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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is Wall Street Week. I'm David Weston, bringing you

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Speaker 2: stories of capitalism. President Trump has a dream of gas

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Speaker 2: falling below two dollars. Given recent developments in the Middle East,

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Speaker 2: that goal seems to be getting harder to achieve than ever.

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Speaker 2: Last week, we've brought you the story of what it

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Speaker 2: would take. This week, we turned to what it would

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Speaker 2: mean for places like Odessa, Texas if we could plus

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Speaker 2: the golden era of healthcare innovation. We go to Springhouse,

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Speaker 2: New Jersey to see where some of those wonder drugs

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Speaker 2: we hear about are coming from and why. The CEO

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Speaker 2: of Johnson and Johnson says the best is yet to

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Speaker 2: come and the future may be closer than we think.

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Speaker 2: When it comes to flying cars, go inside the world

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Speaker 2: of electric vertical takeoff and landing vehicles. But we start

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Speaker 2: with the big story of the week, continued strife in

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Speaker 2: the Middle East and what it means for the economy overall.

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Speaker 2: Richard has A's Centerview Partners takes us through it.

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Speaker 3: We shouldn't assume that what's happened is all that's going

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Speaker 3: to happen. I don't know if it's the first inning

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Speaker 3: of a nine inning game, or the fifth inning. But

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Speaker 3: it's not the end of it.

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Speaker 2: Why now, It's a good question.

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Speaker 3: Bb Nets and Yaho hinted or intimated that there was

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Speaker 3: something new. We haven't seen it in the way of intelligence.

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Speaker 3: Either the Israelis had some new intelligence about where Iran

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Speaker 3: was or maybe put together an assessment that said something.

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Speaker 3: This is what I would call a preventive war. This

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Speaker 3: was a war that was launched or an attack launched

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Speaker 3: by Israel, not against an imminent threat, but against a

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Speaker 3: gathering threat. And what israel I believe owes to its

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Speaker 3: own population, to the region, to the United States and

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Speaker 3: the world is an explanation. What was it that motivated

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Speaker 3: Israel to act just now? Because we don't have an answer.

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Speaker 2: There was a time not too long ago when nothing

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Speaker 2: happened in that part of the world without the US

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Speaker 2: having some major role. Do we have a role in this?

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Speaker 2: Israel paying attention to us? Are we encouraging them? Are

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Speaker 2: we discouraging? Where are we?

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Speaker 4: Well?

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Speaker 3: We clearly didn't put up a red light. We may

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Speaker 3: not even put up a yellow light. There was some

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Speaker 3: back and forth between the Israelis and the Americans. These

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Speaker 3: negotiations were going on. Five rounds had taken place, A

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Speaker 3: sixth round was scheduled for a few days from now.

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Speaker 3: If an American president goes to an Israeli Prime minister

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Speaker 3: and basically says, do not do this or it will

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Speaker 3: have tremendous adverse consequences for your relationship with me, for

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Speaker 3: your country's relationship with my country, and virtually any scenario

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Speaker 3: short of an existential threat to the Jewish state, the

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Speaker 3: Israelis would hold back. Clearly, Donald Trump did not do

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Speaker 3: that to bv Nets in Yahoo. But there may have

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Speaker 3: been a little bit more coordination diplomatically between the United

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Speaker 3: States and Israel than we understand.

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Speaker 2: What restraints or constraints do we think might exist on

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Speaker 2: Israel and on a run quite apart from the US influence,

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Speaker 2: and for example, seen Israel go after oil fields in Iran.

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Speaker 2: We haven't seen Iran go after the straight at home moves.

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Speaker 2: It appears right now for the moment, they may be

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Speaker 2: a little restrained.

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Speaker 3: I would argue that most of the restraints are on

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Speaker 3: the Iranian side something because Iran is so vulnerable. Go

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Speaker 3: back to last year. In April and October of last year,

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Speaker 3: Israel weakened Iranian air defenses. This is the third time

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Speaker 3: they've done it. Essentially, Israel's demonstrated the ability its ability

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Speaker 3: to operate over Iran with near impunity. Iran is vulnerable

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Speaker 3: to Israel or the United States, conceivably even to some

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Speaker 3: of its neighbors. One of the things I'm going to

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Speaker 3: watch closely because I think it's related to the Israeli attack.

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Speaker 3: This was not just an Israeli attack against nuclear installations.

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Speaker 3: It wasn't just an Israeli attack against bases, military basis. Clearly,

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Speaker 3: this was an attack aimed at disrupting, weakening, conceivably pushing

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Speaker 3: out the Iranian leadership. I think that's a tall order,

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Speaker 3: but I would think that one of the things all

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Speaker 3: observers want to watch is what the Iranians do and

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Speaker 3: their priority. I would think will not be tactically to

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Speaker 3: respond against Israel unless they believe that's necessary to hold

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Speaker 3: on to power.

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Speaker 2: What do you expect the Israeli goal is here? What

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Speaker 2: is their mission? We knew when they went into Guys

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Speaker 2: that they said they wanted to defeat, if not destroy

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Speaker 2: Hamas entirely. We've talked in the past about really destroying

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Speaker 2: the nuclear facilities in Iran. That's a tall order, is

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Speaker 2: that their goal is that achievable.

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Speaker 3: Probably of several goals, one is to again show Iran

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Speaker 3: as being so weak that directly and indirectly through its proxies,

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Speaker 3: it's got to be extraordinarily careful, and the Israelis has

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Speaker 3: simply reinforced that message what they've done several times. Secondly, yes,

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Speaker 3: to weaken the nuclear establishment. There's one big site, as

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Speaker 3: best I know, David, they haven't gone after yet, which

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Speaker 3: is Ford, Oh, which is one of the major enrichment sites.

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Speaker 3: It's also the one that's hardest to destroy, its most underground.

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Speaker 3: So the Israelis, what word do you want to reduce? Degraded?

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Speaker 3: The Iranian nuclear establishment killed some of its leading officials,

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Speaker 3: but they're still an Iranian nuclear establishment with various installations

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Speaker 3: known and unknown.

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Speaker 2: Irani has said that if there are attacks against it,

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Speaker 2: it will sprint to actually develop nuclear weapons. Is that

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Speaker 2: a realistic threat? And what does this do to that?

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Speaker 2: Is there a danger here that they will actually do

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Speaker 2: that and get nuclear weapons faster? And they would have gone.

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Speaker 3: Faster, but in a way that's more difficult to do

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Speaker 3: this again. I would think the Iranians can't sprint easily

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Speaker 3: to nuclear weapons. They've got to re establish their leadership,

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Speaker 3: but they would have to do it in ways that

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Speaker 3: future Israeli strikes couldn't get out deep deep, deep underground.

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Speaker 3: So my guess is that won't be, if you will,

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Speaker 3: a near term response, but could that be a medium

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Speaker 3: and long term response. Absolutely. I could also imagine the

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Speaker 3: Iranian saying we're not going to cooperate with international authorities

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Speaker 3: like we have. Where was the world coming to our defense?

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Speaker 3: We were still talking to the IAEA is real acted

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Speaker 3: against us. There will be people, I bet in Tehran

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Speaker 3: saying if we had had nuclear weapons, this never would

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Speaker 3: have happened. It's the fact that we don't have nuclear

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Speaker 3: weapons that the Israelis can act this way against us.

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Speaker 3: So I would think that's going to become an intense

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Speaker 3: debate in Iran.

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Speaker 2: This is, of course, first and force a geopolitical issue.

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Speaker 2: There are armaments being deployed, There may well be lives lost.

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Speaker 2: They've already seen some of the leadership of Iran. It

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Speaker 2: also has potential economic ramifications in the United States and

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Speaker 2: around the world. I wonder if you could talk about

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Speaker 2: specifically one question, which is inflation.

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Speaker 3: We've got new numbers soon. It won't affect those over time. Yes,

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Speaker 3: if oil prices were to stay considerably higher, but let's

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Speaker 3: take a step back. Oil prices have gone up, however,

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Speaker 3: many dollars, and we'll see where they settle out by

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Speaker 3: next week. Still, by historical terms, oil prices are relatively

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Speaker 3: modest once you factor in inflation. If you remember where

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Speaker 3: we've been at various times, So just say we're in

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Speaker 3: the low seventies, that's not that high. Out of all

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Speaker 3: the things that going to cause inflation, this would, I think,

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Speaker 3: simply be one of them. But could Now if oil

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Speaker 3: prices went up to ninety one hundred, one hundred and

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Speaker 3: ten and stayed there, big thing and stayed there, But

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Speaker 3: that would require probably there to be an open ended

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Speaker 3: series of exchanges, not just between Israel and Iran, but

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Speaker 3: Iran would have to decide that warwide thing made sense

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Speaker 3: for it a strategy and by that I mean going

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Speaker 3: after Saudia Ramco Go, having the houtis, do more things

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Speaker 3: to interrupt and so forth possible.

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Speaker 5: Won't rule it out.

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Speaker 3: And if that were to happen, it could have an

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Speaker 3: inflationary impact. But quite honestly, David. Stuff that we're likely

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Speaker 3: to do to ourselves in terms of our own policy

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Speaker 3: is going to have much more inflationary impact than I

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Speaker 3: think this crisis will.

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Speaker 2: Exactly my question. We've had some economic policy on certainly

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Speaker 2: the United States since Donald Trump PRESUS, and there are

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Speaker 2: a lot of vocations potentially for the economy and that how,

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Speaker 2: if at all, does this confidence in Middle Is play

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Speaker 2: against the tariff threat?

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Speaker 3: If you ask me, the bigger issues are still made

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Speaker 3: in America. I think the bigger sources of uncertainty tariff

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Speaker 3: policy is enormous questions about domestic political what if you

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Speaker 3: want to call it instability, rule of law, and so

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Speaker 3: forth in this country, renewed inflation from various sources and

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Speaker 3: so forth. I would think those raise bigger questions right now.

