[声音]。>> 晚上好，欢迎来到斯坦福大学商学院。我是加思·萨洛纳。我是这里商学院的院长，很荣幸欢迎各位参加这场精彩的活动，我要感谢，奖项评选委员会。作出了这项确实极其出色的选择。也感谢所有通过赞助本次活动来支持我们的公司。这是第36届此类活动。

第36届年度 ENCORE 奖招待会，每项奖项都授予……一家体现我们所熟悉的硅谷公司的精神、创新和独特文化的创业、创业型公司。因此，请允许我率先祝贺 Tesla 和埃隆·马斯克获得。今晚的奖项。[声音] 在把你们交给、交给杰夫之前，我会，简短说几句。

但我确实想花几分钟，简单谈谈我们在商学院这里所做的一些事情。在创业领域，我会非常迅速地提到今年的3项创新。

第一，我们有一门创业课程，而且已经开设多年，在这门课中，我们把来自全校不同专业的学生组成跨学科团队，让他们共同开展项目，而今年。

作为未来技术的预兆，我们首次翻转了课堂，教授这门课的斯特凡诺斯·泽尼奥斯录制了原本会成为课堂讲授的内容，学生则可以利用课堂时间接受指导，并共同开展项目，我认为这在很大程度上是时代和、和未来的标志。

第二，你们中的许多人会熟悉我们过去在夏季及学年期间于斯坦福开设的一项课程，我们过去称之为创业暑期学院。现在我们称它为 Stanford Ignite。这是一个、一个在斯坦福面向斯坦福非商学院研究生的项目，所以是工程、医学和生命科学等专业的学生，他们。

可能正在创办一家公司，或在从事创新的公司工作。我们会为他们提供通识管理教育。并融入创业导向。今年，我们开始将那项、那项课程推向全球。因此，今年夏天我们在印度班加罗尔开设了一个版本，现在则正在巴黎与当地一家名为 Politechnique 的机构合作教授另一个版本。那项课程也大量运用了技术。

大多数课程实际上是，由来自斯奈特管理中心的教师……前往那些地点授课。我最后想、我想提到的是，同样，你们中的许多人都熟悉 SIIDE，也就是斯坦福创新与发展中经济体研究所，这是我们大约2年前在商学院这里创办的一个机构，今年夏天它举办了一项里程碑式的活动。

我们在加纳阿克拉开设了首个创新中心，首批有29名当地创业者，我们正与他们合作，帮助他们扩大业务，而这是一个、这是一个区域、区域枢纽和区域项目，参与者来自、来自5个邻国。所以，商学院这里正在开展很多事情，与此同时我们。帮助颁发创业奖项。

我们正努力尽自己的一份力来模拟创业生态系统，本着这种精神，请允许我说，在我们所做的一切中，我们都非常、非常依赖这个社群。你们走进我们的课堂，帮助教学并指导我们的学生……还、还以各种各样的方式帮助我们，而、而我们无比感激。并且、并且很高兴今晚各位能与我们相聚，非常感谢。[声音] [咳嗽]。我是杰夫·杨。

我有幸担任斯坦福 ENCORE 奖委员会主席。所以，你们可能会问，你知道，我们如何选出某一家特定公司来获奖。我告诉你们，我们会考察4件事。你知道，第一是体现创业精神的公司。我们寻找的是正在做一些宏大、大胆且重要之事的公司。

我寻找的是创始人曾经或仍在公司的成功中发挥非常重要作用的公司。我们也会考察那些拥有有趣故事，或者其、或者其创始人是有趣人物的公司。所以你可能会说，那么你们怎么会选 Tesla 呢？并不完全。如此。所以 Tesla 的故事，你知道，所以，你看看它是怎么符合这些条件的。

然后你会说，好吧，Tesla 是由2名工程师马丁·艾伯哈德和马克·塔彭宁创办的，他们相信电动汽车能够改变世界。好，符合。Tesla 在一个初创企业本不应取得成功的行业中取得了成功，靠的是把新颖的设计方法融入概念设计、电池设计、车身设计、传动系统设计、制造设计、供应链管理和大规模生产等小事情中。

Tesla 正试图颠覆、颠覆一个竞争对手拥有庞大规模和悠久历史的行业。好，符合。埃兰·马斯克，这是一个公司系列，他们是领投方，而现在兼任董事长，继续担任其首席执行官和产品架构师，符合。最后，还有一个有趣的故事，会检验那些实际上已经倒闭的，据我了解有过几次，而如今已成为市值超过230亿美元的市场上的巨大成功。

据《钢铁侠》系列的导演说，它的首席执行官是托尼·斯塔克的灵感来源。符合，符合，算是个有趣的人物。你们明白了。Tesla 是自福特汽车公司1956年以来第一家上市的美国汽车公司。尽管其营收约为通用、福特和宝马的1%，但它的市值大约是这些老牌公司的三分之一到二分之一。我很荣幸介绍埃隆·马斯克。

埃隆原籍南非，曾就读于女王大学、宾夕法尼亚大学。最后来到斯坦福攻读物理学博士。他创办了软件提供商 Zip2，后来被出售给康柏；他共同创办了 X.com，后来更名为一个叫 PayPal 的东西，并被 eBay 收购。他于2002年创办了自己的第3家公司 SpaceX，并继续担任其首席执行官兼首席技术官。我希望他能给我们稍微讲讲这家公司。

他还是 Solar City 的创始人兼董事长，而后在空闲时间里，他于今年早些时候公布了一项提议，要创造一种他正在研究的新型交通方式，名叫 Hyperloop。但就今晚节目的目的而言，最重要的是，他是 Tesla Motors 的首席执行官。

今晚 Telsa，我是说抱歉，今晚埃兰将接受我的朋友、斯坦福 ENCORE 奖委员会同事史蒂夫·杰维森的采访，他是德丰杰的董事总经理。请和我一起欢迎史蒂夫·杰维森和埃兰·马斯克。[噪声]。>> 如果我们弄错了，会有人喊出来的。

我想他们告诉过我们5次，他坐那里，我坐这里，而那只是[听不清]。所以在开始之前，我们会尽量让气氛稍微轻松、有趣一点，同时也试着在今晚稍微深入了解一下马斯克的思想。这是个值得深入探索的奇妙地方。之后你们都会有机会提一些问题。所以，你们现在可以开始思考了，我会先问几个。不过，先热热身。

而且，我想这可能是你们想、可能会想看到的事情。大约1年半以前，大约 Model-S 发货时，我记得他说过，眼中似乎闪着光，他期待着有一天自己在硅谷某处开车时，会在路上看到一辆并不是，比如说，并不是处于测试中的员工用车，而是一位真正客户的 Model-S，比如一个他不认识的人。

所以快速举手调查一下，有多少人见过一辆 Tesla 在硅谷行驶。我不是指停在外面的那辆，那就意味着你们见过多辆 Tesla，对吧？我今天看到了10辆，刚刚数过。现在我有一个短小的社区，所以那个梦想已经成为现实，但 Tesla 所做的一切已经成了令人惊叹的景象。

>> 所以我想这里的许多人，你知道，商学院学生、学生、公司的朋友们，都非常好奇这一切是如何运作的，因此如果可以的话，我们先谈一些设计问题，再谈一些与组织和人员有关的问题，不过从设计开始，当你思考自己正在解决的世界重大问题时，你是否从……开始。

脑中某个具体的产品，比如可以有这款 Model S，可以有这枚 Falcon 9。然后思考：我该怎么实现？还是你会先说，世界上有某样东西坏了，我要修好它。而且我要承诺去做。即使我不知道该如何实现。>> 当然。那么，让我想想。>> 那个开了吗？>> 对。似乎，似乎没问题。>> [未知]我上大学时[未知]以一种积极的方式。所以，。

但我相当确信我们会产生积极影响的3个领域是可持续能源、互联网，以及让生命成为多行星物种。然后还有其他几个领域可能要打个问号，比如人工智能和编写遗传学。[未知]课？>> 对，重写遗传学。>> 重写遗传学。[未知][多人同时说话]。>> 可能会产生负面后果，希望是积极的。可能会出问题。[多人同时说话]。

>> 前3个，还有几个候选，还是它们一直有点混在一起？说话人1：等待合适的时机。说话人2：不，我只是觉得，向前看，什么会真正对全人类的未来产生重大影响，那就是我站在淋浴间里基本上能想到的5个领域，你知道。

说话人1：所以你在某个时刻顿悟了，并把它保留了一段时间，因为你没有立刻去追求那些事情，因为这是一个早期愿景，后来你获得了执行它的机会。>> 对。

>> 所以，当你，也许如果我们选一个例子，比如Tesla迈向Model S，或者SpaceX迈向猎鹰9号时，你会在心里有终点的情况下，让团队、你自己以及你的资源投入到那项事业中吗，你知道，现在再往前推进一点？或者。比方说，火箭的商品成本分析，或者现金EV应该优于内燃机，总体来说，我就会投入。我会相信那应该去做。

>> 我其实并没有抱着成功的期望进入任何斯威夫特。或者至少……对，我一开始想的是，好的，当我在电动汽车领域做些什么时，而这就是我最初来斯坦福的原因，是为了研究先进的储能技术，并采用超级电容器。所以那是在延续我前一个夏天作为实习生在硅谷做过的研究。

所以，所以那就是，那就是为什么我最初在95年来到这里。然后在那个夏天，我读了一些互联网软件方面的东西，我想，好吧，我要么可以从事电动汽车技术，要么，或者我可以支、支持互联网方面的东西。试、试着用互联网做点什么。我觉得互联网会是某种会。极大影响人类未来的东西，就像，就像获得了一个神经系统。

而在此之前，沟通几乎必须通过耳濡目染来发生，你知道，从一个人传到另一个人，或者通过电话、邮件或类似的东西缓慢进行。但现在，如果你有一个神经系统，任何部分的。

所以人类集体知，能够立刻了解任何其他部分，而以前你甚至必须身处某种意义上的国会图书馆，才能获得国会图书馆那类信息，但是，随着一切被数字化并且可以从任何地方访问，你可以身处南美洲的一片丛林中。而如果你不知怎么有了哪怕很窄的那种连接，你就可以，你就能访问全人类的信息。

所以它实际上，有效地创造了一个超级有机体，并且，并且从根本上改变了人类自身的本质。所以我有点，只是想以某种方式成为其中一部分，>> 这会是你所设想的通往人工智能的路径吗？>> 它，它其实不完全是人工智能，它是某种。>> 人机集体智能，所以和人工智能不、不同，尽管人工智能最终可能并不完全是我们所，希望不是的那样。

它并不完全是，你知道，像《终结者》之类里面描述的那样，你知道。>> 不是。>> [笑声] >> 给那些没去过Space 6的人稍微暂停一下。那个数据中心肯定是你见过最酷的东西。门上有，你知道，SkyNode，还有Cyberdyne Systems的品牌标识之类的。[笑声] 所有那些闪烁的小服务器发出的最厉害的一组灯光。所以这些是它自己的。>> 没错。>> 对。

>> 我们的FEA和CFD集群叫作Cyberdyne Systems。>> [笑声] >> 我们稍后会再谈影响，不过我想试着看看自己是否理解了你刚才谈到的这个，这个你所看到的漫长轨迹。而重要的是人类，不是小问题，而是那些能够得到解决的巨大问题。我们很多人四处走动时会看到一些令人沮丧的事情，比如405号公路上的交通状况。然后我们就把它当成，好吧，真糟糕。

