"state of the union." i'm candy crowley in washington. if you missed any part of today's show, find us on itunes. search "state of the union"." >> this is "gps." welcome to all of you in the united states and around the world. i'm fareed zakaria coming to you from indonesia. a very important show for you today starting with the iran nuclear talks in geneva. we have reporters and experts to help make sense of it all. then we'll take you to mars. one of the world's most innovative minds says we need to get there. elon musk. >> what the heck is going on? >> first, here's my take. if you're trying to decide what to think about the deal struck between the major powers in iran, here's a suggestion. imagine what would have happened had there been no deal?

in fact, one doesn't have to use much imagination. in 2003, iran approached the united states with an offer to talk about its nuclear program. the bush administration rejected the offer because it believed that the iranian regime was weak, battered by sanctions and would either capitulate or collapse if washington just stayed tough. so there was no deal. what was the result? iran had 164 centrifuges operating in 2003. today it has 19,000. had the geneva talks with iran broken down, iran would have continued expanding their nuclear program. despite all of the sanctions, keep in mind the cost of a nuclear program are small for an oil rich country like iran. israeli prime minister netanyahu has been opposed to a deal. but is it in israel's interest that iran's program keep growing

in size and scope? that's a strategy that assumes either iran is headed for collapse or that a military strike will take place that would permanently destroy iran's entire nuclear program and it wouldn't get rebuilt. this seems more like wishful thinking than strategy. the agreement that the major powers of government in geneva freezes iran's program for six months and rolls back some key aspects of it while a permanent deal is negotiated. in return, iran gets about $7 billion of sanctions relief. a fraction of what is in place against it. the main sanctions against its oil and banking sectors stay fully in place. this is a sensible deal. signed off on by france, britain, germany, russia and china as well as the united states and iran. it's just an interim deal and not an historical move. that's why so much of the opposition to it is misplaced. washington has many points of disagreement with tehran from its opposition to israel and

it's support for hezbollah to its funding of iraqi militias. this is not like nixon's opening to china. it's more like an arms control deal with the soviet union. to wary adversaries finding common ground. many countries in the middle east from israel to saudi arabia have legitimate concerns about iran. but many of these countries have also gotten used to having a permanent enemy against whom they could rail focusing domestic attention, driving ideological or sectarian divides, garnering support. the middle east is undergoing so much change perhaps this is one more change. perhaps iran will eventually come in from the cold. for now though, it's just one step, not a seismic shift, but it is a step forward. for more on this, go to cnn.com/fareed and you can read my commentary for "time" magazine this week. let's get started.

>> let me hand you over to wolf blitzer in washington for the latest news and analysis. i'll be back later in the show with elon musk withes at t. the historic deal as you have been pointing out between iran and the international community slowing its nuclear program and what could be a potential first step in preventing the country from obtaining a nuclear weapon. president obama announced the breakthrough in a live television address late last night. the secretary of state john kerry spoke with our own candy crowley this morning. his message, trust but verify. >> we do that with eyes absolutely wide open. we have no illusions. we're convinced over the next few months we'll really be able to put to the test what iran's intentions are. >> not everyone is cheering this

deal including one of the united states' most critical allies, israel. the israeli prime minister benjamin netanyahu is now calling the move and i'm quoting him now "an historic mistake." we're getting reaction from key players all around the world including right here in washington. let's go to cnn's reza sayah and christiane amanpour in london. what's the reaction inside iran, reza? >> iranians didn't get much sleep last night, wolf, because word of this deal came around 5:00 a.m. local time here in tehran. the overwhelming reaction has been positive. we haven't talked to one person who hasn't been pleased that an interim deal has been hammered out. iranians are savvy people. they're skeptical. they want to wait and see what this means in the long run.

