Morgan Stanley TMT Conference

how would you describe the mission of Twitter 2.

0 under your ownership Elon so the the goal is to have Twitter be the best source of Truth the most timely and accurate source of Truth uh even if the truth is someone we don't want to hear or unpleasant or whatever but how it be timely and accurate and really just where you can really understand what's going on and not just um is something true or not but but what is the narrative so the thing that I think most people don't probably you do but most people don't quite appreciate is that the media controls the narrative so there are many things that could be talked about in the world but only a few things can fit in the front page so but Twitter doesn't have a limitation like that so the the public can control the narrative and the public can inform themselves

as to what the narrative should be that that's a really big deal so it's a form for called citizen journalism or for the public to get together and communicate in a way that was never possible before um so you can really know what's going on uh so I I think that that's really going to be essential for a functioning democracy so say like what is the Bedrock of uh functioning democracy um it it has to be free speech and a Level Playing Field um that's why it's the first amendment was the first thing they did like we kind of think we've got to make sure freedom of speech um and why did they do that is because where they came from there wasn't freedom of speech and once you lose freedom of speech you don't get it back so that's why we must protect it at all

costs thank you on the core principles if we want to call them that you just went over citizen journalism part of the people in a Level Playing Field that's what you mean by Democratic we've also heard you say core principles of authentic informative and entertaining accurate you just went over and and brand safe um where are you on these yeah I mean I think the some of these are um you know a little uh at odds you know brand safe I think it really means like where where advertising is displayed that the advertiser gets to to choose what material is near that advertising so if it's something you know uh if it's some sort of like a like a train accident or a a war scene then probably a family friendly brand is not going to want to advertise right next

to that you know or you know it can't be like um here's a oblique war scene would you like to buy a hamburger or be like awkward you know um so that's understandable you want to put advertising next to content where it makes sense um but but the content in general needs to be authentic and informative even if it is controversial or jarring um and yeah and I think people need to be able to choose you know to some degree what content they want us to see and of course on Twitter you can so but really we want it to be the the fundamentally place you go to to learn what's going on and get the real story that's what the the the the truth the whole truth and it's going to be more than I would like to say nothing but the truth that that that's that's hard it's

going to be a lot of BS there truth and more because they realize uh for sure um but but but you want to you want to have the truth and you want to you want to Bubble Up the the truth and be able to sort of sort out really want truth with the least amount of error so so you've said um you know Twitter is alive another way that's that's described is it's where news happens as you just said so a couple here Patrick Mahomes and Steph Curry talking to each other Rihanna speaking uh directly to her fans um or in crypto SPF and CZ were having the conversation directly uh on Twitter yeah Sam Walton you know launched uh chat DPT announces it on Twitter uh Paul Graham takes up a tweet on it you're tweeting on it uh I think 50 000 tweets happened there um before

it was picked up by the mainstream media just in the first couple of days yeah and so you know talk to us about how how can the media catch up if they're on Twitter they can be seeing these tweets and posting it if they're not on Twitter is there no way to catch up like how does the traditional media and citizen journalism and 50 000 tweets on an important subject how do those intersect and how does the media catch up well just that as I'm sure many of you use Twitter it the everything Twitter is happening in real time so if you contrast that to what's happening in a newspaper they they have to learn the information propose an article to their editor get it approved write the article get it edited figure out which day it's going to get published on and

so the news is actually the thing that happened is being reported on at you know three four days sometimes a week late um and if it happens on a weekend then it's like yeah at least three days type of thing so um you know chat gbt was was huge news for several days on Twitter before there was any news articles about it in major Publications um so I think especially if one is uh say thinking about investing in things you want to have information that is as timely and accurate as possible there's no better Source than Twitter for that I've certainly been my experience um so Paul Graham who's alleged in Tech a legend on Twitter I think he has tweeted um that he's 80 percent left-leaning probably if he had to put him on the scale so not someone um you know

who's not not deemed and revered by all sides of the spectrum he has said you know consistent with your accuracy Point um he has said how important accuracy is and on Twitter he said you know you should be default skeptical of any news story about Twitter and assume it's default wrong because not only do some journalists have the agenda but the source has the agenda and it's so easy to go through the chain of inaccuracy or you know outright falsehood is is is he right about this um and you know if so um how how can accuracy about Twitter and about you be conducted by the traditional media if at all does a does a PR department help uh which you know famously don't have PR departments I I I you know the right name for PR is propaganda um and I always thought