政府搞砸了或者落后了，对吧？你拥有这种令人难以置信的，某种雄心范围，对吧，行星范围、行星际范围，对吧？不只是改变世界，还要再多一点。我们也改变一些其他世界，对吧，而这是件大事。你一直都有这种想法，还是说，随着时间推移，你越来越投入其中，意识到这是可以做到的。我们能做这些事。随着时间推移，我确实变得更有胆量了。

我的意思是，在那个，你知道，当，当我创办第一家互联网公司的时候。那是02年，和我的兄弟以及另、另一个人Gregg Curry一起。那，那其实并不是抱着变得富有的想法。这个，你知道，我并不反对变得富有，但是，[笑声] [笑声] >> 我们稍后也会再谈这个。[笑声]。>> [笑声] 但是，但是这只是，它，它只是出于一直想成为，成为互联网一部分的角度。

而我，我，我觉得，如果我们能赚到足以勉强过活的钱，那就，那也可以。然后，然后，然后我们起步时，我们有，我们其实只有，大概，1台电脑，所以白天它会充当我们的网络服务器，晚上则用来写代码。然后我们，我们只是在帕洛阿尔托租了一个小、小办公室，当时租金还没有高得离谱。然后。它每个月花费我们大约450美元。

它比公寓便宜，所以我们实际上就睡在办公室里，然后洗，然后到YMCA洗澡。[未知] 所以我们会走到那里，然后，然后洗澡，而那实际上，我想那就是我第1，我们第1，顺便说一句，我第1次见到你的时候。所以，[未知] 可能没有多少人知道这件事，但我们实际上在96年1月左右向Steve推介过，那个zip 2商业计划。

而且实际上我觉得，Steve其实是最了解，了解，了解我们商业计划中实际内容的人之一。我们遇到的大、多数人其实都没有读过我们的商业计划。事实上，当时很多人[未知]甚至都不知道互联网是什么。他们从未用过它，[多人同时说话] 他们认为它成不了什么气候。>> 我相信，我不确定他们现在是否还这么想。[笑声]。>> 对，没错。

对，我有点像，你知道，有点像San Hill的知名人士。我当时就想，哇，好吧。但是在，在那个时候，没有人从互联网上赚到任、任何钱，所以我猜那就是，你知道，没有任何明确证据表明那里，那里存、存在一门生意。还有，对，>> 那是一段有趣的时光，我记得Kemball和你走进来。看起来非常年轻的年轻人。[笑声] 我想当时我上任也才4个月。

>> 对，对，没错，所以 >> 所以，我们先[未知]一下。我也曾非常荣幸地与史蒂夫·乔布斯短暂共事过。但已经足够了，而作为一名商学院学生，我在那段时间里尽我所能细致地研究他。而且你们之间有一些明显的相似之处。所以我们从最明显的一点开始。不过，这就像是房间里显而易见却没人谈的大象。你成功的秘诀，是同时担任2家公司的首席执行官吗？

>> 不，我觉得这是 >> 因为看看这种相关性。>> 对。>> 苦苦挣扎的公司，2008年12月一切都进了垃圾桶，所以我们再接下一份新的首席执行官工作，[多人同时说话]史蒂夫回归苹果公司时也是一样。>> 不，肯、肯定不是我有意要担任2家公司的首席执行官。我的意思是[听不清]，有一些事情是我有点想要，我认为发生这些事情很重要，而且我认为重要的是。

有一辆。那辆，那辆，一辆电动汽车出现了。电动汽车领域取得了成功。因为那些，那些负担沉重的公司确信，不可能制造出一辆外观漂亮的电动汽车。它拥有良好的续航里程和性能等等，而且即使你真的造出了这样一辆车，它也卖不出去。

因为人们对汽油有这种热爱，所以我们必须证明，制造一辆有吸引力的电动汽车是可能的。长续航、外观漂亮，你知道，那、那些方面，那就是Tesla Roadster。而且如果你创造了，如果，如果你造出了这样的东西，人们就会购买它。所以那，那就是我们和，和，和NASA试图做的事情。事、事实上，我应该设法指出，引言里有一个小小的，某种更正。

我不是，我不是Solar City的联合创始人，但我是Tesla的联合创始人。[笑声]。>> 没关系，这一点说得好。而且[多人同时说话]它许多关键功能的。>> 对。>> 非常像乔布斯。既处理一些细节，也把握什么对公司重要的长期轨迹。>> 对。>> [未知] 首席执行官，这不只是一个玩笑，因为我在想，它是否以某些难以预测、而且你不会一开始就打算的方式。

承担这么多工作，这似乎很疯狂。但不可避免的是，2家公司最多都不能指望获得超过你一半的时间。它有点自然地迫使你进行授权，并且产生一种预期，即你最多只能凭借局部的了解站出来应对，对吧？>> 是的。>> 而我只是想知道，这是否有助于推动优先级排序，让你比原本可能需要的更加专注于真正重要的事情。

>> 那可能确实有帮助，对，我想我可能确实会，对，我的意思是[未知]我在每家公司所做的事情，并不断思考，我所能做的最有用的事情是什么。但即便如此，有一段时间它实际上仍然需要极其大量的时间，我当时一直每周工作100小时。而那，那肯定令人疲惫。而，而现在我大概降到了80到90小时，这样更容易应付。

但是，但是你知道，如果除以2，每家公司也就大概，你知道，大概45小时；如果你有很多事情要处理，这并不，并不算多。>> 你就像个懒鬼。我的意思是。[笑声]。>> 是啊。>> 所以你知道，还有一点也很有意思，就是你对产品的某些方面怀有热爱，比如在SpaceX，整个概念以及前往火星的愿景，还有回到功能之类的东西。看到这一点很美好。

我认为，在座的人显然应当感到非同寻常的是，你所涉足行业的多样性，对吧，从商业银行业，到工业综合体，再到汽车行业，这些都是受到严格监管的行业。普通投资者[听不清]。

所以，你往往为之努力的行业之间，可能并没有一个明显的规律，但我想知道，在过程上是否存在某种规律，比如你是否会，也许像软件架构师那样着手处理其中每一个。思考一种不同的创新方式。一种不同的重置方式，你知道，也许从第一性原理出发，而不是在过去的基础上迭代。实现突破。你最终进入这些原本极其艰难的行业，是有什么原因吗？

我的意思是，我没有[听不清]。甚至 SolarCity 也要对抗受监管的公用事业公司。这些地方通常是你会发现创业者的地方吗？>> 是的，就像我说的，这并不是从什么能带来最佳风险调整后回报率的角度出发，也不是，你知道，我认为事情是否能够成功。只是因为我认为这些事情需要发生。努力让它们发生，所以后来当我们创办 SpaceX 时，它拥有这个。

我，我当时认为成功的概率低于财产百分比，它们可能大概在那个水平，但低于，百分之几。就研究中的那个案例而言，我认为成功的概率可能高于50%，但忠于成功地躺着会是什么样并不清楚，你知道。>> 嗯哼。>> 它可能就只是很小，而且，是的，但，但我的意思是，只是觉得这些是需要完成的事情。

而且即使钱亏掉了，好吧，也还是有一点值得尝试的 >> 所以是信念，但并不意味着确定。对吗？>> 你内心知道所有车辆都将是电动的，>> 最终，最终是的。>> 但并不确定那个[未知]必然会成功。>> 我的意思是，我认为Tesla有一种根本性的益处。它能够做到的是加速那个，那个不可避免的进程，也就是电动交通。>> 嗯哼。

>> 但我认为，加速这件事有，有很大的价值，尽管我认为它在某种程度上不可避免，但加速它是有价值的，可以最大限度减少否则会发生的环境和经济损害。>> 嗯哼。>> 所以。你知道，如果我们过渡，转向可持续交通的时间比原本可能的情况提前10年，或者什，可能提前20年，那就更好。

而且我认为Tesla产生的影响远远大于内部制造出来的汽车，因为当我们发布那款Tesla Roadster时，然后是上方的灯。当时谁是通用汽车的[未知]领导人。所以，是新闻发布的，我说，如果加利福尼亚州的一家小公司能做到，那么，那通用汽车也能做到。他把它交给了他的工程师，而那些工程师告诉他，你造不出电动汽车。然后，告诉他们需要行动起来。

正是这让船开始滚动。而这反过来让日产开始相信。而且，而且所以，它算是让，让，让事情启动起来了。而且，而且最终，就像是，我们促使其他公司去做的事情，将比我们自己制造的汽车产生更大的影响。

>> 你知道，这是一个很有意思的观点，我稍后还会回到这个观点：Tesla从最初一直到最近向公众发布的报告，其创立使命者都是[听不清]，尤其是要推动整个行业转型，Tesla会参与其中一部分，但在某个部分也会帮助其他人完成这种转型。这一点从……来看很了不起。而且所以。>> 是的。>> 我们向丰田和梅赛德斯供应动力总成，诸如此类。

>> 所以有一天你能给你最大的竞争对手什么。呃，你知道。>> 是的。当然，我可以加速那件事。>> 在谈到那种目标驱动的使命之前，我确实想问一下，或者至少确保观众意识到这辆车有多酷，所以[未知]不必这么做。如果你不像我们两个人这样是它的狂热爱好者，它所获得的评价有点前所未有。

它获得的评价有点非人的，说它是他们测试过的最好的汽车，[听不清]说它是美国历史上最重要的汽车。嗯，安全测试显示，它是有史以来制造的最安全的汽车。遥遥领先，其中包括厢式车和SUV。因此，它在性能、吸引力、安全性和所有这些参数上都达到这样的水平，是相当了不起的。

所以，这是运气，还是电动汽车设计领域存在某种特别独特之处，使得制造出最好的汽车成为可能？>> 嗯，我愿意认为它在这里起到了一些滚动作用。但我认为我们，我认为电动汽车具有一种根本性的[听不清]优势。如果，如果有人从零开始设计一种电气的，并利用，利用可能实现的东西。

比如，如果你只是改装一辆汽油车，你不会，你不会获得这些优势。但如果做得恰当，实际上可以。把电池组装在一个完整的底盘里，实现较低的质心，并且，并且配备非常紧凑的电机，以及，以及电机和电缆箱，这样车内实际可用空间就会显著大于一辆具有相同外观尺，尺尺寸的加气汽车。而且。

然后，如果你再做其他几件事，我们尝试了[未知]，不一定与电动汽车特别相关，比如采用铝制车身和胸部是有帮助的，因为在碰撞中，实质上每单位质量可以吸收更多能量。>> 就像一个[未知] >> 是的，没错。嗯，所以它，是的，其中很大一部分与[未知]有关，还有一部分与我们在Model S的设计中做出的其他技术决策有关。

所以，是的，这就是为什么它算是拥有较高的安全性，我的意思是，我不想讲得太多，因为可能会占用太多时间，但是。>> 你一开始就知道其中一些事情，还是它们随着你的推进而逐渐显现？我只是很好奇……愿景是如何变为现实的。例如，要么是产品尺寸，比如它会具备所有这些出色的功能，比如，比如一开始它们就都成形了吗？

