Foreign Foreign? Hello hello, hello, What is going on? I Hope you guys can hear me All right. I Was sitting here watching the markets and I was seeing what was going on on Finn twit And then I saw an interesting tweet from Mr Elon Musk that he's about to do a live interview and I figured why not just check it all out together? So this should be very, very interesting and it should actually be starting pretty momentarily. Henley and Elon Musk needs no introduction. We just flashed up the forward-looking statement Disclosure: Please refer to Twitter's forward-looking Statement Disclosures: Uh, more recently, research conference website please refer to Tesla's public disclosures from their investor day because it'll be a little bit about Tesla here today.

and with that, why don't we go ahead and bring you Elon Musk Direct. He doesn't get a lot of chances to speak directly to investors for this private company. Um, Twitter So we're going to do that with you directly here. Today First is the mission.

If you want to call it that, this is what we've heard you say: Promote Protect Public conversation Town Square The Internet. How would you describe it? The mission of Twitter 2.0 under your ownership Elon So the the goal is to have Twitter be the best source of Truth the most timely and accurate source of Truth Uh, even if the truth is someone we don't want to hear or unpleasant or whatever, but have it be timely and accurate and really, just where you can really understand what's going on and not just um, is something true or not. but but what is the narrative? So the thing that I think most people don't probably you do, but most people don't quite appreciate is that the media controls the narrative. So there are many things that could be talked about in the world, but only a few things can fit on the front page.

So, but Twitter doesn't have a limitation like that. So the the public can control the narrative and the public can inform themselves as to what the narrative should be. That that's a really big deal. So it's a forum for called citizen journalism or for the public to get together and communicate in a way that was never possible before.

Um, so you can really know what's going on. Uh, so I I Think that that's really going to be essential for a functioning democracy. So say like, what is the Bedrock of uh, functioning democracy? Um, it it has to be free speech? Um, and a Level Playing Field Um, that's why it's the First Amendment was the first thing they did like. We've got to think we've got to make sure.

Freedom of speech? Um, and why did they do? That is because where they came from, there wasn't freedom of speech. And once you lose freedom of speech, you don't get it back. So that's why we must protect it at all costs. Thank you on the core principles if we want to call them that.

You just went over citizen journalism part of the people in a Level Playing Field uh that's what you mean by Democratic We've also heard you say core principles of authentic, informative, and entertaining accurate. You just went over and and brand safe. Um where are you on these Yeah, I mean I think the some of these are um you know a little uh at odds you know brand safe. I Think it really means like where where advertising is displayed that the advertiser gets to to choose what material is near that advertising.

So if it's something you know, uh if it's some sort of like a like a train accident or a a war scene then probably a family friendly brand is not going to want to advertise right next to that. you know or you know it can't be like um, here's a oblique war scene. would you like to buy a hamburger would be like awkward, you know. um so that's understandable.

You want to put advertising next to content where it makes sense. Um, but but the content in general needs to be authentic and informative even if it is controversial or jarring. Um, and yeah. and I think people need to be able to choose.

you know to some degree what content they wanted to see and of course on Twitter you can. Um so but really we want it to be the the fundamentally place you go to to learn what's going on And get the real story. That's that's what the the, the, the truth, the whole truth and it's going to be more than I would like to say nothing but the truth that that that's that's hard. it's going to be a lot of BS there truth and more they realize uh for sure.

um but but but you want to, you want to have the truth and you want to, you want to Bubble Up the the truth and be able to sort of sort out really want truth with the least amount of error. So so you've said um, you know Twitter is alive. uh another way that's that's described is it's where news happens. As you just said.

so a couple here Patrick Mahomes and Steph Curry talking to each other Rihanna speaking uh directly to her fans um or in crypto SBF and CZ were having the conversation directly. uh on Twitter you know, launched uh chat DPT announces it on Twitter uh Paul Graham takes up a tweet on it, you're tweeting on it. uh I think 50 000 tweets happened there um before it was picked up by the mainstream media just in the first couple of days. Yeah, and so you know, talk to us about how how can the media catch up if they're on Twitter they can be seeing these tweets and posting it if they're not on.

Twitter Is there no way to catch up? Like how does the traditional media and citizen journalism and 50 000 tweets on an important subject? How do those intersect and how does the media catch up? Well just that as I'm sure many of you you use Twitter it the every Twitter is happening in real time. So if you contrast that to what's happening in a newspaper, they they have to learn the information, propose an article to their editor, get it approved, write the article, get it edited, figure out which day it's going to get published on, and so the news is actually the thing that happened is being reported on at you know, three four days, sometimes a week late. Um, and if it happens on a weekend then it's like yeah, at least three days type of thing. So um, you know chat Gbt was was huge news for several days on Twitter before there was any news articles about it in major Publications Um so I think especially if one is say thinking about investing in things you want to have information that is as timely and accurate as possible.