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Speaker 3: If you're worried about China and the US, it might

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Speaker 3: be export controls and what is the nature of those

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Speaker 3: mutual regimes like leg But I think this adds to it.

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Speaker 3: Anytime bad things happen, unexpected things happen, this is relatively

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Speaker 3: unexpected until the last few days. It just adds to

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Speaker 3: people's uncertainty and it adds to their sense maybe you

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Speaker 3: ought to keep our wallets in our pocket.

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Speaker 2: A lot of uncertainty, geopolitical uncertainty is leading to more

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Speaker 2: defense spending in the United States, is proposed by Republicans

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Speaker 2: on the hill and in Europe. That's what we're seeing

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Speaker 2: right now. Will this be material with respect to that

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Speaker 2: or was that already that horse already out of the barn.

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Speaker 3: I think that horse is already out of the barn.

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Speaker 3: In Europe, what's motivating it is uncertainty over the wisdom

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Speaker 3: of continued reliance on the United States and the fact

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Speaker 3: that the Europeans begin from such a relatively low base.

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Speaker 5: Speaking about what.

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Speaker 3: So do we look at the percentage of GDP that

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Speaker 3: the United States spends on defense compared to the Cold War.

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Speaker 3: We're not even half the average levels we were at

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Speaker 3: during the Cold War. And we now face uncertainty and

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Speaker 3: three geographies at least Asia, Pacific, Europe, and the Middle East.

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Speaker 3: This is a time that's extraordinarily stressful for American defense strategy,

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Speaker 3: for American force structure, which by the way, seems very outdated.

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Speaker 3: We've got a small number of very expensive platforms which

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Speaker 3: could be overwhelmed. I would think by these very inexpensive

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Speaker 3: systems like drones, or anti ship weapons, anti air missiles,

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Speaker 3: and the like. So yeah, American defense spending is seriously

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Speaker 3: below what it needs to be. Though, if I were

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Speaker 3: going to filibuster and make one more point, David, how

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Speaker 3: what's always more important than how much you spend is

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Speaker 3: how you spend it. And the problem with the American

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Speaker 3: defense spending is not simply the level, but it's the

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Speaker 3: content of it. We have what to borrow from Eisenhower,

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Speaker 3: we have a military industrial legislative complex. We've now got

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Speaker 3: three forces that are making it hard to come up

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Speaker 3: with a rational, optimal defense posture. That's our biggest problem.

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Speaker 2: Final point, And it's not filibustering at all, because you

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Speaker 2: wrote a book, most recently Bill of Obligations, but before that,

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Speaker 2: you wrote a book about the connection between the economic

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Speaker 2: strength of the United States is in national security.

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Speaker 3: Foreign policy begins at.

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Speaker 2: Home exactly right as we are looking at the one

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Speaker 2: big beautiful Bill Act, what do you make of our

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Speaker 2: economic posture and what it means for our national security?

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Speaker 3: Well, this questions of the bill, also questions of the

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Speaker 3: debt ceiling, the tariffs. What they've all added up to, David,

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Speaker 3: is they've raised questions about America's stewardship. The rest of

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Speaker 3: the world, like it or not, depends on the United States.

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Speaker 3: We're still a quarter of the world's economy. The dollar

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Speaker 3: has a pivotal role. I think the fact that this

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Speaker 3: is one of the first times we've seen the United

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Speaker 3: States in a crisis, whether we generated or not, no

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Speaker 3: longer be the safe haven. But we're beginning to see

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Speaker 3: other places emerge as alternatives to the United States. That

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Speaker 3: tells you all you need to know. Other leaders, other

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Speaker 3: central bankers around the world can no longer operate with

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Speaker 3: a confident set of assumptions and predictions about the United States,

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Speaker 3: and that in and of itself drives them, quite honestly,

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Speaker 3: to hedge their bets on the United States.

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Speaker 2: Coming up, the President Trump's goal of two dollars a

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Speaker 2: gallon gasoline seems to be farther away than ever, But

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Speaker 2: what would it mean for the good people of West

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Speaker 2: Texas if he could get there? That's next on Wall

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Speaker 2: Street Week. This is the second chapter in our story

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Speaker 2: about setting goals. Last week, our colleague Alex Steele took

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Speaker 2: a look at how realistic President Trump's goal of two

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Speaker 2: dollars gasoline is. Something Israel's attack on Iran makes less

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Speaker 2: likely than ever. This week, Michael McKee continues the story,

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Speaker 2: traveling to Odessa, Texas to look at what achieving the

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Speaker 2: goal could mean for an important part of the US economy.

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Speaker 6: Today, I will also declare a national energy emergency.

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Speaker 7: We will drill, baby drill. The logic of drill, baby

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Speaker 7: drill seems to be drive down the price of oil,

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Speaker 7: which then pushes down the price of gasoline. Lower gas

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Speaker 7: prices mean happier consumers have more money to spend on

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Speaker 7: other things, but that's not actually happening. The President's contention

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Speaker 7: that you can buy gas for a dollar ninety eight

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Speaker 7: in some places is pure fantasy. Last week, Alex Steele

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Speaker 7: told us the story through the eyes of producers who

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Speaker 7: can't make the math work. I wish I had more

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Speaker 7: control over margins. I really don't. It's based on supply

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Speaker 7: and demand, and if margins are good, we really want

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Speaker 7: to run. If margines are bad, we still need to run.

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Speaker 8: The problem is from twenty twenty seven on was if

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Speaker 8: you look at our refining kind of global landscape, it

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Speaker 8: only gets worse. We've got more closures coming because refining

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Speaker 8: is such a slow moving industry and years. It kind

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Speaker 8: of takes to build one and there on on new

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Speaker 8: bills in the West.

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Speaker 7: Anyways, US oil production is one factor affecting prices at

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Speaker 7: the pump. Another, beyond the control of American policies and production,

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Speaker 7: is geopolitics. We went to Midland, Odessa, in the heart

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Speaker 7: of the Permean basin to see firsthand what happens when

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Speaker 7: oil prices fall.

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Speaker 9: Never was going to be. It's not slogan, and people

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Speaker 9: like to talk about the prices of all getting so

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Speaker 9: low that you have a dollar fifty gasoline or whatever.

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Speaker 9: As a practical matter, why would some of the largest

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Speaker 9: and most sophisticated companies in the world drill themselves into bankruptcy.

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Speaker 5: I mean, it just doesn't make sense.

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Speaker 7: Ray Perriman is an economist who has seen enough cycles

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Speaker 7: in the oil market to know when the economy is

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Speaker 7: in trouble.

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Speaker 9: If you go back and look kind of at the

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Speaker 9: century that we've had oil and gas production here from

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Speaker 9: nineteen twenty one up to about nineteen seventy four, pretty

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Speaker 9: steadily increased, I mean, down in the Great Depression after

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Speaker 9: the war, but pretty steadily increased and got to about

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Speaker 9: two point one million barrels a day. And then because

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Speaker 9: the fields were old, the production started declining, and it

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Speaker 9: declined dramatically, declined all the way from nineteen seventy four

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Speaker 9: to two thousand and eight. Every year went from two

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Speaker 9: point one million barrels a day to seven hundred thousand.

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Speaker 9: And people had written this place off. I mean, the

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Speaker 9: pipelines that you uhould take oil to the Gulf were

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Speaker 9: now taking gasoline here. I mean they reversed the pipelines,

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Speaker 9: and everyone they were calling the old rigs or tombstones

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Speaker 9: and things like that.

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Speaker 7: This time around, it's a combination of President Trump's calls

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Speaker 7: for more drilling terraffs and an increasing foreign supply of oil,

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Speaker 7: depressing prices in the region in the US that produces it.

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Speaker 9: It's definitely cyclical, not nearly as much as it was,

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Speaker 9: because again the cycles are not as pronounced as they

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Speaker 9: used to be, primarily because there's plentiful oil in the world.

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Speaker 9: I mean, at one point in time there were either

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Speaker 9: critical shortages are big surpluses all the time. That seems

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Speaker 9: to be leveled out more to some extent now. But

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Speaker 9: obviously if other producers decide to increase production, or if

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Speaker 9: something causes the world uncertainty to happen in the world

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Speaker 9: and demand to drop off those kinds of things. We're

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Speaker 9: going through some of that right now. Then you do

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Speaker 9: see the industry being somewhat cyclical, but now it's a

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Speaker 9: matter of, you know, more plus or minus five percent

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Speaker 9: in oil field employment, that sort of thing, not how

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Speaker 9: it used to be. What was just literally all in

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Speaker 9: or all out.

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Speaker 7: It happened during the oil blood of the nineteen eighties,

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Speaker 7: which led to a collapse in prices, and again in

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Speaker 7: twenty fourteen when Brent crude fell from around one hundred

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Speaker 7: and twelve dollars a barrow in June twenty fourteen to

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Speaker 7: a low of thirty one dollars in January twenty sixteen.

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Speaker 9: There's no question about again, it's not like it's not

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Speaker 9: like the eighties where things become you know, basically during

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Speaker 9: that period of time, it came almost ghost towns out here.

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Speaker 9: In one statistic I was often fond of was for

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Speaker 9: a thirteen year period during that oil bus there were

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Speaker 9: two multi family housing permits in Middland, Texas. And I

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Speaker 9: don't mean two apartment complexes, I mean one duplex. I

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Speaker 9: mean literally to multi family houses. We're now seeing a

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Speaker 9: steady stream of new housing coming online, even in the

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Speaker 9: midst of some of these things that are happening, and

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Speaker 9: certainly it slows down, it slows down significantly, but we're

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Speaker 9: no longer in that cycle where the place kind of

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Speaker 9: drives up and blows away.