第二件事，我还很好奇，你最早什么时候知道所有车辆都会变成电动的？比如，那是在很早的时候吗？>> 大概是22年前，差不多那个时候。>> 在你认识Tesla之前？>> 在Tesla存在之前。>> 在它存在之前，远远早于Tesla存在之前。哦，是的。嗯，就像我说的，你知道，当我最初出来时。当我，我的意思是，当我学习物理学时，那大概就是我，我认为会是这种情况的时候。

或者也许，不会早于那个时候。大概是在我大学。二年级的时候。>> 你内心确定吗？>> 是的，绝对确定。这超级明显。>> 是的！是的！[笑]现在，是的，现在很明显了。[未知] >> 我认为当时也超级明显，但是 >> 是的，这正是让我难以置信的地方，因为即使在大约3年前，大多数人可能也不认同这个观点。

而如果要说我能有把握作出的任何预测，那就是在10年内，所有人。其他人的观点是什么？但我们还想进行转型，但我们意识到，这是一场荒谬的辩论。>> 是的。>> 那时候你算是某种沿途的声音，大概在你的同辈和朋友，以及，你知道的，社交派系当中也是如此。[多人同时说话]。>> 是的，我以前会跟，比如约会对象谈电动汽车。

>> 效果怎么样？>> 没有，没有帮助。[笑]。>> 后来好些了吗？>> [笑] 是的，[不明] 和 [不明]。然后她说，不，我不。[笑] 所以是的，那是很久以前了。我是说，这很……我是说，我们日常生活中拥有的几乎所有东西都是电动的。>> 嗯，从物理原理来看，内燃机的热损失。相当惊人，相当惊人。>> 是的。>> 所以。

我想分享一个小故事，它会从另一个角度引出一个问题。我想你以前没听过，但我觉得它很有意思。我在一次 Google 活动的午餐会上，完全出乎意料，根本没想到这会成为话题，然后拉里·佩奇转向我，他对我们的关系略知一二，说，你知道……

>> 我有多少钱，然后他提了一个数字，我觉得他试着回想那个数字的样子很可爱。他说，你知道，如果我今天被公交车撞了，我应该把所有钱都留给埃隆·马斯克。>> 真的吗？>> 是的。>> 他这么说了？[声音]。>> 是的。所以我就说，纸，笔。请把这个记在……上。是的，所以他喜欢说俏皮话。>> 其实我很喜欢这一点。他是我的好朋友。>> 上下文很重要。

>> 我在拉里获得风险投资之前就认识他了。所以那大概是90。>> 还是在 [听不清] 的年代？>> 是的。哇。>> 嗯，他是个了不起的人。显然也是个成就不高的人，而且，你知道，他有一家希望为世界做好事的公司。

我觉得他看你时带着一点羡慕，因为他接着说的是，你知道，我可以把钱捐给一家非营利组织，但能办成的事会比一家正在追求与我关心的事情直接一致之目标的合作机构少得多。比如，获得、获得石油，以及殖民其他星球。他相信这些使命。而且认为。

一家拥有、被赋予以此作为商业目的之权利的公司，是现有的最佳载体，而他希望自己一生中能做更多这样的事。我觉得，他令人感慨地拿这件事与太平洋西北地区的其他一些软件公司作了比较，那些公司的高管可能在职业生涯的前半段作恶，然后在后半段行善。还有另一些人的悲伤故事，他们从未走到人生的后半段。

>> 对。>> 比如，比如史蒂夫·乔布斯。我不是在开玩笑，我是认真的，而且，而且那是一个非常深刻的时刻，所以你已经听说了那个 [不明]。[多人同时说话]。>> [不明] 事实上，我 [不明]。然后我，我让一些董事会成员稍微质疑了一下那一段 [笑]。而我当时想，嗯，这是真的，你知道。>> 你的意思是，比如目前，还是就，只是说我们在成长。但不，它只是不是优先事项。

我认为，在商学院里，这确实是一个值得花点时间深入思考的好观点。[笑]。>> 是的，并不是说，并不是说我认为它们不重要之类的。只不过它不是首要目标。>> 当然。>> 实际上，我已经对人们说过这件事 [不明]。所以这并不是什么新信息，或者至少，你知道，如果你是，如果你是观看 [不明] 信息的人，而且是的，实际上很神奇，股价在那之后上涨了。

[笑] [听不清] >> 我认，我认为这背后有一个深刻的原因。我是说，你，你会看到，把更崇高的使命作为首要动力并专注于此所带来的益处。你的员工喜欢它，客户喜欢它，[多人同时说话] 其他人喜欢它，而且你会对自己的工作感觉更好。

有趣的事情，也许也是讽刺之处在于，至少在我们的投资组合中，那些拥有这种创始负责人的公司，实际上比没有这种负责人的公司赚取更多利润，收入增长也更快。目前这个样本集很小，但那少数把这个碗推进到这一步、说不、不、不，我们不会把那件事作为头号优先事项的公司。实际上做得非常出色。

然后我想到了一点，我不知道这是否曾在某个时候有意识地存在于你的脑海中。那就是，如果你不能广泛地实现盈利，汽车行业就不会跟随你。换句话说，如果这种商业模式比现有商业模式更差，那么推动转向新型电动汽车的整个使命就不会奏效。所以，。 >> 是的。 >> 你知道，这是，这是你所专注之事显而易见的副产品。

它们并不显而易见，但我想到这是一个副产品。一开始根本一点都不明显。[笑] 不过，我很好奇你是否想到过这一点，就是，哦，对，其他利润会随之而来，或者，呃。 >> 是的。嗯，我们必须产生现金流，或者，或者我们必须产生足够的现金流来资助未来的开发，而这要求有不错的毛利率。

而且，而且所以我想，人们可以直接说，好吧，我们要停止开发你的产品，然后你就会非常盈利。所以在任何一个时间点，你都可以算是说，我们会，我们此时可以实现盈利，你知道，而且是大幅盈利，但是，但是我们有这些很棒的东西想为未来开发，而且它们是很好的投资，那就是我们正在做的事。

同样，在 SpaceX，你知道，创立时的愿景是殖民火星。 >> 是的。 >> 间接地。再次，很有意思的是，推动其他人采取行动。 >> 是的。 >> 然后你意识到，嘿，我实际上得带头推进这件事。 >> 是的，嗯，我是说，当初创办 SpaceX 时，我一开始只是想，嗯，我该怎么提高 NASA 的预算？实际上，那就是我的目标。 >> [笑]。

>> 所以，那是，那大概是2001年，我当时只是，只是在和我的一个朋友聊天，那个人问我，他问我离开PayPal之后打算做什么，我想，嗯，你知道，我当时在想，我想参与太空领域的事情，但我，我只是觉得作为个人，我做不了什么。

然后，但我很好奇，我们什么时候，什么时候，NASA会派一支，一支团队去火星，因为那一直会是登月之后要做的事。我以为应该会有某种计划，我只要去网站上就能看到，你知道，日程安排（笑），然后（多人同时说话）。

哦，对，就像，好，2017年，不错，好（笑），但它，但实际上网站上其实没有（笑），至少我当时想，是我找不到吗，这里到底怎么回事。还是这是秘密，我不知道。

所以，但结果是，NASA确实研究过派人执行火星任务需要多少成本，而我，这是在老布什任内，我，他在他的，在他的第一个，他上任后不久要求进行一项为期90天的研究。NASA给出的价格是5000亿美元。他说，好吧，也许还是算了。（多人同时说话）。>>（听不清）。>> 那时候，5000亿美元对政府来说可是一笔大钱（笑）。

所以，所以，所以后来这件事就被彻底搁置了，而且在NASA，你是不被允许谈论任何类型的载人火星任务的，总之，所以我，我，但我想，嗯，如果我能做些什么来激发公众的兴趣，而，而这种公众兴趣又能转化成给NASA的额外拨款，增加他们的，他们的预算，那么，那么也许他们就能做到。

所以最，所以实际上，我当时大概在想，我，我要做的是把一个小型温室送到火星表面，里面放上种子和脱水凝胶，然后在，在着陆后，让凝胶吸水并让植物生长，而公众测试回应先例和最高级。所以，这将是生命有史以来到达的最远之处。

火星上的第一个生命，而且你会得到这样一张很棒的照片：红色背景上的绿色植物，我想，好吧，也许那会让（听不清）。>> 高潮镜头。>> 那会是高潮镜头，对。我，我一直不太确定这是不是一种可以用的说法。>>（笑）。>> 对，我，我，我不知道它的起源，直到有人给我指出来，不过。（笑）所以。（笑）。

>> 好，回到火星上的那个温室。对，照片已经传出去了，而且它确实。>> 对，看，照片已经传出去了。>> 对，很喜欢。那是一张很棒的照片。然后，然后，好，我们会促成这件事，而且会很好。最理想的情况下，他们会拿到资金，而我们可以做这件事，他们可以算是派一支，一支团队去火星，那会很棒。所以我试着，试着弄清楚如何用我从，从PayPal获得的收益来做这件事。

而且我成功弄清楚了如何把航天器的成本降下来，还有通信，以及，以及，以及那个小温室和其他一切。但有一样东西我无法压缩，那就是发射成本。因为这里只有少数几个选择，而美国的选择实在太贵了，所以我最后去了俄罗斯3次，试图购买俄罗斯核武库中最大的洲际弹道导弹。（笑）。>> 我也会从那里入手，对。>> 对。

>> 要么玩把大的，要么回家。>> 那是，我是说，好吧（笑），你知道。那，那些，确实，确实有一些奇怪的旅程，这是肯定的。（笑）但你知道，就像几乎，就像你可以买到任何，某些方面来说，这是一个非常资本主义的社会（笑）。所以，所以我实际上确实谈成了一笔交易（笑），要购买2枚去掉核弹头的洲际弹道导弹。而且（笑），但，但我在第3次行程中得出结论，这其实不会有什么用。

就像，如果我们，如果我们，我实际上得出了结论，我最初的前提是，是，是错的。>> 嗯。>> 因为我其实认为，美国民众中有，有极其强烈的意愿，尤其是去探索，美国，你知道，或许比任何其他国家都更是人类探索精神的凝练。

而且这对心理确实至关重要，所以，如果他会认为有办法，我想我们实际上会得到很多支持。>> 嗯哼。>> 但是，但是，那就不能只是拿头撞墙。你必须相信这件事可以在不压垮联邦预算的情况下完成。所以，我当时就说，好吧，有没有什么办法能影响太空运输的成本？

然后，然后，是要去，而，而且所以我，我，我在连续几个星期六里召集了一群人，就是，就是试着弄清楚 [未知] 火箭是否存在某种超级、极、本质上超级昂贵的东西？或者，或者，这一类别能不能得到大幅改进？

而且，我有，我们在头脑风暴会议上讨论了很多这样的事情，而我看不出，我看不出降低火箭成本存在任何根本性障碍，所以，那，那就是我创办 SpaceX 的时候。>> 我想我就自己造它们吧。[多人同时说话]。>> 对。>> 然后，所有 [多人同时说话]。>> 但我说过，在那个时候，我会说成功的概率肯定低于 40%。我认为它很可能不会成功。

