WEBVTT - Bloomberg's Defense and Space Tech Special 0:00:01.440 --> 0:00:06.720 From Bahard where Innovation, money and power Collie in Silicon Vallet, NBN. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:27.320 --> 0:00:29.840 Welcome to a special edition of Bloomberg Technology. 0:00:29.880 --> 0:00:32.560 We are live from Rocket Lab in Long Beach. 0:00:32.880 --> 0:00:35.159 Coming up this hour, we'll bring you conversations with some 0:00:35.200 --> 0:00:36.519 of the biggest names in. 0:00:36.479 --> 0:00:38.360 The space and defense technology industry. 0:00:38.720 --> 0:00:40.000 And I want to be honest with you, guys. We're 0:00:40.040 --> 0:00:42.320 here because we've been on the road in socaw but 0:00:42.479 --> 0:00:45.159 this is where the industry has happened. What's started with 0:00:45.240 --> 0:00:49.120 a single name has boomed into thousands of startups, many 0:00:49.120 --> 0:00:53.080 here in Southern California and in commercial space. This is 0:00:53.120 --> 0:00:58.320 how it started. SpaceX has become synonymous with commercial space. 0:00:58.520 --> 0:01:02.400 Elon Musk's company is a prolific launch provider, with around 0:01:02.400 --> 0:01:05.280 three hundred and eighty launches of the Falcon nine family 0:01:05.520 --> 0:01:09.039 of reusable rockets to date. The competition is starting to 0:01:09.080 --> 0:01:12.959 catch up, whether abroad or at home in Southern California. 0:01:13.080 --> 0:01:15.040 When you look at sort of the companies that are 0:01:15.560 --> 0:01:17.679 coming out of this defense tech movement, a lot of 0:01:17.680 --> 0:01:20.040 them have been trained at places like SpaceX, or they 0:01:20.040 --> 0:01:23.240 got their start there and then they're building new startups 0:01:23.240 --> 0:01:25.839 and deciding to build where there's a concentration of talent, 0:01:25.880 --> 0:01:27.240 which is in southern California. 0:01:27.400 --> 0:01:31.200 Toam Mueller, one of the early founders at SpaceX, who 0:01:31.200 --> 0:01:33.959 actually brought rocket technology at Eli Musk because he likes 0:01:33.959 --> 0:01:36.360 to say, you can't really throw a rock and also 0:01:36.400 --> 0:01:39.039 going to know, I've hitting as SpaceX alum working on 0:01:39.080 --> 0:01:39.840 another company. 0:01:39.920 --> 0:01:43.120 Others have a home in Socau. Take rocket Lab. It's 0:01:43.160 --> 0:01:46.160 an end to end space company providing launch services, which 0:01:46.240 --> 0:01:50.760 designs and manufactures small and medium class rockets. It's had 0:01:50.840 --> 0:01:54.800 eleven launch missions so far this year. Elsewhere, another launch 0:01:54.840 --> 0:01:58.680 competitor is United Launch Alliance, which is transitioning from its 0:01:58.720 --> 0:02:02.880 previous rockets to the next generation Vulcan family. The Pentagon 0:02:02.920 --> 0:02:05.640 has brought several Vulcan launches to fly before the end 0:02:05.640 --> 0:02:08.440 of this year, but delays have put pressure on the company. 0:02:08.560 --> 0:02:12.440 It has launched two Vulcan rockets so far, neither has 0:02:12.520 --> 0:02:16.960 cracked reusability. Bezos's Blue Origin also has new Glen, a 0:02:17.000 --> 0:02:20.600 heavy lift orbital rocket, but it has yet to launch 0:02:20.639 --> 0:02:23.640 to space. Meanwhile, in Europe, delays and malfunctions left the 0:02:23.680 --> 0:02:26.400 continent unable to get to orbit. With its own rockets 0:02:26.560 --> 0:02:29.480 for quite some time. The Arian six rocket, operated by 0:02:29.480 --> 0:02:33.280 the European consortium Arianne Space, which lifted off early in July, 0:02:33.440 --> 0:02:36.440 was Europe's first Arian rocket launch in a year. Arian 0:02:36.520 --> 0:02:39.400 Space launched the final mission of its smaller Vega rocket 0:02:39.560 --> 0:02:43.440 on September fourth. In the age of commercial space, space 0:02:43.880 --> 0:02:46.160 X is still the most reliable way to hitch a 0:02:46.240 --> 0:02:48.160 ride to Earth's orbit. 