There's no better Source than Twitter for that. That's certainly been my experience. So Paul Graham Who's alleged in Tech a legend on Twitter I think he has tweeted um, that he's 80 percent left-leaning probably if he had to put him on the scale. So not someone um, you know who's not not deemed and revered by all sides of the spectrum he has said, you know consistent with your accuracy Point Um, he has said how important accuracy is and on Twitter he said you know you should be default skeptical of any news story about Twitter and assume it's default wrong because not only do some journalists have the agenda, but the source has the agenda and it's so easy to go through the chain of inaccuracy.

or um, you know outright falsehood is is he right about this? Um, and you know if so, um, how how can accuracy about Twitter and about you be conducted by the traditional media if at all does it Does the PR department help? uh which you know obviously don't have PR departments you know the right name for PR is propaganda um and I Always thought you know like maybe maybe we should have like a VP of propaganda that would be I just I think just more honest you know. uh and um also a BP of Witchcraft I've always thought it'd be like yeah, um, those would be two great ones. Uh so I mean the the thing that that I mean if you pick up any given newspaper and go through and read the whole thing and say how many of those stories are positive about anything at all at almost none. So if if something is newsworthy, it is going to have a negative slant whether it is positive or not.

There's like something in journalism that they've been trained to basically never write a positive story about. anything. but once in a while you see a puff piece, but it's rare. so anything that's newsworthy will get written about.

Anything that's that's written about will go through a negativity lens and so you therefore have a a bizarrely negative view of the world. If you draw your information from newspapers, this is simply I mean fact. So um, on Twitter you can get a much more balanced, positive, negative situation. Um, it doesn't have that bias quite as much.

It's probably still a little bit of negativity bias, but but much less so. Um, so it you know I think it's really I'm not sure what the Legacy Media does I mean at this point? really. Um, Twitter Twitter is by the way, the number one news, uh, app in the world. So in terms of what people download for news, it's it's number one.

There's 500 million active users, 250 million uh, daily users of which I'd say that's probably you know, 180 million significant daily users Where they're they're It's a meaningful amount of time. So like the average amount of uh, time that's people spend on Twitter per day. All that 250 million is around half an hour or so. Um, so what we have is the thing.

The thing that's like I think most interesting is there's about 120 to 130 million hours of human attention per day on Twitter Wow. Every single day on average. Um, a lot. Which is I think it comes to a really interesting point which is to just it's startling how poorly monetized that is because you have to say like, how valuable is that Attention 100 130 million hours of human attention per day Of people That read: so these are the generally the smartest people in the world, the most influential people in the world, and you have 130 million hours of their time per day? That's a lot.

So currently Twitter makes about five or six cents per hour of that time. I I Think this is a poorly monetized yeah Paul Graham's attention Paul Graham's half hour of attention is, you know, is worth more Worth more than that? Yeah. I Mean if I'm spending two hours a day on Twitter like your whatever ads are coming through are getting my attention, Um, getting your attention, getting everyone in the room's attention? um, your time is incredibly valuable. Um, so now the thing is, we need to actually sort of ads that are relevant and and useful.

Um, and I think I think as we do that, we can probably at least get it to like 15 cents an hour? 20 cents an hour? Yeah, a quarter, right? Um, so I think the actual potential here for Twitter revenue is gigantic. Um, and it's going to be a win-win situation. Which is that if you are served advertising that you find timely and relevant about it with products and services that are useful to you, that's good for you and good for the advertiser advertising. And the limit of relevance is content.

So in the next theme that's out there that's a often an inaccurate narrative is that you're indifferent to misinformation or other narratives get put out in the media that you actually want misinformation on Twitter when as you've just stated, you want it to be the most accurate in the world. So Community Notes: I'm going to Breeze through a couple of these before asking you about them. Community Notes are the fact checking by power of the People on: Twitter So correcting government misstatements from the White House correcting candidate misstatement from failed gubernatorial candidate Kerry Lake that Ron DeSantis had been endorsed by George Soros Adding context while the Spy balloon was over Billings Montana to a tweet that could have been taken to spiral and mean it had been shot down over Billings with that photo and adding context to that. preventing a conspiracy theory of trying to elements are purposeful or nefarious as opposed to 1700 per year.

Quickly corrected before a right-wing conspiracy theory could get going. Company misstatements or statements misstatements about companies I should say so. The tweet that said you know Google set a badge machine to tell you if you were terminated or not and adding context that no, they had been emailed on Coinbase that they've been told they had to stop staking by regulators. Fact Check very very quickly.

So how can this scale this neutral fact checking which seems elusive in fact checking, but Twitter seems to have a handle on it. But how does it scale? and how does it avoid being hijacked by either side of an issue or political Spectrum trying to hijack Community notes to not have it be neutral? Um, yeah, there's a there's a white paper on community notes that I recommend reading. In fact, I'll tweet it out so that people can have easy access to it. but the because it's really quite a clever idea.

