high interest rates, the young
• 23:53
  and vulnerable EV sector appears to be taking the brunt of these
• 23:56
  negative market effects now. Meanwhile, the labor union
• 24:00
  situation in the United States is causing additional
• 24:03
  disruption. General Motors recently struck A
• 24:05
  tentative deal with United Auto Workers union following similar
• 24:09
  deals by Ford and Chrysler owned Stellantis.
• 24:13
  And while some analysts speculated these labor
• 24:15
  negotiations could have offered Tesla a competitive edge, that
• 24:19
  theory didn't really pan out. And since the labor disputes
• 24:22
  began, Tesla shares have plummeted even more drastically
• 24:26
  than those of its American competitors, General Motors and
• 24:28
  Ford. Now a clear picture is emerging.
• 24:31
  Tesla isn't just facing a softening EV market, it's
• 24:34
  dealing with multi front challenges.
• 24:37
  These include labor pressures and supply chain issues,
• 24:40
  alongside the macroeconomic factors affecting the auto
• 24:45
  industry as a whole. ON Semiconductor.
• 24:48
  That's ON Semiconductor and Panasonic 2.
• 24:50
  Suppliers for Tesla provided the market with further signals that
• 24:54
  all might not be so well. And ON Semiconductor has a
• 24:58
  substantial share in the automotive sector, supplying
• 25:01
  chips to companies with a hefty slice of global EV sales.
• 25:05
  Their disappointing forecast has had a direct impact on Tesla's
• 25:08
  already shaky share prices. Similarly, Panasonic's reduction
• 25:12
  in battery production was underscored by lower demand for
• 25:15
  Tesla's high end models in North America.
• 25:18
  And what's particularly noteworthy, these supplier
• 25:21
  warnings essentially echoed Elon Musk's own cautious statements
• 25:24
  from earlier this month. He noted that the combination of
• 25:28
  higher for longer borrowing costs and slowing uptake for
• 25:32
  Tesla's Model S and Model X could potentially lower overall
• 25:36
  vehicle demand. And one can't discuss Tesla's
• 25:39
  falling stock without looking at the contributions of the
• 25:41
  supplier such as Panasonic and ON Semiconductor.
• 25:44
  Panasonic recently reduced its automotive battery production,
• 25:47
  citing decreased demand for high end EVs in North America.
• 25:50
  And the ripple effect of this decision permeated market
• 25:54
  sentiment, reinforcing existing concerns that Tesla premium
• 25:57
  models may not be as invincible as once thought.
• 26:01
  ON Semiconductor, a key supplier for not just Tesla but the whole
• 26:05
  auto sector further dampen investor spirits the chip makers
• 26:09
  Conservative sales projections revealed potential market wide
• 26:12
  weaknesses and the company has a massive footprint in the EV
• 26:16
  industry, providing essential components to the top global EV
• 26:19
  manufacturers, including leading Chinese brands.
• 26:23
  Thus, when ON Semiconductor speaks, the market listens,
• 26:26
  often with worry and Tesla stock declined was also echoed by the
• 26:30
  dismal performance of ON Semiconductor shares, which fell
• 26:34
  around 19%. This tandem slide could signify
• 26:37
  that the factors affecting Tesla are not isolated, but
• 26:40
  symptomatic of an industry wide issue.
• 26:43
  Notably, ON Semiconductors products are pivotal in the
• 26:46
  construction of electric vehicles, mainly focusing on
• 26:49
  power management. A fall in demand for such a
• 26:52
  fundamental component serves as a bellwether for investor
• 26:55
  concerns across the whole EV industry.
• 26:58
  Interestingly, investors now find themselves grappling with a
• 27:01
  chicken or the egg scenario. Did warnings from automotive
• 27:04
  companies like Tesla and General Motors catalyze on
• 27:07
  semiconductors? Cautious outlook, or was it the
• 27:10
  other way around now? Either way, the combined impact
• 27:12
  of these major players introduces A sobering effect on
• 27:15
  the market, causing investors to reassess the volatility and
• 27:19
  future growth of the electric vehicle industry.
• 27:22
  Now at this point, Tesla's road ahead is uncertain.
• 27:25
  The company has lost the staggering of $145 billion in
• 27:29
  market capitalization, and investor sentiment seems to be
• 27:32
  growing increasingly skeptical. Not just Tesla, though.
• 27:35
  The ripple effect is being felt across the whole sector and even
• 27:39
  among traditional automakers who are planning to go electric.
• 27:42
  Tesla remains A dominant player in the EV field.
• 27:45
  But as this recent downturn shows, no company is immune to
• 27:48
  market forces and economic realities.