0:02:50.600 --> 0:02:55.519 And talking of SpaceX, a California state commission voted against 0:02:55.880 --> 0:02:58.639 a request by the US military to approve more SpaceX 0:02:58.720 --> 0:02:59.320 launches now. 0:02:59.360 --> 0:03:00.720 Commissioner is expressed. 0:03:00.520 --> 0:03:04.160 Concern about why SpaceX was not applying for a permit itself, 0:03:04.400 --> 0:03:07.440 and some also voice concern over working conditions at SpaceX. 0:03:07.480 --> 0:03:10.720 Elil Musk's increasing role in US politics, as well a. 0:03:10.760 --> 0:03:13.440 New story that came out early this morning. We're going 0:03:13.480 --> 0:03:16.520 to dig deep into SpaceX throughout the show, but right 0:03:16.520 --> 0:03:18.600 now we're going to talk about one of SpaceX's competitors, 0:03:18.680 --> 0:03:22.560 rocket Lab, which is a rocket company and much more. 0:03:22.680 --> 0:03:25.440 It's a launch provider and it's where we're at. We're 0:03:25.480 --> 0:03:28.840 in the Long Beach headquarters. Also a focus on a 0:03:28.880 --> 0:03:31.760 company that has a home in southern California and in 0:03:31.840 --> 0:03:35.320 New Zealand. The company's CFO, Adam Spice, is with us. 0:03:35.520 --> 0:03:37.040 Thank you very much for hosting us. 0:03:37.320 --> 0:03:37.760 Thanks for that. 0:03:38.680 --> 0:03:41.080 Let's start with the basics for the audience that might 0:03:41.120 --> 0:03:43.080 just be tuning in for the first time wondering where 0:03:43.080 --> 0:03:47.800 we are. Rocket Lab is an end to end space provider, 0:03:48.000 --> 0:03:51.960 space launch services, systems provider. Bring us up to speed 0:03:52.000 --> 0:03:53.200 on what that means. 0:03:54.160 --> 0:03:56.320 Yeah, you know, we think that there's the space companies 0:03:56.360 --> 0:03:57.960 of the future are ones that aren't just a launch 0:03:58.000 --> 0:04:00.120 company or just a satellite company, or just an opera 0:04:00.160 --> 0:04:02.520 or satellites. It's really all about providing an end d service. 0:04:03.000 --> 0:04:05.840 So you're seeing here in Long Beach is really our headquarters. 0:04:06.360 --> 0:04:08.400 We make a lot of the rocket components here at 0:04:08.480 --> 0:04:10.400 Rocket Engines, the avionics and so forth. So we have 0:04:10.400 --> 0:04:12.800 a pretty big footprint here in southern California, but we 0:04:12.880 --> 0:04:14.920 since expanded that and of course the company got started 0:04:14.920 --> 0:04:17.120 in New Zealand, but then expanded to the US and 0:04:17.320 --> 0:04:20.240 started to expand further throughout the United States, including locations 0:04:20.279 --> 0:04:23.279 in places like Denver and Albuquerque and Stennis, Mississippi, and 0:04:23.600 --> 0:04:25.960 Silfur Springs, Maryland, and of course a launch site in 0:04:26.040 --> 0:04:29.560 Wallaps Island. Virginia and a facility in Toronto, Canada as well. 0:04:29.600 --> 0:04:32.560 So we've established ourselves a very broad footprint doing much 0:04:32.560 --> 0:04:33.600 more than just launch. 0:04:33.400 --> 0:04:36.120 An hqu here in SOCO, which fits exactly what we're 0:04:36.120 --> 0:04:38.919 talking about. Two launch systems. What are they and what 0:04:38.960 --> 0:04:39.640 are the differences? 0:04:39.839 --> 0:04:42.160 Right? So, the vehicle you see behind you is Electron, 0:04:42.440 --> 0:04:45.280 and Electron is the second most frequently launched vehicle in 0:04:45.279 --> 0:04:48.080 the United States. It's launched fifty three times. So we've 0:04:48.080 --> 0:04:51.240 got a very say significant lead in the small dedicated 0:04:51.320 --> 0:04:54.120 launch market, and we're developing a second vehicle, which is 0:04:54.120 --> 0:04:57.200 called Neutron, which will address the larger medium class launch market. 