sup guys I'm Kim PhD here and just got
back from sunny California where we
spent some time with possibly the
busiest man alive
Elon Musk but he was super generous with
his time and we did this sort of a sit
down chat at the Tesla factory and then
also did a sort of a factory tour which
will be a separate video coming soon but
ton of things we could have talked about
since we were at Tesla at that time
basically our topics ranged from talking
about Tesla products to our love for
Tesla to tech and the future or wrapped
into one so this is that chat thanks for
watching enjoy alright first of all
thanks for taking the time sitting down
I'm on your very busy schedule I'm sure
good see you yeah this is a this is a
really interesting place to be we're
kind of in like a bird's eye view of
seeing a couple couple different things
happening behind us in the factory these
occasionally move which is yeah does it
those are empty door carriers so that
they would have carried the doors to
cars to get assembled and then they're
on their way back to pick up some more
doors nice so I think most people know
you as the boss the face of Tesla the
decision maker for those who just for
some context what is your how do you
spend time at Tesla what do you do yeah
it's a good question I think probably a
lot of people generalize I'm like
basically in the factory in design or
engineering meetings or production so
that's like 80 90 percent of the time I
think sometimes people think I spent a
lot of time in Twitter yeah
and I would get why they would think
that yeah that's crazy
but actually it's like that's like
almost nothing most of my time you spent
at least the last several months
especially going around the factory and
then working on say the paint shop the
body shop where we weld up the body the
final assembly we put all the parts
together and and then if I'm not here
I'm either I'm at the Giga Factory in
Nevada
okay so p100 the owner undefeated in
stop light races a while now rich over
here in audio
model three Priya pre-order okay waiting
for his and branded behind the camera
also waiting for model three okay what
person are you waiting for long-range
long-range and and what color that is it
that is a good cover okay cool so my
question is how aside from making great
products how do you get people excited
about Tesla there's a lot of people I
know and that I talked to who are just
intrigued and interested and excited
about Tesla's accompany the thing that
really focus on at Tesla is like really
put all the money into an attention into
trying to make the product as compelling
as possible so because I think that the
really the way to sell any product is
through word of mouth so if somebody
gets the car they really like it they
and actually the key is like to have a
product that people love and and journal
people if that a party or toward friends
whatever you'll talk about the things
that you love but if you just like
something it's okay you're not gonna
care that much but if you've reactions
from the highs and the lows I'm gonna
you're gonna talk you know and and and
then that'll generate turns word of
mouth and that's basically how our sales
have grown like we aren't we're not
spending money on advertising or
endorsements or and so anywhere like
fives our car they just bought it
because they they like the car and you
know it's like it's genuine and no
discounts like I actually even pay full
retail price for my own cars okay
yeah and yeah they were really focused
on trying to make the car is more
affordable it's just really really tough
like in order to make the cars
affordable you really you need high
volume see the economies of scale and
because the other car companies make a
lot more cars than we do they got way
better economies of scale so as we
gradually able to build up and do do
more cars higher volume then we can bold
them force progressively like less money
and then make make the cars available to
wide wide range people but it's super
obviously like the car industry is like
a super this is like super competitive
it was like one of the
it's like insanely competitive I read a
really interesting or I think I heard it
actually from an earnings call about
something interesting you said is one of
the top five most frequent trade ins for
model three is it Prius right yeah which
starts at you know 20-something thousand
dollars and they obviously have massive
economies of scale do you think there's
a room
I mean Tesla has model three Model S and
Road stirring up is there room for
possibly an even less expensive quality
electric car experience yeah absolutely
I think I think in order for us to get
to like let's say ultimately getting
like a twenty five thousand dollar car
and that that's that's something we
could we could do but it's probably if
we really work really hard I think maybe
we could do that in three years
we're come with time and scale or just
yeah it's a bit of both
yeah cuz like the the key to making
things affordable is is like designing
it's like design and technology
improvements as well as scale so if you
think of like save phones like the very
earliest like the earliest cell phones
like an extra man I'm probably dating
myself here but like the original Wall
Street yeah guys like walking down the
beach he's got like the psychology is
he's carrying on like a briefcase hanger
massive like massive massive phone yeah
and like all I could do is phone yep yep
and like had like thirty minutes of
battery life and that kind of thing now
at that time in the absence of
technology improvement it's like no
amount of money no amount of scale could
have made that phone for de-ball that's
be a lot of engineering iterations a lot
of design iterations and we're probably