you know like maybe maybe we should have like a VP of propaganda that would be I just I think just more honest you know uh and um also a PC of Witchcraft that's what that would be like yeah um those would be two great ones uh so I mean the the thing that I mean if you pick up pick up any given newspaper and go through and read the whole thing and say how many of those stories are positive about anything at all at almost none so if if something is newsworthy it is going to have a negative slant whether it is positive or not that there's like something in journalism that they've been trained to basically never write a positive story about anything once in a while you see a puff piece but it's rare um so anything that's newsworthy will get written about

anything that's that's written about will go through a negativity lens and so you therefore have a a bizarrely negative view of the world if you draw your information from newspapers this is simply I mean fact so on Twitter you can get a much more balanced positive negative situation it doesn't have that bias quite as much it's probably still a little bit of negativity bias but but much less so um so it you know I think it's really I'm not sure what the Legacy Media does I mean at this point really um Twitter Twitter is by the way the number one news uh app in the world so in terms of what people download for news it's it's number one this 500 million active users 250 million uh daily users of which I'd say there's probably you know 180 million significant

daily users where they're they're it's a meaningful amount of time so like the average amount of uh time that people spend on Twitter per day all that 250 million is around half an hour or so um so what we have is the thing the thing that's like I think most interesting is there's about 120 to 130 million hours of human attention per day on Twitter every single day on average um which is I think it comes to a really interesting point which is to just it's startling how poorly monetized that is because you have to say like how valuable is that attention 100 130 million hours of human attention per day of people that read so these are the generally the smartest people in the world the most influential people in the world and you have 130 million hours of

their time per day that's a lot so currently Twitter makes about five or six cents per hour of that time I I think this is a poorly monetized Paul Graham's attention Paul Graham's half hour of attention is you know is worth more more worth more than that yeah I mean if I'm spending two hours a day on Twitter like your whatever ads are coming through are getting my attention um getting your attention getting everyone in the room's attention um your time is incredibly valuable um so now the thing is we need to actually serve ads that are relevant and and useful and I think I think as we do that we can probably at least get it to like 15 cents an hour 20 cents an hour yeah a quarter right um so I think the actual potential here for Twitter revenue is gigantic

um and it's going to be a win-win situation which is that if you are served advertising that you find timely and relevant that with products and services that are useful to you that's good for you and good for the advertiser advertising and the limit of relevance is content so in the um next theme that's out there that's a often an inaccurate narrative is that you're indifferent to misinformation or other narratives get put out in the media that you actually want misinformation on Twitter when as you've just stated you want it to be the most accurate in the world so Community notes I'm going to Breeze through a couple of these before asking you about them Community notes are the fact checking by power of the people on Twitter so correcting government

misstatements from the White House correcting candidate misstatement from failed gubernatorial candidate Kerry Lake that Ron DeSantis had been endorsed by George Soros adding context while the Spy balloon was over Billings Montana to a tweet that could have been taken um to spiral and mean it had been shot down over Billings with that photo and adding context to that preventing a conspiracy theory of trying to elements are purposeful or nefarious as opposed to 1700 per year quickly corrected before a right-wing conspiracy theory could get going uh company misstatements or statements misstatements about companies I should say so the tweet that said you know Google set a badge machine to tell you if you were terminated or not and adding context that no

they had been emailed um on coinbase that they've been told they had to stop staking by regulators fact check very very quickly so how can this scale this neutral fact checking which seems elusive in fact checking but Twitter seems to have a handle on it but how does it scale and how does it avoid being hijacked by either side of a an issue or political Spectrum trying to hijack Community notes to not have it be neutral um yeah there's a there's a white paper on community notes that I recommend reading in fact I'll tweet it out to the people um Can can have easy access to it um but the because it's really quite a clever idea um it's it it takes a the Viewpoint of someone if think of it in a way like like page rank for Pages as applied to to people which