0:04:57.400 --> 0:05:01.480 Go, we dig into the practicalities and how difficult space 0:05:01.640 --> 0:05:04.960 engineering is. Where are we with Neutron and what are 0:05:05.000 --> 0:05:06.800 some of the issues in the steps of getting it 0:05:06.880 --> 0:05:07.440 up and running. 0:05:07.960 --> 0:05:10.039 Yeah, well we're quite a ways along the path of Neutron, 0:05:10.160 --> 0:05:11.320 you know. So we've been at it now for a 0:05:11.320 --> 0:05:13.160 little over three years. We announced the program when we 0:05:13.160 --> 0:05:16.039 became public in August of twenty twenty one. You know, 0:05:16.040 --> 0:05:18.359 it's amazing to see a rocket program come together. You know, 0:05:18.400 --> 0:05:20.440 I hadn't come from a space background. For joining the 0:05:20.480 --> 0:05:22.880 company about six and a half years ago, and just 0:05:22.920 --> 0:05:25.039 to see what it takes to pull together and pull 0:05:25.080 --> 0:05:28.360 off a rocket development program is absolutely staggering. The complexity, 0:05:28.720 --> 0:05:29.360 you know, not just. 0:05:29.279 --> 0:05:31.359 From just the naturally rocket science out of it, it. 0:05:32.080 --> 0:05:34.280 Is literally rocket science. I'm grateful every day that there's 0:05:34.320 --> 0:05:36.640 people who have dedicated their lives to developing these complex 0:05:36.680 --> 0:05:40.080 systems that are absolutely amazing. So's it's a very you know, 0:05:40.080 --> 0:05:42.600 it's a very detailed, very arduous task to get there. 0:05:42.600 --> 0:05:44.119 And I think that's what's so exciting from a business 0:05:44.160 --> 0:05:46.200 perspective is the fact that if you can do it, 0:05:46.320 --> 0:05:48.400 you know, you're one of a few numbers of organizations 0:05:48.440 --> 0:05:50.400 in the history we've actually pulled it off. And so 0:05:50.440 --> 0:05:53.480 it creates a very defensible position because again space is very, 0:05:53.520 --> 0:05:55.599 very hard, and you know, we have the you know, 0:05:55.640 --> 0:05:57.800 the I would say, the challenge of wake it up 0:05:57.800 --> 0:06:01.320 every morning and doing battle with physics, but also doing 0:06:01.360 --> 0:06:03.200 battle with some of the most fierce competitors on the plan, 0:06:03.279 --> 0:06:06.800 including SpaceX. And so we look around our industry and 0:06:06.240 --> 0:06:09.000 we see bodies everywhere that we have to step over, 0:06:09.680 --> 0:06:11.200 and you know, it kind of makes you wake up 0:06:11.200 --> 0:06:12.680 every morning and kind of like, Okay, this is a 0:06:12.720 --> 0:06:14.720 serious business. We got to make sure that we make 0:06:14.720 --> 0:06:16.800 all the right decisions, be very efficient with our capital, 0:06:17.120 --> 0:06:18.600 and very very focused on execution. 0:06:18.720 --> 0:06:19.960 I mean, you are the numbers guy. 0:06:20.279 --> 0:06:22.760 Let's just talk about capital efficiency. You have to spend 0:06:22.880 --> 0:06:26.600 in extraordinary amount of money. You took this company public. 0:06:26.680 --> 0:06:29.560 You're having to answer to a whole host of retail 0:06:29.560 --> 0:06:31.880 investors and more increasing the institution investors. 0:06:32.440 --> 0:06:34.200 What's a revenue run rate and where is the money 0:06:34.200 --> 0:06:34.719 coming from? 0:06:35.200 --> 0:06:37.159 Yeah, we're very fortunate that we've been able to get 0:06:37.240 --> 0:06:39.560 now to a scale. So Q two we generated over 0:06:39.560 --> 0:06:42.040 one hundred million dollars in revenue, so we really kind 0:06:42.040 --> 0:06:44.640 of now cross that threshold of scalability. We've shown that 0:06:44.680 --> 0:06:47.080 a model can scale. I think it's very important that 0:06:47.120 --> 0:06:49.120 we've done it. Not just on launch, because launch represents 0:06:49.200 --> 0:06:52.200 about thirty percent of our revenues. Space systems actually represent 0:06:52.320 --> 0:06:52.920 seventy percent. 