但值得一试。>> 但很迷人的是，这些公司之间有着太多、太多相似之处。同样，概率很低。>> 对。>> 确定这件事需要完成，>> 对。根据 [听不清] 物理学和第一性原理，确定它能够完成，成功是一种选项，对吧？它是其中一种可能性。而且有意思的是，从 Roadster 和 Falcon 1 开始，把它们作为通向更大型设计的验证点。>> 对。

>> 你知道，当我看 Falcon 9 时，它看起来像是软件工程师的产物。>> [笑] 对。>> 模块化复用，就像我们造一台发动机，然后逐步重复。并把各种优雅之处融入系统设计，以阻隔开来，你知道，几乎从硬件进入软件、进入设计，呈现这个系统之美。

而且，而且我想知道，这是否就是在位企业看不到对汽车、火箭或诸如此类的东西进行这种重新设计的原因。超级高铁是这样，他们不会以那种从一张白纸开始的方式来处理它。如果你不必在各个选区创造就业机会，你会怎么做这件事？>> 对。>> 或者你没有其他某种不可告人的动机。有意思。

看看时间，我想给一个，我要问最后一个问题，但我先提醒一下，如果有麦克风，就开始为观众准备好。因为我不想独占这里大家的时间。实际上我想问的问题太多了。但是，但是我会，我会从 [听不清] 开始，并且至少在这里 [未知] 问一个有关影响因素的古怪问题。

所以你 [听不清] 我们听说过钢铁侠这个指涉，以及你童年时对漫画书和 [未知] 银河系以及 [听不清] 的兴趣，但还有各种东西被编织进像 Cymbeline 系统那样的东西里，那，那些我们听说过的 SpaceX 的东西，然后还有一些彩蛋。所以，我们当中有些人注意到，这个故事调到了 11。>> 对。是的。>> 在，在 Tesla 上。对于那些知道 [未知] 的人来说，这是一个 Spinal 式的指涉。

这个能调到 11，而我们只是，只是再多一个。>> 它比响亮还要响。>> 没错。>> 正是。>> 没错。但似乎没人注意到产品阵容。你有 Model-S。你有 Model-X。>> 哦，对。>> 你刚刚为 Model-E 注册了商标。>> 对。>> 没人进入过那个。[多人同时说话]。>> 好吧，你怎么。>> 还有 Model，还有 Model [多人同时说话] Y。>> 对。>> 那么，这背后是什么？>> [笑] 我知道，正是。

嗯，这个，我想商标、商标法里有很多幽默，你知道吗？[笑] 因为，对，显然我们刚刚为“sexy”注册了商标。所以，而且，而且后来我们和，像 Ford 进行了这场、这场讨论，因为他们，第四委员会，他们也没明白。就像，因为，因为，他们算是有点反对我们使用 Model E。>> 嗯哼。>> 然后他们看到我们注册了 Model Y。

然后他们说，哦，你们打算用 Model Y 代替 Model E。就像，不，那只是个玩笑。[笑]。>> 对，我们不那么做。[笑]。>> 我们就像，这是什么铃铛？得了吧。[笑]。>> 太棒了。好吧，我们有没有，如果没有我就继续，但我们有没有给想提问的人准备麦克风？好，我们快速看看有没有人。哦我的天，是的。我们有一些，我们为什么不那样？

我们来听取观众的几个问题。[空白音频] 至于怎么分配，就让你们来想办法吧。>> [咳嗽] 非常感谢。我听您谈过超音速飞机。[咳嗽] 你们在 SpaceX 的 [未知] 方面做了一些很出色的工作，显然 Tesla 专注于电动领域。您有没有考虑过利用电动 MVTOL 与飞机之间的协同效应来解决 405 公路的挑战？[笑声]。

>> 为了解决 405 泡沫，嗯，我是说，我确实认为存在，存在一种 [多人同时说话]。>> 还有 VTOL，垂直起降。>> 对，是的，抱歉。垂直起降就是 VTOL。是的，我确实认为，确实有一种非常……就像，我认为最理想的空中运输解决方案是一架垂直起降、电动、超音速飞机。而且出于很多原因，这些特性实际上能很好地协同运作。

尤其是，你飞得越高，电动就越好。电动飞机的效率就越高。而如果是燃烧式飞机，随着高度上升，它的表现往往会变差。因为你会有一个孔径固定的进气口。>> 是的。

>> 发动机就是机体，而发动机前部是，是，是，是一个固定的粗细尺寸，所以你必须选定一个特定的巡航高度，因此你必须弄清楚，怎样从海平面一直到非常高的高空都获得适量的空气？然后还有超音速燃烧这个问题。也就是说，你得把空气减速，结果效率就没那么高。

但电动飞机只会随着高度上升而变得越来越好。而且电动机的部分重量比比燃烧式发动机更高。所以你会有，你实际上可以用相当小的电动机提供完成垂直起降部分所需的动力。与燃烧式发动机相比。然后你还可以去掉升降舵和方向舵。

所以，如果你把电动机装在万向架上，如果你让电动机能够万向转动，你就不需要后部控制服务了。>> 明白了。所以它开始看起来像豆荚式飞行器，像一架……>> 是的。>> 《遗落战境》之类的东西。>> [笑声] 对。而且它，它，是的。并不是，不完全是，真正的诀窍是，怎样让它拥有真正很长的航程，并且至少和现有飞机一样安全？我认为这方面实际上只有这 2 个问题。

[笑声] 但它们，它们很棘手。它们确实很棘手。>> 别低估这两个问题。[笑声] >> [笑声] >> 很好，我们来看下一个问题，或者谁拿着麦克风都行，无论我们要怎样公平高效地进行分配。能把麦克风递给他吗？好吧，不，我们已经有人了，很好。>> 嗨，yan kua jsv94。嗨，史蒂夫，[笑声] 好久不见。有一个问题，您，Tesla 会向全球扩张吗？

而且我想 jsv 明天会主、主持“中国 2.0”，您有没有计划进入当今最大的汽车市场？但我通过我的另一位朋友知道您有些担忧。实际上，几年前我曾间接问过您，您当时担心中国市场的秘密和仿效问题。您现在仍然对此感到担忧，还是已经有了策略？

>> 是的，所以，所以 Tesla 肯定会转向全球市场，事实上 Tesla Roadster 目前已经进入了大约 31 个国家，而且我们预计从明年开始向中国交付 Model S，也会向日本、香港、新加坡和澳大利亚交付。所以，确、确实，明年它的分布范围会相当广。当然，中国是一个极其重要的市场。

事实上，就豪华轿车而言，中国买下了全球豪华轿车市场的一半。所以。[多人同时说话]。>> 而且还在增长。>> 是的。拿下一些梅赛德斯 S 级的市场。但去年，梅赛德斯 S 级有 54% 是在中国售出的。所以这是一个相当重要的市场。因此，所以，我们肯定会在中国开展相当大的一部分业务。事实上，我们见过的一些最热情的潜在客户就是来自中国的人。

所以我们，所以我们实际上希望确保这款车确实具备专门针对中国市场的功能，并且确保我们不是，你知道，只把一款美国产品拿来，然后不做任何、任何改动就这样送到中国。所以我们希望确保它是为这个市场量身定制的。日本市场也是如此。

我不想 [未知]，你知道，很多，并没有多少美国汽车能在日本卖出去，但我认为那会是 [咳嗽]，就像，我们 [多人同时说话]。>> 很好的象征意义。是的，我是说，我认为我们应该认真对待日本市场，而且我认为如果我们把事情做好，我们应该能在那里取得合理的销量。所以，是的，这会在明年进行。[咳嗽] 我是说，至于仿制的问题，我认为那当然是一种风险。

我认为中国这些天实际上改善了很多，而且我，我认为新政府正在更加、更加认真地对待知识产权。所以实际上，我对这项、这项、这项技术不会，实际上不会在中、中国被仿制，开始感到越来越有信心，或者至少，你知道，情况正在变得好得多。而且，而且我认为在我们想建立本地生产之前，这不会成为太大的问题。

而且，那、那时我们需要确保把事情做对，并且不会激励我们在那里组建的工厂团队干脆跑到马路对面，建立一家竞争工厂。但这种担忧还是几年之后的事。>> 我们还有其他问题吗？哦，有。这里。学生大多在楼上。对吗？>> 对。>> 是的，这里。>> 嗨，艾伦，[笑声]。我是 [听不清]，一名 NVA 学生。首先，谢谢您。

这非常鼓舞人心，能够听到一段关于真正地，你知道，改变世界的经历。利用我们的，一种组织脉搏。您创建的这些、这些组织。希望会带来启发。我知道，已经，我也记得那部电影。而且，我想知道您能不能更多地谈谈您的经历，比如说，你知道，怎样平衡，你知道？您的利润与，你知道，追随之间的权衡。

一种不只是赚钱、更进一步的目标。你知道，您正试图改变世界。你知道，或者是为了人类，而不只是在短期内获取利润。>> 问题是什么？我不确定自己有没有听明白。>> 您怎样，怎样，您怎样平衡？>> 好的，怎样平衡。对。

>> 嗯，是的，嗯，我是说，首先我应该说，你知道，对所有这些公司来说，但，但我认为尤其是 SpaceX 和 Tesla，虽然它们今天的处境不错，但它们经历过一些极其艰难的时期。而且，事实上，就 SpaceX 而言，我预留的资金足够应对 3 次发射失败，或者承受 2 次发射失败，并让第 3 次取得成功。

而实际上我们经历了 3 次发射失败，我们勉强凑够了资金进行第 4 次飞行，而那次成功了。那是在 2008 年；同样是在 2008 年，史蒂夫知道，我们在最后一天的最后一小时完成了 Teslar planeting 轮。时间大约是 2008 年 12 月 24 日下午 6 点。如果当时没有完成，那个县就会在圣诞节后几天破产。所以，这些是，这，这。

>> 他没有提到的是，之所以能够做到这一点，唯一的原因是他开出了一张包含自己剩余全部财富的支票来拯救公司 [未知]，那辆车的毛利率是负数，而且情况并不好看。哦，而且你还有，你知道，你的大额问题所有者。>> 我们惹恼了他们，而且，你知道，他们还擅离职守。你知道。>> 是的。这很难看。>> 是的。[笑声] 那是一段压力很大的时期。>> [笑声] 而那还只是在工作方面。>> 是的。

所以，所以，所以有一段时间，真的不存在盈利还是非营利的问题。[笑] 当时就像是，我们得活下去。我们怎么活下去？我总是寻找主要挑战。而，而，而现在，我是说，现在我们到了这样一个阶段，可以说，好吧，我们，我们可以调节这个旋钮，我们，我们可以做到，比如说在这个时候获得中等数额的利润，或者少量利润。

所以，我们选择只赚取少量利润，因为我们可以把现金流再投资于未来的产品。所以，你知道，我们现在正把现金流再投资于开发 Model X，也就是一款 SUV，以及提高工厂的生产能力，并对将要推出的第3代汽车做一点前期规划。

一款面向大众市场的，一款可报告的、引人注目的电动汽车，所以，所以我想，这就是，在这个案例中，所谓的，不，不，关于，我们目前并不试图实现利润最大化，因为这，这，这会限制业务，限制业务的增长。而且会限制推动世界转向电动汽车这一总体目标。