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Speaker 7: Both times when oil prices crashed, oil companies shut down

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Speaker 7: drilling and reduced production. The ripple effect of that pullback

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Speaker 7: reduced GDP growth to less than one percent in the

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Speaker 7: fourth quarter of the year. In twenty fourteen fifteen, we

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Speaker 7: had what economists call a silent recession in the US.

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Speaker 7: We didn't see growth contract for the whole country, but

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Speaker 7: in this area and other manufacturing areas there was a

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Speaker 7: big downturn.

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Speaker 5: What was it like here? It was bad. People have adapted.

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Speaker 10: I think the frenzy that went on after we're coming

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Speaker 10: into fourteen were especially the oil companies, the big independence

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Speaker 10: that were drilling just to drill as much as they could,

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Speaker 10: just to get as much oil as they could, learned

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Speaker 10: a lesson in that time. They stopped drilling and started

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Speaker 10: drilling out of cash flow. So people nowadays don't get

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Speaker 10: over extended. Like the banks are smarter. They don't allow

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Speaker 10: people to get over extended. Like they used to in

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Speaker 10: the past too, and so it's made for an interesting

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Speaker 10: paradigm right now. The companies, the service companies are healthy

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Speaker 10: to get through another year of this, but they can't

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Speaker 10: with their employees, so they just they'll have to lay

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Speaker 10: them off. And that's what's SATs. You're using incredible brain

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Speaker 10: trust in these people.

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Speaker 7: There's a danger that's happening again. With prices below the

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Speaker 7: cost of exploring and developing new wells, oil companies are

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Speaker 7: in the process of shutting down again.

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Speaker 10: The travels getting cheaper again. It is a great tax

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Speaker 10: break for the country, there's no doubt about it. I

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Speaker 10: think that's why Trump was wanting the lower prices to

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Speaker 10: spur on things like that in the.

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Speaker 5: Country as a whole.

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Speaker 10: But it's very detrimental to our industry here in the

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Speaker 10: United States. And you can't have more of an American

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Speaker 10: industry than the Texas oil and gas industry and employs

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Speaker 10: people here.

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Speaker 7: Kirk Edwards runs Latigo Petroleum, an independent exploration and production

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Speaker 7: company in the Permian Basin. Last week he canceled the

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Speaker 7: contract to drill five more wells. He won't start up

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Speaker 7: again until oil is at least seventy dollars, and on

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Speaker 7: top of falling prices, he also has to deal with

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Speaker 7: the Trump import taxes.

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Speaker 10: So the tariffs have hurt us also because of steel process.

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Speaker 10: So you've got the process of steel, which was a

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Speaker 10: very big component of our wells, going up twenty percent,

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Speaker 10: which makes our weals more expensive than we have had

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Speaker 10: him in the past, and yet our oil process down

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Speaker 10: twenty two percent.

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Speaker 7: Over the past four months. West Texas Intermediate, the benchmark

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Speaker 7: American oil price, fell by about ten dollars a barrel.

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Speaker 7: Israel's attack on Iran has pushed WTI off its lows,

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Speaker 7: climbing above seventy dollars a barrel. Analysts warned it could

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Speaker 7: go higher, but it will take some time to show

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Speaker 7: up in gasoline prices. Most people in America I think

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Speaker 7: of gasoline when they think of inflation, and they think

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Speaker 7: of oil prices. Oil prices have come down a lot,

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Speaker 7: but gasoline prices haven't come down as much. Has the

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Speaker 7: relationship between oil and gas prices changed?

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Speaker 10: So no, And so when Trump talks about two dollars gasoline,

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Speaker 10: literally it's two dollars coming out of the refinery. And

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Speaker 10: so today it's probably two five two dollars and ten

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Speaker 10: cents something like that. But from there it gets marked

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Speaker 10: up by other people that buide at the refinery, bring

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Speaker 10: it to the gas stations, and you know, they do

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Speaker 10: their deal about making profits. So we've always seen when

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Speaker 10: oil prices go down, the gasoline prices are slow to react.

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Speaker 5: But they should be coming down.

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Speaker 10: And you know, most towns have a salms you know,

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Speaker 10: the probably the cheapest gasoline, and it's at two forty

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Speaker 10: right now here in Odessa, but you'll see most of

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Speaker 10: the service stations are at two sixty. California's still going

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Speaker 10: to see four and five dollar gasoline.

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Speaker 7: Yet, as of June ninth, the national average price per

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Speaker 7: gallon is six cents higher than at the first of

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Speaker 7: the year, well down from and it's early April peak.

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Speaker 7: We're still not back to pre tariff levels and it's

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Speaker 7: not clear when or if we will be an expected

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Speaker 7: tailwind for the economy may turn out to be just

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Speaker 7: a slight breeze.

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Speaker 10: It's the rest of the country that benefits from the

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Speaker 10: gasoline prices. Again, people in middle of Odessa. We would

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Speaker 10: rather see higher gasoling process because it means the wh

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Speaker 10: process good and the economy is going to be good.

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Speaker 10: But It is a side effect for everybody because everybody

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Speaker 10: has to use gasoline in their cars right now to

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Speaker 10: go to work and fly and do things like that.

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Speaker 7: Odessa, Texas provides an early warning the White House Drill

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Speaker 7: Baby drill promise is seen here as a threat. Odessa

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Speaker 7: and its neighboring town of Midland are the beating heart

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Speaker 7: of the oil shale revolution that helped the US regain

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Speaker 7: energy dominance. But rigs are coming down and jobs are

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Speaker 7: going away. Chevron this month announced it would lay off

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Speaker 7: eight hundred workers in the Odessa Midland area.

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Speaker 10: You can tell we're down probably thirty three hundred people

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Speaker 10: without jobs right now. But the huge part of that

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Speaker 10: is each one of these wells cost about twelve million

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Speaker 10: dollars give or take to drill. And you put, you know,

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Speaker 10: thirty rigs times twelve billion dollars, it's about four hundred

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Speaker 10: million dollars a month that was coming into this economy

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Speaker 10: and paying for people and buying equipment and things like that.

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Speaker 10: It's over four billion a year that's being taken out

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Speaker 10: of our market here just in the Permian alone, and

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Speaker 10: so it's significant.

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Speaker 7: Well what's the economic impact on Odessa.

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Speaker 5: Well, we're diversified.

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Speaker 10: So we've learned after a little six times, Odessa and

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Speaker 10: Midland have learned to diversify. We've got a University of

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Speaker 10: Texas system branch here, University Texas Permian Basin that's growing.

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Speaker 10: And so it's just like Texas Tech and Lubbock or

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Speaker 10: Baylor and Waco. We're seeing that these colleges make a

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Speaker 10: difference and good times and bad And also we've recruited

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Speaker 10: in different companies to come in here. A lot of

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Speaker 10: powers getting generated here because of natural gas is so

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Speaker 10: cheap in the Vermion. And we're also seeing an uptick

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Speaker 10: right now in data centers. So these data centers want

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Speaker 10: to come locate where the energy is cheap, and so

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Speaker 10: we're seeing some of that. So some of that is

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Speaker 10: offsetting the shock that we get normally from the oil times,

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Speaker 10: because we've done a good job helping to diversify the economy.

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Speaker 10: But still the oil sector is what pays all the

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Speaker 10: bills around town, and people are more affected by that.

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Speaker 7: For sure, the bet is less drilling, less oil will

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Speaker 7: push prices up, the opposite of the President's goal. And

437
00:22:32,640 --> 00:22:34,920
Speaker 7: at this point it's too early to say whether higher

438
00:22:34,920 --> 00:22:38,160
Speaker 7: oil prices will lead to more drilling. Oil companies don't

439
00:22:38,200 --> 00:22:42,280
Speaker 7: know how long prices will remain elevated. In the meantime.

440
00:22:42,520 --> 00:22:45,040
Speaker 7: For a town where almost everyone drives a gas hungry

441
00:22:45,080 --> 00:22:49,040
Speaker 7: pickup truck, a fall in oil prices means cheaper gasoline,

442
00:22:49,119 --> 00:22:51,880
Speaker 7: which doesn't do you much good if you've lost your job.

443
00:22:53,000 --> 00:22:55,520
Speaker 10: We've turned drill, baby, drill nine to wait baby, wait.

444
00:22:57,160 --> 00:23:02,240
Speaker 10: It's something that again we're pausing, and we know the

445
00:23:02,240 --> 00:23:05,080
Speaker 10: effect of lower oil process. It will slow down things

446
00:23:05,359 --> 00:23:08,000
Speaker 10: in this country. We've seen it six times now, and

447
00:23:08,520 --> 00:23:11,200
Speaker 10: I just I don't understand the side effect because you're

448
00:23:11,240 --> 00:23:14,560
Speaker 10: in a county voted eighty percent for Donald Trump.

449
00:23:14,720 --> 00:23:16,920
Speaker 9: If you see the global economy, relax a little bit.

450
00:23:17,640 --> 00:23:20,720
Speaker 9: Right now, there's a lot of uncertainty. The most typical

451
00:23:20,760 --> 00:23:24,440
Speaker 9: economic reaction to uncertainty is to do nothing. You don't

452
00:23:24,440 --> 00:23:26,440
Speaker 9: buy that car, don't buy that house, don't bring out

453
00:23:26,440 --> 00:23:29,560
Speaker 9: that new product, don't make that investment. All of those things.

454
00:23:29,760 --> 00:23:31,200
Speaker 9: We tend to just lay back and do nothing.

455
00:23:31,280 --> 00:23:33,840
Speaker 7: One way Ray Perrman takes the pulse of oil production

456
00:23:33,920 --> 00:23:36,600
Speaker 7: in the Permian Basin is to look at oil rigs

457
00:23:36,640 --> 00:23:39,520
Speaker 7: that are in storage. We drove fast one by the

458
00:23:39,600 --> 00:23:43,040
Speaker 7: railroad station in Odessa, and if it's any indication of

459
00:23:43,080 --> 00:23:46,480
Speaker 7: the slow progress on drill baby drill. There we're eight

460
00:23:46,600 --> 00:23:49,920
Speaker 7: rigs in storage doing the weight baby.