0:06:53.040 --> 0:06:55.159 And just on that, when you say space systems is 0:06:55.200 --> 0:06:58.400 seventy percent of revenue, just in Layman's terms, what are 0:06:58.440 --> 0:06:59.440 you talking about. 0:06:59.680 --> 0:07:02.520 So we sell a variety of solutions. So we sell 0:07:02.600 --> 0:07:05.440 subsystems that into the merchant market. So we sell things 0:07:05.440 --> 0:07:08.800 like you know, solar solutions for spacecraft. We sell radios 0:07:08.839 --> 0:07:11.640 and battery systems and composites and so forth. So we 0:07:11.680 --> 0:07:15.720 really are a very serious in materials merchant subsystem market. 0:07:15.840 --> 0:07:18.760 But then we also build full spacecraft solutions. So for example, 0:07:18.760 --> 0:07:22.160 we built full spacecraft for NASA, then the Action. In fact, 0:07:22.160 --> 0:07:24.040 we built a couple of spacecraft. They're gonna be orbiting 0:07:24.040 --> 0:07:25.080 Mars and then not two distant. Y. 0:07:25.160 --> 0:07:27.240 Yes, this is big news for you recently, very big 0:07:27.360 --> 0:07:30.480 because you originally you weren't on that list and now 0:07:30.480 --> 0:07:30.800 you are. 0:07:31.200 --> 0:07:33.440 Well, that's actually from the marge sample return. Okay, sound 0:07:33.480 --> 0:07:35.400 forward sow return. Yeah, that's and you're right. We were 0:07:35.400 --> 0:07:37.320 not included in the first but we were ultimately added 0:07:37.320 --> 0:07:39.720 to that program. So that's very exciting. But when you 0:07:39.720 --> 0:07:41.840 look at all the different programs that were across again 0:07:41.880 --> 0:07:44.320 not just subsystems, but we're actually making full satellites for 0:07:44.640 --> 0:07:48.000 including the Defense Department and their Space Development Agency. We 0:07:48.040 --> 0:07:51.000 want a contract to be the prime contractor for over 0:07:51.000 --> 0:07:53.400 five hundred million dollar contract. So it's actually the one 0:07:53.440 --> 0:07:56.040 thing that's most exciting for me is how quickly we've 0:07:56.040 --> 0:07:58.360 come from a very organic base to now building a 0:07:58.440 --> 0:08:00.960 very significant size revenue and getting again past that one 0:08:01.000 --> 0:08:02.720 hundred million dollar thresholder quarter. 0:08:02.640 --> 0:08:05.040 And you talk about the electron behind us fifty three 0:08:05.360 --> 0:08:08.840 already put into space. How many launches are we looking 0:08:08.880 --> 0:08:10.640 at in terms of the next year, what sort of 0:08:10.680 --> 0:08:11.640 cadence you're trying to. 0:08:11.640 --> 0:08:12.080 Live up to. 0:08:12.920 --> 0:08:15.800 Well, you know, we've indicated fifteen to eighteen launches this year. 0:08:15.840 --> 0:08:17.840 We've watched eleven times so far, so we've got a 0:08:17.840 --> 0:08:20.880 big Q four coming up. And then when you look 0:08:20.920 --> 0:08:22.120 at the kind of the rate going to next year, 0:08:22.120 --> 0:08:24.040 we see growth off of that, and a lot of 0:08:24.080 --> 0:08:25.920 it's really not depending on how many rockets we can build. 0:08:25.960 --> 0:08:27.800 We can build a lot of rockets we could build. 0:08:28.040 --> 0:08:29.440 You know, we've kind of sized. 0:08:29.120 --> 0:08:31.000 Ourselves three D printing a whole lot. 0:08:31.240 --> 0:08:32.679 We're three D printing a lot of stuff here. We 0:08:33.120 --> 0:08:33.679 could build. 0:08:33.720 --> 0:08:34.880 What is the limiting factor? 0:08:35.480 --> 0:08:37.480 It's really the market at this point. It's really the market. 0:08:37.520 --> 0:08:39.480 We can build as many rockets as the market demands. 0:08:39.520 --> 0:08:41.559 But it's a new market, it's a nascent market, and 0:08:41.640 --> 0:08:43.439 I think, you know, it just takes time for these markets. 