BBC Dialogues: Is The Tesla Model 3 Launch an iPhone Moment for the Auto Industry?

BBC Dialogues: Is The Tesla Model 3 Launch an iPhone Moment for the Auto Industry?

By Alison van Diggelen, host of Fresh Dialogues

Last night, I joined the BBC’s Business Matters to discuss the launch of Tesla’s Model 3 and the remarkable 325,000 deposits it garnered in just seven days. Reports suggest that even Tesla CEO, Elon Musk was surprised by the number of people prepared to pay $1000 to get in line for this mass market electric car. It appears that his “Tesla secret masterplan” had been intentionally leaked. Does this mean that the Model 3 represents an iPhone moment for the auto industry?

I discussed all this with the BBC’s Roger Hearing and Madhavan Narayanan, columnist with the Hindustan Times in Delhi.

Here is a transcript of our conversation and a longer version of the report which aired on the BBC World Service. The transcript has been edited for length and clarity. Listen to the podcast here: Tesla discussion starts at 26:46

Roger Hearing: The Tesla 3…is that the way forward for electric cars? Now Alison, you’ve been having a look at the new Tesla…can you enlighten us on that?

Alison van Diggelen: Last Thursday, Tesla finally unveiled its “affordable” mass market car, the Model 3. Hours before it was actually unveiled, thousands of Tesla fans stood in line, sight unseen, to reserve one. This was a phenomenon, especially here in Silicon Valley where Tesla is headquartered and where they actually build the cars.  I talked with several people who waited in line, and one Tesla fan who drives a Tesla (Roadster) but is just not interested in the Model 3…The key question now is: can Tesla deliver?

[Report begins]

Last Thursday, Tesla fans came out in droves to reserve the long awaited Model 3, the $35,000 all-electric car.

Small business owner, Tom Poppitz was one of thousands in Silicon Valley, to line up at one of Tesla’s six showrooms here. Each customer was prepared to put down a $1000 deposit for a car they’d never seen.

Tom Poppitz Tesla Model 3 ReportPoppitz: There was a lot of very well educated people in that line…they were going to buy this thing, no matter what it looked like…they were excited about it changing the world, changing the auto industry…

He likened it to an Apple product release, only better because it was sight unseen. 

But what motivated Poppitz to get in line?

Poppitz: I’m not generally excited about cars…I’m a self-professed tightwad. The value proposition for this car is so completely different: frees you from buying gas… but my primary motivation: It changes macroeconomics in a major scale. Transitioning to electric cars can cure our trade deficits, it can have a quantum effect on our economy….

But not everyone is so optimistic that Tesla can actually deliver a world-changing product. I spoke with Anton Wahlman, a tech analyst.

He says Tesla’s two greatest challenges will be achieving profitability at $35,000 – where margins are razor thin – and beating some tough competition.

Wahlman: The unsexy factor in the whole equation…the product can be beautiful and all, but getting to an acceptable level of profitability is an extremely significant challenge.

He points to the brutal competition Tesla will face by the time it delivers its first Model 3’s in late 2017/and 2018. The Chevy Bolt hits showrooms later this year, and BMW, Audi, Jaguar, and others are in fast pursuit.

Walhman predicts that Tesla may face the same fate that Nissan did in 2010, when its all-electric Leaf started shipping …Many reservation holders demanded their deposits back.

Wahlman: (Nissan) They had zero competition… Tesla already has some competition …that will intensify greatly in ‘17 and by 2018, it’ll be in full bloom.

He acknowledges Tesla has a more attractive product than Nissan and its charging network is a moat-like barrier to competitors. But the Model 3 is not for every Tesla fan.

Silicon Valley techie, Carlos Morales drives a Roadster, Tesla’s limited edition sports car. He loves the quiet acceleration, and speed of his Roadster, but wasn’t prepared to reserve a Model 3. Why not?