is that as people build credibility in how they review notes they they pull up enough credibility to actually write notes um and then those notes are then rated by others and depending upon the credibility of of the people rating your note your credibility score gets affected so it's it's sort of like uh uh collection of credibility but there were but there were link Farms created in Far Away places to to spam pagerank so that's going to be attempted but you're going to apply your yes in software skills and things to prevent that in order to be a notes contributor you have to be a verified person I think yeah um so you have to have uh and it and it takes a while to get to where you can't suddenly you you'll have no if you just when you just start out

you will start off with no credibility score yeah so it's very hard to link Farm yes um and when we we actively look at any attempts to game the system um and and shut them down uh and and remove them from the system if if they're if they're determined to be not real people or if they seem to be brigading because there are deliberate attempts to manipulate Community notes um we also make the community notes uh source code is open and available so you can see you can basically see everything so uh that's in the white paper it's uh it's not it's on the white paper but it's available on the internet yeah you can search for it um so you can see exactly how Community nodes is calculating things what uh changes are made to community notes and we'll keep iterating

uh and the goal is to have truth with the least amount of error um so it's you know there's always like what is truth um uh and I think the important like what is one way to sort of for example say like if someone really aspired to the truth if they really aspire to the truth they must acknowledge that there is some probability that what they think is untrue if somebody thinks there's no probability zero percent about what they think somebody thinks that they is trying to claim to you that what they're saying is true with 100 probability there's a 100 probability they are lying so um truth with acknowledged error where you aim to minimize that error over time that's what community notes is I think also uh once someone gets community noted um they think

twice about uh being deceptive in the future so you start getting noted a few times people like oh I know someone who's been Community noted yeah um so uh this no one's immune meaning um you've been Community noted on this uh CNN uh fake Chiron CNN made no such claim um that you know free speech on Twitter by allowing people to speak freely yeah and you were quickly Community noted um a satirical tweet and peop and Community said this is not this is not accurate um is this the one you tweeted Community notes for the win I think you may have it might benefit yeah I mean the important thing is that anyone can be noted including me and in fact I wanted to make a note of being noted um that the point the point is that if if I can be noted anyone can be noted

um including advertisers so we've had a few cases where the advertising wasn't accurate and it got noted oh the mortgage mortgage One loan money to yourself I think I saw that there alone for eight years so yeah sure right right and so so but it's your own customer and they can be noted and then yes and then presumably change the ad yes I mean this will I think be very helpful in truth and advertising yeah okay um so like so I can't emphasize enough the goal is rigorous pursuit of the truth um aspirationally the whole truth and the least amount of uh untruth yeah so let's talk back about brand safety we'll go through two two quick ones here one narrative that's out there that probably affected advertisers and agencies was Twitter was going to become this

hotbed of hate speech and shortly after the acquisition there was this bot attack you've talked about that seemed designed to try to make that a self-fulfilling prophecy actually until it was quickly uh defeated by your your team and there's 50 percent less hate speech according to what your team has put out this is a graphic then pre-acquisition so so not only is it a priority for you but less half as much as before and then on child sexual exploitation something that's been so important to you um 800k suspended accounts that's four times more than in any month of the prior year of your ownership and the 99 reduction in successful searches for CSE patterns so talk to us about how much of a priority this is and how successful you've been at it but then

also presumably more can be done yeah um I I I've repeatedly said to the trust and safety team at Twitter that the the there's no more priority which will always be a no more priority no matter what is uh ensuring that the children are safe on on Twitter that there's no child exploitation so that is number one priority always and forever um and what I've been told is that we've done more uh to eliminate this on Twitter in the last four months than it's been done in the last 10 years and it will continue to be number one priority um you know 100 fold reduction in CSC search patterns is pretty gigantic to say the least so uh yeah it's absolute number one so on continued on brand safety you know this Global Alliance for responsible media's brand safety floor

the the garm um you know Twitter business had tweeted out earlier in the year that in testing uh 99 at least 99 of measured ad Impressions appeared on contact that exceeded that floor so you know what message do you want for your advertisers when you're talking to a CMO to the head of an agency just in total I think you touched on this a little if there's anything to add but brand safety is in fact a top priority with a team all over it and technology and humans focused on the subject yeah as I said I mean with respect to Brian say if you really it depends a lot on the brand I mean if you've got sort of you know uh kind of by the way Disney is is a major Advertiser on on Twitter worldwide one of our biggest advertisers Apple's one of our biggest advertisers