461
00:23:49,640 --> 00:23:55,040
Speaker 2: Weight coming up. Every day we hear about a new

462
00:23:55,080 --> 00:23:58,360
Speaker 2: wonder drug to help us live longer or improve our lives.

463
00:23:58,720 --> 00:24:01,280
Speaker 2: But where do they all come from? And can we

464
00:24:01,400 --> 00:24:04,520
Speaker 2: keep up the pace of innovation? That's next on Wall

465
00:24:04,520 --> 00:24:15,159
Speaker 2: Street read this is a story about origins, the origins

466
00:24:15,160 --> 00:24:18,040
Speaker 2: of all those new medicines we hear about every day,

467
00:24:18,520 --> 00:24:19,920
Speaker 2: whether to deal with diabetes.

468
00:24:20,160 --> 00:24:23,120
Speaker 11: I have Type two diabetes, but I manage it well.

469
00:24:23,600 --> 00:24:24,360
Speaker 5: Or with cancer.

470
00:24:24,800 --> 00:24:28,359
Speaker 2: This time we're taking the battle to cancer. Did you

471
00:24:28,440 --> 00:24:31,159
Speaker 2: ever wonder where they all come from? We went on

472
00:24:31,160 --> 00:24:40,320
Speaker 2: one of the sources outside Trenton, New Jersey.

473
00:24:39,119 --> 00:24:43,240
Speaker 4: The Center of the action of our Research of Development organization,

474
00:24:43,680 --> 00:24:46,320
Speaker 4: which is the lifelood of a company like Johnson and Johnson.

475
00:24:46,359 --> 00:24:50,159
Speaker 4: So here we have about twenty five hundred scientists and

476
00:24:50,240 --> 00:24:53,080
Speaker 4: researchers that are connected with the risk of our around

477
00:24:53,080 --> 00:24:53,800
Speaker 4: the organization.

478
00:24:54,480 --> 00:24:58,240
Speaker 2: Joaquin Duato is chairman and CEO of Johnson and Johnson,

479
00:24:58,600 --> 00:25:01,720
Speaker 2: one of the largest drugmakers in the world. We met

480
00:25:01,720 --> 00:25:04,280
Speaker 2: with him at his firm's research center in Springhouse, New

481
00:25:04,359 --> 00:25:08,199
Speaker 2: Jersey to learn how a major pharmaceutical company develops cutting

482
00:25:08,359 --> 00:25:09,200
Speaker 2: edge drugs.

483
00:25:09,840 --> 00:25:13,080
Speaker 4: It started with smaller campus and gradually we have expanded it,

484
00:25:13,119 --> 00:25:16,280
Speaker 4: as you can see, into a large campus a very

485
00:25:16,280 --> 00:25:17,480
Speaker 4: beautiful location too.

486
00:25:18,400 --> 00:25:21,320
Speaker 2: For Duato, there has never been a better time to

487
00:25:21,359 --> 00:25:23,480
Speaker 2: be in the business of health science innovation.

488
00:25:24,440 --> 00:25:27,760
Speaker 4: We are in a golden era of life science innovation,

489
00:25:27,880 --> 00:25:31,600
Speaker 4: of medical innovation, and that's the convergence of two forces.

490
00:25:31,680 --> 00:25:34,800
Speaker 4: On one side, we have a better understanding of the

491
00:25:34,840 --> 00:25:38,719
Speaker 4: biology of diseases, of the underpinions of disease, and on

492
00:25:38,760 --> 00:25:43,199
Speaker 4: the other half, we have technology AI machine learning that

493
00:25:43,320 --> 00:25:46,359
Speaker 4: gives us the opportunity to manage large amounts of data

494
00:25:46,640 --> 00:25:49,880
Speaker 4: and gain insights for that. So all these factors combine

495
00:25:50,280 --> 00:25:52,600
Speaker 4: create the type of progress that we see. And the

496
00:25:52,800 --> 00:25:56,240
Speaker 4: US is the country that today has a lead over

497
00:25:56,320 --> 00:25:58,960
Speaker 4: the rest of the world in life science innovation.

498
00:26:00,119 --> 00:26:02,919
Speaker 2: It is no coincidence that the US leads the world

499
00:26:02,920 --> 00:26:07,080
Speaker 2: in biotech innovation. In twenty twenty one, a Congressional Budget

500
00:26:07,080 --> 00:26:10,119
Speaker 2: Office study reported that the industry was investing over eighty

501
00:26:10,280 --> 00:26:13,480
Speaker 2: billion dollars a year, up by a factor of ten

502
00:26:13,760 --> 00:26:17,119
Speaker 2: over ten years, amounting to some twenty five percent of

503
00:26:17,200 --> 00:26:21,639
Speaker 2: farmer companies revenues a much larger portion than for other industries.

504
00:26:22,359 --> 00:26:25,160
Speaker 2: It's not just the money being spent in the United States,

505
00:26:25,320 --> 00:26:28,600
Speaker 2: it's also the way the government, academia, and the private

506
00:26:28,640 --> 00:26:30,080
Speaker 2: sector have worked together.

507
00:26:30,920 --> 00:26:34,600
Speaker 4: You don't have places which are perhaps of life science

508
00:26:34,600 --> 00:26:38,760
Speaker 4: innovation like Boston or San Francisco anywhere else in the world.

509
00:26:38,840 --> 00:26:42,359
Speaker 4: Everybody is looking with mb to the type of ecosystem

510
00:26:42,600 --> 00:26:45,479
Speaker 4: that we have in the US. Great invested in basic

511
00:26:45,520 --> 00:26:50,920
Speaker 4: research through academic institutions and hospitals, venture capital that flows

512
00:26:50,960 --> 00:26:54,560
Speaker 4: into the life science sector. Great companies that are able

513
00:26:54,600 --> 00:26:58,800
Speaker 4: to develop those technologies, manufacture them and bring them to patients,

514
00:26:59,119 --> 00:27:02,800
Speaker 4: protection of intel, actual property, a market that rewards innovation.

515
00:27:03,280 --> 00:27:06,760
Speaker 4: That combination, it's a uniquely American combination.

516
00:27:07,400 --> 00:27:10,560
Speaker 2: Individual companies like Jay and Jay have also created their

517
00:27:10,600 --> 00:27:15,080
Speaker 2: own complex structures to seek out innovation wherever it is

518
00:27:15,240 --> 00:27:15,879
Speaker 2: and develop it.

519
00:27:16,760 --> 00:27:20,920
Speaker 4: We work very hard in order to work and scout

520
00:27:20,920 --> 00:27:24,960
Speaker 4: the world to see when and where are innovations and

521
00:27:25,000 --> 00:27:29,360
Speaker 4: technology that are promising that could eventually benefiting of our

522
00:27:29,520 --> 00:27:34,439
Speaker 4: scale in research, in development, in manufacturing, and in commercialization.

523
00:27:34,800 --> 00:27:37,879
Speaker 4: And that's how we have been able to encounter to

524
00:27:37,960 --> 00:27:42,119
Speaker 4: find significant innovations that were at an emerging state, still

525
00:27:42,359 --> 00:27:46,679
Speaker 4: far from getting into patients and ultimately get them into patients.

526
00:27:47,200 --> 00:27:51,399
Speaker 2: An example is Icotrokinra, an oral medicine Johnson and Johnson

527
00:27:51,480 --> 00:27:55,159
Speaker 2: is developing to treat the skin disease plaque psoriasis.

528
00:27:55,880 --> 00:27:58,440
Speaker 4: So whether I you mean this is in which your

529
00:27:58,560 --> 00:28:02,880
Speaker 4: own immune system turns against you, having an oral therapy

530
00:28:03,040 --> 00:28:05,320
Speaker 4: was going to expand the pull of patients that were

531
00:28:05,320 --> 00:28:07,280
Speaker 4: going to be able to treat it with this medication.

532
00:28:07,800 --> 00:28:10,160
Speaker 4: So we work and we scout the world to see

533
00:28:10,280 --> 00:28:12,480
Speaker 4: are there any company out there that is going to

534
00:28:12,520 --> 00:28:17,399
Speaker 4: have an oral medication with comparable safety and efficacy to

535
00:28:17,560 --> 00:28:21,719
Speaker 4: these injectible biologics. And we identify one company and if

536
00:28:21,760 --> 00:28:24,120
Speaker 4: they had a molecule that there still was pretty clinical,

537
00:28:24,200 --> 00:28:27,639
Speaker 4: meaning it had not been yet using patients. So we

538
00:28:27,680 --> 00:28:31,000
Speaker 4: brought it here to spring House, and the spring House

539
00:28:31,040 --> 00:28:33,840
Speaker 4: we work in making sure that the drug was a

540
00:28:33,920 --> 00:28:37,719
Speaker 4: stable in the digestive trug, that it had the right potency,

541
00:28:38,160 --> 00:28:41,600
Speaker 4: and we actually build a medicine that is an oral

542
00:28:41,960 --> 00:28:47,240
Speaker 4: medicine with similar efficacy to biologics that went to the clinic.

543
00:28:47,480 --> 00:28:50,640
Speaker 4: We had the clinical trials very successful. So in this

544
00:28:50,680 --> 00:28:53,760
Speaker 4: comparable efficacy and pretty soon in the second half of

545
00:28:53,800 --> 00:28:55,400
Speaker 4: the year, we're going to be able to file it

546
00:28:55,840 --> 00:28:59,400
Speaker 4: for the FDA in shuriasis and get to patients next year.