Carlos Morales Tesla Model 3 ReportMorals: I see a Roadster once a month… 300,000 Model 3’s have been reserved. There’s going to be a lot of them, that’s wonderful for the planet and Tesla. But it’s not going to be as exclusive.

There’s always going to be a class, a group of people who are looking at that.

Despite questions of reliability and servicing challenges pouring cold water on last week’s euphoria, Tesla true believers feel they were part of automotive history. Will this be an iPhone moment for the auto industry? At least 270,000 people hope so.

[Report ends]

Alison van Diggelen: Carlos speaks for probably a small segment of people who won’t be attracted by the Model 3. But as of this morning they’ve now had over 325,000 willing to put down a $1000 deposit…that level of interest is unprecedented in the auto industry. A lot of people are drawing analogies with the iPhone. There’s a euphoria about this new product…the difference is: people are going to have to wait about two years before the car is actually delivered.

Roger Hearing: That’s a very long time, isn’t it? Isn’t that a lack of attraction in itself?

Alison van Diggelen: The analyst, Anton Wahlman emphasized that it’s not that these hardcore fans aren’t prepared to wait…but in the two year period, they may be tempted off their deposits. Wahlman pointed out all the competition. Jaguar is even coming out with an electric vehicle, Audi…the Chevy Bolt will actually be in dealerships this Christmas. I did speak with one big Tesla fan – Washington Post columnist, Vivek Wadhwa – and asked him if he’d be tempted by the Bolt. He said it was like comparing a rotary phone with the iPhone. That’s the level of fanboy-ism there is in Silicon Valley.

Tesla Design Studio Palo Alto, by Alison van DiggelenMadhavan Narayanan: We’re not discussing cars anymore.  We’re discussing new patented technologies. If Tesla has patented technology that makes it distinguishable and superior to other electric cars, we’re talking about a paradigm shift, not simply a better car.

Roger Hearing: The big thing here in Britain is where you can actually get the charge? It’s fine in big urban areas… and for short journeys. Would that be true in America where there are a lot of very long journeys and presumably not a lot of electrical stopping places along the way?

Alison van Diggelen: Yes, that is a big issue. Anton Wahlman pointed out that Tesla has this (proprietary) network for these long distance drives. They have hundreds of superchargers, (fast chargers) all over the U.S. They’ve introduced them in Europe too for people doing long journeys in their Tesla Model S. Wahlman described this like as a moat around Tesla’s business model and no other electric vehicle has something similar. So that could actually be an advantage (for Tesla). These other companies will have to catch up. With mass market, compared to a luxury car, there is a point: most luxury car buyers own homes and they can charge at home.  If you’re living in an apartment, then that’s a whole different thing. That’s definitely a challenge, but Elon Musk is quite the visionary and he is aware of this and they are planning to double or triple their Tesla charging network.

Roger Hearing: That must be a problem in India, Madhavan, where do you charge these electric cars?

Madhavan Narayanan: Let’s look at what happened with cellphones. The paradigm of Tesla is strikingly similar. You have cell towers everywhere and they carry the signals. Why not set up a charging station network? To use Silicon Valley’s favorite expression: I see an electric vehicle ecosystem emerging. There will be new winners and losers in the game.

Roger Hearing: An electric car ecosystem? That’s a concept to carry around, as we go into what does seem to be the electric car era.

Read lots more about Tesla’s remarkable journey here

Watch my in-depth interview with Elon Musk – on Tesla, SpaceX and his desire to die on Mars.