but Disney of course wants to does not want to have their ads next to things that aren't appropriate for a family audience but there are um other products that are kind of more you know R-rated if you will um and and so they're they're more comfortable with being their advertising being in the equivalent of like an R-rated movie or something like that so ride safety varies depending upon what brand you're talking about is it a family brand or or less family brand um but but advertisers can actually adjust um how much uh what what content they're comfortable having their advertising appear next to um same is true on TV um so the you know the advertising that you'll see at say 7 PM is different from the advertising that you'll see at midnight um and this

is we have the same functionality on Twitter so it's really up to the advertiser what the where they want to put their content um but but I think by far the most important thing is that the advertising is is effective that that it is relevant and that it moves the needle for a company the advertising relevance is is the most gigantic thing um and and this this is going to sound totally bizarre but uh Twitter did not consider relevance in advertising until three months ago um and in fact if you've used Twitter for a long time uh which probably many of you have you should say like how many products have you bought off Twitter probably zero [Laughter] judging by the laughter probably zero so annual time is incredibly valuable flamethrower no one about a

flamethrower well I mean it's possible that they might report things from you know uh content-based tweets because the the content that's recommended is reasonably relevant but the advertising has not been so as we moved to shift towards the advertising being relevant and timely um this is it really like I said advertising that is relevant and timely is information it is content and the the value of the time of 130 million person hours of the smartest people on earth is insanely valuable um and frankly historically with the advertising being mostly Irrelevant in the past We've been wasting people's time and that's not good going forward Twitter will will have very relevant useful advertising and uh and because it is is useful because it is relevant there

will be a massive increase in the revenue because it is now useful so [Music] um I'm very optimistic about the future it's been a very difficult four months but I'm optimistic about the future I appreciate that so let's get back to democratic Democratic platform for all the um you know you've said there's no permanent suspensions of anyone on the left you've brought back both left and right but I think what you've tweeted is you had to unban a lot more on the right because that's who was banned um for the most part but your goal is equally unbanned complete equal Level Playing Field for all sides of the political Spectrum yeah I mean the the I think the objective reality for anyone looking at Twitter uh for longest time was that Twitter was had a massive

thumb on the scale on the left side um Twitter would ban and suspend accounts on the right uh 10 times more than on the left so like naturally what you'd expect frankly because where are we were in San Francisco which is uh deep deep blue so Twitter was uh controlled by the far left so the natural thing that would happen then is suppression of of moderates not just on the not suppression of the right but even suppression of moderate voices so but that but that's not conducive to a healthy National dialogue in order to have healthy National dialogue you have to represent the whole country and you have to represent uh you know everyone in other countries too it's got to be you know that's the only way to have a Town Square um and so yeah there were disproportionately

more accounts unsuspended and unshadowed banned on the right because the Twitter had a huge thumb on the scale on the in favor of the left so that's but but if you say like have we been suspending on Council and left have we been Shadow Banning counseling left no we haven't so uh because I what exactly what I said is when we do we are doing which is to make it an even playing field and you know something is freedom of a speech when it is when you're hearing speech that that from someone you don't like and what and what you're saying you don't like what they're saying this otherwise it's not free speech and if you don't have that ability then sooner or later that that's that suppression of speech is going to be turned on you so it is a good sign if you're

seeing people you don't like say things you don't like that is a good sign not a bad sign because it means and provided you can sell your peace too um I I think this was fundamental I mean the reason I I did the Twitter acquisition was not because I thought this would be some lucrative Gold Line um uh it in fact it has been arduous and difficult with a massive with a you know and being dumped on every day well that's not the most fun thing in the world um but if we do not have a strong Foundation of free speech I I fear for the future of our civilization we must have this that's why I did it thank you for doing it um Switching gears a media narrative that um you know may have some accuracy they're not all inaccurate um but the code base is difficult to

change Tech debt unwieldy um you know Rube Goldberg machine is is a term you've used so it's practical fractal Rube Goldberg this is this is at least partially accurate if not accurate uh yes well uh yes uh like the code base is like a Rube Goldberg machine and uh when you zoom in on one part of the Ruby Goldberg machine there's another root Goldberg machine and then there's another one this is your penguin that's what I mean by the fractal fractal as you zoom in it's just another fractal another fractal fractal root gold book machine um so it's quite difficult to keep this thing running and then also difficult to advance the product because it is really overly complex to say the least and we'll make a change what what appears to be a small change somewhere