547
00:29:00,000 --> 00:29:01,080
Speaker 5: How big could this be?

548
00:29:01,360 --> 00:29:03,120
Speaker 4: But this is going to be one of our biggest

549
00:29:03,200 --> 00:29:06,920
Speaker 4: breakthroughs for Johnson and Johnson and for our growth in

550
00:29:07,000 --> 00:29:08,360
Speaker 4: the second half of the decade.

551
00:29:09,040 --> 00:29:13,160
Speaker 2: Big pharmaceutical companies like Johnson and Johnson are spending record

552
00:29:13,160 --> 00:29:16,960
Speaker 2: amounts of money to discover and develop new medicines. It

553
00:29:17,000 --> 00:29:19,920
Speaker 2: has invested some fifty billion dollars in R and D

554
00:29:20,040 --> 00:29:22,160
Speaker 2: and M and A since the beginning of last year,

555
00:29:22,760 --> 00:29:27,080
Speaker 2: but they're far from the only ones. Zaramradali represents venture

556
00:29:27,120 --> 00:29:30,640
Speaker 2: capital firms in biotech as head of Grant Thornton's Life

557
00:29:30,760 --> 00:29:32,360
Speaker 2: Sciences industry Practice.

558
00:29:32,880 --> 00:29:35,320
Speaker 12: So when you think about big pharma and you look

559
00:29:35,360 --> 00:29:41,120
Speaker 12: at data from twenty fifteen to twenty twenty one, the

560
00:29:41,600 --> 00:29:45,720
Speaker 12: drugs that were developed internally an FDA approved was less

561
00:29:45,760 --> 00:29:48,200
Speaker 12: than thirty percent by big forma and the rest of

562
00:29:48,200 --> 00:29:52,840
Speaker 12: it was external. For some companies that percentage was eighty

563
00:29:52,840 --> 00:29:54,960
Speaker 12: percent and for others it was zero.

564
00:29:55,760 --> 00:29:58,760
Speaker 2: In looking for those opportunities to invest in the innovative

565
00:29:58,800 --> 00:30:01,320
Speaker 2: culture found in the labs where a dalar looks for

566
00:30:01,400 --> 00:30:05,360
Speaker 2: three things, the people, the science, and patience.

567
00:30:05,880 --> 00:30:09,920
Speaker 12: When you think about science is challenging, it's it's hard.

568
00:30:10,120 --> 00:30:14,800
Speaker 12: And you know, when you think about the failures in

569
00:30:15,360 --> 00:30:17,560
Speaker 12: R and D, I mean that's to be expected, and

570
00:30:17,720 --> 00:30:20,080
Speaker 12: any investors should should be patient and they should they

571
00:30:20,080 --> 00:30:22,400
Speaker 12: should have a time arison of like ten to fifteen

572
00:30:22,480 --> 00:30:27,400
Speaker 12: years to see a drug from discovery to commercialization. It is.

573
00:30:27,560 --> 00:30:28,280
Speaker 5: It's not easy.

574
00:30:28,520 --> 00:30:29,440
Speaker 12: Science is difficult.

575
00:30:30,200 --> 00:30:34,360
Speaker 2: Duato respects how difficult the discipline is, regardless of size

576
00:30:34,600 --> 00:30:38,240
Speaker 2: or scale. And of course we can't talk about innovation

577
00:30:38,360 --> 00:30:40,920
Speaker 2: in just about any part of the economy without turning

578
00:30:40,960 --> 00:30:45,000
Speaker 2: to artificial intelligence and what it will mean for scientific discovery.

579
00:30:45,600 --> 00:30:48,240
Speaker 2: We saw it firsthand Jay and Jay as they used

580
00:30:48,280 --> 00:30:50,520
Speaker 2: it to screen millions of compounds.

581
00:30:50,880 --> 00:30:52,720
Speaker 13: How long does it take you to screen the whole

582
00:30:52,800 --> 00:30:53,680
Speaker 13: one point seven We.

583
00:30:53,600 --> 00:30:56,400
Speaker 14: Can screen one compound every two to three seconds, So

584
00:30:56,440 --> 00:30:58,920
Speaker 14: we can screen this whole fire one point seven million

585
00:30:59,000 --> 00:31:02,320
Speaker 14: compounds in rap five to ten days, depending on the target.

586
00:31:02,360 --> 00:31:03,480
Speaker 7: Wow, so very.

587
00:31:03,720 --> 00:31:08,040
Speaker 2: One point seven million compounds in five to ten Pacisco

588
00:31:08,080 --> 00:31:09,440
Speaker 2: twenty four hours a day, seven ex week.

589
00:31:09,440 --> 00:31:11,200
Speaker 5: As again, so what used to.

590
00:31:11,120 --> 00:31:13,160
Speaker 13: Take us months? That take us days?

591
00:31:13,240 --> 00:31:13,520
Speaker 12: Yes?

592
00:31:14,000 --> 00:31:17,000
Speaker 13: So This is a way of you know, accelerating the

593
00:31:17,080 --> 00:31:21,120
Speaker 13: nature of compounds and also the time it take.

594
00:31:21,040 --> 00:31:23,240
Speaker 5: Us to have lead compounds.

595
00:31:23,360 --> 00:31:26,320
Speaker 13: And then we have other platforms that access to what

596
00:31:26,440 --> 00:31:28,239
Speaker 13: extent they are going to be viable? Are they going

597
00:31:28,280 --> 00:31:29,440
Speaker 13: to have any toxicities?

598
00:31:29,840 --> 00:31:31,240
Speaker 5: What is the biological effect?

599
00:31:31,440 --> 00:31:34,479
Speaker 2: What form is the output of this happen? I mean

600
00:31:34,600 --> 00:31:36,000
Speaker 2: is it data? Is it?

601
00:31:36,160 --> 00:31:36,560
Speaker 5: The data?

602
00:31:36,680 --> 00:31:37,160
Speaker 15: Is the data?

603
00:31:37,560 --> 00:31:41,520
Speaker 13: So in the past, analyzing all these millions of data

604
00:31:41,560 --> 00:31:44,800
Speaker 13: points would have been very difficult for researchers. Now they

605
00:31:44,800 --> 00:31:47,000
Speaker 13: have the underlying models that are going to drive the

606
00:31:47,040 --> 00:31:50,720
Speaker 13: insights for them, So we accelerate the screening and also

607
00:31:50,760 --> 00:31:53,880
Speaker 13: the analytical part. So the AA is a tool, the

608
00:31:53,960 --> 00:31:57,000
Speaker 13: data is probably daring and then also the interpretation of

609
00:31:57,040 --> 00:31:58,560
Speaker 13: the insights coming from the AI.

610
00:31:59,040 --> 00:32:00,960
Speaker 5: It's what our signing is our rehould just do.

611
00:32:01,560 --> 00:32:05,320
Speaker 13: So while yes, technology is important, ultimately it comes down

612
00:32:05,360 --> 00:32:07,960
Speaker 13: to our data and to our researches to what extent

613
00:32:08,040 --> 00:32:09,360
Speaker 13: we can accelerate progress.

614
00:32:09,920 --> 00:32:12,960
Speaker 2: Handling all the data is a big opportunity but also

615
00:32:13,080 --> 00:32:17,880
Speaker 2: a big challenge, particularly for early stage biotech firms, leading

616
00:32:17,960 --> 00:32:21,960
Speaker 2: some to partner up. Does that all things being equal

617
00:32:22,000 --> 00:32:24,760
Speaker 2: over time give big pharma something of an edge because

618
00:32:25,040 --> 00:32:27,000
Speaker 2: it typically has access to more data.

619
00:32:27,080 --> 00:32:29,320
Speaker 12: I mean, it might be if and that is where

620
00:32:29,360 --> 00:32:33,800
Speaker 12: we're seeing collaboration agreements with the companies that are AI

621
00:32:33,840 --> 00:32:37,640
Speaker 12: first companies with big pharma, and you're seeing activities in

622
00:32:37,680 --> 00:32:40,280
Speaker 12: that space as well. You've got this right, I mean,

623
00:32:40,320 --> 00:32:42,920
Speaker 12: that's where that's where the flow of money in the

624
00:32:42,920 --> 00:32:43,840
Speaker 12: future will be.

625
00:32:44,360 --> 00:32:47,200
Speaker 2: And then there's the role of the government in giving

626
00:32:47,240 --> 00:32:51,280
Speaker 2: incentives for biotech innovation and in creating the overall environment

627
00:32:51,520 --> 00:32:55,160
Speaker 2: where it can thrive. Tim Sullivan is CEO of the

628
00:32:55,200 --> 00:32:57,720
Speaker 2: New Jersey Economic Development Authority.

629
00:32:58,400 --> 00:32:59,960
Speaker 16: It's a crowded field, but New Jersey and th extent

630
00:33:00,400 --> 00:33:03,120
Speaker 16: toward the top of that field, largely because of the

631
00:33:03,160 --> 00:33:07,360
Speaker 16: investments that Governor Murphy has made in growing that innovation ecosystem.

632
00:33:07,480 --> 00:33:09,640
Speaker 16: So we have an R and D tax credit for example,

633
00:33:09,640 --> 00:33:12,480
Speaker 16: that you know, all the big farmer companies take advantage of.