0:08:43.679 --> 0:08:46.680 I want to get into this, the business of space, 0:08:46.800 --> 0:08:48.880 and just bear with me. Carry elon, musk, I'm bear 0:08:48.920 --> 0:08:51.320 with you. A lot has a big gap right over 0:08:51.400 --> 0:08:54.280 you a big sort of lead with SpaceX, and he 0:08:54.320 --> 0:08:56.840 talks about this idea that the business of sending payload 0:08:56.920 --> 0:09:00.400 to or pit tops out for them at three billion dollars. Now, 0:09:00.440 --> 0:09:03.120 that's a scale that you're not near yet, but it 0:09:03.160 --> 0:09:05.640 makes it seem like there's a cap, there's a ceiling 0:09:05.960 --> 0:09:09.439 on how much money you can ever make in this business. 0:09:09.920 --> 0:09:10.840 What do you make of that? 0:09:11.480 --> 0:09:13.600 I think it depends on how you define this business, right, 0:09:13.600 --> 0:09:15.400 I think, yeah, even as we've seen the SpaceX, I 0:09:15.400 --> 0:09:17.800 don't think they stopped. They just launch. So launch is 0:09:17.840 --> 0:09:20.560 a very critical part of the ecosystem, but it's not 0:09:20.559 --> 0:09:23.240 the biggest piece of the ecosystem. So the applications and 0:09:23.320 --> 0:09:25.880 creating that ongoing revenue stream from applications and having a 0:09:25.880 --> 0:09:28.280 constation on orbit, that is really what people are shooting 0:09:28.280 --> 0:09:29.720 for as far as where the real scale for this 0:09:29.760 --> 0:09:32.520 industry comes from. And that's exactly what we're oriented around. 0:09:32.520 --> 0:09:34.160 We're all about being an end to end space company 0:09:34.160 --> 0:09:36.559 where we can design the spacecraft, we can build the 0:09:36.600 --> 0:09:39.360 spacecraft in a very vertically integrated way with our own subsystems, 0:09:39.520 --> 0:09:41.400 we can launch them on a variety of rockets, then 0:09:41.400 --> 0:09:43.520 we can operate those in orbit so it's a very 0:09:43.600 --> 0:09:45.320 very important thing to think about yourself as an end 0:09:45.440 --> 0:09:47.880 end player, because again, if you're a bespoke kind of 0:09:47.880 --> 0:09:51.120 one solution provider, it's probably not the path to survivability for. 0:09:51.200 --> 0:09:54.600 Those institution investors sat watching and indeed retail investors who 0:09:54.600 --> 0:09:57.360 are excited about putting money into rocketing very excited. What 0:09:58.080 --> 0:10:01.280 tell us about how the market scale up? What is needed? 0:10:01.320 --> 0:10:03.200 You're saying you can get these, you can build these 0:10:03.240 --> 0:10:05.000 as quickly as a market wants. Well, what gets the 0:10:05.040 --> 0:10:07.200 market to the next iteration to the size that you 0:10:07.240 --> 0:10:08.160 want to be able to serve it? 0:10:08.200 --> 0:10:08.240 That? 0:10:08.760 --> 0:10:10.280 I think the most exciting thing about what's going on 0:10:10.280 --> 0:10:11.920 in this market right now is that, you know, you 0:10:11.960 --> 0:10:15.880 think about what typically drives the hockey stick growth kind 0:10:15.920 --> 0:10:18.400 of characteristic of an industry, and it's usually commercial. But 0:10:18.440 --> 0:10:20.040 I think we're in a really interesting period where we're 0:10:20.040 --> 0:10:23.400 actually seeing the hockey stick being derived building from commercial opportunities. 0:10:23.400 --> 0:10:25.520 So everyone seeing what SpaceX is doing with startlinks, that's 0:10:25.559 --> 0:10:27.360 kind of old news to a certain extent. But then 0:10:27.400 --> 0:10:29.920 you see Amazon Kuiper, you see Teleside light Speed, you 0:10:29.960 --> 0:10:32.440 see the SDA constllation, So you're actually seeing a combination 0:10:32.520 --> 0:10:35.840 of government and commercial all presenting hockey stick opportunities. And 0:10:35.840 --> 0:10:37.840 that's really you're not just not a one bet kind 0:10:37.880 --> 0:10:39.760 of situation right now. There's lots of different hiers you 0:10:39.760 --> 0:10:40.600 can be your fired. 