• 27:51
  What this means for the future of Tesla in the broader EV
• 27:53
  market remains to be seen. It looks clear in the positive,
• 27:58
  but the road ahead is going to be far from smooth now.
• 28:01
  Thank you again for tuning into the show today.
• 28:05
  If you've enjoyed today's episode.
• 28:06
  If you made it this far, remember to hit the subscribe or
• 28:09
  the follow button on your podcast platform of choice.
• 28:12
  It's free and takes just a second and helps us out
• 28:14
  tremendously. Each episode is about 10 minutes
• 28:17
  or less, so you can get caught up quickly.
• 28:20
  And also please check out patreon.com/stage Zero to help
• 28:25
  us help you with all the latest news about Elon Musk and all of
• 28:29
  his companies. And also please take care of
• 28:32
  yourselves and each other and I'll see you in the next one.
• 28:35
  We have two more topics to discuss.
• 28:38
  One of them is Twitter or X and the other is Tesla.
• 28:43
  But for Let's talk about Tesla first, because it's right on the
• 28:46
  tip of my brain here. And Elon Musk, of course, is
• 28:50
  making a ton of money through Tesla, but he wants to make even
• 28:53
  more money with the brand. Now he's a leader of Tesla right
• 28:58
  now, his he's confidently projecting that the company
• 29:02
  could touch the phenomenal mark of $4 trillion in valuation.
• 29:08
  So this prediction is bold, naturally bound to attract
• 29:11
  attention, scrutiny, and both support and skepticism in the
• 29:14
  financial and automotive sectors as well.
• 29:18
  Behind Musk in this bullish stance is Ron Baron, a
• 29:21
  billionaire investor who has been a staunch supporter of Musk
• 29:25
  for a considerable period. Baron's optimism isn't
• 29:27
  restricted to Tesla, though. He anticipates even bigger
• 29:31
  returns when Musk's venture, SpaceX, opens its doors to
• 29:35
  public investment. Elon Musk has been on record
• 29:39
  numerous times saying that he does not want to take SpaceX
• 29:43
  public, though. Maybe a branch of it for
• 29:46
  Starlink, but not the whole company.
• 29:49
  So let's get back into Tesla. Tesla's road map to such a hefty
• 29:53
  valuation isn't based on mere speculation or wishful thinking.
• 29:57
  There are tangible products and innovations going forward.
• 30:01
  Chief among them is the full self driving suite.
• 30:03
  They've been working on this for a while.
• 30:04
  Musk's perennial assurance since 2015 has been that Tesla is on
• 30:09
  the cusp of mastering this technology.
• 30:12
  Yet the reality as of 2023 is that Tesla's full self driving
• 30:15
  remains at the Level 2 SAE autonomous category.
• 30:20
  The aspiration, of course, is to achieve the pinnacle Level 5.
• 30:24
  This would fundamentally change how we perceive transport now.
• 30:28
  This will enable Tesla's proposed robo taxi fleet, where
• 30:31
  vehicles could autonomously ferry passengers even as the
• 30:35
  car's owner is resting. Come and pick you up, take you
• 30:38
  to where you're going to and another vehicle would come and
• 30:41
  pick you up there and take you to another place or back home.
• 30:45
  But full self driving isn't Tesla's only card in its
• 30:49
  ambitious play towards the $4 trillion valuation.
• 30:52
  The company's eyes are set on global domination.
• 30:54
  In the EV market, this would mean producing and selling
• 30:57
  millions of E VS annually across various global markets.
• 31:01
  Key to the strategy is the introduction of new
• 31:03
  Gigafactories in the rollout of affordable car models, a plan
• 31:07
  that's been on Tesla's strategic board for years now.
• 31:10
  Musk's vision is clear and he acknowledges these challenges,
• 31:13
  stating we do need to knock the ball out of the park several
• 31:16
  times to achieve that value, but I think we can.
• 31:20
  Market reactions to these projections, however, have been
• 31:23
  a little bit mixed and while there was a surge of 67% in
• 31:27
  Tesla shares this year, they haven't quite made a full
• 31:30
  recovery from the slump experience in 2022.
• 31:33
  Now Tesla's journey in the stock market is akin to a roller
• 31:36
  coaster ride with highs such as 67% increase in stock value.
• 31:41
  And there have also been lows like a significant decline in
• 31:44
  October due to factors like underwhelming quarterly results
• 31:48
  and moderated excitement about the cyber truck.
• 31:51
  And nonetheless, glimmers of hope persist.
• 31:53
  Recent data showcases A slight increase in Tesla sales in
• 31:57
  China, suggesting that the market still has faith.