Um, it's it. It takes a the Viewpoint of someone if I think of it in a way like like page rank for Pages as applied to to people. which is that as people build credibility in how they review notes, they they pull up enough credibility to actually write notes and then those notes are then rated by others and depending upon the credibility of of the people rating your note, your credibility score gets affected. so it's It's sort of like, uh, collection of credibility, but there were.

but there were link Farms created in Far Away places to spam pagerank So that's going to be attempted, but you're going to apply your yes in software skills and things to prevent that. in order to be a notes contributor, you have to be a verified person I Think yeah. so you have to have uh, you know and it takes a while to get through. You can't suddenly you you will have no If you just when you just start out, you will start off with no credibility.

Score! Yeah, so very hard to link Farm Yes, Um, and when we we actively look at any attempts to game the system and shut them down and remove them from the system. If if they're if they're determined to be not real people, or if they seem to be brigading, uh, because there are deliberate attempts to manipulate Community nodes. We also make the community Notes source code is open and available so you can see. You can basically see everything.

So uh, that's in the white paper. It's uh, it's on the white paper, but it's available on the internet. Yeah, you can search for it so you can see exactly how Community Nodes is, calculating things, what changes are made to community notes, and we'll keep iterating. And the goal is to have truth with the least amount of error.

Um, so it is. You know there's always like, what is truth, Um, uh. and I think the important, like what is one way to sort of. For example, say like if someone really aspired to the truth, if they really aspire to the truth, they must acknowledge that there is some probability that what they think is untrue.

If somebody thinks there's no probability zero percent about what they think, somebody thinks that they is trying to claim to you that what they're saying is true, with 100 probability, there's a 100 probability they are lying. So um, truth with acknowledged error where you aim to minimize that error over time, That's what Community Notes is I think also uh, once someone gets community noted Um, they think twice about uh, being deceptive in the future. So you start getting noted a few times. People like oh I know someone who's been Community noted.

Yeah, um so uh, this no one's immune. meaning you've been Community noted on this Uh, CNN fake Chiron CNN made no such claim um that you know free speech on Twitter by allowing people to speak freely. Yeah, and you were quickly Community noted um, a satirical tweet and peop and Community said this is not. this is not accurate Um, is this the one you tweeted Community notes for the win I Think you may have yeah I mean the important thing is that anyone can be noted including me.

and in fact I wanted to make a note of being noted. um that at the point. The point is that if if I can be noted, anyone can be noted um including advertisers. So we've had a few cases where the advertising wasn't accurate and it got noted.

Oh, the mortgage mortgage One loan money to yourself I think I saw that episode. Yeah, Sure, right and so so. but it's your own customer and they can be noted and then yes and then presumably change the ad Yes I mean this will I think be very helpful in truth and Advertis three Okay, um, so like so I Can't emphasize enough. the goal is rigorous pursuit of the truth um, aspirationally, the whole truth and the least amount of, uh, untruth.

Yeah, so let's talk back about brand safety. We'll go through two, two quick ones here. One narrative that's out there that probably affected advertisers and agencies was Twitter was going to become this hotbed of hate speech. And shortly after the acquisition, there was this bot attack you've talked about that seemed designed to try to make that a self-fulfilling prophecy actually, until it was quickly, uh, defeated by your your team.

and there's 50 percent less hate speech according to what your team has put out. This is a graphic then pre-acquisition So so not only is it a priority for you, but less half as much as before and then on child sexual exploitation, something that's been so important to you. 800k suspended accounts that's four times more than in any month of the prior year of your ownership and the 99 reduction in successful searches for CSE patterns. So talk to us about how much of a priority this is and how successful you've been at it.

but then also, presumably more can be done. Yeah, um I I Repeatedly said to the trust and safety team at Twitter that there's no more priority which will always be a no more priority no matter what is, uh, ensuring that the children are safe on on Twitter that there's no child exploitation. So that is number one priority always and forever. Um, and what I've been told is that we've done more uh to eliminate this on Twitter in the last four months than it's been done in the last 10 years.

Wow, and it will continue to be. It's embarrassing for the previous team that's like incredible. The 100-pole production in CSC search patterns is pretty gigantic to say the least. Um, so uh yeah, it's absolute number one.

So on continued on. Brand Safety. You know this: Global Alliance for Responsible Media's Brand Safety Floor the The Garm Um, you know Twitter business had tweeted out earlier in the year that in testing uh, 99, at least 99 of measured ad Impressions appeared on contact that exceeded that floor. So you know what message do you have for your advertisers when you're talking to a CMO to the head of an agency Just in total? I Think you touched on this a little if there's anything to add.

but brand safety is in fact a top priority with a team all over it and technology and humans focused on the subject. Yeah, as I said, I mean with respect to Brian safety Really, it depends a lot on the brand. I mean if you've got, sort of, you know, uh, kind of, By the way, Disney is is a major Advertiser on on Twitter worldwide one of our biggest advertisers. Apple's one of our biggest advertisers.

but Disney of course wants to does not want to have their ads next to things that aren't appropriate for a family audience. But there are, um, other products that are kind of more you know, R-rated if you will. Um, and and so they're They're more comfortable with being their advertising being in the equivalent of like an R-rated movie or something like that. So brand safety varies depending upon what brand you're talking about.