out on the thirtieth version of a cell
phone or and and with each successive
design iteration you can add more
capability you can design you can
integrate more things you figure out
better ways to produce it so it actually
gets better and cheaper but it's like
it's like a natural progression of any
new technology that it takes multiple
versions and large volume in order to
make it affordable is there anything in
the near future of Tesla that you're
really excited about
yeah it's a lot of things actually who
really like we've got definitely we're
more product ideas then we have
resources to execute we're just talking
about this with my team just like hey
guys would you know which we focus on
and now in the past we've only done one
car at a time
and but as you know as you're going to
the future we're gonna like basically
figure out how to walk and chew gum it's
like okay how do we do two products at
the same time but still have enough
resources that both products are great
right and so we're gonna you know we're
gonna try to do you know two products
one of them for sure's is like the model
y you know cuts or compact SUV
comparable price point to the model 3
then there's the semi the pickup truck
and the and the next-gen roadster yeah
like addiction Royce is kind of like
desert we got a box like yeah yeah yeah
it's it's super exciting mm-hmm but it's
like and I think there's definitely some
value to doing it to show that an
electric car can be faster than a
gasoline car in every way yes I think
there's like because the soul that's
sort of like a halo effect of the gas
nice force cause because like in terms
of top speed they're still have the best
top speed ya know that halo effect that
I was gonna basically every metric
possible seems like really ambitious
like there's a lot of things that people
people like me kind of except that like
I love my electric car but I I know it's
not gonna put down lap times 30 laps in
just because there's yes so the
rejection exactly we got to work on that
yeah I was actually I was just talking
to the team was like you know I think we
got some Headroom there yeah oh we can
talk about track mode yeah sure yeah
because I had a very short experience of
track yeah yeah so I love so obviously
roadster is gonna be yeah that that halo
car and if we're confident is gonna be
an amazing car I hope it's that car to
beat essentially yeah but then bring in
track mode down to model 3 brings that
fun experience to a lot of more people
that exactly yeah so it's kind of like
you know like like we're like basically
a bunch of nerds here so
obviously we gave it away yeah but like
like the you know so we're tracking Lord
when I open up a lot of settings it's
like you can adjust settings and it's
got like an expert user mode and and you
can sort of adjust traction control
adjust like battery temperature you know
break to like you can basically a
configure a bunch of things and will
tell you like hey you know if you do
this it's a bit risky like you gonna
wear at your breaks a little sooner it's
like you might blow a circuit you know
like like but like it'll be clear like
you know this is the risk that you're
taking yeah it's kinda like if you have
a graphics card in computer you can like
go in there and you can change the
settings and you can like overclock
things yeah and like ok but you know so
that's gonna be all that will be in
track mode and you're gonna see that and
meso there
yes cold yeah be cool like try different
things and wait um yeah I'll be fun
a little more on roadster because I had
a car I made a video about it just after
the event I was sad I couldn't be there
but I'm a day 1 deposit because I was
that excited ok uh but I was wondering
after you made that announcement one you
said I think I quote plenty of space
what does that mean oh you mean like
like - like it won't be cramped inside
like you're like basically if you're if
you're a tall dude you'll be able to sit
in there I'll tell you it's six four and
a half ok so I feel like if you're
comfortable in there a lot of people
will be yeah and then like my brother is
six for comfortable in it yeah yeah okay
alright and France is like six three I
don't know every tool and my other
question was the side mirrors there's
been a theme in in the past with
prototypes and cars that we've seen
before they come out they don't have
mirrors regulatory they have to have
mirrors is there an advantage to
actually having mirrors or is there is a
just aerodynamic or is there more to it
that's what it's it's actually
surprisingly the mers particularly at
high speeds can have quite a big effect
on the drag of a car
they're like little air brakes basically
like typical car side mirrors a reduce a
highway arranged by around 5%
yeah that's it's pretty intense so you
see in a wind tunnel like you can see
you know when you suck those sort of
smoke trails in the wind tunnel you can
see just how much
yeah they're like they're just like air
brakes ooh beard now actually one kind
of like a teardrop shape so it's like
it's it doesn't end in like a bluff
right cuz it creates a low-pressure zone
behind the the MIRR and so you'd have
like how it kind of most like a cone
behind the mirror or blend it with the
body or something like that okay so it's
like they're actually surprisingly
draggy now a manufacturer is required to
have side view mirrors but I believe
that a the owner is not like your I
think okay you can modify things like at
least in the US you can if you the owner
can modify things the rule is about
manufacturing not driving very much
about manufacturers are very tightly
constrained okay I was actually one
things that makes it very hard to to
make a car that looks good and has a