that then causes a massive disruption um so for example just yesterday we made what we thought was a small change and we'll put out the what we want to be in the sort of full disclosure of everything including dirty you know gruesome details so but but essentially if there was a uh what was supposed to be a small change to one percent of the Twitter user base ended up being a catastrophic change to a hundred percent of the recruiter use of ace um and uh you know I don't know we don't have enough time to go into the details but um there was a there was a Boolean flag in the Twitter front and that that should not have been there um and uh we live now we fixed that um but but it's I mean let me give you it's like a silly example at one point we um there

was a problem with Twitter spaces where suspended users were able to join conversations even though they were suspended and we temporarily uh turned off uh access to Twitter spaces which is um which then made someone anyone who is using the Twitter Android app unable to like tweets now how those things are connected is not clear so if you were in the Rube Goldberg practically that's what I'm saying so if you had an an IOS app you could like tweets if you're on the web app you could like tweets but not if you had an Android app because of spaces I mean like what um so you know we're so one of the things we're doing there's a lot of work behind the scenes in simplifying the code base um getting rid of extraneous features and enabling Twitter to evolve more

rapidly in the future but it requires a lot of cleanup essentially um yeah so you know you you've grown users despite this lean engineering team and the and the the code base being unwieldy and Cloud spend 40 percent down cut out a data center is this due to the the strength of the engineering team that you've been able to achieve this and introduce subscription and other features while trying to hold it all together and and where does that engineering team go to accomplish both the code based enhancements and all the features you've said you want to introduce yeah I mean I think on balance we're doing okay because um and just to give you a sense of where things were at the close of acquisition on say October 29th um Twitter was tracking to a negative

three billion a year burn rate um and had one billion in the bank so that's a pretty dire situation if 20 if 2023 had been a normal year um Twitter would have done something on the order of four and a half billion in revenue or four and a half billion in cost roughly Break Even but when you add one and a half billion of debt servicing to that and um a massive decline in advertising some of it's cyclic some of it political but could call it at least a 50 decline in Revenue roughly 30 percent of Clan Revenue you've got over three billion dollars negative um but now Twitter has some Revenue that's not Advertising based so um data services data yeah yeah exactly like yeah but um so yeah data subscriptions and whatnot um so but it was in the absence of action

um Twitter would have had six billion in cost and three billion Revenue so minus three billion and it was a billion in the bank so it would have gone bankrupt in four months um so so immediate and drastic action had to be taken um which which was and so we actually have now cut the burn to the the non-uh interest burned to roughly uh one and a half billion so we've got a billion and a half of debt so saying and a billion and a half of expenditures uh we uh went from three data centers to two um and it reduced our Cloud expenditures uh significantly um and um while at the same time having the fastest product Evolution in Twitter's history so overall not bad um they've been a few bumps along the road obviously but uh this is to be expected um and now I

think we have the opportunity to grow it into something quite spectacular we we have the highest uh total user minutes and Twitter history so the the the real number to care about is actually not the uh mdow monthly which is directly monetizable daily active users but it's it's user time um how many total user hours per day do you have that's that's the real figure of marriage because one could for example say uh go to 300 million daily active users but if they spent less time on the system uh cumulatively that would actually be a downgrade it's how much human attention are you worth and that's what I think like I said that the really profound thing is what Twitter has is roughly 130 million hours of the smartest most influential people on earth every

single day there's there's nothing else that has that I mean there are social networks that are that have more users but they do not have the small influential people they don't have you so the if I do the math on what you've said about the advertiser pause and revenue Decline and the cost changes um it's ebitda profitable today and then you're looking for cash flow Break Even after Debt Service well Steve it's not profitable but the yeah the the D and the yeah right when do you get to cash flow Break Even bush with the D when you get the cash flow Break Even after that day this is where we need to focus on the e-pod yes foreign I hope we pay taxes um and the T yeah um so like I said I mean we're getting to the point where we're close to having the total

