Last night Elon Musk was talking about autonomous cars and Tesla in an interview on Twitter, an interview we had over 40,000 people listening to.
In it, he talked about his vision for the future of autonomous cars. During the conversation, Musk highlighted the idea of ”robo taxis”, which could transform the transportation industry and have a significant impact on the economy. Below, we’ll take a look at key points from the interview and Musk’s perspective on this exciting project.
Robo Taxis: The Future of Autonomous Transportation?
In the interview, Musk described “robocabs” as a concept similar to a self-driving Uber. According to his estimate, a Tesla self-driving car could run for about 50 hours a week, up from 10 hours today. This would indicate a significant increase in the utility and value of a car, as it could generate income as a taxi service when it is not being used by its owner.
The business model behind robo taxis
One of the key points of the interview was the business model that would support robo-taxis. Musk clarified that car owners would receive a share of the revenue generated by the autonomous taxi service. Although he did not specify the exact ratio, he did mention a possible revenue split such as 50-50 or 70-30. However, he stressed that Tesla cars can only be used on Tesla’s network, which will ensure that the company earns a significant return on the revenue generated from the robocabs.
Economic Efficiency and Profit Margin
Musk highlighted the enormous economic potential of the robocab, saying that Tesla could generate two to three times the car’s original retail price through revenue from the service. Comparing it to the software industry, Musk said profit margins could reach 70% or more, generating impressive cash flow for the company. This optimistic outlook is based on analysis from experts such as Cathy Woods of Archinvest.
Full autonomy and exploration of challenges
During the interview, Musk also addressed the topic of the full range of Tesla vehicles. Acknowledging that this goal has not yet been achieved, he expressed confidence that it will happen in the near future. He said that in recent tests, Tesla’s self-driving vehicles managed to last several days without human intervention in complex areas such as Austin and San Francisco. Acknowledging the challenges, Musk was optimistic about the possibility of achieving full autonomy in the near future.
Implications of the Inflation Reduction Act
The Inflation Reduction Act is a law promulgated by President Biden on August 16, 2022, in the United States. This legislation represents one of the most significant actions taken by Congress on clean energy and climate change in the nation’s history.
The Inflation Reduction Act’s primary goal is to build a better America and fulfill President Biden’s vision of ensuring that a country powered by American workers remains the world leader in clean energy technology, manufacturing and innovation. With a $370 billion investment, the legislation seeks to lower energy costs for households and small businesses, accelerate private investment in clean energy solutions in all sectors of the economy and across the country, and to strengthen the supply chain of critical minerals and efficient electrical equipment. strengthening, and creating well-paying jobs and new economic opportunities for workers.
In the interview, Musk also explained how this affects Tesla’s business. He noted the potential benefits of this legislation in terms of earnings per share, as Tesla focuses on clean energy.
The challenge of leading multiple companies
As the interview ended, Musk shared his thoughts on Tesla and his role at Twitter. He explained his approach of delegating operational tasks to trusted executives while he focuses on areas he is passionate about, such as product development and advanced technology. Kasturi also highlighted the importance of productivity and the need to work individually to maximize it.
The interview with Elon Musk made clear his bold vision and commitment to innovation. Robo-taxis represent an important step towards the future of autonomous transportation and could have a significant impact on the economy. As Tesla continues to advance its goal of achieving full autonomy, it’s exciting to imagine the transformative potential this technology could have on our lives.