when you look at these negotiations and what could happen in the second stage, if there's a final agreement and this nuclear issue is resolved and we're a ways off from that, it's the iranian people who can benefit the most. iranians have been portrayed often in a negative light in media and in hollywood but if you come here to iran, you can easily see that this is a very young sophisticated extremely educated population but they suffered through years of economic sanctions, political and economic isolation from the west. they see this interim agreement as a golden opportunity to improve relations with the west and improve their lives, wolf. >> certainly an opportunity there. thank you. you studied this story for a long time. our viewers here in the united states and around the world are anxious to get your thoughts. what do you think? during this next six-month

interim period, can it achieve that breakthrough, the president and secretary of state are talking about in elimination of an iranian nuclear military capability? >> well, this is an interim deal. i would quibble with the word historic deal. in 2003 and 2005, the entire iranian program was frozen. this is not that. it is according to intelligence people i have spoken to and the word of the deal, it's being described as significant rollbacks, significant freezing of the iranian nuclear program as it stands right now in return for very modest sanctions relief that is reversible. to put into context, the sanctions relief as you said was about 6 billion to $7 billion. there are hundreds of billions of dollars worth of sanctions on iran right now. toughest ever enacted. here's the thing about sanctions. this is critical. yes, president rowhani was elected in order to try to get sanctions relief and give the

iranian people a better deal. a better life. yes, the sanctions have had an impact. however, intelligence people and us with our own eyes and you all have seen that sanctions, even toughest in the world, have not brought iran to cry uncle in terms of its nuclear program. it's not caused iran to capitulate or surrender whatever term is a term of art in terms of nuclear program and even this interim deal, iran wants to continue having a nuclear program. the ultimate goal for iran is to how that will be recognized by the rest of the world. i think that is after the six months that it will be the real hard negotiations. >> is this shift from ahmadinejad to the new president rowhani, is this a major factor in this agreement that was announced overnight? >> i would say so. ahmadinejad as we all remember was a contemptible fellow and

contemptible figure. he said the word things in public that simply threatened israel. he was aggressive about the nuclear program. just absolutely contemptible. no u.s. official or european official could hold their head up seriously and have a conversation or even a negotiation under ahmadinejad. he's gone. now there's a new president who has made it very, very clear that sanctions relief and a different iran is not just sanctions relief, he's said we want an iran of moderation. no extremism. you know, proper relations with the rest of the world. that's what the iranian people want. so what's really changed is a rowhani who has come into office. i know many people pooh-pooh this and israelis call him a wolf in sheep's clothing. nonetheless, it shifted the debate on the ground. he's able to bring harmony. the supreme leader who calls all of the shots. and the other areas of consensus

making in iran whether press or parliament or whether for now the revolutionary guard to back these negotiations. in that regard, it is a big change in the negotiating ability from iran. from u.s. perspective, the united states as you very well know better than i, wolf, this administration does not want the alternative and that's another war in the middle east. so this administration has shown and demonstrated by not intervening in syria it is not open for business when it comes to military action in iran. a deal is the alternative. >> we'll see what happens. christiane amanpour joining from us london. thanks very much. much more ahead here on this landmark deal that has been announced overnight including the reaction from the israeli prime minister benjamin netanyahu calling it an historic mistake. i'll speak with the prime minister spokesman standing by in jerusalem. okay, listen up! i'm re-workin' the menu.

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nthat's why they deserve... aer anbrake dance. get 50% off new brake pads and shoes. welcome back to "gps." i'm wolf blitzer in washington. we're following breaking news. historic deal between iran and

the international community over the nuclear program. one of the united states' most important alleies, israel. we're joined now by the prime minister spokesperson. what's wrong with giving iran the chance to deal with the program over the next six months. isn't diplomacy a better option than the military option? >> of course we want to see diplomacy succeed. of course we would like to see a peaceful solution. israel more than any other country has an interest in a successful diplomatic outcome. ultimately we're the first people on the firing line. we want to see a genuine deal. a good deal. a deal that has ability to sustain itself that actually does dismantle the iranian military nuclear program and we're concerned that this deal that came out of geneva is a bad deal and does not actually

attain that goal. ultimately we want to see the iranian nuclear military program dismantled. that's the goal. frankly we're not sure this deal accomplishes that. >> here's the president speaking last night, late last night, from the white house. here's president obama. listen to this. >> the resolve of the united states will remain firm as will our commitments to our friends and allies. particularly israel and our gulf partners who have good reason to be skeptical about iran's intentions. only diplomacy can bring about a durable solution to the challenge posed by iran's nuclear program. >> secretary kerry told candy crowley that israel will be safer as a result of this interim deal right now. i want you to respond to what the president and the secretary of state have been saying. >> look, we all share the same goals. israel, united states agree that the iranians cannot be allowed