Photo credit: Top photo of lines at Tesla showroom in Palo Alto by Michael Berlin, who is featured in the photo below:

Michael Berlin waits for the Tesla Model 3. Photo by Michael Berlin

Who’s buying the Tesla Model X and Why? Here are 4 Buyer Types

Who’s buying the Tesla Model X and Why? Here are 4 Buyer Types

By Alison van Diggelen, host of Fresh Dialogues

Elon Musk handed over Tesla Model X keys to five lucky new owners in Fremont last Tuesday. Thanks to the super sleuth investigation work of Dana Hull and Evan Adams, we’ve identified the first six Model X SUV buyers:

#1 Elon Musk

#2 Steve Jurvetson

#3 Mark Templeton

#4 Sergey Brin

#5 Mark Tebbe

#6 Ira Ehrenpreis

Tesla Board member, Steve Jurvetson, pictured above with Elon Musk, is the owner of the first Model S. He told me this week that Elon beat him to #1 this time round, by producing a check for the Model X at an early Tesla Board meeting.

I interviewed some of the heady buyers – and would be buyers – at the launch event. Several had come as far afield as Michigan, Florida and San Diego. Here’s my very small non-scientific study (I mean, how many people can you talk to when music like Lana Del Rey’s  “Young and Beautiful” is blaring all night?) I have identified four types of Model X buyer:

Mark & Pinckney Templeton, Model X Launch, by Alison van Diggelen1. The Electric Vehicle enthusiast

Mark Templeton, CEO of Citrix was the delighted owner of Tesla Model X number 3 and is planning to ship his SUV back to Florida. Here’s what he told me backstage:

“Once you go electric, you never want to go back!” Mark Templeton

2. The car collector

Several people I spoke with said they already own the Tesla Roadster and the Model S, so buying the Model X would be the finishing touch on their “Tesla Triple Crown.”

3. The safety-first, anti-minivan family

Eric (who wouldn’t share his last name) is an East Bay father of three. He told me that Tesla’s safety record and the Model X’s seven seats was a big attraction for him and his wife. How could you think of doing the school carpool and the soccer runs without one? He put a $5,000 deposit down in December 2014 and thinks he’s about 15,000th on the waiting list. He’s happy to wait, but he’s not willing to pony up for the ludicrous mode and the hefty price premium it commands.

“I want the functionality of a minivan and the style of a high end car, but I will never ever buy a minivan.” Eric (East Bay)

.

.(Tesla CTO JB Straubel and family get some stroller assistance from Elon Musk, Photo: Fresh Dialogues)

JB Straubel family Elon Musk Model X by Alison van Diggelen

4. The Elon Musk fan club

These are the people who talk about Elon Musk in whispered tones, who can’t mention his name without drawing comparisons to the genius of Thomas Edison or Steve Jobs. These are the people who’d buy a plant pot or garbage disposal from Elon Musk, if he was involved in its creation.

Of course, it goes without saying that having a high income (or net worth) is a prerequisite to buying the Tesla Model X. Perhaps even ludicrously high? Did anyone say 1%?

The SUVs starting price is about $80,000, though the ones that changed hands on Tuesday came fully loaded at $132,000 plus.

For those without that kind of pocket change, you’ll have to hold your breath for the long awaited $35,000 Model 3. Musk says they’ll be releasing details and taking orders March 2016. I wonder who’ll be first in line this time?

 

Read more about Tesla and Elon Musk at Fresh Dialogues

Musk gives VW a lesson in Clean Air

Elon Musk’s Life Story – in his own words and more EV reports

 

Tesla’s Elon Musk Gives VW a Lesson in Clean Air at Model X Launch

Tesla’s Elon Musk Gives VW a Lesson in Clean Air at Model X Launch

By Alison van Diggelen, host of Fresh Dialogues

Last night, the long awaited Tesla Model X was launched and Elon Musk took great pleasure in underlining its clean air qualities. Musk reiterated the mission of Tesla: to accelerate the advent of sustainable transport and show that any car can go electric. But he couldn’t contain a smile, as he talked about air quality and referred to “recent events” i.e. the VW DieselGate scandal.

Musk showed off the SUV’s giant air filter (10 times the size of a typical one) and said:

“Recent events have illustrated the importance of air safety…(in the Model X) you can have air quality levels comparable to a hospital operating room.”

