i think the question of why president trump seems to want a better relationship with russia is one most of us cannot answer. at the end of the day having better relations with russia is something that all of us should want, but at the same time the united states cannot sacrifice our values and principles in the pursuit of that relationship. i think what the administration has been finding out, like many administrations previously, is that it is fraud and difficult and the russians are not reliable partners so we have to find other ways for the things to get done without relying on shem as an ally in our attempt and desire to keep america safe. host: alina polyakova of the atlantic council, think you for joining us today. you can find more at atlanticcouncil.org. you can find her on

>> starting in approximately five minutes. thank you. >> to rhode island where they are holding the national governors association meeting. in a few minutes, they will hear ceo elona and spacex musk. you can see the room filling up with guests and interested listeners. it should be getting underway shortly. this is live coverage here on c-span.

[indistinct conversations]

: it's an honor to have you here for the final session of our 2017 summer nga meeting. moment like to take this to thank the governor of rhode island and all the citizens of the great state of rhode island for a spectacular three days here. [applause] i want to thank raimondo.nor r governor

>> thank you for truly setting the bar high as we prepared to go to new mexico next year. on behalf of the governor, she sends her deepest regrets for not being able to be here herself and invite all of you to our great state. because of family issues, she was unable to come out. are excited to host you in the state of new mexico come in the land of enchantment. santa fe is one of the oldest continuous capitals in the united states, having flown under many flags and was just voted one of the top cities in the world to visit. it is exciting to have you in our great city. travel and leisure magazine this week talks about the great city,

the food, the culture, the views . it is a beautiful, beautiful place to go. national geographic just named us the best city for a sense of place. padilla 18-22, we look forward to hosting you in new mexico 18-22, 2018, we look forward to hosting you in new mexico. we have a sample of what is new mexico true. we look forward to seeing you in santa fe soon. thank you. [applause] ♪ >> in the world overwhelmed by virtual distraction, people crave what is real. what they can touch and smell.

the complete silence that replaces the chatter of ordinary life. luxury is nothing compared to authenticity. relationships form with strength and a heightened awareness of pure adventure. cultures.ery of new and shared meaningful experiences. what is people's goal.

♪ ♪ >> that is new mexico true. ♪ [applause] gov. mcauliffe: let's hear it for new mexico! [applause] gov. mcauliffe: let me just say as my final few moments as chair of this organization, i want to tell you how honored i have been. i want to thank all my fellow governors. we have had a great year of working together. we have come from different political parties and different parts of our country, but we

have all come together to share our citizens -- serve our citizens. it is a very unique organization. end is made of political people who put politics at the door. and territories are stronger today on cyber security. we've had a robust discussion on so many issues that matter to this great nation and it has been a spectacular and an honor for me to let served as the chairman. i want to thank my vice chair, .rian sandoval we've had a great partnership and we have become the best of friends. that's what this is all about. i want to thank them for the partnership that you and i have had an we look forward to working with the governor of montana. there's nothing like serving as the head of this great organization. none of this would work were it not for the great staff of the

national governors association. we have scott patterson here. -- giveould stand up them a great round of applause. [applause] gov. mcauliffe: everybody else, stand up and give a great round of applause. let's show some appreciation for the great step of the national governors association. -- the great staff of the national governors association. [applause] as we governors know, we get to make all these great announcements, but there's someone underneath who has to get all the work done. recordk you for the attendance we've had at this meeting and at our winter meeting. all the different best practices and all the different issues we have dealt with. it has been a spectacular ride and i appreciate the great, great leadership .

you and your team have done a magnificent job and i thank you for that. ifant to call on our chair we have new nominations. go slowly. i want to keep that feel for a while. mary fallin from the great state of oklahoma. [applause] your chairmanship lasts a few more minutes. it is my pleasure on behalf of the nominations committee, which includes governors hutchison and i'm pleased to present this slate of the nga committee members for 2017 ivan 2018.

best 2017-2018. governors malloy, hogan, snyder, cooper, mcauliffe and wolf. for the nga vice chair, we nominate steve bullock, the governor of montana. for nga chair from a brian sandoval of nevada. gov. mcauliffe: do we have a second? any debate? all those governors in favor must say aye. i'm proud to announce the new chair my brian sandoval from the great state of nevada -- the new chair, brian sandoval from the great state of nevada. [applause] normally at this time, i hand the gavel over. this is the infamous nga chair gavel.