to achieve, to build nuclear now, on the tactics of how to achieve that, we can have honest differences and we're concerned that a deal in which you give the iranians up front sanctions relief and they are getting relief that amounts to the billions, we're afraid that you're removing from the table an important leverage on the iranian regime. i was following the wires, wolf. i saw the iranian currency already bounced up. i see that there are already iranian economy seeing signs just from last night's decisions. if pressure on iran is reduced, if sanctions are going to be eased, then what motivation do the ayatollahs in iran have for coming forward and doing the serious heavy lifting on the really important issues, that is actually dismantling their military nuclear infrastructure? this deal does not do that. they don't have to dismantle a

single centrifuge. they don't have to dismantle that plutonium producing reactor. that's further down the line. if you are now reducing the pressure, what motivation do they have to make those difficult decisions? >> the motivation they have if you believe the president of the united states and the secretary of state and the other members of the u.n. security council in germany is those sanctions eased right now can be reinstated overnight. arkt -- architecture is in place and they could impose sanctions making life more miserable for the iranians and the new president rowhani doesn't want that. that's the pressure they have over six months. what's wrong with that concept? >> as the president said, we're skeptical as are our arab neighbors. it's crucial to keep pressure up

on iran. it's crucial that iranians only get sanctions relief in our opinion if they actually take tangible steps and what they've done is taken cosmetic steps. steps that are not really significant steps that they can reverse within weeks. we're also concerned with the other side of the equation. not just that the iranians haven't taken serious steps but the international community is actually lifting sanctions in a way that can start a process which is not reversible. it's like having a small hole in your tire, a small hole in the sanctions regime in the end like with your tire, you'll get a flat. we're concerned. we believe the pressure should be maintained on the iranians until there's a dismantling of the infrastructure. >> can we assume that israeli military option to launch an air strike if you will against iran's nuclear facilities is off

the table at least during this six-month interim agreement? >> israel will always reserve the right to defend itself and protect our people. just last week, the supreme lead leader called israelis rabid dogs and spoke about israel disappearing. this regime has consistently talked about wiping my country off the map. this is a regime that consistently called israel a cancer that has to be removed. we would be irresponsible not to take those threats seriously and my prime minister would be irresponsible in not taking the necessary steps to protect the people of israel. >> so the answer is the option remains on the table a military strike between now and the next six months? >> we would like to see a diplomatic solution. we would like to see a peaceful

dismantling of the iranian nuclear program. if that can be achieved, that's preferable. israel always reserves the right as president obama has said, the right to defend ourselves by ourselves against possible threats. >> spokesman for the prime minister of israel, thank you so much for coming. >> my pleasure. thanks for having me, wolf. >> we'll have more on this historic deal just ahead. a panel of experts standing by to weigh in.

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welcome back to "gps." i'm wolf blitzer in washington. let's talk more about this historic nuclear deal with iran. we have author of the book "unthankab"u "unthinkable." and we have susan maloney and we have senior fellow at the foundation for the defense of democracy, also a former cia

officer. thanks so much to all of you for coming in. we just heard from the spokesperson from israel. not rulie ining out a strike ove six months of this interim deal. listen to what prime minister netanyahu said earlier this morning. >> what was concluded in geneva last night is not historic agreement. it's an historic mistake. it's not made the world a safer place. like the agreement with north korea in 2005, this agreement has made the world a much more dangerous place. >> is he right? is the world now a much more dangerous place because of this agreement? >> i would disagree. this is not a moment for euphoria but a moment for cautious optimism. iranians put their foot on the nuclear brakes. the regime remains intact.

there's a difference between what's ideal and what's viable and i think what netanyahu was calling for and what he hoped for was not really viable. >> what do you think? >> i think we're definitely in worst shape. i think the most important gathering last week was not in generva but in tehran where the supreme leader addressed the commanders of the revolutionary guard corps and that speech was ferociously anti-american. i think rowhani said he views this as end of the sanctions regime a regime. i think what has to be remembered is right now we're at the high water mark of our leverage. i think in six months time we're going to discover we don't have much at all. >> he did call israel the rapid dog of the region. he also insisted that the regime

as they said must go away and no room. is there a real difference between rowhani and the foreign minister on the one hand and the supreme leader, the ayatollah, on the other. >> they are clearly part of the same system. it's a system that remains anti-american. what we do see is she's willing to endorse a deal that involves constraint on the nuclear program and that leaves the world safer today. >> what's your bottom line assessment as far as the deal is concerned, does it make the world a safer place or a more dangerous place? >> i think i would say that it's a somewhat safer place. i don't think we should go overboard with this. it's important not to worry about these kind of ridiculous numbers about how many it set iranians back or this or that. at the end of the day there are a lot of ways to skin a nuclear cat.