Is it a family brand or or less family brand? Um, but but advertisers can actually adjust. Um, how much, uh, what content they're comfortable having their advertising appear next to? Um, the same is true on TV Um, so the you know the advertising that you'll see at say 7 PM is different from the advertising that you'll see at midnight. Um, and this is we have the same functionality on Twitter So it's really up to the advertiser what they're where they want to put their content. Um, but but I think by far the most important thing is that the advertising is is effective, that that it is relevant and that it moves the needle for a company.

Um, the advertising relevance is is the most gigantic thing. Um, and and this this is going to sound totally bizarre, but uh, Twitter did not consider relevance in advertising until three months ago. If you've used Twitter for a long time, which probably many of you have, you should say like how many products have you bought off Twitter probably zero Judge Me by the laughter, probably zero. So annual time is incredibly valuable.

Flamethrower? No one about a flamethrower. Well, I mean it's possible that they might report things from, you know, uh, content-based tweets because the the content that's recommended is reasonably relevant, but the advertising has not been. Um. so as we moved to shift towards the advertising being relevant and timely.

Um, this is it. Really Like I said advertising that is relevant and timely is information is content and the the value of the time of 130 million person hours of the smartest people on earth is insanely valuable. Um, and frankly, historically with the advertising being mostly Irrelevant in the past, We've been wasting people's time and that's not good going forward. Twitter Will will have very relevant, useful advertising and uh, and because it is is useful because it is relevant, there will be a massive increase in the revenue because it is now useful.

So um. I'm very optimistic about the future. It's been a very difficult four months, but I'm optimistic about the future I Appreciate that. So let's get back to Democratic.

Democratic Platform: For all the Um, you know you've said, there's no permanent suspensions of anyone. Uh, on the left, you've brought back both left and right. But I think what you've tweeted is you had to unban a lot more on the right because that's who was banned for the most part. but your goal is equally unbanned.

Complete equal Level Playing Field for all sides of the political Spectrum Yeah, I mean the the I Think the objective reality for anyone looking at Twitter Uh, for longest time was that Twitter was had a massive thumb on the scale on the left side. um Twitter would ban and suspend accounts on the right. Uh, 10 times more than on the left. So like naturally what you'd expect frankly because where are we were in San Francisco which is uh, deep deep blue.

So Twitter was uh, how much do you trust Twitter to do what is right is the question. So the natural thing that would happen is suppression of moderate voices. So but that but that's not conducive to a healthy National dialogue. In order to have a healthy National dialogue, you have to represent the whole country.

And you have to represent uh, you know everyone in other countries too. It's got to be. You know that's the only way to have a Town Square Um, and so yeah, there were disproportionately more accounts, unsuspended and unshadowed banned on the right because the Twitter had a huge thumb on the scale on the in favor of the left. So that's but.

But if you say like, have we been suspending counseling left, have we been Shadow Banning counseling left? No, we haven't So uh, because I what exactly what I said is we would do we are doing. which is to make it an even playing field. Um, and you know something is freedom of a speech when it is when you're hearing speech that that from someone you don't like and what and what you're saying, you don't like what they're saying this. Otherwise it's not free speech and if you don't have that ability then sooner or later that that's that suppression of speech is going to be turned on you.

so it is a good sign. If you're seeing people you don't like say things you don't like, that is a good sign. I agree with that. that's fine.

I think that's pretty amazing and provided you can say your piece too. um I I Think this is fundamental I mean the reason I I did the Twitter acquisition was not because I thought this would be some lucrative gold mine. um well uh, the fact that it's been arduous and difficult with a massive with you know and being dumped on every day. Well that's a lot of the most fun thing in the world.

Um, but if we do not have a a strong Foundation of free speech I I fear for the future of our civilization, we must have this. That's why I did it. Thank you for doing it. um Switching gears um a media narrative that, um, you know, may have some accuracy.

They're not all inaccurate. Um, the code base is difficult to change. Tech Debt unwieldy. Um, you know.

Rube Goldberg machine is is a term you've used, so it's practical fractal. Rube Goldberg This is. this is at least partially accurate, if not accurate. Uh, yes.

Well, uh yes uh. Like the code base is like a Rube Goldberg machine. Um, hey. Dave Rubin When you zoom in on one part of the Ruby Goldberg machine, there's another root Goldberg machine and then another one.