expenditures for the company excluding debt roughly equal to the debt okay yeah that's what I think like I think we'll be there in Q2 thank you too um and then like I don't I definitely don't want to count uh chickens before the hatch or drinks it or anything but I I think we've got a shot at uh being cash flow positive uh next quarter so that'll some of that'll depend on advertisers so we'll talk quickly about advertising you've mentioned it a few times um the value uh is clear 147 billion Impressions uh on Twitter of World Cup 22 and 50 year-over-year growth and NFL video views um you know 39 increase in Super Bowl mentions the NFL putting out engagements never been higher and then wpp CEO Mark Reed said 10 days or long ago this was February 24.

Twitter seems to be more stable and I think clients advertising clients presumably here will look about coming back to Twitter so are you in touch with agency and CMOS and is is this the theme I think we just saw McDonald's or others coming back as they realize you are absolutely focused on the things you were said not to be focused on in terms of uh brand safety Etc yeah I mean I think the really um what I'd say to advertisers and Brands is you know use Twitter yourself and believe what you see on Twitter not what you read in the newspapers because what you see on Twitter is the real thing and what you read newspapers is not um and I'd like to thank Mark Reed on wpp for their support and publicists and others and for the advertisers that have stuck with

us like Disney and apple thank you so that's brand advertising you've mentioned a few times performance advertising I think I've heard your story about White Lotus which maybe we can you can share here um you know performance-based advertising has been very lucrative for other companies and it can be made more relevant on a more narrow cast basis if you will than than pure brand advertising so when when do you introduce performance-based advertising and and scale it oh we we introduced from the from the moment the acquisition closed like we have to have a performance-based advertising is really just advertising that is relevant relevant in fact we should really have aspirationally zero non-conformance based advertising um you know we want advertising

that matters uh people's attention is precious we should not serve them ads that are annoying or irrelevant or strident or ugly um and it's interesting to mentioned White Lotus I actually was talking to David zazlov who's great um and he was like hey why can't we put a White Lotus uh a trailer every time someone mentions White Lotus on Twitter I'm like absolutely so like one of the like it's super obvious but profound things that we're doing is enabling keyword advertising so that you can enter the keywords and uh like White Lotus and if somebody mentions White Lotus you put the White Lotus trailer there I mean this sounds very obvious um you don't need dpt3 for this you don't need Advanced AI for this one so uh you know it's sort of just Google AdWords

but applied to tweets and the home timeline and replies and everywhere else um because you'll often have very sort of long deep conversations people going on talking about movies TV products and whatnot and uh that's the perfect opportunity for advertisers to provide their message you know if I think about something for example like like starlink um which does advertise in various media uh for stalling uh um would want to advertise to users in in regions that are not already saturated so Starling tends to be saturated in urban areas but is not saturated in uh rural areas and so what Sonic would like to do is like say please show the ad in to to rural users with a slow connection and then the simple message is do you want faster internet for less money

click probably you do and Twitter needs to be able to do a simple thing like that and it will be um and in fact it is already able to do that we're just having fully rolled it out so we're we're I think around 20 ish but by the end of this year almost all advertising will be should be reasonably relevant and that your your Starlight example comes back to your disposable income if you want to or the education level and the ability to buy and afford to start the subscription of the Twitter user like it also dovetails back into that yeah absolutely um so um you know I think there's also an opportunity here to uh have advertising be uh much like like really improve the relevance of advertising using um AI in the sense that if you based on what uh tweets somebody

reviews likes and whatever you can actually populate a parameter space uh an ml parameter space and then you can take an ad and even if you say nothing about that ad after it's dropped in the Twitter system and has 10 000 views you populate a parameter space of that of the ad and then you correlate the user parameter space and add parameter space and then you don't need to do any demographic targeting because you could be like say it's a gardening ad well you could be 20 30 40 you could be 70 years old any sex whatever it doesn't matter what matters do you like gardening and that's the ad that should be shown and so I think we can get away from a lot of the sort of targeting by age range and sex and whatever uh in favor of targeting my interest um and

and a lot of these sort of demographic targeting was done coming from a TV or newspaper era where you don't have interaction with the user you just have to kind of guess because it's a one-way Street in TV um but on Twitter it's not a one-way Street there's continuous interaction um so I think we can just have a profoundly more useful uh advertising experience so let's close on Twitter before getting to um another couple companies I've heard that you run the vision You're Building towards I think you've called it X or the everything app tell us about it and Beyond just improving the advertising and and you know what will we be able to do on Twitter in your in your grandest vision yeah so so x x.