所以，总的来说，我并不反对利润，但只是，只是，这不是——我是说，实际上我不认为这是明智之举。如果，如果有人计算未来现金流的净现值，我认为在这个阶段实现利润最大化实际上不是明智之举。>> 嗯哼。>> 你知道，这很有意思，因为之前我说过我们会再谈到这一点。

>> 你提到过，你的目标并不是创办一家，你知道，能让你最快赚到最多钱的公司。>> 对。>> 而且对你个人而言，财富几乎只是这些由热情驱动的活动所带来的副产品。以此类推，比如在资本投资领域。你知道，你可以寻找能最快赚到最多钱的东西，对吧？比如为社交媒体开发一个新的广告网络。但谁在乎呢？

>> [笑] >> 我是说，它确实根本没有以任何有意义的方式帮助世界，而有很多——从更长远的角度，如果你采用更长期的视角，有些事情可以去做，它们并不能回答短期问题，即今年或这5年期间什么能让我赚到最多钱，但放到20年来看。

人们不知道，讽刺的是，他最终可能赚到所有企业家中最多的钱，对吧，或者这些公司可能比那些不遵循同样的目标驱动、那种近乎救世主般热忱的同类公司更有盈利能力。所以，尽管平衡这个问题在很大程度上暗示了一种二分法，但这两者可能并不对立；如果你安排得当，它们或许是一致的。>> 对，也许就是短期方法与长期方法之别。>> 对，没错。

很好，我们这里有，我们这里有人举手？>> 这里？>> 这里还有一个？当然。>> 这里。这将是最后一个问题。>> 哦，这是最后一个问题吗？好的。>> 是的，从你们目前的汽车营销策略来看，可以说你们的汽车面向豪华车市场。所以。那是一个界定得相当明确的，市场。

你们有没有计划将其扩展到大众市场，比如说，制造一款面向大众的汽车，价格可能，也许在25,000美元到35,000美元之间？>> 是的，当然。>> 继续推进，是吧？>> 事实上，我写的第，第1篇博客文章，它有，是测试总体规划，就是先从昂贵的低产量汽车开始，然后转向中等价位、中等产量，再转向某种低价位、高产量。所以我们算是处于第2阶段。

而如果没有他们那一代的汽车，我们预计这款车的价格会在30,000美元至35,000美元左右。考虑到用电而不是汽油所节省的费用，这更像是拿它与美国约28,000美元的汽车相比，或者与欧洲约22,000美元的汽车相比。>> 而且维护费用低得多，燃料成本也低得多？>> 是的，当然。好的，太棒了。非常感谢你参与这次活动。

并转入我们的“奴仆”的第2个闭幕环节。>> 谢谢。[音效] 好的，埃隆，我谨代表斯坦福大学商学院和斯坦福校友会、商学院校友会向你表示祝贺。斯隆院长想向你颁发今年的年度创业杯。>> 谢谢，非常感谢。[音效] [音乐]

[SOUND]. >> Good evening and, Welcome to the Stanford Graduate School of Business. I'm Garth Saloner. I'm the dean here, at the GSB and it's my privilege to welcome you all, To this wonderful event, I want to thank, The award selection committee for. This really fantastic selection. As well as all of the companies who have supported us by sponsoring the event. This is the 36th event of its kind.

The 36th annual encore award reception and each of the award is given... To an entre, entrepreneurial company that embodies the spirit, innovation and unique culture of the companies that we're familiar with in in Silicon Valley. And so let me be the first to congratulate Tesla and Elon Musk for. The award this evening. [SOUND] I'm going, be brief before handing you over to, to Jeff.

But I did want to just spend a few minutes saying a little bit about the things that we've been doing here, at the Graduate School of Business. In the area of entrepreneurship and I'm very quickly gonna reference three innovations this year.

The first is we have an entrepreneurship course and have had for many years in which we put our students together in multi-disciplinary teams from across the university and they work on projects together and this year.

As a harbinger of technology to come we have for the first time flipped the classroom to Stephanos Xenios who teaches the class recorded what would have been the lectures and instead the students got to use the class time to be mentored and to work together on the projects and I think that's very much a sign of the times and, and the future.

The second is many of you will be familiar with a program that we offered here at Stanford in the summer and during the year which we used to called the Summer Institute for Entrepreneurship. We now call it Stanford Ignite. This is a, a program that at Stanford was aimed at graduate students at Stanford not in the business schools so it's students and engineering medicine, and life sciences, and so on who.

Might be starting a company or be working for companies that were innovating. And we'd give them a general management education. With an entrepreneurial spin. And this year we started to take that that program globally. So we offered a version of it in Bangalore, India this summer, and are in the midst of teaching one in Paris right now in a partnership with their called Politechnique. And that program too, makes heavy use of technology.

Most of the classes are actually, faculty being from the Snite Management Center... To those locations. The final thing I wanna, I wanna reference is again, many of you are familiar with SIIDE which is the Stanford Institute for Innovatiion and Developing Economies, an institution that we launched here at the business school about two years ago, it had a landmark event this summer.

When we opened our first Innovation Center in Accra, Ghana where we have in the first cohort, 29 local entrepreneurs who we are working with to help them to scale their businesses and it's a, it's a regional, a regional hub and a regional program with participants from, from five neighboring countries. So, lots going on at the GSB while we're. Helping to make entrepreneurial awards.

We're trying to do our bit to simulate the entrepreneurial ecosystem and in that vein, let me just say that in everything we do, we rely very very heavily on this community. You come into our classes to help teach and mentor our students... And and help us in a, in a whole variety of ways and, and we're extremely grateful. And and delighted to have you all with us this evening, thank you very much. [SOUND] [COUGH]. I'm Geoff Yang.

And I have the privilege of chairing the Stanford ENCORE Award Committee. So, you may ask, you know, how do we pick a particular company to win the award. And I'll tell you, we look at four things. You know, the first is companies that embody the entrepreneurial spirit. We look for companies that are doing something big, bold, and important.

I look for companies where the founder has or continues to play a very important role in the company's success. And we look at companies that have interesting stories, or who've, or whose founders are interesting personalities. So you might say, well how'd you get Tesla, then? It isn't quite. So. So the story of Tesla, you know, the so, you look how it stacks up.

And you say well Tesla was started by two engineers, Martin Eberhard and Marc Tarpenning who believed that electric vehicles could change the world. Okay, check. Tesla has succeeded in an industry where start-ups aren't supposed to succeed by incorporating novel design approaches to little things like concept design, and battery design, and body design, and drivetrain design, and manufacturing design, supply chain management, mass production.

Tesla is attempting to disrupt, disrupt an industry in which its competitors have massive scale and long histories. Okay check. Elan Musk, this is a company series, they are lead investor and now and chairman continues as its CEO and product architect, check. And finally an interesting story, will test those practically gone out of business, my understanding is a couple times and is now runaway success of the market cap of over $23 billion.

It's CEO was the inspiration for Tony Stark in the Iron Man series according to it's director. Check, check kind of an interesting personality. You get the picture. Tesla was the first US auto company to go public since Ford Auto Company in 1956. And despite having approximately 1% of the revenues of GM and Ford and BMW, its market cap is roughly a third to a half of these venerable brands. It's my pleasure to introduce Elon Musk.

Elon was a native of South Africa and studied at Queens University, University of Pennsylvania. And ultimately Stanford to pursue a PhD in physics. He started Zip2, a software provider, which was sold to Compaq, he co-founded X. com which was later renamed to something called PayPal which was acquired by eBay. He founded his third company SpaceX in 2002 and continues as its CEO and CTO. Which I hope he'll tell us a little bit about.

He's also the founder and chairman of Solar City and then in his spare time earlier this year he announced a proposal to form a new form of transportation he's working on called Hyperloop. But most importantly for the purposes of tonight's program he's CEO of Tesla Motors.

Tonight Telsa, I mean sorry, tonight Elan will be interviewed by my friend and fellow Standford encore award committee colleague, Steve Jervison, managing director of Draper Fisher Jervison. Please join me welcoming Steve Jervison and Elan Musk. [NOISE]. >> Someone will yell if we got this wrong.

I think they told us five times he sits there I sit here, and that just [INAUDIBLE] So before we start we're going to try to keep this a little casual and interesting as well as trying to get into the mind of musk a little tonight. It's a marvelous place to delve. You all have a chance to ask some questions later. So, you can start thinking about that now, I'll start with a few. But, as a warm-up.

And, I think this might be something you wanna, might like to see, About a year and a half ago, about Model-S ships, I remember him saying, sort of with a gleam in his eye, that he relishes the day that he'll be driving around somewhere around in Silicon Valley and see the Model-S on the road that's not. Like an employee car that's in testing, but like a real customer, like, that he doesn't know.

And so as a quick survey of hands, how many people saw a Tesla driving around Silicon Valley. And I don't mean the one sitting out there, that means you've seen multiple Teslas, right? I saw ten, I counted today, just. Now I have a short community, so that dream has become a reality, but what Tesla has done has become a marvel to watch.

>> So I think a lot of folks here, you know business students, students, friends of the firm, are really curious on how this all works and so if we could, start with some design questions and then some organizational people kinds of questions, but starting with design, as you think about the big problems in the world that you are addressing, do you start with.

A particular product in mind like there could be this Model S, there could be this Falcon 9. And then think How do I get there? Or do you start with saying There's something broken in the world and I'm gonna fix it. And I'm gonna commit to do it. Even if I don't know how to get there. >> sure. So, let's see. >> Is that on? >> Yeah. It seems, seems to be good. >> [UNKNOWN] when I was in college [UNKNOWN] in a positive way. So,.

But the three areas where, where I was quite sure we we're positive were sustainable energy, internet, and making life multiplanetary. And then there were a couple other areas where there's maybe a question mark, like the A. I. and writing genetics. [UNKNOWN] lesson? >> Yeah, rewriting genetics. >> Rewriting genetics. [UNKNOWN] [CROSSTALK]. >> Potentially negative consequences, hopefully positive. Something could go wrong. [CROSSTALK].

>> Top three and a couple contenders, or were they always kinda jumbling around? Speaker 1: Waiting for the right moment. Speaker 2: No, I just thought that, looking ahead, what's really going to have an important effect on the future of humanity as a whole, those were the five areas that I could come up with standing in the shower, basically, you know.

Speaker 1: So there' this moment of epiphany that you held onto for awhile because you didn't pursue those right away, because this was an early vision that you then got opportunities to execute on. >> Yeah.

>> So when you, maybe if we pick an example like Tesla going towards the Model S or SpaceX going towards the Falcon 9, do you commit the team yourself, your resources to that endeavor, you know, now a little farther along, when you have the end point in mind? Or. Just let's say the cost of goods analysis for the rocket or the cash ev should be better than internal combustion engines, just in general I'll commit. I'll believe that should be done.

>> I didn't really get into any of the swift with the expectation of success. Or at least... Yeah, I started out thinking okay, when I do something in the electrical vehicle space, and that's why I originally came to Stanford was to work on advanced energy storage technologies and take ultra capacitors. So that was continuing on research that I'd done as an intern in Silicon Valley the summer prior.

so, so that's, that's why I originally came out in '95. And then during that summer I read some internet software and I thought okay, I can either work on electric vehicle technology, or, or I could sup, support on internet stuff. try, try to do something with the internet. I thought the internet would be something that would. Dramatically affect the future of humanity be like, like acquiring a nervous system.