634
00:33:12,600 --> 00:33:14,880
Speaker 16: We have really focused on trying to grow again that

635
00:33:14,920 --> 00:33:18,240
Speaker 16: early stage pipeline of companies that might get acquired by

636
00:33:18,360 --> 00:33:20,920
Speaker 16: big pharma or turn into big farmer companies themselves. So

637
00:33:21,200 --> 00:33:24,960
Speaker 16: you know, for example, Gilliad made New Jersey It's East

638
00:33:25,000 --> 00:33:27,360
Speaker 16: Coast headquarters three or four years ago because they bought

639
00:33:27,400 --> 00:33:30,920
Speaker 16: a company in Mars County and like the talent so

640
00:33:31,040 --> 00:33:33,240
Speaker 16: much that in New Jersey that they decided to plant

641
00:33:33,240 --> 00:33:35,000
Speaker 16: their East Coast flag here. So, for example, we have

642
00:33:35,000 --> 00:33:37,760
Speaker 16: a program, we think it's the only program like this

643
00:33:37,800 --> 00:33:40,560
Speaker 16: in the country that lets early stage life sciences and

644
00:33:40,600 --> 00:33:46,160
Speaker 16: technology companies sell or monetize their net operating losses and

645
00:33:46,280 --> 00:33:48,640
Speaker 16: sell them to profitable companies in exchange for non dilutive

646
00:33:48,720 --> 00:33:52,080
Speaker 16: essentially equity, which a number of companies that have grown

647
00:33:52,080 --> 00:33:53,400
Speaker 16: and scaled have taken advantage of.

648
00:33:53,880 --> 00:33:56,880
Speaker 2: This may be the golden era of medical innovation, as

649
00:33:56,920 --> 00:34:00,400
Speaker 2: Joaquin Duato believes, but when you ask about the origin

650
00:34:00,480 --> 00:34:04,080
Speaker 2: of all those wonder drugs, there's no single answer. They

651
00:34:04,080 --> 00:34:07,160
Speaker 2: come from a unique combination of private enterprise, big and

652
00:34:07,280 --> 00:34:11,439
Speaker 2: small capital from a range of sources, the research being

653
00:34:11,480 --> 00:34:14,960
Speaker 2: pursued by gifted scientists, and the support of federal and

654
00:34:15,000 --> 00:34:18,440
Speaker 2: state governments. But the results of that network have only

655
00:34:18,600 --> 00:34:23,200
Speaker 2: one real destination for all their work, the patients. They serve.

656
00:34:23,960 --> 00:34:26,839
Speaker 12: One thing that you want to leave the group here

657
00:34:26,960 --> 00:34:29,200
Speaker 12: is all about the patient. Science is hard. You know,

658
00:34:29,360 --> 00:34:32,840
Speaker 12: have the patients, and let's support the community and innovation

659
00:34:33,440 --> 00:34:35,920
Speaker 12: to get it to where we need it.

660
00:34:35,960 --> 00:34:36,200
Speaker 5: To be.

661
00:34:37,040 --> 00:34:41,520
Speaker 4: We measure success in terms of how many patients we

662
00:34:41,560 --> 00:34:44,720
Speaker 4: can serve. If we are able to address significant patient

663
00:34:44,840 --> 00:34:49,160
Speaker 4: needs as we are doing, then we can certainly translate

664
00:34:49,200 --> 00:34:52,759
Speaker 4: that into an economic return. This is part of the

665
00:34:52,800 --> 00:34:56,040
Speaker 4: principles of our credo. We are a company with Andred

666
00:34:56,040 --> 00:34:59,799
Speaker 4: and four years of history. Our founders establish what we

667
00:34:59,840 --> 00:35:04,680
Speaker 4: ca eighty five years ago, creating a very clear yerkey

668
00:35:04,880 --> 00:35:08,520
Speaker 4: of decisie making. First we serve the patients, thened employees,

669
00:35:08,719 --> 00:35:12,080
Speaker 4: then the communities, and if we do well for those stakeholders,

670
00:35:12,239 --> 00:35:15,200
Speaker 4: then you'll have a fair return for your shareholders.

671
00:35:16,960 --> 00:35:20,320
Speaker 2: Coming up tired of all those traffic jams, are rapidly

672
00:35:20,360 --> 00:35:23,360
Speaker 2: developing industry of electric vehicles aims to take to the

673
00:35:23,400 --> 00:35:38,040
Speaker 2: air to reinvent the world of transportation. This is a

674
00:35:38,080 --> 00:35:41,080
Speaker 2: story where the sky is not the limit, it's the goal.

675
00:35:41,800 --> 00:35:44,920
Speaker 2: Automobiles have come a long way since Henry Ford introduced

676
00:35:44,920 --> 00:35:47,319
Speaker 2: the world to the Model T in nineteen oh eight,

677
00:35:47,800 --> 00:35:50,560
Speaker 2: and several companies are now even trying to get them

678
00:35:50,640 --> 00:35:54,440
Speaker 2: off the ground. But will flying cars change our world

679
00:35:54,440 --> 00:35:57,359
Speaker 2: the way the first car did? Ed Ludlow brings us

680
00:35:57,400 --> 00:35:59,440
Speaker 2: that story from San Francisco.

681
00:36:01,120 --> 00:36:04,000
Speaker 17: Flying cars have been imagined time and time again, but

682
00:36:04,040 --> 00:36:06,759
Speaker 17: they've taken a while to come to fruition. Now, as

683
00:36:06,840 --> 00:36:11,160
Speaker 17: President Trump sciences executive Order on accelerating flying car programs,

684
00:36:11,440 --> 00:36:14,799
Speaker 17: are they finally a reality. Morgan Stanley estimates the EV

685
00:36:14,920 --> 00:36:18,480
Speaker 17: TOEL industry could be a nine trillion dollar market by

686
00:36:18,560 --> 00:36:19,360
Speaker 17: twenty to fifty.

687
00:36:19,560 --> 00:36:23,840
Speaker 14: EV tools are by definition, electric vertical takeoff and landing vehicles,

688
00:36:23,880 --> 00:36:27,040
Speaker 14: which is a whole new breed of flying vehicles that

689
00:36:27,440 --> 00:36:30,360
Speaker 14: effectively give us flying cars as we will promised as

690
00:36:30,400 --> 00:36:34,239
Speaker 14: little kids, but using completely new forms of propulsion and

691
00:36:34,400 --> 00:36:36,320
Speaker 14: flight configurations.

692
00:36:35,560 --> 00:36:36,920
Speaker 5: That are very new for the industry.

693
00:36:37,280 --> 00:36:39,920
Speaker 14: This is supposed to be, by virtue of many analysts,

694
00:36:40,000 --> 00:36:44,040
Speaker 14: a significant new market that hasn't really existed before. Over

695
00:36:44,080 --> 00:36:46,160
Speaker 14: the next five to ten twenty years, it's going to

696
00:36:46,239 --> 00:36:48,400
Speaker 14: change very dramatically as we start to unlock some of

697
00:36:48,400 --> 00:36:51,080
Speaker 14: the biggest barriers for taking advantage of the sky in

698
00:36:51,160 --> 00:36:53,279
Speaker 14: ways that we haven't done before. In the United States,

699
00:36:53,320 --> 00:36:56,040
Speaker 14: there's somewhere on the order of about fifty companies that

700
00:36:56,080 --> 00:36:59,479
Speaker 14: are developing some sort of flying car companies that people

701
00:36:59,480 --> 00:37:03,040
Speaker 14: are starting to see almost daily, from Jobe Technologies to

702
00:37:03,160 --> 00:37:06,360
Speaker 14: Beta Technologies to Pivotal to Archer.

703
00:37:06,800 --> 00:37:09,200
Speaker 15: When I started on this more than fifteen years ago.

704
00:37:09,960 --> 00:37:14,160
Speaker 15: It was a fringe idea, and today there is an

705
00:37:14,200 --> 00:37:18,520
Speaker 15: incredible vibrant industry that is building up.

706
00:37:19,480 --> 00:37:22,200
Speaker 17: Joe ben Bevitz is the founder and CEO of job

707
00:37:22,360 --> 00:37:25,680
Speaker 17: The company focuses on air taxi services. It as a

708
00:37:25,719 --> 00:37:28,719
Speaker 17: market cap of nearly six point seven billion dollars, which

709
00:37:28,760 --> 00:37:32,320
Speaker 17: is almost fifteen percent of the market cap of general motors.

710
00:37:32,480 --> 00:37:34,359
Speaker 15: With a vertical take off and lining aircraft, you can

711
00:37:34,360 --> 00:37:36,960
Speaker 15: move from point A to point B, and you can

712
00:37:37,000 --> 00:37:42,560
Speaker 15: build networks of air traffic routes in and around cities.

713
00:37:43,160 --> 00:37:49,200
Speaker 15: And we're working at building best in class vertiport infrastructure

714
00:37:49,320 --> 00:37:53,160
Speaker 15: at JFK and at LaGuardia so that you can go

715
00:37:53,200 --> 00:37:56,200
Speaker 15: seamlessly from a Joby flight onto your delta flight. The

716
00:37:56,239 --> 00:37:59,960
Speaker 15: goal is to do this in a very step wise

717
00:38:00,280 --> 00:38:03,759
Speaker 15: progressive way. One day, we hope that there will be

718
00:38:03,800 --> 00:38:06,640
Speaker 15: a take off and landing location is conveniently located as

719
00:38:06,760 --> 00:38:08,360
Speaker 15: a subway stop in a major city.

720
00:38:09,440 --> 00:38:13,560
Speaker 17: Joby's version of a flying car is technically considered an aircraft.

721
00:38:13,600 --> 00:38:16,680
Speaker 17: That's where the regulation of the technology gets tricky. The

722
00:38:16,800 --> 00:38:20,359
Speaker 17: big moment that Wall Street in particular is waiting for

723
00:38:20,480 --> 00:38:24,840
Speaker 17: is FAA certification. What is it that the FAA needs

724
00:38:24,880 --> 00:38:27,280
Speaker 17: to sign off on and when does that happen?