Musk then got somber, put on his superhero hat and showed the massive crowd estimates of how air quality can reduce life expectancy in some of the world’s most polluted cities: Beijing, 22 months; Los Angeles, 8 months and Paris, 7 months.

Model X Launch: Life Expectancy, Photo credit Alison van Diggelen

.

According to Musk, using the high quality “X-size” air filter plus a smaller one (still larger than an average car’s air filter) gives the Model X a 700 fold improvement in city smog filtering. The company claims it’s also 300 times better at filtering bacteria, 500 times better at filtering allergens, and 800 times better at filtering viruses.

Model X air filter performance, Photo credit Alison van Diggelen

.

But the biggest cheer of all came when Musk made this surprise announcement:

“If there’s ever an apocalyptic scenario, you just press the bio-weapon defence button – this is a real button.”

I asked George Blankenship, former VP at Tesla, about Tesla’s clean air focus.

“Who else is going to think in that magnitude with something as normal as an air filter? These are the kinds of things that Elon pushes to the limit and delivers products that no one else can deliver. The reason he’s doing it is to save the planet. It’s all about the survival of this planet and the atmosphere.” George Blankenship

We discussed how VW’s emissions cheating scandal might impact electric car makers like Tesla.

“It’s unfortunate that others feel they have to do things like that in order to compete. It’s the absolute opposite of what Tesla does…they find a solution. It reinforces that innovative companies that come up with a solution that others don’t…there’s a reward for it: 5 star crash ratings, cleaner air than a surgical room. That’s what innovative companies do as opposed to companies that try to figure out how to bend the rules to get an advantage.” George Blankenship

After a thorough tour of the Model X features, including the elegant falcon wings, Elon delivered keys to some of the first Model X buyers.  This time round, Elon beat his friend, and first Model S owner, Steve Jurvetson and got the number one Tesla Model X. There’s definitely admiration, perhaps a little envy, captured in my photo below.

Update: Jurvetson told me this morning that Elon had a check made out in advance at an early Tesla Board meeting, to make sure he secured the first Model X.

Read more about Tesla and Elon Musk at Fresh Dialogues

Who’s buying the Tesla Model X?

Elon Musk’s Life Story – in his own words and more EV reports

 

 

Steve Jurvetson & Elon Musk w Model X Photo credit Alison van Diggelen

BBC Dialogues: CA Drought Official’s Tips for Ag Tech Entrepreneurs

BBC Dialogues: CA Drought Official’s Tips for Ag Tech Entrepreneurs

By Alison van Diggelen, host of Fresh Dialogues

California’s worse drought in decades has spurred everyone to pay close attention to their water use. Farmers are especially thirsty for water saving ideas, so it’s a sector ripe for innovative Ag Tech solutions. On July 10th, I joined Fergus Nicoll of the BBC’s Business Matters to discuss the challenges and opportunities the drought has created. The program also featured an interview I did with California State Water Resources Control Board member Dorene D’Adamo.

Check out the extended transcript of our interview below, in which D’Adamo shares some tips for Ag Tech entrepreneurs. Number one: Get your hands dirty on the farm, talk to farmers…

The conversation starts @42:30 in the BBC World Service podcast. The transcript has been edited for length and clarity.

Photo caption (above): Alison van Diggelen interviews avocado farmer and drone entrepreneur Jon Tull of Farm Solutions at the Silicon Valley AgTech Conference, May 2015)

BBC Dialogues at Fresh DialoguesFergus Nicoll: Let’s talk about drought. We’re what…three years now into this prolonged drought in California, Alison?

Alison van Diggelen: This is the 4th year now.

Fergus Nicholl: So what are new incentives that (CA Governor) Jerry Brown has come up with?