• 32:00
  Last year, Musk made headlines with this claim that Tesla's
• 32:03
  valuation might even eclipse text mammoths like Apple.
• 32:07
  While the stock has seen a dip since that proclamation, the
• 32:10
  vision remains undeterred. Now, Ron Barron's take on the
• 32:14
  future trajectory of Tesla is especially noteworthy, though in
• 32:17
  his eyes, Tesla is poised to be more than just a pioneering car
• 32:21
  company. He believes that its influence
• 32:23
  will be paramount in the battery technology sector.
• 32:26
  Drawing an analogy with Intel's ubiquitous presence in the
• 32:29
  computer industry, Baron sees Tesla as a driving force behind
• 32:32
  autonomous technologies adopted by other vehicle manufacturers.
• 32:37
  Now, if these predictions hold water in the combined visions of
• 32:40
  Musk and Baron come to fruition, a $4 trillion valuation for
• 32:44
  Tesla may become a reality, turning skeptics into believers.
• 32:49
  Now let's move over to Twitter. This is kind of a weird one, so
• 32:54
  bear with me on this one. Elon Musk recently acquired
• 32:58
  Twitter about over a year ago, and his decision was rooted in
• 33:02
  what he perceives as a defense against a mind virus.
• 33:06
  He said this on Joe Rogan and this term as explained by
• 33:09
  signifies the modern progressive ideologies, or quote woke
• 33:12
  thinking, which he believes has a deteriorative impact on
• 33:16
  society. And Musk's comments came to
• 33:18
  light during a candid interview on Joe Rogan.
• 33:21
  Rogan probed him about the purchase, and Musk's perspective
• 33:24
  revealed A profound concern over the direction in which modern
• 33:27
  society and thought processes are headed.
• 33:30
  The Musk painted a really bleak picture of downtown San
• 33:33
  Francisco, likening it to a zombie apocalypse.
• 33:37
  He posed the thought provoking question about the philosophy
• 33:39
  that could lead to such a deterioration.
• 33:41
  He contended that ideologies which otherwise would have been
• 33:44
  limited to niche groups and specific geographies found a
• 33:48
  potent tool in information technology.
• 33:50
  This enabled them to spread their ideas or the so-called
• 33:53
  mind virus far and wide. Drawing an analogy with a dismal
• 33:57
  state of San Francisco, Musk alluded to the harmful effects
• 34:00
  of such ideologies. Rogan, in agreement, equated the
• 34:04
  mind virus to a death cult, emphasizing its detrimental
• 34:07
  influence on humanity and civilization.
• 34:10
  Now the drama surrounding Musk's acquisition of Twitter was
• 34:12
  noteworthy. Following his initial $44
• 34:15
  billion bid for the platform in spring of 2022, Musk sought to
• 34:19
  retract his offer. His withdrawal was based on
• 34:21
  suspicions of bot activity, which he believed was falsely
• 34:24
  inflated Twitter's daily active user metrics.
• 34:27
  However, in A twist and a turn of events, Twitter retaliated
• 34:31
  with a lawsuit to uphold Musk's bidding offer.
• 34:33
  By the end of 2022, Musk conceded and finalized his
• 34:37
  acquisition. His critique of woke ideologies
• 34:40
  is not new. In the past, he expressed
• 34:42
  concerns over the perceived suppression of certain
• 34:45
  viewpoints on social media platforms like Twitter,
• 34:47
  especially under his previous management.
• 34:50
  Now, Musk's business decisions often intertwine with his
• 34:52
  political stances. His relocation of Tesla from
• 34:55
  Palo Alto, CA to Austin, TX in October 2021 serves as an
• 35:00
  example. This move came a year after he
• 35:02
  labeled California's COVID health directives as fascist,
• 35:06
  and despite cautioning Austin about becoming a replica of San
• 35:09
  Francisco. Tesla's corporate hub remains
• 35:12
  rooted in Texas, with his engineering headquarters
• 35:15
  reverting to Palo Alto Now. Thank you so much for tuning
• 35:19
  into the Elon Musk podcast today.
• 35:21
  This episode we went over a few different things, Tesla and also
• 35:25
  Twitter. And if this episode added to
• 35:28
  your knowledge and your curiosity, do consider
• 35:30
  subscribing or following us on your preferred podcast platform.
• 35:33
  It doesn't cost a thing and ensures you're updated with all
• 35:36
  of our content every single day. Remember, our episodes are
• 35:40
  designed to be concise, clocking in at 10 minutes or less.
• 35:44
  So until next time, take care of yourselves and each other and
• 35:48
  I'll see you in the next one.