0:10:40.360 --> 0:10:42.120 To, Adam. There's so much more to come, as you 0:10:42.160 --> 0:10:44.719 know in this hour. But before we let you go, 0:10:44.920 --> 0:10:48.520 a word for SpaceX. What they enabled your company to do, 0:10:48.600 --> 0:10:50.000 particularly here in California. 0:10:50.840 --> 0:10:52.280 Well, I think you have to give them, you know, 0:10:52.400 --> 0:10:54.599 amazing credit for what they've accomplished. They really kind of 0:10:54.760 --> 0:10:57.280 are a I would say, kind of a an inspiration 0:10:57.600 --> 0:11:00.280 and aspirational target as well. Like we've seen, we've that 0:11:00.360 --> 0:11:02.040 we could be done right. I think that's the one 0:11:02.040 --> 0:11:04.720 thing is we wake up every morning understanding the challenge 0:11:04.720 --> 0:11:07.199 that faces us, but we're not intimidated by it. Never 0:11:07.240 --> 0:11:09.719 that's one thing that this company does not ever get 0:11:09.800 --> 0:11:12.480 is intimidated by competition, whether it's SpaceX or anybody else. 0:11:12.520 --> 0:11:14.480 So we're up for the challenge. It's exciting and there's 0:11:14.480 --> 0:11:16.280 a tremendous amount of opportunity, and I think we're in 0:11:16.320 --> 0:11:17.480 a great position to exploit it. 0:11:17.840 --> 0:11:20.160 You were up early for us. We give you great 0:11:20.160 --> 0:11:23.200 thanks for it, Adam. It's wonderful to have us here 0:11:23.400 --> 0:11:25.880 and you here with us. Adam Spice, CFO of Rocket 0:11:25.920 --> 0:11:28.800 Lab coming up, as Ed says, so much more to come. 0:11:29.040 --> 0:11:31.080 We're actually going to dig into what Ela Musque's also 0:11:31.120 --> 0:11:34.160 been up to. Tesla's Robotaxi revealed and the company debuts 0:11:34.600 --> 0:11:37.560 is first fully autonomous vehicle, but shares a lower because 0:11:38.040 --> 0:11:40.120 let's investor skepticism. We're going to be speaking with a 0:11:40.160 --> 0:11:42.679 key investor who is there and getting the demos, Nazi 0:11:42.720 --> 0:11:44.640 Tangla of Lafetangla Investments. 0:11:44.800 --> 0:11:45.920 This is breen big technology. 0:11:55.360 --> 0:11:58.680 We expect to be in production with the cybercap which 0:11:58.720 --> 0:12:07.240 is really big, highly optimized for autonomous transport in probably well, 0:12:07.280 --> 0:12:10.840 I don't be a little optimist with the time frames, but. 0:12:12.480 --> 0:12:13.760 In twenty twenty six. 0:12:17.360 --> 0:12:20.640 A little optimistic with timeframes as ever. Tesla CEO Elon 0:12:20.720 --> 0:12:23.760 Musk and bailing rough production timeline should we call it 0:12:23.800 --> 0:12:26.960 about its new autonomous cyber cab shares a test. They're 0:12:27.000 --> 0:12:31.600 lower this morning, the announcement lower and it's because of cynicism, skepticism, right, 0:12:31.840 --> 0:12:33.200 a lack of detail. 0:12:33.559 --> 0:12:35.920 We are down nine percent over the last two training days. 0:12:36.040 --> 0:12:38.800 Nazi Tangler is a holder of this stock was there 0:12:38.840 --> 0:12:41.400 at the event of Laffa Tangler Investments, and you too 0:12:42.160 --> 0:12:44.600 have a little bit of element of more questions than 0:12:44.640 --> 0:12:45.319 answers right. 0:12:45.280 --> 0:12:47.400 Now, and it's based on experience. I just want to say, 0:12:47.400 --> 0:12:49.719 you got in cyber Cab, go from there. 0:12:49.840 --> 0:12:51.040 Yeah, well it's awesome. 0:12:51.080 --> 0:12:53.600 I mean, you know, Elon said the future should look 0:12:53.640 --> 0:12:55.760 like the future, and it does look like the future. 