Alison van Diggelen: Last April, Jerry Brown made his historic executive order. He mandated a reduction for residential consumers: they have to reduce on average 25% of their water use. He’s carrying a big stick on this. He has the ability to fine water districts up to $10,000 a day and allow water districts to charge surcharges for people who’re not reducing. It really is biting…

Fergus Nicholl: This is being measured presumably?

Alison van Diggelen: This is being measured and in May, Californians were patting themselves on the back…it was just released a couple of weeks ago that in May we actually reduced on average, 29%. So we’re getting there, but depending on which city you look at, some are reducing by up to 40% and some are not doing their fair share, so there is still some rankling.

Fergus Nicholl: So what happens with that? Is it public naming and shaming if you don’t get to 25%?

Alison van Diggelen: Absolutely. Drought shaming is going on and basically, they’re using the price mechanism. People are going to see it on their monthly or bi-monthly water bills and they’re going to feel the pain of using too much water.

Fergus Nicholl: I told you about Alison’s interviews on Fresh Dialogues… Let’s hear from the California State Water Resources Control Board. This board reports directly to the Governor and we’re going to hear from (board member) Dorene D’Adamo.

WHY THIS DROUGHT IS DIFFERENT

Dorene D’Adamo: We’re currently in our third year of drought and it is a very serious situation. We’ve had back to back dry years and of course the soil in many areas of the state is very dry and in addition, we’ve had a very low, dismal snow pack. In fact less than 5% (of the average) snowpack.

We also have a different situation than last time we had a serious drought, which was 1977. Our State has grown in population significantly. We also have a hardened demand (for water) because we have a lot of permanent crops that have been planted (e.g. fruit and nut trees). We also have a healthy respect for the environment, so we have redirected some of our supplies to environmental protection, to protect fish and wildlife.

Alison van Diggelen: What do you say to people who complain – urban dwellers – who complain that farmers are using 80% of the (State’s) water…we’re having to cut back and not water our lawns etc.?

Dorene D’Adamo: Well, we all need to be part of the solution and without a doubt, agriculture has vastly improved its irrigation efficiency over the last decades but it’s possible for them to do more and it’s also possible for the urban sector to do more. This 80% of agriculture supply…others will say it’s 40%. The number is probably not as important as is the fact that we all have to do our fair share. Agriculture and urban dwellers can do more which is why we recently called up on implementing the Governor’s Executive Order that Californians state-wide reduce their use by 25% for urban uses.

ADVICE FOR ENTREPRENEURS

Alison van Diggelen: We’re here in Silicon Valley, and of course it’s full of entrepreneurs with lots of hot tech ideas. Are there any particular tech ideas you’ve seen today…and can you comment on drones?

Dorene D’Adamo: Now that we have this new groundwater legislation in California, local entities will be called upon to put together a groundwater sustainability plan…to determine how much is being taken out of their aquifers, going into their aquifers. The question I have for this (AgTech) group is this: What technology…satellite or drone technology can be used?

Alison van Diggelen: Were there any other technologies you saw here that you feel have potential?

Dorene D’Adamo: What we’re looking for is assistance with monitoring…groundwater, contaminants, and also monitoring (water) use. There’s so much the Silicon Valley has to offer not just in terms of monitoring but data…putting together the data and the analysis. And I would encourage this industry to be looking at water supply and water quality much in the way they have in the energy sector. We have gone a long way addressing the greenhouse gas emission targets in California, in large part because of the innovative ideas that have come from Silicon Valley. This (water) area is ripe for investment and if we saw the investment in water quality and supply that we have did in the air quality and energy sector, in years to come, we’d see a huge improvement in both areas.

Alison van Diggelen: For young entrepreneurs who have ideas…what advice would you give them for making their idea a reality?

Dorene D’Adamo: Get out on the farm, get your hands dirty…go out and meet with farmers; learn from them directly as to the challenges they face. Even when there are these smart systems (soil probes, precision irrigation etc) implemented on farms, sometimes they’re not used properly, so I think the tech industry needs to better understand the needs of the farmer and that would help them put systems in place that would be used effectively.

