It's not about low cost.

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

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

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

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

So for example, let's think about Scenario, a Scenario 2.

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

And we saw that.

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

Software can do it faster.

It turns out we made this pretty easy.

Do Low Interest Rates Ensure High Asset Prices?

The first stage in a technology's advance is that it'll fall below a critical price.

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

And that caused housing prices to go up.

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

Then auctions like eBay are another example of dynamic pricing.

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

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.

You can learn about your own mosaic.

Now, we have this whole securitization,

What do I mean by that?

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.

As oil prices go up, energy patents go up.

I can go and sell it in the NASDAQ.

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

If you expect the future price to go up and the good or the product in question is something that you can store, well, depending on how much you expected to go up, you're probably more likely to buy now buy before the price goes up.

The price of rice rose by more than three percent.

Even that banana that you buy at the grocery store.

And luckily for us, it is a fairly intuitive idea.

(Laughter)

Price

Thorium reactor that Nathan Myhrvold's involved in.

Well, imagine we have other, say other ebooks' price goes up. WRlTING

If this thing changes, this is going to move the curve.

But I think you get the point.

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

look it's energy, not oil, which counts.

Land prices are running higher every year.

The price of everything increased.

I'd want to produce less.

But, when you're at a relatively high utilization, it really pays to increase your price hurdle.

A lot of hurdles.

We're not selling the car.