And whereas previously, communication would have to occur almost by osmosis, you know, from one person to another or slowly through telephone or mail or something like that. But now, if you have a nervous system, any part of the.

So human collective know, can know about any other part instantly and previously you'd have to be at the, sort of library of congress even to have the library of congress' sort of information but, with everything digitized and accessed anywhere you can be in a jungle in South America and. And if you had just narrow that link somehow, you could, you'd have access to all of humanities information.

So it actually, effectively create a super organism and, and fundamentally change the nature of humanity itself. So I was kind of, just wanna be kind of part of that, >> Is that the path to AI that you might see? >> It's, its actually not exactly AI, its, some sort of. >> human machine collective intelligence, so different, different from AI, although AI may not turn out to be exactly what, hopefully not.

Its not exactly what's, you know, like, described in Terminator or something, you know. >> No. >> [LAUGH] >> Quick pause for those who haven't been to Space 6. The data center has got to be the coolest thing you've ever seen. It's, you know, SkyNode on the door, Cyberdyne systems branding and what have you. [LAUGH] The most badass set of lights coming from all the little blinking servers. So these are the own it. >> Exactly. >> Yeah.

>> Our FEA and CFD clusters is, is called Cyberdyne Systems. >> [LAUGH] >> We'll get back to influences, later on, but I wanna try to see if I understand what you were saying about this, this you see the long arc of. And what's important is humanity not little problems, but huge problems that could be solved. A lot of us go around and we see something frustrating like traffic on the 405. And we just take it as, well, crap.

The governments screwed or behind it, right? You have this incredible, sort of scope of ambition, right, planetary scope, interplanetary scope, right? A little more than just changing the world. Let's change some other worlds too, right, and this is big stuff. Was that always in your mind or did that, did you become more involved in it over time that this is available. We can do these things. It definitely emboldened over time.

I mean, at the, you know, when, when I started the first, internet company. It was '02, with my brother and an, another person, Gregg Curry. The, it wasn't really with the thought of being wealthy. It, you know, I've got nothing against being wealthy, but, [LAUGH] [LAUGH] >> We'll get back to that later, too. [LAUGH]. >> [LAUGH] But, but it's just, it, it was just from the standpoint of been wanting to be a part of the, the internet.

And I, I, I figured if we could make enough money to just get by, it will be, that'll be okay. and, and, and when we started off, we had, we had, we actually only had, like, one computer, and so it'll be our web server during the day, and our code at night. And we, we just got a, a small office in Palo Alto back when rent was not insane. and. it, it costs us like $450 a month.

It was cheaper than an apartment, so we actually just slept in the office and then showe, and then showered at the YMCA. [UNKNOWN] So we'd walk over there and, and shower and and that was actually I think that was when I fir, we fir, I first met you by the way. And so, [UNKNOWN] probably not many people know this, but we actually pitched Steve in like January 96 on the, the zip 2 business plan.

And actually I thought, Steve was actually one of the most up to speed on, on, on what was actually was in our business plan. Most, most people we met did not actually read our business plan. In fact, a lot of people [UNKNOWN] time, didn't even know what the internet was. They had never used it, [CROSSTALK] they didn't think it would amount to anything. >> I'm sure, I'm not sure if they still do. [LAUGH]. >> Yeah, right.

Yeah, I'm sorta like you know, sort of like well known people in San Hill. I was like wow, okay. But at, at the time nobody made any, any money on the internet so I guess that's you know there wasn't any clear evidence that there, there was, was a business. And yeah, >> Those were fun times, I remember Kemball and you coming in. Very young looking guys. [LAUGH] I think I was on my first four months on the job too.

>> Yeah, yeah, exactly, so >> So, let's just [UNKNOWN] for a second. I've I've also had the great honor to work with Steve Jobs briefly. But enough and as a business school student to study him with as much scrutiny as I could during that period. And there's some obvious parallels. And so let's start with the most obvious. But, just must be like elephant in the room. Is the secret to your success to be the CEO of two companies at the same time?

>> No, I think it's >> Because look at the correlation. >> Yeah. >> Struggling companies, everything's in the crap can in December 2008, so let's take on a new CEO gig, [CROSSTALK] and same for Steve coming back to Apple. >> No, def, definitely it was not my intention to be CEO of two companies. I mean [INAUDIBLE] there are certain things that I kind of wanted to, that I thought were important to happen, and I thought it was important that.

That there was. The, the, an electric vehicle happened. That there was success in the electric vehicle arena. Because the, it, the encumbered companies were convinced that it was not possible to create a electric car that looked good. That had a good range and performance and so forth, And that even if you did make such a car it would not sell.

Because people had this love of gasoline, and so we had to show that it was possible to create a compelling electric car. Long range, good looking, you know, tho, those things, that was the Tesla Roadster. And if you created, if, if you made such a thing, people would buy it. And so that, that's what we, we tried to do with, with, with NASA. In, in fact I should try to say, one minor sort of correction on the introduction.

I'm not a, I'm not co-founder of Solar City, but I am a co-founder of Tesla. [LAUGH]. >> It's okay, that's a good point. And [CROSSTALK] of many of it's key features. >> Yeah. >> Very much like Jobs. Both handled some of the detail as well as the long arc of what's important for the company. >> Right. >> [UNKNOWN] CEO is, is more than just a joke in that I wonder if in ways that are hard to predict and you wouldn't set out.

For this amount of work, it seems insane. But inevitably, both companies can not expect more than half your time at most. It's sort of naturally forces a delegation upon you and an expectation that you have to rise up for partial awareness at best, right? >> Yes. >> And I just wonder if that helps drive prioritization and really focusing on what's important a bit more than you otherwise might have to.

>> That probably does, yeah, I think I probably do, yeah, I mean [UNKNOWN] the things that I do, at each company and constantly think about what is the most useful thing that I, that I could do. But even with that it still actually does take an enormous amount of time for a while there I was just doing constant 100 hour weeks. And that's, that's definitely weary. And, and now I'm kind of the in the 80 to 90 which is more manageable.

but, but you know that if you divide that by two, it's only like, you know like 45 hours per company which is not, is not much if you with a lot of things going on. >> You're like a slacker. I mean. [LAUGH]. >> Yeah. >> So you know, it is interesting also how you have a love for certain aspects of the product, so at space X, the whole concept and the vision of going to mars, and back into features and stuff. It's a wonderful thing to see.

I think what should obviously strike the folks in the room as remarkable is the diversity of industries that you've tackled, right, from commercial banking to, industrial complex to the automotive industry these are heavily regulated industries. The general investor [INAUDIBLE].

So, there might not be a, an obvious pattern in which industry you tend to strive in but I wonder if there's a pattern process like do you, approach each of these perhaps the way a software architect might. To think of, a different way to bring innovation. A different way to reset you know, from first principles perhaps instead of iterating from the past. A breakthrough. And is there a reason you end up in these otherwise really tough industries?

I mean, I don't have [INAUDIBLE]. Even on solar city going up against regulated utilities. These are places that you'd normally find entrepreneurs? >> yeah, like I said, it was not from the stand point of like what's the best risk adjusted rate of return or you know, what I think if things could be successful. Just like I think these things need to happen. Try to make them happen, and so then when we started space X which has the.

I, I thought that the probability of success was less than the property percent, They were probably up there, but less than, a few percent. In the case that's on the study, I thought the probability of success was probably greater than 50%, but it wasn't clear what lying true to success would be, you know. >> Mm-hm. >> It could just be small, And, Yeah, but, but it was I mean just thought these were things that needed to get done.

And even if the money's lost, okay, it's a little worth trying >> See conviction, but it didn't mean certainty. Right? >> You knew that all vehicles would be electric in your heart, >> Ultimately, ultimately yes. >> but not that the [UNKNOWN] necessarily succeed. >> I mean I think there's a fundamental good that Tesla. What can accomplish is acceleration of the, of the inevitable, which is electrotransportation. >> Mm-hm.

>> But I think there's, there's a lot of value to, to accelerating, even though I think it's somewhat inevitable, there's value to accelerating to minimize the environmental and economic damage that would otherwise occur. >> Mm-hm. >> So. You know, it's better if, if we transit, transition to sustainable transport ten years or wha, what may be 20 years sooner than might otherwise be the case.

And I think the Tesla's effect has been much greater than the cars made, that's been made internally because when we announced that Tesla roadster, then above lights. Who's [UNKNOWN] leader of GM at the time. So, are press released, I said, if a small company in California can do it, then, and so can GM. They took it to his engineers who told him that, that you couldn't build electric car. And, told them that they need to get going.

That's what got the boat rolling. And that in turn got Nissan to believe. And, and so, it's, kind of, got the, got, got things going. and, and ultimately it's like it's what we induce other companies to do that will have a greater impact on the cars we make ourselves.

>> You know, it's an interesting point I'm gonna come back to later this idea that Tesla's founding missioners as [INAUDIBLE] particularly from the very beginning through the most recent reports to the public is to catalyze an industry shift that Tesla will be some part of, but at some part will help others in that shift as well. Which is remarkable from. And so. >> Yeah. >> We supply power trains to Toyota and to Mercedes and that type of thing.

>> So what could you give to your biggest competitors one day. Eh, you know. >> Yeah. Absolutely I can accelerate that. >> Before we get to that sort of purpose driven mission I do wanna ask, or at least make sure the audience realizes how cool this car is, and so [UNKNOWN] doesn't have to do this. In case you haven't been as much of a fan as the two of us it's a bit unprecedented the reviews it's received.

It's a bit unperson the reviews received is saying it's the best car they've ever tested, [INAUDIBLE] saying it's the most important car in America's history. Um,the safety testing shows it's the most safe car ever manufactured. By far including vans and SUVs. And so it's pretty remarkable to peg performance, desirability, safety, and all these parameters.

So, is it luck or is it something particularly unique about the EV design space that let it be possible to build the best car? >> Well I like to think it plays some roll here. But I think we, I think electric vehicles have a fundamental [INAUDIBLE] advantage. If, if one designs an electrical from the ground up, and takes advantage of, of what's possible.

Like if you just were to convert a gasoline car, you would not you would not achieve these advantages. But if it's properly done you can actually. Package the battery pack in a full pan and achieve a low center of mass and, and have a very compact motor and, and a motor and cable box so that the actual useable space in the car is significantly greater than a gassing car of the same overlook ex, excel dimensions. and.

And then if you do a few other things, we try [UNKNOWN] necessarily specifically related to an electric car like using aluminum body and chest is helpful because you can absorb more energy per unit mass essentially in a crash. >> Like a [UNKNOWN] >> Yeah exactly. well, so it, yeah, quite part of it is related to [UNKNOWN] and part of it is related to other technical decisions that,that we made in the design of the model S.

And so, yeah, that's what leads to sort of having a high safety is, I mean I don't want to go into too much because it might take up too much time, but. >> Did you know some of those things at the get go or did they unveil themselves as you went along? I'm just curious... How the vision materializes. For example, either the product dimensions, like it will have all these great features, like, like at the get go did they all gel?

And the second thing, am also curious when did you first know that all vehicles would be electric? Like, was that early? >> That was probably 22 years ago, something like that. >> Before you met Tesla? >> Before there was Tesla. >> Before there was, way before there was Tesla. Oh yeah. Well like I said, You know, when I originally came out. When I, I mean when I was studying physics and That's probably when I, I thought it was the case.