this was a confidence building measure. neither side trusts the other and neither should given our experiences over the past 34 years. each side is saying we understand what you're going to need in a final deal and we're willing to give you a little bit right now as a token of our good faith that we're willing to go down this path. we don't know what will happen the next six months. we'll see if iranians are willing to live by this deal as they'll see if we are. at the end of those six months, if it's still intact, i think that we can say there's a good sense of moving forward. >> critics say that if you ease the sanctions by 6 billion or $7 billion which is the figure the administration officials are talking about, you can't really reinstate those sanctions. you heard that from the spokesman for the prime minister very easily. you can't turn them back on. what's your response to that? >> we haven't lifted the sanctions. we unfroze about $10 billion worth of iranian assets and there was minor sanctions relief. the reality is that six months from now if iran decides it

wants to renege on some of these agreements, these sanctions do remain intact. i think what i would say is that if it took marathon diplomacy to reach only an interim deal to reach a final resolution to this it will resemble an ultramarathon through mine fields. difficult to reach a resolution. >> why not give peace a chance? >> i think we have been giving peace a chance. the europeans have been trying to engage the iranians enthusiastically since 1992 and guess what? they discovered it didn't really work. >> there's a new president now it rowhani, who is different than ahmadinejad. >> but rowhani's memoir is primary element and his memoir is how proud he is of maintaining the nuclear program at a time when iranians thought they were very, very weak vis-a-vis george w. bush. the differences between us are

so stark because their ideology is so clear. i don't think confidence building measures matter all that with supreme leader and i think the president may, barack obama may have gone himself into a pickle because six months down the road i think he'll discover that the first stage in this agreement is basically the iranians final stage. and then he's going to have to decide what do i do next? i think he's got a choice. he either punts or he goes to a preemptive strike. >> or he goes back to tightening the sanctions and doing what a lot of members of congress want to do. increase the sanctions making life even more miserable for the people of iran. >> i think the sanctions have proven incredibly effective and the fact that we only have six-month waivers. we have more in our arsenal in terms of putting economic pressure on iran and clearly the two-stage aspect of the deal commits iranians to make the big concessions in order to get the big rewards at the end. they want this more than we do.

rowhani needs it in many respects more than the international community does. >> many understands why israelis are not happy with this. saudis hate it as well. united arab emirates and other gulf states aren't comfortable with the united states and other permanent members of the security council and germany have done. explain why they don't like this deal? >> it's an important point. it's different from where israelis are. at the end of the day you heard him say israelis could accept a diplomatic solution. that's not the case for saudi arabia and gulf arab states. they believe they are lock ed i a region-wide war. what they're afraid of is this deal is either going to cause the united states to basically say, all right, we've taken iranian nuclear issue off the table and now we don't have to worry about the middle east and we can go back to doing domestic politics or we're still -- they're afraid this deal is the start between the united states and iran that will take us off saudi arabia's side and put us

on iran's side. >> we heard earlier on "state of the union" that the saudis hate iran in part because iranians want to kill saudi ambassador here in washington at a restaurant in washington a few years ago. that's one example of why they will never trust iranians. >> saudi arabia and iran are fighting a proxy war throughout the middle east and iraq and syria and lebanon look at the middle east through sectarian lenses. they are the sunni power. they look at iran as the shiite power. i think we have to have realistic expectations about what this deal is. the united states and iran are not going to be allies tomorrow. the united states and saudi arabia and israel will remain allies. this is very much potential nuclear detont.

>> you worked at the state department. the fact that iran is on the state department's list of countries that are state sponsors of terrorism, does that impact the face to face negotiation twee negotiations? >> we're in the first stage of a long and difficult road toward any real rehabilitation of iran and the international community and any real change in the relationship. >> we have to leave it there. good discussion. thanks for coming in. fareed will be back on "gps" in a moment with an exclusive interview with one of the most innovative men in the world, elon musk on why we need human colonies on mars and his response to recent uproar in fires in his electric cars. cun ordered shoes from us online but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy.