Um, this is your penguin. That's what I mean by the fractal fractal. As you zoom in, it's just another fractal. Another fractal fractal book machine.

Um, so it's quite difficult to keep this thing running. um. and then also markets Advance the product. Um, because it is really, really quick.

Uh, spy. Still following This is the Spy below my head Tesla right here. That then causes a massive disruption. Um, so for example, just yesterday, we made what we thought was a small change and we'll put out the what we want to be in the sort of full disclosure of everything including dirty.

You know, gruesome details. Uh, so uh. But but essentially, there was, um, what was supposed to be a small change to one percent of the Twitter user base ended up being a catastrophic change to a hundred percent of the recruiter use of ace. Um, and uh, you know I don't know.

We don't have enough time to go into the details, but um, there was a there was a Boolean flag in the Twitter front and that that should not have been there. Um, and uh, we live now We fixed that. Um, but but it's I Mean, let me give you, it's like a silly example. At one point we um there was a problem with Twitter spaces where suspended users were able to join conversations even though they were suspended and we temporarily turned off uh, access to Twitter spaces which is um which then made someone anyone who is using the Twitter Android app unable to like tweets.

Now how those things are connected is not clear. So if you were in the Rube Goldberg Practically, that's why I'm saying so if you had an an IOS app, you could like tweets. If you're on the web app, you could like tweets, but not if you had an Android app because of spaces. I mean like black So you know we're so one of the things we're doing.

There's a lot of work behind the scenes in simplifying the code base, getting rid of extraneous features, and enabling Twitter to evolve more rapidly in the future, but it requires a lot of cleanup essentially. Um, yeah, so you know you. You've grown users despite this lean engineering ancestry, the code base being unwieldy, and Cloud spend 40 down cut out a data center. Is this due to the the strength of the engineering team that you've been able to achieve this and introduce subscription and other features while trying to hold it all together? And and where does that engineering team go to users Twitter's history monthly and all the features? Wow, Yeah, I mean I Think on balance, we're doing okay, because um, and just to give you a sense of where things were at the close of acquisition on say, October 29th.

Um Twitter was tracking to a negative three billion dollar a year burn rate jeez, um, and had one billion in the bank. So that's a pretty dire situation. If 2023 had been a normal year, Um, Twitter would have done something on the order of four and a half billion in revenue or four and a half billion in cost. Roughly Break Even But when you add one and a half billion of debt servicing to that, and um, a massive decline in advertising, um, some of it's cyclic, some of it's political, uh, but could call it at least a 50 decline in Revenue roughly 30 Declan Revenue you've got over three billion dollars.

Negative? Um, but now Twitter has some Revenue that's not Advertising based. So um, data services? Yeah, yeah, exactly like yeah. Um, so yeah. data subscriptions and whatnot.

Um, so it'd be better with what in the absence of action. Um, Twitter would have had six billion in cost and three billion. Revenue So minus three billion and with a billion in the bank, so it would have gone bankrupted four months. Um, so so immediate and drastic action had to be taken.

Um, which which was And so we actually have now cut the burn to the the non-uh interest burn to roughly uh, one and a half billion. So we've got a billion and a half of debt. So saying, and a billion and a half of expenditures. Uh, we I went from three data centers to two Um and it reduced our Cloud expenditures uh significantly.

Um and Um, while at the same time having the fastest product Evolution in Twitter's history. So overall, not bad. Um, there's been a few bumps along the road obviously, but uh, this is to be expected. Um, and now I think we have the opportunity to grow it into something quite spectacular.

Um, we we have the highest, uh, total user minutes uh in in Twitter history. So the the the real number to care about is actually not the uh M down monthly, which is directly monetizable daily active users, but it's it's user time. Um, how many total user hours per day do you have? Um, that's the real figure of marriage Because one could, for example, say, uh, go to 300 million daily active users, but if they spent less time on the system, uh, cumulatively, that would actually be a downgrade. Um, it's how much human attention are you worth? Um, and that's where I think like I said that.

The really profound thing is what Twitter has is roughly 130 million hours of the smartest, most influential people on earth every single day. There's there's nothing else that has that. I mean there are social networks that are that have more users, but they do not have the smart influential people. they don't have you.

So the if I do the math on what you've said about um The Advertiser pause and revenue Decline and the cost uh changes. Um, it's ebitda profitable today and then you're looking for cash flow Break Even after Debt Service we'll see if it's not profitable. but the yeah, the the D and the is Big right when do you get your ass when you get the cash flow? Break Even After that day, this is where we need to focus on the E-pod Uh, yes. I hope we pay taxes.

um and the T yeah. um so uh, like I said I mean we're getting to the point where we're close to having the total expenditures for the company excluding debt roughly equal to the debt. Okay, um, yeah, that's what I think like I think we'll be there in Q2 Thank you too. Um, and then like I don't I definitely don't want to count uh, chickens before the hacks hatch or drinks it or anything.

but I I think we've got a shot at uh being cash flow positive. Uh, next quarter so that'll some of that will depend on advertisers so we'll talk quickly about advertising. You've mentioned it a few times. the value is clear: 147 billion Impressions uh on Twitter of World Cup 22 and 50 year-over-year growth and NFL video views um, you know 39 increase in Super Bowl mentions the NFL putting out engagements never been higher and then Wpp CEO Mark Reed said 10 days or long ago this was February 24th.