good performance and aerodynamics area
because it's like you got you got all
these constraints and there's so many
rules you need to follow so it's very
challenging to make a car look good my
other question about roadster the specs
are insane their ludicrous some might
say yeah so there's plat you only thing
beyond ludicrous is plat so 0-60 in 1.9
seconds but more importantly I was
interested in is the two hundred
kilowatt hour battery and the six
hundred plus mile range is are these
numbers
assuming an improvement in available
technology by 2020 or are they something
you can achieve now but don't have the
manufacturing capacity to or is it
somewhere in between yeah so I think it
like basically it's like to model s3 100
packs yeah but but you're really just
doubling the the internals that beset
the cells inside so there's like a lot
of stuff that's related to the pack and
the packaging and safety and all that
sort of stuff that is not related to the
cell so you can double the number of
modules inside and and will at with but
it would still be like maybe an 80%
increase in the volume of the the packs
like the floor would get or four or five
inches higher if it was concurrent
technology so but
but we would we think we probably get
another maybe 20 percent 10 at least 10
maybe 20 percent improvement because
we'll use the thing about like an
expensive cars we can use the the
state-of-the-art the most advanced
equipment like it's gonna like with with
computers like they've come out with a
new like graphics card or CPU it's like
initially it's expensive and so but then
over time that that price drops down
everyone like wonder is it like do you
have like automation DFP boasts like
we're both you know it's like a cyborg
but like integrated Sidewalk thing yes
like one of the biggest constraints for
us is is like being able to hire enough
people that's I was gonna ask cilia and
there's a lot of young man parking
there's a lot of parking here yeah you
have a lot of robots and a lot of people
in the factory what do people do that
robots can't do and obviously there's a
lot that robots can do as far as lifting
and moving things but as far as
precision maybe those things they can do
that humans can't do you have a ratio
off the top of your head maybe as far as
people versus machines yeah it's very
smashley depending upon what part of the
production process right so so some
parts of it are like 80 to 90 percent
automated and then some parts of it are
like only 10 to 20 percent or one of
those one of those parts that humans do
better than humans are really good at
adaptation and and rapid evolution and
like doing like a little like finicky
things like like that like for General
Assembly like one of the mistakes we
made that was like pretty pretty big
mistake was trying to automate journal
assembly which is where you put the
parts together you know it's like some
of the things it's like like trying to
connect a hose but it's like sort of
dangling around I see and and and then
you got like the robots like gotta find
the hose grab it like then connected to
another hose at that plant it's like
really hard yeah like a person you just
go out there done gotcha
yeah that makes a lot of sense yeah and
it's like when you see it it's like wow
it's super super obvious and then we try
to have robots do this like we robots
like grabbing the wrong thing and
let's take it over here and I'm like oh
the the hose was here when the robot
thought it was here as mad like tries to
grab air and then like smashes into the
car like you don't want that we yeah
it's the cars tragedy of errors like
pushing you could say like this thing
needs to connect to that thing and and
then however they they arrive person to
figure it out the robot we drove up like
yeah and then as far as Tesla's overall
master plan is what it was originally
called so you start with the low volume
high price roadster then you move on
Model S higher volume lower price to
model 3 as far as I know that's where
the master plan ended yeah that was like
plot one yeah everyone waited model X in
there which you know it was that wasn't
that was like that was definitely an
exercise in hubris the month now the X
is an amazing car and it's like it but
it's like we kind of got carried away
with the art I hear it's very difficult
to make yeah we got carried away with
the character with art and technology
it's like it obviously what you want
great art you want great technology but
we did get a little distracted from our
mission which is to like advance the
cause of electric vehicles and and it
probably delayed us a little bit with
the model 3 as well so I guess my last
question in here would be just as far as
the Tesla master plan part one coming to
an end is it now just a matter of
steering a ship towards new
opportunities you see there's not a lot
of companies making a $35,000 electric
car and a quarter million dollar
supercar and a semi-truck and doing them
all really well right do you guys see
yourself just keeping a tight ship and
picking your your choices here and there
yeah that's why we what I'm saying like
we it's it's a it's a tough strategic
hole between focus and like me wanting
to do a bunch of different models like
we I think we want to try doing two at
the same time like we're only ever done
one at the same time before do two and
then and then if we get got that you're
good with that then we could just try
doing three at a time like a lot of the
other manufacturers they'll do like you
know twelve at a time yeah if they're
way bigger than us wait awesome
she the best of luck with it and thanks
for taking the time to sit down yeah
thanks thank you very cool appreciate it
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.