It's not about low cost.

So, I went online again and I looked at what an optimal sensor would look like.

Because you're getting the same earnings for a lower price.

It has been made possible, by the way, for certain other different reasons.

Do Low Interest Rates Ensure High Asset Prices?

Look, Pat, First Rate got that contract fair and square.

And so, we're in a wonderful situation with electricity in the rich world.

Price to Earnings, all else equal and that's a big thing all else equal, the lower the Price to Earnings, you're paying less for something.

And what would make your customer's job or life easier?

And you're going to pay a lower Price to Earnings ratio if the company isn't growing.

Low Price to Earnings ratio implies that it's cheaper.

Software can do it faster.

I love Lego Mindstorm, is which a wonderful way to experiment with these things.

We're not selling the car.

So they will all be... it would look something like that.

That would power the U.S. for hundreds of years.

A lot of hurdles.

People like Bill Buxton have been playing around with it in the '80s.

If prices go down a little bit, it doesn't affect people's behavior in aggregate.

AlDS drugs all over the world to people we cannot presently reach.

It could be very, very volatile.

The goal of Tesla has always been to have a sort of three step process, where version one was an expensive car at low volume, version two is medium priced and medium volume, and then version three would be low price, high volume.

Let's say a guy invents a better light bulb.

She's too young for this.

So based on that, this looks cheaper.

So if you expect if before you thought prices were going to be roughly constant, and now you expect them to go down, now you are gonna say wow,

Price

If you ever think about it, pricing that you negotiate yeah, we kind of have this price on paper, but that's just the starting point of the conversation.

But in this case our market cap is below our book value.

It's very simple. It's cost plus markup.

Thank you.

And that's the real big take away I wanted you to get at, is that high utilization of anything, of our aggregate capacity, prices will increase.

Southwest took on the airline industry by bringing up the traditional hub and spoke model and providing just very limited services but for an extremely low price.

let me do it for the same thing

Then auctions like eBay are another example of dynamic pricing.

But what Apple is shown to me is that it's not necessarily the case that you have to have the lowest price.

And the Space Shuttle was going to solve those problems.

And the cost of a transistor cycle, which is a measure of the price performance of electronics, comes down about every year.

Alright?

So technically I guess prices can be rounded off to the nearest cent.

It's a fantastic device that we want to get in the hands of as many people as we can.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

Because batteries life cycle improve a bit of improvement on energy density, which reduces the price.

And we've done some market study or we just know how the price is or how the demand is related to price, or price is related to demand.

I could actually price on specific customer segments or on features I know they need.