com is uh you know you know so so I think it's possible to create a very powerful um Finance experience basically um like like PayPal is kind of like a halfway version of what I think could be done in payments and finance yeah and so you want to be like let's say you like you want to be able to to send money easily from one account on X Twitter to another account effortlessly with one click uh you want to be able to I think earn interest on the money you want to be able to um have debt so you can set your interest can go negative I mean basically I think it's possible to become the biggest financial institution in the world so just by providing people with convenience uh payment options um we don't have the time to go into it in detail here except uh

if we just make the app more and more useful uh people will use it more and it'll be great I mean yeah so you'll still see okay um we're still on Twitter for a moment but we had uh you know in Austin thank you for hosting uh at the investor day and you showcased 16 Executives uh on stage at various times um with you an incredibly uh deep and built out management team and I think the executive team um with you with Twitter um you know is perhaps a bit leaner um let's just maybe there's a media narrative here that's accurate so he does have a black turtleneck so so you need anything more I don't think so so so so when when does the Twitter management team have that bench like you showcased uh the gigafactory well I think it takes it takes a long time to

build a strong management team um and the you know we're both the Tesla management team over 20 years um so uh I think Twitter isn't easier problem than than Tesla uh by a long shot um so whether it'll take some time to to build the team and I don't know probably a few years okay um yeah and um Switching gears uh you shared Master Plan Three at the gigafactory and and you know the edit uh that that came to my mind with you know Master planet after your your first piece there on sustainable energy for all of Earth can you can you take us through that uh positive optimistic uh mathematically underpinned vision for our planet okay it was not a lot of time to do that but um but I guess the the overall message is that um we can absolutely make us uh to turn

into a sustainable energy economy fully sustainable uh using Lithium-ion batteries solar wind as well as geothermal nuclear and other things but primarily it'll be solar and wind end Lithium-ion batteries and our calculations you need roughly 240 terawatt hours of Lithium-ion batteries most of those will be iron phosphate lithium of the iron phosphate variety is those were the primarily iron cathode which is a plantful material in fact Earth is uh the the number one element on Earth is actually iron a little factoid uh I think Earth by mass is about 32 iron and about 30 oxygen and then everything else is miscellaneous so we're like a mighty rust ball um uh so plenty of iron basically the the materials are needed for uh to make 240 terawatt hours of batteries

are actually plentiful on Earth um we don't need to mow down the Amazon or anything like that we don't need to basically do do anything Terrible's the environments to create uh 240 terawatt hours of batteries in fact uh there will be less mining required in a sustainable energy economy than is currently required really this was a message of of of Hope and optimism grounded in physical reality it is not wishful thinking um so we should be excited and inspired about the future and I'm not suggesting complacency or anything like that or that we should but and getting there faster is better better than getting there slower but but what we don't need to live some terrible or stair life and give up the things that we like you can have the things that you like

in fact even more of them and the environment can be good all the good things are possible is what I'm saying there's we should be excited and optimistic about future which we need to go build it it's a lot of work um but you should not feel sad about the future regarding sustainable energy uh it will happen which just want to make it happen faster rather than slower so that was the first big takeaway you know the the next one that I had was this your your next phase of vertical integration the Relentless first principles thinking on vehicle design battery design Factory optimization you know at the same time as the vehicle that could lead to a Target I guess of this you know 50 percent step change in cost when the new gen eventually comes around um can

you just take us through The quick summary of that and and it unlocks the next uh wave of the Tam because there's price elasticity is is the what you were sharing on this subject is the second big takeaway for Tesla um yeah I mean those are the there's a clear path to making a vehicle a smaller vehicle that is roughly half the production cost and difficulty of our model three um that vehicle will be uh or you know really used almost entirely in autonomous mode that the thing that is really gigantic uh for for Tesla is autonomy um and if people have used the Tesla full self-driving and have seen how rapidly the full self-driving capability has been evolving um it should be obvious that that is by far the most profound thing um there's the sort of total