Read more about Tech and the CA Drought at Fresh Dialogues (From “BBC Letter from Silicon Valley” archives)

Find out more about the potential of Ag Tech here

More from the WSJ’s Ilan Brat

BBC Letter From Silicon Valley by Alison van Diggelen: Tech In The Time Of Drought

BBC Letter From Silicon Valley by Alison van Diggelen: Tech In The Time Of Drought

By Alison van Diggelen, host of Fresh Dialogues

There’s nothing that Silicon Valley likes better than a big problem to solve. But with California’s historic drought and mandatory water restrictions in place, can Silicon Valley tech alone rescue the Golden State from going dusty brown?

The BBC invited me to share another Letter from Silicon Valley about Tech in the Time of Drought. Smart water meters, drone surveillance and soil monitoring etc. can help save water, but Californians are also leveraging tech to shame their neighbors – and celebrities – into saving water.  Not surprisingly, #droughtshaming is trending on Twitter. This week, actor Tom Selleck has been sued for stealing water from a public fire hydrant in LA.

My Letter from Silicon Valley aired today on the BBC World Service program Business Daily (@13:29 in the podcast)

The BBC’s Manuela Saragosa hosted the show. Here’s her introduction:

Saragosa:  One of California’s biggest problems at the moment is drought. So can Silicon Valley’s technology sector rescue the state from going dusty brown? Alison van Diggelen is there, and sent this report:

BBC Letter From Silicon Valley by Alison van Diggelen: Tech in the Time of Drought

In January, Bill Gates famously took a sip of water that minutes before was raw human sewage. As the cameras clicked in Washington State, he drank and smiled like the Cheshire cat. Eeewwww, you’re probably saying, but let’s dive a little deeper into what this innovation means.

Gates’s smile speaks volumes about “tech in the time of extreme drought.” Not only did Gates give the ultimate endorsement for a waste treatment startup he’s backing, it demonstrates an important Silicon Valley mantra: for every problem we face, there’s a tech solution. The bigger the problem, the bigger the opportunity.

And right now, California is in its 4th year of serious drought. Experts are calling our water crisis “the new norm.” And it’s part of a global problem. This year, for the first time, the World Economic Forum ranked water crises the number one danger in its Global Risk Report, above nuclear threats and global pandemics.

Silicon Valley startups are scrambling to find solutions: from Watersmart, a software management system that encourages water conservation; to mOasis, a soil additive that maximizes crop harvests with minimal water. Plans for massive desalination plants are also moving ahead.

Since farmers use 80% of California’s water, tech solutions that impact agriculture are especially valuable.

But tech solutions can’t do it alone.

Brown is the new Green in CaliforniaI recently visited the high desert state of New Mexico. As we flew over endless miles of parched land, I wondered, is this the future of California? I toured the Earthship headquarters where they are building radical eco homes, completely off the grid. With 8 inches of rain a year, residents are fanatical about water conservation, and they reuse every drop of water four or five times. Earthship roofs are designed for optimum rain and snow catchment and feed directly into massive holding tanks. They wouldn’t dream of having a bath, never mind using potablewater to flush the loo.

It was a vivid reminder that this crisis requires both low and high tech solutions; and we also need to adjust our mindsets.

A study by UCLA found that wealthier neighborhoods in LA use three times more water than others. A utilities manager in Newport Beach reported that some people – believe it or not – still don’t know that we’re in a drought.

Those with a cavalier attitude to water use in California will be forced to change. Soon, water districts can be fined up to $10,000 a day if they don’t reduce water use by 25%, on average. Residents here are bracing for a surge in water prices and potential fines. Installing greywater systems and replacing lawns with drought tolerant plants are becoming de rigueur.

As is drought shaming. Californians are using social media to shame their neighbors and target celebrities about wasting water. There’s even a drought shaming app that geo-tags photos so authorities can take action.