725
00:38:27,320 --> 00:38:29,480
Speaker 15: To your mind, we have the first company to achieve

726
00:38:29,640 --> 00:38:32,280
Speaker 15: the Stage one certification, the first company to shave stage

727
00:38:32,320 --> 00:38:35,280
Speaker 15: two of the certification, first company to complete stage three,

728
00:38:35,680 --> 00:38:39,759
Speaker 15: and now we're making phenomenal progress through stage four and

729
00:38:39,800 --> 00:38:43,400
Speaker 15: when we submit the test plans and then that opens

730
00:38:43,400 --> 00:38:45,200
Speaker 15: the door for us to begin the testing. And then

731
00:38:45,239 --> 00:38:48,560
Speaker 15: stage five is when we submit the test reports and

732
00:38:48,600 --> 00:38:49,919
Speaker 15: then the FA signs off.

733
00:38:50,920 --> 00:38:53,719
Speaker 17: It's a small market that there are many players, each

734
00:38:53,760 --> 00:38:58,080
Speaker 17: has different tech and progress varies. SMP Global says Joby's

735
00:38:58,160 --> 00:39:01,480
Speaker 17: expected to go from six to fifty six units by

736
00:39:01,520 --> 00:39:05,360
Speaker 17: twenty thirty, generating three point five billion dollars in revenue,

737
00:39:05,520 --> 00:39:10,280
Speaker 17: but that's all contingent on FAA certification. The company's testing

738
00:39:10,320 --> 00:39:13,280
Speaker 17: with no one in the cockpit, but the world's watching closely.

739
00:39:14,120 --> 00:39:17,080
Speaker 18: Overall, the battery capacity for this aircraft is something like

740
00:39:17,480 --> 00:39:20,279
Speaker 18: one and a half Model X Teslas, just to kind

741
00:39:20,280 --> 00:39:22,919
Speaker 18: of put it in a ground vehicle reference. The idea

742
00:39:22,920 --> 00:39:24,640
Speaker 18: is to sell this by the seat, so when you

743
00:39:24,680 --> 00:39:26,640
Speaker 18: open the app, you'll be able to select the ride.

744
00:39:26,760 --> 00:39:28,560
Speaker 18: A car will come and get you to whoever you are,

745
00:39:28,680 --> 00:39:30,960
Speaker 18: take you to the nearest take up on landing spot,

746
00:39:31,160 --> 00:39:33,400
Speaker 18: and then other people will be kind of brought just

747
00:39:33,440 --> 00:39:35,040
Speaker 18: in time at the same time to fill the other

748
00:39:35,120 --> 00:39:36,320
Speaker 18: seats within the aircraft.

749
00:39:36,400 --> 00:39:40,400
Speaker 15: It's one of the things we I probably haven't focused

750
00:39:40,400 --> 00:39:45,759
Speaker 15: on enough is the incredible acoustic signature. There are a

751
00:39:45,800 --> 00:39:51,560
Speaker 15: significant challenge for people who live close to the takeoff

752
00:39:51,560 --> 00:39:53,719
Speaker 15: and landing locations. I've told the team, let's try to

753
00:39:53,719 --> 00:39:55,600
Speaker 15: make this like the wind in the trees. When you

754
00:39:55,640 --> 00:39:58,320
Speaker 15: hear it, what fly over you. Everybody has to stop

755
00:39:58,800 --> 00:40:00,640
Speaker 15: and be really quiet because.

756
00:40:00,600 --> 00:40:01,600
Speaker 7: You sh.

757
00:40:03,440 --> 00:40:04,640
Speaker 5: And that's magic.

758
00:40:05,440 --> 00:40:08,640
Speaker 17: Job expects to see their first passenger operations in early

759
00:40:08,680 --> 00:40:11,640
Speaker 17: twenty twenty six in Dubai, operating full steam ahead on

760
00:40:11,760 --> 00:40:15,880
Speaker 17: production in their California based manufacturing facility, using locals to

761
00:40:15,960 --> 00:40:17,000
Speaker 17: craft their creations.

762
00:40:17,280 --> 00:40:19,759
Speaker 15: One of the cool things is about another element of

763
00:40:19,800 --> 00:40:22,400
Speaker 15: the flybarre that's incredible is how easy it makes it

764
00:40:22,440 --> 00:40:25,040
Speaker 15: to fly. So you can take somebody who's never flown

765
00:40:25,040 --> 00:40:27,480
Speaker 15: an airplane before and never flown a helicopter before, you

766
00:40:27,520 --> 00:40:30,600
Speaker 15: put them in the simulator and they'll fly you perfectly

767
00:40:30,680 --> 00:40:35,200
Speaker 15: from Wall Streight to the Delta Terminal four at JFK

768
00:40:36,000 --> 00:40:40,160
Speaker 15: and that is really spectacular in terms of how intuitive

769
00:40:40,200 --> 00:40:40,520
Speaker 15: it is.

770
00:40:41,320 --> 00:40:43,520
Speaker 17: But can anyone really fly one of these crafts?

771
00:40:45,480 --> 00:40:45,920
Speaker 12: Shakov.

772
00:40:47,960 --> 00:40:49,520
Speaker 17: One of the other players in the space is a

773
00:40:49,560 --> 00:40:53,200
Speaker 17: company called Pivotal. Pivostal's ev toll is taking a very

774
00:40:53,200 --> 00:40:54,080
Speaker 17: different approach.

775
00:40:55,239 --> 00:40:59,840
Speaker 6: Pivotal has been in the development of novel architecture aircraft

776
00:41:00,160 --> 00:41:03,080
Speaker 6: for thirteen years. Our mission is nothing short of just

777
00:41:03,280 --> 00:41:06,680
Speaker 6: changing the way humanity moves through the air, and that's

778
00:41:06,719 --> 00:41:08,080
Speaker 6: going to happen in small steps.

779
00:41:09,120 --> 00:41:12,240
Speaker 17: Ken coughlan is the CEO of Pivotal, an evtel company

780
00:41:12,280 --> 00:41:14,520
Speaker 17: with a unique design and a very different mission.

781
00:41:15,239 --> 00:41:18,280
Speaker 6: In your term, we want to deliver on this promise

782
00:41:18,320 --> 00:41:21,719
Speaker 6: of personal aviation and be able to deliver to you

783
00:41:21,920 --> 00:41:26,160
Speaker 6: individual private owners who can take to the sky and

784
00:41:26,600 --> 00:41:29,200
Speaker 6: enjoy the freedom of personal flight on their own terms.

785
00:41:29,360 --> 00:41:32,720
Speaker 11: So Pivotal has three screens of customers. One are direct

786
00:41:32,800 --> 00:41:36,280
Speaker 11: consumers in the personal area vehicle Martin. The second pillar

787
00:41:36,440 --> 00:41:40,279
Speaker 11: of our strategy is to the defense unit, and then

788
00:41:40,320 --> 00:41:42,520
Speaker 11: the third is actually from public service.

789
00:41:42,800 --> 00:41:45,480
Speaker 6: There's over hundreds of thousands and nine one one calls

790
00:41:45,520 --> 00:41:48,799
Speaker 6: in the United States alone every single year. Many of

791
00:41:48,840 --> 00:41:51,479
Speaker 6: those something in the order one in ten are time

792
00:41:51,600 --> 00:41:57,280
Speaker 6: sensitive medical calls. We're having a qualified emergency medical technician

793
00:41:57,800 --> 00:42:02,520
Speaker 6: or paramedic there on site. In four minutes versus nine

794
00:42:02,560 --> 00:42:05,920
Speaker 6: minutes or twelve minutes or even fifteen minutes could make

795
00:42:05,920 --> 00:42:08,040
Speaker 6: the difference between life and death. We actually hoped to

796
00:42:08,040 --> 00:42:12,279
Speaker 6: be in a pilot operations in at least two locations

797
00:42:12,320 --> 00:42:15,280
Speaker 6: in the United States really in the next six months,

798
00:42:15,440 --> 00:42:17,719
Speaker 6: so before years end, we hope to be up and

799
00:42:17,760 --> 00:42:21,400
Speaker 6: saving lives and training other paramedics to actually be pilots

800
00:42:21,400 --> 00:42:22,200
Speaker 6: of this aircraft.

801
00:42:23,160 --> 00:42:26,880
Speaker 17: It's considered an aircraft, but its operates as not FAA

802
00:42:27,000 --> 00:42:31,360
Speaker 17: certified pilots. Pivotal claims is still safer than driving.

803
00:42:31,520 --> 00:42:35,799
Speaker 6: It's actually like three or four orders of magnitude safer

804
00:42:35,800 --> 00:42:38,040
Speaker 6: than driving your car on a freeway on a per

805
00:42:38,080 --> 00:42:39,759
Speaker 6: mile basis might be better than that.

806
00:42:40,160 --> 00:42:41,759
Speaker 5: It's very close to zero risk.

807
00:42:42,800 --> 00:42:48,280
Speaker 6: That may contribute to a culture of zero risk within FAA,

808
00:42:48,719 --> 00:42:52,160
Speaker 6: and that would certainly slow down innovation because there always

809
00:42:52,200 --> 00:42:55,839
Speaker 6: has to be at least the tiniest acceptance of risk

810
00:42:56,320 --> 00:42:59,480
Speaker 6: for everybody involved in delivering a new technology that involves

811
00:42:59,520 --> 00:43:00,640
Speaker 6: transport to it off.