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elon musk is a billionaire, an investor, scientist, designer and one of the world's most innovative minds. he runs two companies trying to disrupt major industries doing things the same way for decades. aerospace and automobile.

tesla is making luxury all electric cars that have had a bit of controversy of late. currently spacex is a trucking company taking loads back and forth from the international space station and bringing satellites up to orbit. in the future, it opens to carry humans too. we met on a balcony overlooking the spacex factory floor. it was buzzing literally and figuratively. the workers were preparing for an important launch on monday. elon musk, pleasure to have you on. this is the dragon that goes up into space and will go up on monday, correct? >> that's our dragon spacex taking cargo to and from the space station including biological cargo like fish and mice. >> when do human beings start going up in it? >> we expect to complete version

2 which will have transport capability in about two years. >> most of what you do is send satellites into space. that's how you pay the bills but you want to do something much more ambitious with spacex? >> we want to develop technologies necessary to tropical storm transport a large number of people and cargo to mars to create civilization there. that's why i started the company. >> to create the possibility for life on other planets? >> yeah. exactly. i mean, it sort of started off when i was thinking about what to do after paypal. i was also interested in space. i didn't think there was anything an individual could do in space. it seems like the province of large governments. i started looking into it. i went to the nasa website to find out when we're going to mars because it seems like obviously that is the next thing

after the moon. and i couldn't find anything. so, wow, this seems very strange. initially i was under the impression that we lost the world to do that. and i later came to the conclusion that i was quite wrong about that. i think the united states in particular is a nation of explorers. >> so you decide you want to try to do this. and do you look at it as -- why did you decide transport was the most important thing? >> that's the relatively easy thing. absolutely. >> so we could live on mars just getting there is the problem? >> yes. right now getting to mars is impossible. it doesn't matter what you do when you get there if you can't get there. so the first order of business is to figure out how to get there. it needs to be in a way that

enables large numbers of people and cargo. can't just be a handful of people. that's obviously not going to create a self-sustaining civilization. apollo was amazing powerful thing for all of humanity. last thing we went to the moon was 1973 or '74. we don't want just flags and footprints and never going to mars again. if we just have one mission, that will be a super inspiring thing but it's not going to fundamentally change the future of humanity. >> so you have this grass hopper rocket which unlike most rockets which are not reusable, this one gently comes back down in a vertical land. >> absolutely. you can see videos of of this spacex website. the fundamental breakthrough going back to the point of to build a mars transportation

system it has to be affordable to go. it can't just be like billions of dollars per person to go to mars. no way you could establish a base on bars at that cost. so we have to develop rockets that are rapidly and as close to completely as reusable as possible. as a example, the falcon line cost about $60 million. sort of like a jet. but the cost of the propellant is only about $200,000. >> we asked you about why with improvement over the last 20 to 30 years and one thing that doesn't improve is jet travel. you are flying from new york to london, it takes about as long

as it took 40 or 50 years ago or sometimes it takes longer. >> it does take longer. my favorite sort of commercial airliner is the 747 because it goes quite fast. it's actually incredible that that thing was designed in the '60s. i mean, since then i don't think we exceeded the 747, which is nutty. i think -- for commercial airliner business you have airbus and boeing and these dig airplane programs are really long-term and they're quite expensive and i think if you're in senior management of one of those companies, it's a safer bet to take and aim for inkre incremental improvement instead of radical improvement.

if you're wrong, you'll get fired. >> why doesn't spacex create the fastest jet plane in the world? >> we have to focus on rockets. >> when do you think you'll be able to achieve the aspiration of spacex of moving people to a place like mars? >> well, i think we could probably send the first person in about 12 years. >> wow. will you be that person? >> only if i'm confident that spacex will be fine if i die. you know, maybe if i was confidence that the mission would continue if i wasn't around then i would do it. >> elon musk on his program to mars. much more ahead from him including his response to all of the headlines about tesla's cars catching fire. >> new technology should have a spotlight on it but not laser on it. n't always easy. first, i want a way to help minimize my blood sugar spikes.