Ultimately, Silicon Valley’s tech solutions will help address this water crisis, but California will have to take action on all fronts. By adopting, and experimenting with a firehose of ideas from innovative minds* Silicon Valley could offer lessons for the whole world, as the impacts of climate change and water shortages grow.

*Tesla’s Elon Musk says he’s investigating a water saving solution using California aqueducts. Watch this space for updates.

Top Photo caption: A lesson in rainwater capture from Earthship educator, Tom Duke in Taos, New Mexico.

Check out more BBC Letters from Silicon Valley at Fresh Dialogues

On Sexism in Silicon Valley

On Failure in Silicon Valley

Elon Musk: A Genius’s Life Story, in His Own Words

Elon Musk: A Genius’s Life Story, in His Own Words

By Alison van Diggelen, host of Fresh Dialogues

According to the New York Times, the new Elon Musk biography by Ashlee Vance will “likely serve as the definitive account of a man whom so far we’ve seen mostly through caricature.

Yet the biography is already courting controversy. Today Musk said one passage about his attitude to employees and childbirth was “total BS and hurtful.” He added that Vance’s book was “not independently fact-checked” and should be taken “[with] a grain of salt.” 

So is there a definitive guide to Musk’s remarkable life? One that doesn’t need fact checked or taken with a grain of salt? You could start with a description of his life from the man himself.

I had the pleasure of sitting down with Elon Musk for an in-depth exploration of his extraordinary life at the Computer History Museum in Silicon Valley.  He took us on a journey from geeky loner kid in South Africa to his vision for SpaceX; and from his reluctant leadership of Tesla Motors to his ambition to die on Mars, just not on impact.

As far as I know, this is the first time Elon Musk has shared his whole life story, so candidly, even tearfully, in front of a live audience.

Watch the video or read the transcript, as Musk takes us on a journey from the suburban streets of South Africa to the tech mecca of Silicon Valley…and beyond. He tells us about his teenage “existential crisis” and his bookish quest for the meaning of life; how the retirement of NASA’s space shuttle both upset him and inspired his space transport startup SpaceX; and why he became the reluctant CEO of electric car company Tesla Motors.

.

Interview highlights and key turning points in his career:

The Rebellious Child:  Musk grew up in South Africa. At age 6, he desperately wanted to attend his cousin’s birthday party, but was grounded for some long-forgotten transgression. How did he get there? (This was probably the first of his many rule-breaking adventures.)

“It was clear across town, 10 or 12 miles away, further than I realized actually, but I just started walking…I think it took me about four hours…My mother freaked out.”

The Iron Man Inspiration: He was a huge fan of comics and read Iron Man comics. Did he ever imagine he’d be the inspiration for Robert Downey Jr’s movie character, Tony Stark?

“I did not. I would have said zero percent chance…I wasn’t all that much of a loner…at least not willingly. I was very very bookish.”

The Hitchhikers Guide to the Galaxy: How did the novel fire his imagination?

“I was around 12 or 15…I had an existential crisis, and I was reading various books on trying to figure out the meaning of life and what does it all mean? …I read Hitchhikers Guide to the Galaxy and it highlighted an important point which is that a lot of times the question is harder than the answer. And if you can properly phrase the question, then the answer is the easy part.   To the degree that we can better understand the universe, then we can better know what questions to ask. Then whatever the question is that most approximates: what’s the meaning of life? That’s the question we can ultimately get closer to understanding. And so I thought to the degree that we can expand the scope and scale of consciousness and knowledge, then that would be a good thing.”

Why was Silicon Valley his mecca at age 17? 

“Whenever I read about cool technology, it would tend to be in the United States…I wanted to be where the cutting edge technology was and of course, Silicon Valley is where the heart of things is…it sounded like some mythical place.”

Why did his startup X.com (the precursor to PayPal) come close to dying in 2000?