Twitter seems to be more stable and I think clients advertising clients presumably here will look about coming back to Twitter So are you in touch with agency and CMOS and is is this the theme? I think we just saw McDonald's or others coming back as they realize you are absolutely focused on the things you were said not to be focused on in terms of uh, brand safety Etc yeah I mean I think the really um what I'd say to advertisers and Brands is you know use Twitter yourself and believe what you see on Twitter not what you read in the newspapers because what you see on Twitter is the real thing and what you read newspapers is not um and I'd like to thank uh Mark Reed on Wpp for their support and publicists and others. uh and for the advertisers that have stuck with us like Disney and Apple Thank you. So that's Brand Advertising you've mentioned a few times. Performance Advertising I think I've heard your story about the white lotion.

Maybe you can. You can share it here. Um, you know Performance Based Advertising has been very lucrative for other companies and it can be made more relevant on a more narrowcast basis if you will than than pure brand advertising. So when when do you introduce performance-based advertising and and scale it? Oh, we we introduced from from the moment the acquisition closes.

like we have to have. A performance-based advertising is really just advertising that is relevant relevant. In fact, we should really have aspirationally zero non-conformance based advertising. Um, you know we want advertising that matters.

Uh, people's attention is precious. We should not serve them ads that are annoying or irrelevant or strident or ugly. Um, and it's interesting to mentioned White Lotus I Actually was talking to David Dazlov who's great. Um, and he was like hey, why can't we put a White Lotus uh uh trailer every time someone mentions White Lotus on Twitter I'm like absolutely so like one of the like.

It's super obvious but profound. Things that we're doing is enabling keyword advertising so that you can enter the keywords and uh, like White Lotus and if somebody mentions White Lotus you put the White Lotus trailer there. I Mean this sounds very obvious. Um, you don't need Gpt3 for this.

We don't need Advanced AI for this one. Uh, so uh, you know it's sort of just Google AdWords but applied to tweets and the home timeline and replies and everywhere else. Um, because you'll often have very sort of long deep conversations, people going on talking about movies, TV products and whatnot and uh, that's the perfect opportunity for advertisers to provide their message. You know if I think about something for example like like Starlink Um, which does advertise in various media for stalling.

Would want to advertise to users in in regions that are not already saturated. So starting tends to be saturated in urban areas but is not saturated in rural areas. And so what Sonic would like to do is like say please show the ad in to to rural users with a slow connection and then the simple message is do you want faster internet for less money Click. Probably you do.

And Twitter needs to be able to do a simple thing like that and it will be Um, and in fact it is already able to do that. We're just having fully rolled it out, so we're we're I think around 20 percent ish. but by the end of this year almost all advertising will be should be reasonably relevant and that your your star like example comes back to your disposable income If you want to or the education level and the ability to buy and afford to start the subscription of the Twitter user like it also dovetails back into that. Yeah, absolutely.

Um, so um, you know I think there's also an opportunity here to uh, have advertising be uh, much like, like, really improve the relevance of advertising using Um AI in the sense that if you based on what tweets, somebody views likes, whatever, you can actually populate a parameter space, an Ml parameter space. and then you can take an ad and even if you say nothing about that ad after it's dropped in the Twitter system and it has 10 000 views, you populate a parameter space of that of the ad and then you correlate the user parameter space and add parameter space. And then you don't need to do any demographic targeting because you could be like, say, it's a gardening ad. Well, you could be 20, 30, 40.

You could be seven years old. Any sex, Whatever. it doesn't matter what matters, do you like gardening? And that's the ad that should be shown. And so I think we can get away from a lot of the sort of targeting by age range and sex and whatever in favor of targeting my interest.

Um, and and a lot of these sort of demographic targeting was done. Coming from a TV or newspaper era where you don't have interaction with the user, you just have to kind of guess because it's a one-way Street in TV Um, but on Twitter it's not a one-way Street there's continuous interaction. Um, so I think we can just have a profoundly more useful uh advertising experience. so let's close on Twitter before getting to um, another couple companies.