0:12:56.040 --> 0:12:57.760 We just don't know when the future is. 0:12:58.040 --> 0:13:00.400 I mean there were no details except the site cab 0:13:00.480 --> 0:13:03.600 will cost you know, less than thirty grand, that you'll 0:13:03.640 --> 0:13:06.000 it'll cost twenty to thirty cents a mile, but if 0:13:06.040 --> 0:13:08.880 you add in regulations forty and that just felt a 0:13:08.880 --> 0:13:11.160 little bit like this to me because there was no 0:13:11.320 --> 0:13:14.480 substantive backup to that. And so if you were there 0:13:14.480 --> 0:13:16.880 to be wowed, it was it was filled with wow. 0:13:17.040 --> 0:13:19.959 I mean, Optimus stole the show for me. There were 0:13:20.720 --> 0:13:24.679 you know, the Robovan it's super interesting. But when and 0:13:24.720 --> 0:13:26.800 we heard nothing about the ride sharing app. 0:13:26.840 --> 0:13:28.080 We heard nothing about Can I just. 0:13:28.120 --> 0:13:30.559 Jump in on that point, because so we've done a 0:13:30.600 --> 0:13:34.720 lot of reporting on this business model, and the piece 0:13:34.760 --> 0:13:37.559 of news that immediately jumps out is that cyber Cab 0:13:38.160 --> 0:13:41.280 is going to be available to buy and that adds 0:13:41.320 --> 0:13:46.800 another facet or dimension to the master plan. Do you 0:13:46.920 --> 0:13:49.960 understand the proprietary ride hailing app that Tesla will one 0:13:50.040 --> 0:13:51.120 day day offer us? 0:13:51.760 --> 0:13:53.560 No, because we don't. We don't know what it's going 0:13:53.600 --> 0:13:55.520 to look like. I mean, he said a lot of things. 0:13:56.000 --> 0:13:58.440 There was a comment about Uber drivers are going to 0:13:58.440 --> 0:14:01.440 be the shepherds of the flow, But what does that mean. 0:14:02.080 --> 0:14:04.160 We're going to do away with parking lots because these 0:14:04.200 --> 0:14:06.000 cars are just going to keep going so you can 0:14:06.280 --> 0:14:08.920 get you know, lend your car back, and the parking 0:14:08.920 --> 0:14:10.360 lots are going to be replaced by parks. 0:14:10.360 --> 0:14:13.960 It sounds sound like he was running for office. 0:14:13.600 --> 0:14:16.440 You know, which might be a criticism of what's been 0:14:16.480 --> 0:14:18.880 happening at the moment, because look, you are an investor. 0:14:19.320 --> 0:14:21.520 We see the pop in the shares of Uber of 0:14:21.680 --> 0:14:24.200 Lift today because we thought there would. 0:14:23.960 --> 0:14:26.160 Be more of a let's bring up let's bring up 0:14:26.200 --> 0:14:27.120 Uber and left because it. 0:14:29.000 --> 0:14:30.720 Is now. It depends on when you got in. 0:14:30.760 --> 0:14:33.120 But we just added Uber to our twelve best Ideas 0:14:33.160 --> 0:14:36.240 portfolio about two months ago. It was just lucky time 0:14:36.600 --> 0:14:38.840 timing because it was right before they announced their partnerships 0:14:39.000 --> 0:14:41.040 that that was the winner last night, Uber was the 0:14:41.040 --> 0:14:44.160 winner of the event, and I think enjoyed it very much. 0:14:46.760 --> 0:14:48.320 That well, I mean because. 0:14:47.960 --> 0:14:51.280 Now they were worried at the IPO that Tesla would 0:14:51.320 --> 0:14:59.320 replace them and this is proof positive pos Yeah, maybe 0:14:59.360 --> 0:15:02.760 a decade and so WHATLCK can happen between now and then? 0:15:02.920 --> 0:15:05.360 And I think that was the disappointment that we didn't 0:15:05.360 --> 0:15:09.160 hear anything about the model too. There was no specificity 0:15:09.400 --> 0:15:11.880 on things that investors care about. 0:15:11.920 --> 0:15:12.080 Now. 0:15:12.080 --> 0:15:15.200 The retail crowd that was there, you know, we're shouting out, 0:15:15.240 --> 0:15:17.080 we love you, Elon, and you know, it felt like 0:15:17.120 --> 0:15:17.560 a party. 0:15:17.760 --> 0:15:18.600 What was it like being. 0:15:18.520 --> 0:15:20.120 There for the first time at one of these events, 0:15:20.160 --> 0:15:21.960 surrounded by the retail Pretty cool. 0:15:22.000 --> 0:15:23.920 I actually that was the most fun for me talking 0:15:23.920 --> 0:15:26.840 to retail investors why they own the stock, why they 0:15:26.840 --> 0:15:27.560 own the cars. 0:15:27.640 --> 0:15:29.040 But these are devotees. 0:15:29.920 --> 0:15:32.840 It felt like a concert, like a mosh pit of 0:15:32.880 --> 0:15:34.840 groupies right in front of the stage. 