Or maybe, no sooner than that. Probably when I was in my. Sophomore year in college. >> Did you have certainty in your heart? >> Yeah, absolutely. It's super obvious. >> Yes! Yes! [LAUGH] Now, yes, now it is. [UNKNOWN] >> I think it was super obvious then, but >> Yeah, this is what blows my mind, because even like three years ago, most people probably didn't agree with this point of view.

And if I could be confident of any prediction I could make it's that within 10 years, all people. What were the others' point of view? But we want to make the transition yet, but we realize that this is a ridiculous debate to be having. >> Yeah. >> You were along voice of sorts back then, probably amongst your cohort and friends, and you know, social factions [CROSSTALK]. >> Yeah I used to talk to, like dates about electric cars.

>> How did that go? >> It wasn't, wasn't helpful. [LAUGH]. >> It got better? >> [LAUGH] yes [UNKNOWN] and [UNKNOWN]. And she said no, I don't. [LAUGH] So yeah, that's a while back. I mean, it's pretty, i mean almost everything is electric that we have in our daily lives. >> Well, from the physics of it, the heat loss of an internal combustion engine. Pretty amazing, it's pretty amazing. >> Yeah. >> So.

I want to share a little story that leads to a question along a different angle. I don't think you've heard this before, but I find it fascinating. I was at a lunch at a Google event, and out of the blue, with no expectation that this would be a topic, and Larry Page turned to me, knowing a little bit about our connection and said, you know...

>> How much money do I have and he mentioned a number, I thought that was cute that he was trying to recall that. He goes you know if I were to get hit by a bus today, I should leave all of it to Elon Musk. >> Really? >> Yeah. >> He said that? [SOUND]. >> Yeah. And so I'm like, paper, pen. Please get this down on. Yes, so he likes zingers. >> I love that actually. He's a good friend of mine. >> Context is important.

>> I met Larry before he got venture funding. So that's like 90. >> Back in the [INAUDIBLE] days? >> Yeah. Wow. >> Well he's a remarkable guy. Obviously also an underachiever and you know, has a company that wants to do good in the world.

And I think he looks at you with a bit of envy because what he then proceeded to say was, you know, I could give my money to a non profit and a lot less would get done than a cooperation that's pursuing things that are directly aligned with things I care about. Like, getting of, of oil and colonizing other planets. He believes in those missions. And thinks.

That a corporation with endowed with the right to do that as its business purpose is the best vehicle out there and he wishes he could do more of that in his own life. He compared poignantly, I think, to some other software companies in the pacific Northwest who might have executives who do evil for their first part of their career then do good for the second half. And then the sad story of others who never got to the second half of their life.

>> Right. >> Like, like Steve Jobs. I mean not in a joking way I mean seriously and, and it was a very deep moment so you've heard already that [UNKNOWN]. [CROSSTALK]. >> [UNKNOWN] in fact, I [UNKNOWN]. And then I, I got a little bit of, some of the board members to question that segment [LAUGH]. And I was like, well it's true, you know. >> You mean like, for now or like just, just like we are growing. But no, it's just not the priority.

which I think in a business school really a good point to dwell on for a moment. [LAUGH]. >> Yeah, it's not that, that I think they're unimportant or anything. It's just not the primary goal. >> Sure. >> And actually I've told that to people [UNKNOWN]. And so it's not like new information, or at least you know, if you're, if you're people who watch the [UNKNOWN] information and yeah and actually amazing the stock went up after that.

[LAUGH] [INAUDIBLE] >> I th, I think there's a profound reason. I mean, you, you see the benefits on being focused on something that's a higher calling as your primary motivation. Your employees love it, the customers love it, [CROSSTALK] others love it, and you feel better about your job.

The interesting thing, irony perhaps, is that at least within our portfolio, the companies that have that kind of a founding principal actually make more profit and grow their revenue more quickly than the ones that don't. And now there's this little sample set, but the handful that had taken this bowl to the step, to say no, no, no, that we will not make that our number one priority. Actually do a great job.

And it occurred to me, and I don't know if this was conscious in your head at some point. That if you weren't widely profitable, the auto industry wouldn't follow you. In other words, this whole mission of catalyzing a shift to new electric vehicle isn't gonna work if the business model's worse than the current business model. And so,. >> Yeah. >> You know, it's, it's the obvious byproduct of what you're focusing on.

They're not obvious, but it occurs to me that it's a byproduct. It wasn't obvious at first at all. [LAUGH] But and I'm curious that that thought occurred to you, that oh yeah, the other profits will come, or eh. >> Yeah. well, we have to generate flows of cash flow, or, or we have to generate enough cash flow to fund future developments, which requires having a good gross margin.

and, and so I guess one could just say okay, well we're gonna stop developing your product and then you'd be really profitable. So at any given point, you could sort of say we'll, we could be profitable you know at this point in, in a significant way but, but we've got these great things that we wanna develop for the future and they're a good investment and that's what we're doing.

And similarly, at Spacex the, you know, the founding vision was to colonize Mars. >> Yeah. >> indirectly. Again, interestingly catalyzing others to move. >> Yeah. >> And then you realize hey, I've gotta actually lead this charge. >> Yeah, well, I mean when Spacex, originally, I started off just thinking, well, how do I, increase NASA's budget? Actually, that was my goal. >> [LAUGH].

>> so, it was, it was like, 2001 I was just, just talking to a friend of mine, and the guy asked me, he asked me what I was gonna do after Paypal, and I thought well, you know, I was wondering like, I'd like to get involved in space, but I, I just didn't think there's anything I could do as an individual.

And, but I was curious as to when we, when we, NASA would be sending a, a team to Mars, 'cuz that was always gonna be the thing to do after the moon. I figured that, that there'd be some plan and I'd just go to the website and I could read, you know, the schedule [LAUGH] and then [CROSSTALK].

Oh yeah, it's like okay, 2017 good, okay, [LAUGH] but it, but actually there wasn't actually on, on the website and [LAUGH] at least I thought like, can I not find it, like what's going on in here. And is a secret, I don't know.

so, but it turned out that that NASA had done a study on what it would cost to send, to do a manned Mars mission and I, this was under Bush the first and I, he in his, in his first he asked for a 90 day study shortly after taking office. And NASA came back with a $500 billion price tag. And he said, okay maybe not. [CROSSTALK]. >> [INAUDIBLE]. >> That's when $500 billion was serious money [LAUGH] for the government.

So so, so then that got totally shelved, and it was like you were not allowed to talk about any kind of crewed mission to Mars at NASA and anyway, so I, I, but I thought well, if I can do something that would galvanize public interest, that, and and then that public interest would translate to, additional appropriations for NASA, increase their, their budget, then, then maybe they could do it.

So the fir, so actually, what I sort of thinking I, I would do is send out a small greenhouse to the surface of Mars with seeds and dehydrated gel and then up, upon landing, hydrate the gel and grow the plants, and the public test respond to precedence and superlatives. So this would be the furthest that life's ever traveled.

The first life on Mars, and you're gonna have this great shot of green plants on a red background and I thought okay maybe that would get [INAUDIBLE]. >> The money shot. >> That would be the money shot, yeah. I, I'm never quite sure if that's a sort of a word you can use or not. >> [LAUGH]. >> Yeah, I, I, I don't, I don't know it's origins until somebody pointed it out to me, but. [LAUGH] so. [LAUGH].

>> Okay, moving back to that green house on Mars. Yes, the photo is out there, and it is. >> Yeah, see the photo is out there. >> Yes, loved it. It was a great photo. and, and Okay, we'll make this happen and it will be good. At best, they'll get the money and we could do the, they could sort of send a, a team to Mars and it would be great. So I try, try and figure out how to do this with the proceeds that I had from, from PayPal.

And I was able to figure out how to get the cost of the, the spacecraft down and the communications and, and, and the little greenhouse and everything. But the one thing I couldn't compress was the cost to launch. 'Cuz here're only a few options and the US options are way too expensive, and so I ended up going to Russia three times to try to buy the, the biggest ICBM in the Russian nuclear fleet. [LAUGH]. >> That's where I'd start, yeah. >> Yeah.

>> Go big or go home. >> That was I mean, okay, [LAUGH] you know. The, the, it was, it was there was some strange trips that's for sure. [LAUGH] But you know, there's like virtually, like you buy any, it's a very capitalist society [LAUGH] in some ways. So, so I actually did negotiate a deal to [LAUGH] to buy two of the ICBMs minus the nukes. And [LAUGH] but, but I came to the conclusion that that third trip that it, it wouldn't really matter.

Like, if we, if we, I actually came to the conclusion that my initial premise was, was, was wrong. >> Hm. >> Because I actually think there's, there's tremendous amount of will in, in the American population particularly to explore United States you know maybe more than any other country is a distillation of the human spirit of exploration.

And it's really fundamental to psyche so, if he will think there's a way, I think we'd actually get a lot of support. >> Mm-hm. >> but, but, then it, it can't be just banging your head against the wall. You gotta believe that this can be done without breaking the federal budget. so, that's where I said okay, well, is there some way to affect the cost of space transport?

And and, is going and, and so I, I, I got together with a group of people over a series of Saturdays just to, just trying out [UNKNOWN] there's something super, ex, fundamentally super expensive about rockets? Or, or, can the class be, substantially improved?

and, I had, we had a bunch of those at our brainstorming sessions and I couldn't see, I couldn't see any fundamental obstacles to improving the cost of rockets, so, that, that's when I started SpaceX. >> I think I'll just build 'em myself. [CROSSTALK]. >> Yeah. >> And then, all [CROSSTALK]. >> But I'd said, at that point I would say the, the probability of success was definitely less than 40%. I thought it would most likely not succeed.

But was worth a try. >> But it's fascinating the, the parallels are, are so many between these companies. As again, probability is low. >> Yeah. >> Certainty that it needs to be done, >> Yeah. Certainty that it could be done by [INAUDIBLE] physics and first principles that it's success is an option, right? It's one of the possibilities. And interestingly starting with a Roadster and a Falcon 1 as a proof point to a larger design. >> Yeah.

>> You know as I look at the falcon 9, and, it looks like the product of a software engineer. >> [LAUGH] right. >> Modular reuse, like let's build one engine and step and repeat. And building all kinds of elegance into the system design to obstruct away, you know, almost from the hardware into the software, into the design, the beauty of the system.

And, and I wonder if that's why incumbents don't see that sort of re-engineering of the, of the car or the rocket or the what have you. The hyper loop is this, they don't approach it in that kind of blank sheet of paper. How would you do this if you didn't have to create jobs across districts? >> Yeah. >> Or you didn't have some other ulterior motive. Interesting.

Looking at the time, I wanna give a, I'm gonna ask one last question, but I give a heads up on if there's mics to start getting them ready for the audience. Cuz I don't wanna monopolize, people's time here. Actually there's so many questions I wanna ask. But, but I'll, what I'll start with [INAUDIBLE] and here for at least [UNKNOWN] some of the quirky one about influences.