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elon musk says he doesn't get a lot of sleep these days. he's not only ceo and chief designer at spacex he's also

product architect and ceo at tesla. the company's cars have been in the news after some model s sedans caught fire. earlier in the week but after our interview, the national highway transportation safety board announced an investigation into two of the incidents. the board had previously given the model s a five-star safety rating, its highest. listen into more of my interview with elon musk. you heard all of the press about tesla. let me first give you a chance to get it off your chest. >> i've been pistol whipped. >> three cars caught on fire. what's your response? >> the amount of national and international news headlines dedicate ed to three tesla fire that caused no injury is greater than all of the gasoline fires that occurred in the united states. >> it all of the other cars?

>> from mid last year to today is about a quarter of a million gasoline car fires which caused about 400 deaths, something like 1,200 serious injuries. our three noninjurious fires got more national headlines than a quarter million deadly gasoline car fires. that's mad. what the heck is going on? i mean, i realize new technology should have a spotlight on it but it shouldn't have a laser on it. >> so when you look at tesla, the big concern many people have is scale. you're producing 30,000 cars a year. toyota is producing -- >> we're miniscule. >> millions. >> way too much attention. >> your market cap is almost as high as these car companies. >> yeah. >> do you think it's crazy or do you think it's an appropriate indication of future growth?

>> you know, what i actually have said on more than one occasion, i thought our valuation was more than we had any right to deserve and we would do our best to fulfill those value expectations and that i thought over time the value of tesla would probably significantly exceed where it is today or even where it was at a relatively high point a few weeks ago. but it would be silly for me to assert that tesla is unequivocally worth $22 billion and we'll have over $2 billion in sales this year. that is an enormous amount of credit for future execution. >> the heart of what interests you about tesla as i recall when we talked is that it's not a compromise. a hybrid is something of a compromise between internal combustion engine and a battery part engine and here you can do

it cleanly. batteries just aren't that powerful enough and they don't seem to improve enough to imagine a world powered by batteries, right? >> i certainly can see that. in fact, my opinion is that all transportation with the exception of rockets will be fully electric. >> even planes? >> yeah, everything. >> by when? >> it would be a 100% conversion. we still will have some steam engines running around and some people will still ride horses. but it is a tiny percentage. i think it will be the same with gasoline. in the future we'll look back like we do on steam era today. >> you are using battery technology. tesla is an electric car. you have solar panel. you have an interest in business and solar panels? >> yeah. >> do you think solar energy is the future? >> i think it is.

absolutely. in fact, if you think about it, the world is almost entirely solar powered already in that we would be a frozen ice ball at 3 to 4 degrees without the sun and the sun powers our entire system of precipitation. the ecosystem apart from a tiny number of exceptions almost all life is solar powered. >> another great technology you talked about that most people think of as out of a movie. explain how it would work. it's new york or boston or l.a. to san francisco. i get into a tube and it's almost like air hockey. the way it works is i strap myself into a seat. >> well, it would actually feel maybe like the space mountain ride at disney world. if you ask handle space mountain

at disneyland, you should handle the hyperloop. it will feel super smooth. it would use air skis like air hockey table but with air jets on the pod side opposed to the tube side. it would just be smooth as glass. >> ten years from now, what will car travel look like in america? >> ten years from now? i think there's going to be a lot of electric cars on the road. certainly vastly more than there are now. >> driverless cars? >> i think we'll be in the steep portion of the adoption of electric cars in ten years. >> do you think hybrids are a transition that will fade away? >> absolutely. there was a role when life was moving from oceans to land but in the end very few remain. >> good point to end on. thank you.

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i'm wolf blitzer in washington. "reliable sources" with guest

host eric deggans will begin shortly and for international viewers, global exchange is coming up with breaking news out of iran. first we want to bring you the latest that we have here. united states and five other world powers have reached a diplomatic breakthrough with iran sealing a deal to slow iran's nuclear program. iran wins an easing of sanctions in exchange for limitations on its nuclear activities. president obama strongly welcomed the deal. >> substantial limitations, which will help prevent iran from building a nuclear weapon. simply put, they cut off iran's most likely paths to a bomb. >> tehran is celebrating but there are warnings from congressional critics and israel's prime minister who says the deal makes the world in his words much more dangerous. the secretary of state john kerry tells cnn the deal should make israel safer. >> we believe very strongly that because the