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Tesla Moving to Mexico and Spending on Ads · Elon Musk Podcast

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  Hi, everybody. Welcome back to another episode
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  of the Elon Musk podcast. I'm your host, William Walden.
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  And in today's episode, we're going to cover two major
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  developments in the realm of Elon Musk's ventures.
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  First, we're going to talk about Tesla's upcoming giga factory in
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  Mexico and what that means for infrastructure both locally and
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  potentially globally. And we'll switch gears and talk
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  about Tesla's recruiting and the use of the X platform for that,
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  and also the challenges that Tesla faces when it comes to
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  growth and advertising. Tesla is in an early planning
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  stage for a new Gigafactory located in the state of Nuevo
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  Leon, Mexico, and the company is collaborating with a local
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  government to determine the necessary investments in
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  infrastructure to make this factory as successful as
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  possible. And according to Reuters, this
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  factory will produce Tesla's $25,000 car, as is expected to
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  significantly stimulate economic growth in that region.
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  For the factory to run smoothly, Tesla has requested several key
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  pieces of infrastructure in Mexico, including road and rail
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  networks and electric energy substations.
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  A Tesla's new factory will certainly be a monumental
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  addition to Mexico's industrial sector, not just as an asset for
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  producing cars. It's seen as a catalyst for
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  regional growth and development, and the government of Nuevo Lyon
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  has acknowledged the importance of building necessary
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  infrastructure like roads, schools, and health centers to
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  support this new venture. However, there's still much to
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  be done. For smooth operations, Tesla
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  needs an electric energy substation and electric lines to
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  be built where the plant will be constructed.
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  Additionally, a railway yard is requested to help in
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  transporting materials to the factory.
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  These needs present both challenges and opportunities for
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  local governments and companies in the area.
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  Now, just last month, tests to secure the environmental permits
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  necessary for beginning the initial construction phases.
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  This is a significant step, providing the company 26 months
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  to prepare the site and carry out construction activities.
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  The aim is to complete the plant by the end of 2025, a highly
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  anticipated milestone for Tesla in Mexico.
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  This isn't an isolated initiative for Tesla though.
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  The company has been exploring several locations worldwide,
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  including India and Thailand for additional factories.
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  But the Mexican factory is the most recent to receive official
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  confirmation and the stakes are very high.
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  With permits in hand and a deadline insight, the clock is
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  ticking to get everything in place.
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  The project has drawn considerable attention not only
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  for its economic prospects, but also for its ambitious timeline.
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  Securing the environmental impact permits was a significant
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  leap forward, but now comes the complex task of getting the
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  infrastructure bill a task that Tesla can't be done alone.
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  Now collaboration with the government and possibly other
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  private entities will be crucial and necessary for Tesla to move
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  forward with this. Now, this undertaking showcases
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  Tesla strategic focus on global expansion.
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  It also highlights the complexities involved in
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  developing the infrastructure required for such a large scale
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  project and the need for electric substations.
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  Electric lines and railway yards are not just logistical
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  requirements, but vital components for Tesla's long term
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  success in the region. Now switching gears a little
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  bit, let's talk about Tesla Recruiting's recent update on
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  the X platform. The company announced the job
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  roles can now be viewed through people's X's profile.
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  This development paves the way for companies to use similar
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  features to inform people about job openings they're looking to
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  fill. This new feature brings another
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  dimension to the X platform, which is increasingly becoming a
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  multi faceted social media site. Now users have favorably
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  compared this feature to LinkedIn.
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  Although the X platform aims to be a little bit above and beyond
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  being a mere employment focus, Platform feature updates aimed
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  to make it a comprehensive social media destination,
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  encompassing features like live streams and long form written
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  work. Now the potential of X as an
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  Everything app is massive, the Elon Musk even projecting that
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  the All in one social media platform could reach a market
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  cap of $1 trillion. And the evolution of X from what
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  we've seen so far shows a trend toward increasing user
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  engagement and providing a wide array of features that can make
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  it an indispensable part of people's digital lives.
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  One more item on the agenda today is Tesla's growth
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  strategy, or more specifically, the debate about whether Tesla
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  should spend on major media companies.
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  Gary Black, a fund manager and Tesla supporter, argues that
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  Tesla should reconsider its emphasis on price cuts as a
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  growth strategy. Online polls and social media
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  discussions indicate that many Tesla fans and investors share
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  this sentiment. The issue of Tesla's
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  advertising, or the lack thereof, was raised during the
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  last annual shareholder meeting. Elon Musk showed openness to the
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  idea, but so far Tesla's advertising spending has
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  remained minimal. Instead, price cuts have been
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  the primary strategy to boost sales and interest, much to the
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  frustration of shareholders like Gary Black who think it's not
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  working efficiently. Now Gary Black's point price
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  cuts are effectively a marketing expense brings a new perspective
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  to the discussion. With Tesla's U.S. market share
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  among EVs slipping and a significant reduction in gross
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  margins. Black and others argue that a
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  focused ad campaign might be a better use of resources.
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  And the absence of advertising has put Tesla in an interesting
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  contrast with competitors like Ford and General Motors who are
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  experienced marketers. The challenge for Tesla then,
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  lies on whether it will adjust its strategy to include
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  advertising, which could help the brand resonate with a
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  broader audience now. All right folks, that's it for
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  today's episode. We've covered a lot of ground,
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  from Tesla's Mexican Gigafactory and its infrastructure
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  requirements to the ever growing X platform in the ongoing debate
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  around Tesla's advertising strategy.
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  These topics illustrate the multifaceted challenges and
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  opportunities that lie ahead for Elon Musk and his ventures.
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  And thank you so much for listening to the show today.
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  Don't forget to hit the subscribe or the follow button
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  on whatever podcast latform you're listening on.
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  It's free, takes a second. And remember, each eisode is 10
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  minutes or less designed to quickly catch you U on all
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  things Elon O. Take care of yourselves and each
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  other, and I'll see you in the next one.