I've heard that you run the vision You're Building towards I think you've called it X or the Everything app Tell us about it. You know, beyond just improving the advertising and and um, you know what will we be able to do on Twitter in your in your grandest vision? Yeah, so so X X.com is uh, you know you know. So so I think it's possible to create a very powerful um Finance experience Basically, um, like like PayPal is kind of like a halfway version of what I think could be done in payments and finance And so you want to be like Let's say you like you want to be able to to send money easily from one account on Xbox Twitter to another account effortlessly with one click. Uh, you want to be able to I think earn interest on the money you want to be able to, um, have debt so you can set your interest can go negative.

uh I mean basically I think it's possible to become the biggest financial institution in the world. So just by providing people with convenience payment options, we don't have the time to go into it in detail here except uh, we if we just make the app more and more useful, people will use it more and it'll be great. I mean yeah, so you'll see Okay, um at um, we're still on Twitter for a moment, but we had uh, you know in Austin thank you for hosting uh at the investor day and you showcased 16 Executives uh on stage at various times with you an incredibly uh, deep and built out management team and I think the executive team um with you with Twitter um you know is perhaps a bit leaner um, but just maybe there's a media narrative here that's accurate. So he does have a black turtleneck.

so so you need anything more? I don't think so So So So when when does the Twitter management team have that bench like you showcased at the Gigafactory? Well I think it takes it takes a long time to build a strong management team and the you know we're both the Tesla management team over 20 years? Um so uh I think Twitter isn't easier problem than than Tesla uh by a long shot. Um so but it'll take some time to to build the team and I don't know, probably a few years. Okay, um yeah and Switching gears you shared Master Plan 3 at the Gigafactory and and you know the edit uh that that came to my mind with you know Master planet after your your first piece there on sustainable energy for all of Earth can you can you take us through that uh, positive, optimistic, uh, mathematically underpinned vision for our planet? Okay, it was a lot of time to do that, but um I guess the the overall message is that um, we can absolutely make Earth, uh to turn off into a sustainable energy economy fully sustainable using Lithium-ion batteries, solar, wind, as well as geothermal, nuclear, and other things. But primarily, it'll be solar and wind.

and Lithium-ion batteries. And our calculations, you need roughly 240 terawatt hours of Lithium-ion batteries. Most of those will be iron phosphate, Lithium of the iron phosphate variety of others, with a primarily iron cathode, which is a plentiful material. In fact, Earth is the the number one element on Earth is actually iron.

A little factoid: Uh, I think Earth by mass is about 32 iron and about 30 percent oxygen. and then everything else is miscellaneous. So we're like a mighty rust ball. Um, uh, so plenty of iron.

Basically, the the materials are needed for uh to make 240 terawatt hours of batteries are actually plentiful on Earth. We don't need to mow down the Amazon um, or anything like that. We don't need to basically do do anything terrible to the environment to create. uh, 240 terawatt hours of batteries.

In fact, there will be less mining required in a sustainable energy economy than is currently required. Um, uh. really. it was a message of of hope and optimism grounded in physical reality.

It is not wishful thinking. Um, so we should be excited and inspired about the future. And I'm not suggesting complacency or anything like that or that we should. But and getting there faster is better.

Better than getting there slower. But but what we don't need to live some terrible austere life? Um, and give up the things that we like. You can have the things that you like. in fact, even more of them and the environment can be good.

All the good things are possible is what I'm saying there's We should be excited and optimistic about future which we need to go build it. It's a lot of work Um, but you should not feel sad about the future regarding sustainable energy. Uh, it will happen. We just want to make it happen faster rather than slower.

So that was the first big takeaway. You know the the next one that I had was this your your next phase of vertical integration? The Relentless First Principles Thinking on vehicle design battery design Factory optimization. You know at the same time uh as the vehicle that could lead to a Target I guess of this you know fifty percent uh step change in cost when the new gen um uh eventually comes around. um can you just take us through The Quick summary of that and and it unlocks the next uh wave of the Tam because there's price elasticity is is the what you were sharing on this subject as the second big takeaway for Tesla Um yeah I mean those are the there's a clear path to making a vehicle a smaller vehicle that is roughly half The production cost and difficulty of our of a model 3.

Um, that vehicle will be uh, or you know, really used almost entirely in autonomous mode that the thing that is really gigantic uh for for Tesla is autonomy. Um, and if people have used the Tesla full self-driving and have seen how rapidly the full self-driving capability has been evolving, um, it should be obvious that that is by far the most profound thing. Um, the the, the, the the sort of total addressable Market stuff it's like guys, this is like actually not the right way to think about it. It's it's like, um, passenger vehicles right now only see about 10 10 to 12 hours of use per week.

Um, there's 168 hours in a week. If those vehicles are autonomous, they're probably going to get used for 50 or 60 hours a week. That's a 5x increase in the value of a car. But and it costs the same to make the car.

At that point, you basically have software margins and a hardware product. It's insane. Um, spy dumping, fuse, dumping even Tesla's now turning dollars popping. So let's switch gears to SpaceX Um, hitting first Starlink.