812
00:43:01,960 --> 00:43:05,960
Speaker 11: So the flight program is designed at Pivotal, it is

813
00:43:06,000 --> 00:43:08,960
Speaker 11: not FAA certified, so you are not an FAA pilot,

814
00:43:09,480 --> 00:43:11,960
Speaker 11: but we require everyone to be certified by Pivotal to

815
00:43:12,000 --> 00:43:13,680
Speaker 11: be able to fly the aircraft, and that goes in

816
00:43:13,760 --> 00:43:15,800
Speaker 11: three stages. So there's an at home study to be

817
00:43:15,840 --> 00:43:19,399
Speaker 11: able to understand airspace and atmosphere so that you can

818
00:43:19,440 --> 00:43:23,520
Speaker 11: integrate into the airspace around you. Then there's simulator training

819
00:43:23,600 --> 00:43:26,280
Speaker 11: where you're in a full flight simulator which is able

820
00:43:26,280 --> 00:43:28,879
Speaker 11: to go through all the standard flight dynamics as well

821
00:43:28,880 --> 00:43:31,840
Speaker 11: as emergency procedures, and that usually just takes a couple

822
00:43:31,840 --> 00:43:34,080
Speaker 11: of days. And then after that you do flight training

823
00:43:34,080 --> 00:43:35,880
Speaker 11: with us. You hop in the real aircraft and you

824
00:43:35,960 --> 00:43:37,760
Speaker 11: pay to the sky with the trainer on the ground

825
00:43:37,880 --> 00:43:40,719
Speaker 11: just communicating to you, and it typically is about eight

826
00:43:40,760 --> 00:43:42,840
Speaker 11: flights to be able to get through all the different

827
00:43:42,880 --> 00:43:45,120
Speaker 11: areas of flight within our flight training program.

828
00:43:45,960 --> 00:43:49,600
Speaker 6: We did not set out to immediately change the world

829
00:43:49,640 --> 00:43:53,239
Speaker 6: in a tight schedule by somehow filling the sky with

830
00:43:53,320 --> 00:43:54,120
Speaker 6: the air taxis now.

831
00:43:54,640 --> 00:43:55,480
Speaker 5: Don't get you wrong.

832
00:43:55,800 --> 00:43:59,640
Speaker 6: I can't wait until I've been down in San Francisco

833
00:43:59,680 --> 00:44:02,319
Speaker 6: and I'm ready to go home, and I can pull

834
00:44:02,400 --> 00:44:05,960
Speaker 6: out my smartphone app and you get a fifty dollars

835
00:44:06,040 --> 00:44:09,960
Speaker 6: ride home to Sian Jose and raising capital based upon

836
00:44:10,120 --> 00:44:13,239
Speaker 6: that premise is also it's a challenge because a lot

837
00:44:13,239 --> 00:44:15,000
Speaker 6: of things have to go right for that to happen

838
00:44:15,400 --> 00:44:19,000
Speaker 6: on a certain schedule. So we decided fundamentally we're going

839
00:44:19,040 --> 00:44:22,560
Speaker 6: to stay away from air taxi and focus on privately

840
00:44:22,600 --> 00:44:26,840
Speaker 6: owned assets, assets for public safety, and assets for defense.

841
00:44:28,160 --> 00:44:31,560
Speaker 17: According to reports, the companies back by Larry Page. Pivotal

842
00:44:31,600 --> 00:44:35,000
Speaker 17: did not comment on its investors to Bloomberg, both privately

843
00:44:35,040 --> 00:44:37,839
Speaker 17: held Pivotal and publicly held job You have taken over

844
00:44:37,960 --> 00:44:40,719
Speaker 17: ten years to launch job raising over two point six

845
00:44:40,800 --> 00:44:43,200
Speaker 17: billion dollars. Progress has been slow.

846
00:44:43,760 --> 00:44:45,960
Speaker 14: I'd say that it's taking a lot of time in

847
00:44:46,000 --> 00:44:50,960
Speaker 14: the West, primarily because of the regulatory pathway. It is very,

848
00:44:51,040 --> 00:44:54,319
Speaker 14: very difficult to certify something through the FAA, be it

849
00:44:54,440 --> 00:44:57,920
Speaker 14: a small little single engine Sessna, up to something that's

850
00:44:57,920 --> 00:45:01,200
Speaker 14: completely novel or new, like a flying car, and we're

851
00:45:01,200 --> 00:45:04,160
Speaker 14: having to create the regulations real time as we're developing

852
00:45:04,200 --> 00:45:06,680
Speaker 14: the technologies, the good analogies, you're putting the engine on

853
00:45:06,680 --> 00:45:08,680
Speaker 14: the airplane while you're flying at the same time. Now,

854
00:45:08,760 --> 00:45:11,799
Speaker 14: we'll say there's a lot of interest and support from

855
00:45:11,880 --> 00:45:15,560
Speaker 14: the current administration to accelerate these technologies and to reduce

856
00:45:15,600 --> 00:45:19,799
Speaker 14: the barriers for companies to be able to test, validate,

857
00:45:20,000 --> 00:45:23,640
Speaker 14: and take these products into a commercial operation. But it

858
00:45:23,680 --> 00:45:24,680
Speaker 14: still takes a lot of time.

859
00:45:25,560 --> 00:45:28,680
Speaker 11: The world saw these things in TV shows and movies

860
00:45:28,719 --> 00:45:31,560
Speaker 11: decades ago, and I think what you're asking is, why

861
00:45:31,600 --> 00:45:34,360
Speaker 11: didn't we just make them decades ago? Well, really, we

862
00:45:34,400 --> 00:45:38,120
Speaker 11: didn't have the battery technology, so to have the energy

863
00:45:38,120 --> 00:45:41,319
Speaker 11: density in the batteries and also the power density to

864
00:45:41,360 --> 00:45:44,640
Speaker 11: be able to take off and sustain flight wasn't in

865
00:45:44,760 --> 00:45:48,200
Speaker 11: previous battery technologies, and even today we're operating at just

866
00:45:48,280 --> 00:45:51,080
Speaker 11: the limits of the battery technology today to be able

867
00:45:51,080 --> 00:45:52,560
Speaker 11: to have twenty minutes time miles.

868
00:45:53,560 --> 00:45:57,359
Speaker 17: Scalability is the big question for this technology. When automobiles

869
00:45:57,360 --> 00:45:59,839
Speaker 17: were first introduced, it took five more years to bring

870
00:46:00,280 --> 00:46:04,240
Speaker 17: down by fifty percent with the introduction of the assembly line.

871
00:46:04,480 --> 00:46:07,839
Speaker 17: Cost efficiencies are still many years away for ev toll.

872
00:46:08,480 --> 00:46:11,200
Speaker 14: There a few things that have to happen for scale

873
00:46:11,200 --> 00:46:13,719
Speaker 14: to happen. Ground infrastructure is a key area, much like

874
00:46:13,760 --> 00:46:17,839
Speaker 14: Tesla with their superchargers, the regulatory environment, getting those put

875
00:46:17,880 --> 00:46:21,719
Speaker 14: in place, and then actually demonstrating to customers that this

876
00:46:21,880 --> 00:46:25,160
Speaker 14: is cheaper and safer and once you are able to

877
00:46:25,200 --> 00:46:27,520
Speaker 14: do that with real paying people flying on these things.

878
00:46:27,719 --> 00:46:29,719
Speaker 14: I expect the scale to only be limited about how

879
00:46:29,760 --> 00:46:30,680
Speaker 14: quickly you can build them.

880
00:46:31,120 --> 00:46:34,640
Speaker 6: We only want to use our architecture to go after

881
00:46:34,680 --> 00:46:37,759
Speaker 6: applications we know we can do better than anyone else can,

882
00:46:38,800 --> 00:46:41,480
Speaker 6: So that does not include flying really fast.

883
00:46:42,840 --> 00:46:44,439
Speaker 5: Efficiency is the name of our game.

884
00:46:44,560 --> 00:46:46,800
Speaker 6: Cost effectiveness is the name of our game. But again

885
00:46:47,160 --> 00:46:51,880
Speaker 6: we're focusing on privately owned aircraft, privately owned assets today

886
00:46:52,000 --> 00:46:56,400
Speaker 6: only in the ultra light single seater capability, tomorrow something

887
00:46:56,560 --> 00:46:57,200
Speaker 6: much larger.

888
00:46:58,480 --> 00:46:59,799
Speaker 18: So the idea is that we can sell this by

889
00:46:59,840 --> 00:47:01,960
Speaker 18: the seats, and that we can make it more accessible

890
00:47:02,239 --> 00:47:05,200
Speaker 18: and then actually drive the overall kind of like flywheel

891
00:47:05,200 --> 00:47:08,680
Speaker 18: of demand and utilization and load factor for these aircraft

892
00:47:08,760 --> 00:47:11,319
Speaker 18: and make a really economically viable service, not just one

893
00:47:11,320 --> 00:47:13,080
Speaker 18: that's an incredibly better way to get to where you.

894
00:47:13,000 --> 00:47:13,360
Speaker 5: Want to go.

895
00:47:13,880 --> 00:47:17,040
Speaker 15: What gets me really excited is if we can move

896
00:47:17,280 --> 00:47:19,600
Speaker 15: to where automotive got to as we moved into the

897
00:47:19,640 --> 00:47:22,960
Speaker 15: early nineteen hundreds, where we're starting to produce thousands and

898
00:47:22,960 --> 00:47:25,359
Speaker 15: then tens of thousands of aircraft a year, and we

899
00:47:25,440 --> 00:47:28,520
Speaker 15: drive the unit prices down to the point where this

900
00:47:28,600 --> 00:47:31,839
Speaker 15: becomes asfordable, as affordable as driving your own car, where

901
00:47:31,840 --> 00:47:34,120
Speaker 15: we hope to launch at prices around where an Umber

902
00:47:34,160 --> 00:47:37,880
Speaker 15: Black Fair would cost you, down to the price where

903
00:47:38,200 --> 00:47:40,399
Speaker 15: millions of people can afford to do this every day.

904
00:47:40,640 --> 00:47:43,800
Speaker 15: That's when I feel like my dream will have been realized.

905
00:47:47,840 --> 00:47:49,600
Speaker 2: That does it for us here at Wall Street Week,

906
00:47:49,800 --> 00:47:53,000
Speaker 2: I'm David Weston. See you next week for more stories

907
00:47:53,080 --> 00:48:04,000
Speaker 2: of capitalism.