addressable Market stuff it's like guys this is like actually not the right way to think about it it's it's like um passenger vehicles right now only see about 10 10 to 12 hours of use per week um there's 168 hours in a week if those vehicles are autonomous they're probably going to get used for 50 or 60 hours a week that's a 5x increase in the value of a car and it costs the same to make the car at that point you basically have software margins and a hardware product it's insane um total addressable Market as everyone all humans powerful so let's switch gears to SpaceX hitting first starlink what can you tell us about starlink and the the scale and deployment and how that's going yeah so I think the styling team is doing an amazing job um more than half

of all satellites uh in orbit right now are starlink satellites so if you add up all satellite launched cumulatively they are less than starlink um so starlink is currently providing Global connectivity you can get connected connectivity anywhere on Earth from the most remote part of Antarctica to San Francisco anywhere that's full Global connectivity high bandwidth and low latency the latency is important because unless you're in low earth orbit you cannot get low latency the geostationary satellites are you know um very very high you've sort of got uh sometimes up to a second of latency from a Geo stationary satellite all things inclusive whereas uh with stalling satellites I believe we can get the latency under 20 milliseconds so and in fact for international

Communications um an interesting thing is that in fiber uh light travels much slower than in Aero vacuum so uh in a rough approximation uh light travels about 300 kilometers per millisecond in air and vacuum but only just roughly over 200 kilometers per second per milliseconds in in fiber so so you've got like a sort of roughly 40 increase in speed of light um going through this the stalling system then through through fiber and and it can also follow a more direct route instead of following the the sort of uh Coastline of the continents it it can actually have a more direct route so it's a fact it's a shorter round and an inherently faster from a physics standpoint so it it connects the world um way better than fibro um and it will provide and is providing

connectivity to people that either never had it before or where their options were extremely expensive or very low bandwidth so it's helping out a lot of communities that never never had access especially when you consider that education is is digital these days that's really how you can learn anything you basically learn anything you can basically learn anything for free on the internet if you have the internet um so in terms of providing education abilities to remote communities uh stalling is doing a lot of good in that regard lastly um you know the launch whether you know Falcon 9 heavy or Starship I think you had the static fire test that went well and and what can you tell us about the next next phase on launch or Starship yeah so we're getting

ready for the first launch of of Starship this is a very difficult program the rocket is um roughly two and a half times the thrust of a Saturn V so if it what if or once it reaches all of it it'll be by father thanks rocket 312 but but more importantly it is designed to be the first fully reusable rocket over the rocket ever so that the key to uh extending life beyond Earth is fully and rapidly reusable orbital rocket this is a very hard problem given the constraints of Earth with Earth has a thick atmosphere and strong gravity it is only barely possible to do this that's why it has not been done before so we are getting we're getting close for our first orbital attempt of Starship hopefully in the next month or so we'll have our first attempt I'm not

saying it'll get to orbit but I am guaranteeing excitement [Laughter] so it won't be boring um I think I think it's got I don't know hopefully above 50 chance of reaching all of it and uh and then we we've got we're building a whole series of Starships in South Texas and so I think we've got hopefully about an 80 chance of reaching over this year it'll probably take us a couple more years to achieve full and Rapid reusability um which I can't emphasize enough is it is the it is the profound breakthrough that is needed to extend life beyond Earth um because it it lowers the cost of access to space by orders of magnitude in the same way that if if let's say there were no airplanes that were reusable how expensive would Air flight be it would be insane you

don't have to buy in your airplane every time you flew somewhere and you have to tow a small airplane behind you for the return flight so uh you know that's just you're not going to scale um so assuming things go go well there this this vehicle is if it could make life multi-planetary that's a really big deal I could make life on Mars real and I think that's uh I mean that's one of the great cultures that any civilization has to pass through which is does the civilization become multi-planetary or not this is one of the elements of the Fermi paradox I mean I I sort of wonder that if we are able to get to multi-planetary that'll be a forcing function for ultimately improving space might to become multi-stellar to go to other star systems and I think we

may discover that there are many long Dead one planet civilizations we don't want to be one of those we know we don't want to be able to lame one planet please I think we're going to wrap on that thank you Elon Musk all right [Applause]