0:15:35.080 --> 0:15:37.920 Yeah, Marguerite, who's running the show out the control room 0:15:37.960 --> 0:15:40.040 in New York, bring up some video of the cyber cab. 0:15:40.080 --> 0:15:42.000 I want to make a point here and ask questions 0:15:42.000 --> 0:15:45.200 and Nancy, just by looking at it, if you're going 0:15:45.240 --> 0:15:47.240 to do that and offer to sell it for thirty 0:15:47.320 --> 0:15:50.480 thousand US dollars. Why not just stick a steering wheel 0:15:50.480 --> 0:15:53.240 on it and some pedals and sell it for twenty 0:15:53.280 --> 0:15:55.520 five thousand dollars like a normal car. 0:15:55.840 --> 0:15:56.120 I know. 0:15:56.360 --> 0:15:58.520 And he even said, you know, there's no steering wheels 0:15:58.560 --> 0:16:00.200 and pedals, and we hope that goes well. 0:16:00.680 --> 0:16:02.360 I mean it gets crossed it. 0:16:04.720 --> 0:16:07.960 This is the van as well. So the Robovan again, 0:16:08.160 --> 0:16:10.320 you know, one of his skills is keeping investors looking 0:16:10.320 --> 0:16:13.280 to the horizon, right, Is that something you then redo 0:16:13.320 --> 0:16:15.520 your whole Tesla model on when you see something like that? 0:16:15.760 --> 0:16:16.000 Yeah? 0:16:16.120 --> 0:16:19.800 No, because when I mean, we haven't seen the model 0:16:19.840 --> 0:16:21.600 to you, we're supposed to see it first half of 0:16:21.680 --> 0:16:23.760 next year. This would have been a good time to 0:16:23.880 --> 0:16:26.200 kind of give investors a sense of what's going on. 0:16:26.320 --> 0:16:29.920 I think across the board institutional investors were disappointed, and 0:16:29.920 --> 0:16:31.640 we're seeing it in the stock price, but even in 0:16:31.960 --> 0:16:35.520 the reporting afterwards, and I expected stock to trade down 0:16:35.600 --> 0:16:38.440 even though you know, optimist is super cool. I'm going 0:16:38.720 --> 0:16:40.840 to stay in the name as committed in the name 0:16:40.880 --> 0:16:43.360 as you all, yes, because we got in at one hundred, 0:16:43.760 --> 0:16:46.080 one hundred and eight when he was selling off in 0:16:46.600 --> 0:16:50.600 January of twenty twenty three, We've sold back some as 0:16:50.640 --> 0:16:53.320 it rose to two seventy and so forth. But I 0:16:53.320 --> 0:16:54.880 think you want to own it for the next three 0:16:54.960 --> 0:16:56.640 to five years. You may just not want to own 0:16:56.680 --> 0:16:58.920 it for the next one to two years. 0:16:59.120 --> 0:17:02.360 Elon Musque is always late, but he does often get 0:17:02.360 --> 0:17:04.840 there in the end. Nancy Tanglo of Laffer and Tannglar Investments, 0:17:05.040 --> 0:17:08.200 who was there last night, thank you very much. AMD 0:17:08.359 --> 0:17:10.399 saw its biggest stock decline in more than a month 0:17:10.480 --> 0:17:14.280 after the company unveiled new artificial intelligence chips, but did 0:17:14.320 --> 0:17:17.320 not provide info on new customers or kind of financial 0:17:17.320 --> 0:17:19.960 performance in the near term. I spoke with CEO Lisa 0:17:20.000 --> 0:17:23.040 Sue and here's what she said about the company's latest 0:17:23.280 --> 0:17:24.600 AI accelerators. 0:17:26.080 --> 0:17:29.600 This is an incredibly fast growing market. I mean, if 0:17:29.600 --> 0:17:31.960 you think about you know what we've done just over 0:17:32.000 --> 0:17:35.280 the last twelve months or so, We've seen three hundred 0:17:35.320 --> 0:17:38.359 demand increase from when we started the year too. In 0:17:38.440 --> 0:17:41.240 our most recent earnings we actually said we would be 0:17:41.280 --> 0:17:44.600 over four and a half billion dollars in this important 0:17:44.640 --> 0:17:45.919 AI accelerator market. 0:17:56.000 --> 0:17:58.359 Okay, we caught up with Jared Isaacman, who is mission 0:17:58.359 --> 0:18:01.600 commander of Polaris Dawn, the first crew to test Starlink 0:18:01.680 --> 0:18:05.320