“The growth in the company was pretty crazy…by the end of the first four or five weeks we had a hundred thousand customers and it wasn’t all good…we had some bugs in the software…Various financial regulatory agencies were trying to shut us down, Visa and Mastercard were trying to shut us down, eBay…the FTC…there were a lot of battles there. (But) we had a really talented group of people at PayPal…It worked out better than we expected.”

After making over $150M from PayPal, why not just buy an island and relax?

“The idea of lying on a beach as my main thing sounds horrible to me…I would go bonkers. I’d have to be on serious drugs…I’d be super duper bored…I like high intensity.”

SpaceX's Falcon 9 launcher that carried Dragon to orbit, 2012. Fresh Dialogues interview

On the seeds of SpaceX

“I always thought that we’d make much more progress in space…and it just didn’t happen…it was really disappointing, so I was really quite bothered by it. So when we went to the moon, we were supposed to have a base on the moon, we were supposed to send people to Mars and that stuff just didn’t happen. We went backwards. I thought, well maybe it’s a question of there not being enough intention or ‘will’ to do this. This was a wrong assumption. That’s the reason for the greenhouse idea…if there could be a small philanthropic mission to Mars…a small greenhouse with seeds and dehydrated nutrients, you’d have this great shot of a little greenhouse with little green plants on a red background. I thought that would get people excited…you have to imagine the money shot. I thought this would result in a bigger budget for NASA and then we could resume the journey…”

On negotiations with the Russian military to buy two ICBMs

“They just thought I was crazy…I had three quite interesting trips to Russia to try to negotiate purchase of two Russian ICBMs…minus the nukes…I slightly got the feeling that was on the table, which was very alarming. Those were very weird meetings with the Russian military…’remarkably capitalist’ was my impression (of the Russians).”

Why he chose to create his own rocket company, SpaceX

“I came to the conclusion that my initial premise was wrong that in fact that there’s a great deal of will, there’s not such a shortage. But people don’t think there’s a way. And if people thought there was a way or something that wouldn’t break the federal budget, then people would support it. The United States is a distillation of the human spirit of exploration. People came here from other places…people need to believe that it’s possible, so I thought it’s a question of showing people that there’s a way…There wasn’t really a good reason for rockets to be so expensive. If one could make them reusable, like airplanes then the cost of rocketry (and space travel) would drop dramatically.”

Tesla Roadster, Fresh DialoguesHow did the vigils for the death of the EV 1 help inspire Tesla Motors?

“It’s crazy. When was the last time you heard about any company, customers holding a candlelight vigil for the demise of that product? Particularly a GM product? I mean, what bigger wake-up call do you need? Like hello, the customers are really upset about this…that kind of blew my mind.”

On being the reluctant CEO of Tesla Motors

“I tried really hard not to be the CEO of two startups at the same time…It’s not appealing and shouldn’t be appealing if anyone thinks that’s a good idea. It’s a terrible idea.”

On the idea for SolarCity

“Solar is the obvious primary means of sustainable energy generation…in fact, the earth is almost entirely solar powered today. The only reason we’re not a frozen ice-ball at 3 degrees Kelvin is because of the sun…”

Check back soon for more from Musk on:

where his inspiration strikes (hint: not just Burning Man)

how to build, motivate and retain an excellent team

time management advice

keeping it in the family

the likelihood of a SpaceX IPO this year

how the SolarCity IPO got done, “by the skin of its teeth”

why Musk wants to go to Mars before he’s ‘too old’

Here are transcripts of our conversation

Elon Musk: On South African Childhood, Iron Man and The Meaning of Life

Elon Musk: The Reluctant CEO of Tesla Motors

Elon Musk: On Obama, Climate Change and Government Regulations

Elon Musk: On Critics, Steve Jobs & Innovation

Elon Musk: On Team Building, Warren Buffett and Dying on Mars

Click here for more stories on Elon Musk and electric vehicles

More stories on clean energy