What can you tell us about Starlink and the the scale and deployment and how that's going? Yeah, Science The Styling Team is doing an amazing job. More than half of all satellites uh, in orbit right now are stalling satellites. So if you add up, all satellites, launched cumulatively, they are less than Starlink. Um, so Starlink is currently providing Global connectivity.

You can get connected connectivity anywhere on Earth from the most promoted part of Antarctica to San Francisco anywhere that's full Global connectivity. High bandwidth and low latency. The latency is important because unless you're in low with all that, you cannot get low latency. The Geostationary satellites are up.

You know. Um, very, very high. You've sort of got, uh, sometimes up to a second of latency from a Geo stationary satellite. All things inclusive, whereas uh, with stalling satellites, we believe we can get the latency under 20 milliseconds.

So, and in fact, for international Communications Um, an interesting thing is that in fiber, light travels much slower than in Aero vacuum. So uh, in a rough approximation, uh, light travels about 300 kilometers per millisecond in air and vacuum, but only just roughly over 200 kilometers per second per millisecond in in fiber. So so you've got like a sort of roughly 40 increase in speed of light. Um, going through this the stalling system, then through through fiber and and it can also follow a more direct route instead of following the the sort of Coastline of the continents it it can actually um, have a more direct route.

So it's a fact. it's a shorter route and an inherently faster from a physics standpoint. So it it connects the world. Um, way better than fiber.

Um and it will provide and is providing connectivity to people that either never had it before or whether options were extremely expensive or very low bandwidth. So it's helping out a lot of communities that never ever had access. especially when you consider that education is is digital these days. That's really how you can learn anything.

You basically learn anything. You can basically learn anything for free on the internet if you have the internet. Um, so in terms of providing education abilities to remote communities, uh, Stalling is doing a lot of good in that regard. Lastly, Um, you know the launch.

whether you know Falcon 9 heavy or Starship I think you had the static fire test. Uh, that that went well and and what can you tell us about the next next phase on launch or Starship Yeah, so we're getting ready for the first launch of of Starship. This is a very difficult program. The rocket is Um, roughly two and a half times the thrust of a Saturn V.

So if it, what if or once it reaches all of it, it'll be by father fix rocket to reach over. But more importantly, it is designed to be the first fully reusable rocket overall rocket ever. So the the key to uh, extending life beyond Earth is fully and rapidly reusable orbital rocket. This is a very hard problem given the constraints of Earth.

With Earth has a thick atmosphere and strong gravity, it is only barely possible to do this. That's why it has not been done before. So we are getting. We're getting close for our first orbital attempt of Starship.

Hopefully in the next month or so we'll have our first attempt. I'm not saying it'll get to orbit, but I am guaranteeing excitement so it won't be boring. Um I think I think it's got I don't know, hopefully above 50 chance of reaching orbit. and uh, and then we we've got.

We're building a whole series of Starships in South Texas And so I think we've got hopefully about an 80 chance of reaching over this year. It'll probably take us a couple more years to achieve full and Rapid reusability. Um which I can't emphasize enough is it is the it is the profound breakthrough that is needed to extend life beyond. Earth Um, because it it lowers the cost of access to space by orders of magnitude.

The market is just the same way that if if let's say there were no airplanes that were reusable, um, how expensive would Air flight be, it would be insane. Um, you don't have to buy on your airplane every time you flew somewhere and you have to tow a small airplane behind you for the return flight. So uh, you know that's just you're not going to scale. Um, so assuming things go go well there.

this this vehicle is. If it could make life multi-planetary that's a really big deal. I could make life on Mars real and I think that's uh. I mean that's one of the great cultures that any civilization has to pass through.

Which is, does the civilization become multi-planetary or not? Um, this is one of the elements of the Fermi paradox. I mean I I Sort of wonder that if we are able to get to multi-planetary that'll be a forcing function for ultimately improving space. might to become multi-stellar to go to other star systems. and I think we may discover that there are many long Dead one planet civilizations.

We don't want to be one of those we know we don't want to be with lame. one planet please I Think we're going to wrap on that. thank you Elon Musk Well, that is, uh, some commentary from our boy Elon Let me make sure you get all these images out of the way. Uh, just wanted to share that with you.

Uh, because I don't think it's often that we really get a live interview of his ideas and thoughts and opinions of what's going on with Twitter Tesla SpaceX and even a little bit of neural link and really just kind of. Overall his opinions and thoughts. Uh, so I thought it was cool. Uh, he obviously was all hosted through Twitter It was a Morgan Stanley type of an interview.

so I wanted to share that with all of you. Obviously, let me know your thoughts about it if you. like them. If you don't like them, maybe you're somewhere in the middle.

Let me know your thoughts in the comment below. Uh, don't forget, if you want 12 free stocks, sign up for Weeble That's what I'm doing all my options trading and as you can see that the Market's falling off uh, the call Credit spreads right now are absolutely crushing it. Love it! That's what I have for you I'll catch you later. Peace out.

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