So you [INAUDIBLE] we've heard about the, the iron man reference and your childhood interest in comic books and [UNKNOWN] the galaxy and [INAUDIBLE], but there's all kinds of things woven into like Cymbeline systems that, that SpaceX that we heard and then some Easter eggs. So, Some of us noticed that the story goes to 11. >> Right. Yeah. >> On the, on the Tesla. This is a Spinal type reference for those who know [UNKNOWN].

This one goes to 11 and we just, just one more. >> It's louder than loud. >> That's right. >> Exactly. >> That's right. But noone seems to have noticed the product line-ups. You got the Model-S. You got the Model-X. >> Oh yeah. >> You've just trademarked the Model-E. >> Yeah. >> No one's been in that. [CROSSTALK]. >> Well what do you. >> And the model, and the model [CROSSTALK] Y. >> Yeah. >> Now, what's behind this? >> [LAUGH] I know, exactly.

Well this, I guess there's a lot of humor in trademark, the trademark law, you know? [LAUGH] 'cuz yeah, obviously we just trademarked "sexy". So and, and then we're having this, this discussion with the, like Ford, 'cuz they the fourth council, they also didn't get it. Like, 'cuz, 'cuz, they're, they're sort of slightly opposing us using model E. >> Mmh. >> And then they saw that we registered model Y.

And they said, oh, you're planning to use model Y instead of model E. Like no, it was just a joke. [LAUGH]. >> Right, we don't do that. [LAUGH]. >> We're like, what is this bell? Come on. [LAUGH]. >> Fantastic. Well do we, I'll keep going if we don't, but do we have microphones for folks if they wanna ask questions? Okay, let's do a quick see if anyone. Oh my gosh, yes. We have some, why don't we that?

Let's take a couple of questions from the audience. [BLANK_AUDIO] And I'll let you guys figure out how to do the allocations. >> [COUGH] thank you very much. I have heard you talk about, supersonic aircraft. [COUGH] you guys have done some beautiful work at Space-X on [UNKNOWN] clearly Tesla is, is focused on electric. Have you thought about the, the synergies of electric MVTOL and aircraft for solving the 405 challenge? [LAUGH].

>> For solving the 405 foam, well I mean, I do think there's, there's a [CROSSTALK]. >> And VTOL, Vertical Take Off and Landing. >> Yeah, right, sorry. Vertical take off and landing is VTOL. And yeah, I do think there's, there's a really, like the, I think the optimal sort of air transport solution is a, a VTOL, electric, supersonic plane. and, and actually works together quite well for a bunch of reasons.

You in, in particular, the higher you go, the, the better the electric. The more efficient the electric aircraft is. Whereas if you have a combustion aircraft as you, as you get higher it gets, it tends to get worse. 'Cuz you have kind of a fixed aperture and air scoop. >> Yeah.

>> The, the engine is the hull and the front of the engine is, is, is, is a thick size and so you have to pick a particular cruising altitude and so you've gotta figure out how do you, get the right amount of air at sea level all the way through really high altitude? And then you've got this issue of supersonic combustion. That, you know, you see having to slow the air down and it ends up being not, not that efficient.

But an electric aircraft would just get better and better as, as it got higher. And the electric motors have a higher part of weight ratio than a combustion engine. So you're gonna have, you can actually have the power to do the vertical take off and landing part with a fairly small motor. Compared to combustion. And then you could get rid of the elevator and and rudder.

So you, you don't need the rear control services if you gimballed in, if you gimbal the motor. >> Gotcha. So it starts to look podcraft, like a. >> Yeah. >> Oblivion or something. >> [LAUGH] Right. And it's it's yeah. It's not something, not quite, the, the real trick of it is like how do you make it really long range, and at least as safe as existing aircraft? Those are really the only 2 questions on that front I think.

[LAUGH] But they're, they're tricky. They're certainly tricky. >> Don't underestimate those two questions. [LAUGH] >> [LAUGH] >> Great, let's go to the next one or whoever has a mic however we're doing the allocation fairly and efficiently. Can we give him a hand? Okay no, we have someone, great. >> Hi, yan kua jsv94. Hi Steve [LAUGH] long time no see. One question, are you, is Tesla going to expand worldwide?

And i think jsv is going to ho, host China 2. 0 tomorrow, and do you have any plans to go into the biggest car market today? But I know you were a little concerned through another friend of mine. I actually asked you indirectly a few years ago, that you were concerned about the the secret and the parroting in the Chinese market. Are you still concerned about that or you have a strategy?

>> yeah, so, so Tesla's definitely gonna shift world wide, in fact the Tesla roadster is like in 31 countries right now and we, we expect to, to ship the, the Model S to, to China starting next year, as well as to Japan and Hong Kong and, and Singapore and, and Australia. So, sp really it's gonna be quite widely distributed next year. And certainly China is an extremely important market.

In fact, for premium Sedans, it China's bought half of the world market, for, for premium Sedans. so. [CROSSTALK]. >> And growing. >> Yeah. Take some of that Mercedes S Class. But last year 54% of Mercedes' S class' were sold in China. So pretty important market. and, so, so, we're gonna definitely do a major portion in, in, in China. And then actually some of the most enthusiastic potential customers we've seen are people from China.

So we, so we actually wanna make sure that the car actually has features which are specific to the Chinese market and, and make sure that it's not just, you know, taking an American product and you know just sort of sending it to China without any, any changes. So we wanna make sure it's tailored to the market. And Japan as well.

I don't wanna [UNKNOWN] you know, a lot, not many American cars sell in Japan but I think that would be [COUGH] like, we [CROSSTALK]. >> Good symbolism. Yeah, I mean like, I think we should take the Japanese market seriously, and I think if we do things right, we should have reasonable sales there. So, yeah, so that's going to be next year. [COUGH] I mean as far as copying stuff, I think that's certainly a risk.

I think China's actually getting a lot better these days and I, and I think the, the new government is taking, taking intellectual property a lot more seriously. So I'm actually starting to feel more and more confident about the, the, the technology not, actually not being copied in Ch, China, or at least you know, it, it getting much better. and, and I don't think it's going to be too much of an issue until we want to establish local production.

And, that, that's where we need to make sure that we do it right, and it's not an incentive for the factory team that we established there to sort of, go across the road and create a competing factory. But that concern is a few years away. >> Do we have another one? Oh, yeah. Up here. The students are largely upstairs. Is that right? >> Yap. >> Yeah, up here. >> Hi, Allan [LAUGH]. This is [INAUDIBLE], a NVA student. First of all, thank you.

This is very inspiring, to hear an experience about actually, you know, changing the world. Using our, an organizational pulse. The, the organizations that you created. hopefully, we'll inspire. I know, already, I remember the movie as well. And, I was wondering if you can tell us more about your experience about, like, you know, how to balance, you know? The trade-off between your profits and, you know, following.

Purpose that goes further than just make money. You know, you are trying to change the world. You know, or for the humanity rather than just make profits in the short term. >> What was the question. I'm not sure if I got? >> How, how do, how do you balance? >> Okay, how do you balance. Right.

>> Well, Yeah well I mean first of all I should say you know with with, with, with all of the companies but, but I think particularly space x and Tesla although they're in a, in a good position today they, they went through some super tough times And, and in fact, for SpaceX, I reserved a capital to do, to have three launch failures, or to withstand two launch failures, and have the third one be a success.

And actually we had three launch failures, we were just able to scrape enough money together for a fourth flight that succeeded. In 2008, and also in 2008, Steve knows, we, we got the Teslar planeting round done on the last hour of the last day. It was like 6 pm, December 24, 2008. If we hadn't gotten it done then, the county would have gone bankrupt a few days after Christmas. So, these are, this, this.

>> What he's not mentioning is, the only reason that happened is he wrote a check for the remainder of his wealth to save the company [UNKNOWN] the car had a negative gross margin, and its not pretty. Oh and you had, you know, your large issue owners. >> That we pissed off, and you know, going AWOL. You know. >> Yeah. This is ugly. >> Yeah. [LAUGH] It was a stressful period. >> [LAUGH] And that was just at work. >> Yeah.

So, so, so for awhile there really wasn't a question of profit or non-profit. [LAUGH] It was like, we need to live. How do we live? I always look for the main challenge. and, and, and now I mean, now we're at this stage where we can say okay, we, we can shut the dial between, we, we could make, let's say at this point a medium amount of profit or a small amount.

So, we chose to make a small amount, because we can reinvest the cash flow into future products. So, you know, right now we're reinvesting the cash flow into developing the Model X which is an SUV, and into increasing the production capacity of the factory, and doing a little bit of advance planning on the third-generation vehicle that'll be.

A mass market a, it's a reportable compelling electric car, so, so that's, that's really I guess what, what's meant by, in, in this case, not, not, concerning, we're not trying to maximize profit at this point, because it, it, it would constrain the business, the growth of the business and. Constrain the overall objective of transitioning the world towards electric cars.

so, I got nothing against profit in, in general, but it's just, it's just, it's not I mean I actually don't think it's the smart move. If, if one were to take net present value of future cash flows, I think maximizing profit at this stage is actually not the smart move. >> Mm-hm. >> You know, and it's interesting, because earlier I said we would get back to it.

>> You mentioned that, your goal was not to start a company that has a, you know, the chance of making the most money for you the quickest. >> Yeah. >> And that the wealth personally is almost a byproduct, of these activities of passion. And by analogy like in the investment field in capital. You know, you could look for the thing that will make the most money the quickest, right? Like a new ad network for social media. But who cares?

>> [LAUGH] >> I mean, it really just doesn't help the world in any meaningful, and there are much, over the longer, if you take a longer term perspective, there are things you could do that don't answer the short term question of what's gonna make me the most money this year, or this five year period, but over 20 years.

Folks don't know, ironically, he may make the most money, right, of any entrepreneur, or these companies might be more profitable than their cohort that doesn't follow the same purpose driven, kind of, almost messianic zeal. So, though the balance question most implies a dichotomy that may not be opposed, but may be aligned if you orchestrate it right. >> Yeah, maybe of a short time of a short term versus a long term approach. >> Yep exactly.

Great, we have, we have a hand up here? >> Up here? >> Another one up here? Sure. >> Up here. This will be the last question. >> Oh, is this the last question? Okay. >> yes, from your current car marketing strategy you could say that your cars are directed towards the luxury car market place, so. That's a fairly well-defined, market.

Do you have any plans for expanding it to the general marketplace, to, say, make a car for the masses, which might be, may be in the $25 to $35,000 range? >> yeah, absolutely. >> Keep pushing it, huh? >> In fact, the, the fi, first blog piece I wrote it has, was the test master plan, is to start off with an expensive, low volume vehicle, then go to a mid priced, mid volume, and then sort of low price, high volume. So we're kind of in phase two.

And without their generation vehicle, we expect to be somewhere in the $30-$35,000 range for the car. Which when you take into the account from the savings from the use of electricity instead of gasoline, is more like comparing it in the U. S. to about a $28,000 car, or in Europe to a $22,000 car. >> And the maintenance is much less, the fuel costs are much lower? >> Yeah, absolutely. Well great. I want to thank you very much for this.

And transition to the second closing segment of our minion. >> Thank you. [SOUND] Well Elon, congratulations on behalf of the Stanford Graduate School of Business and the Stanford, Alumni Association, Business School Alumni Association. Dean Sloan would like to present you with this year's Entrepreneurial Cup of the Year. >> Thanks, thank you very much [SOUND]. [MUSIC]