i've had so much fun in the last year that i am not going to give this gavel up. nga to understand the new and the leadership we've had on cyber come on autonomous vehicles, on drones, we thought it only appropriate that the new gavel be delivered in a very special way. fire it up. [laughter] gov. mcauliffe: it was close. pretty good. [applause] gov. mcauliffe: all yours. sandoval: isn't that a

great way to begin? i don't know how i'm going to out do that. before i get into formal remarks come i will get into more personal remarks about my friend -- this is a good time to stand and really think him for his leadership and his vision of this organization -- thank him for his leadership and his vision of this organization. [applause] gov. sandoval: terry will be a hard act to follow. raimondo,heinema from i want to thank you for your hospitality. the best part was getting to know your son, tommy.

who joined my family and me last night and really a complement to you and to the people of rhode island for what you've accomplished and made this marvelous meeting. please join me in thanking governor an raimondo. i want to acknowledge the wonderful first lady of the great state of nevada, kathleen sandoval. [applause] we can allal: appreciate as governors that our spouses and supporters, we wouldn't be here without you. looking forward to working with the first lady on her initiatives and what she's going to do for this organization. a little bit about drones. i want to thank intel or its willingness to put this together for you. we missed it by two inches, but that's ok. intel is one of the great companies in our country.

gavel delivery is just one small piece of what intel can do for all of us. [laughter] gov. sandoval: in my state, they have job-training programs that are really making a difference in people's lives and we truly appreciate that. i want to go back into talking a bit about governor mcauliffe. when of the bittersweet moments of this part of the nga meeting is having to say goodbye. that's one of the bittersweet moments. governor mcauliffe and governor christie will be finishing their terms this year. it's important that we recognize both of them and acknowledge everything they have done for us. to recognized like governor christie. he couldn't be with us today. he made a massive impression on me when i was first elected. he was elected the year before i was. he was one of the first people

who walked up to me and as a candidate lended his support and when i was elected he was the one who provided me support and would call me. i really appreciate his friendship. we all take on tough challenges. we have to reach solutions and we have to find bipartisan cooperation. that speaks to governor christie. perhaps most meaningful of all , he let his state in recovery after superstorm sandy struck in 2012. hard to puttremely this place -- displaced new new jerseyans back in their homes. he was somebody who took on every challenge.

we all know him and respect him and appreciate him and in his absence, let's please thank him for his service to this organization and to the people of new jersey. [applause] gov. sandoval: today, we also bid farewell to our chair and my friend, terry mcauliffe. wonderful about this organization as well, getting to know somebody in getting to know their leadership and their personality. terry is the 72nd virginia governor. his wife is somebody i have come to know and respect and appreciate. he served the commonwealth of virginia since 2014. , her to serving as governor served as the chairman of the democratic national committee from 2001-2005. terry and dorothy have told me about their wonderful family and

how they raised five wonderful children. one of the best things that i have learned and love about terri is his tireless work on building the virginia economy. you traveled everywhere -- how many trade missions? 29 trade missions all over the world from beijing to you name it. his number one priority has been economic develop an. he's worked tirelessly to create and maintain jobs throughout the commonwealth of virginia. committed toongly the men and women of our military. i know they have a strong presence in virginia. he's worked externally hard with regard to workforce and eight signed an executive work order -- and signed an executive work order to meet that demand. terry and dorothy have been

amazing and active supporters of the nga. for dorothy -- i recall sitting in washington, d.c. and doing that, working together with regard to childhood hunger. -- that isthy has something that is extremely important to her and has been mckinley important piece in changing the lives of people across the country. terry is very humble about his initiative. he didn't mention nothing about that. that's a thing of -- he didn't mention anything about that. states confront the cyber challenge is one of the greatest challenges of our time. he's focused on developing tate strategies for bringing together policy leaders -- thederal partners guide he developed for all of us -- i copied terry with regard to

legislation in nevada. imitation is the greatest form of flattery. that's what we need in this country. leadership like yours. terry, i want to thank you again for your exemplary leadership in leading this organization. we wish the best to you. i know we still have an opportunity to work together. on behalf of all the governors come i would like to present a little something to you as a small token of our thanks. a permanent gavel. [laughter] [applause] gov. sandoval: i've got something else for terry. there aren't many cowboys in

virginia, but we just celebrated our sesquicentennial. we had 1000 belt buckles made of nevada silver and gold. i wanted to present one of those as a personal token of my thanks and appreciation for your service to the national governors association. gov. mcauliffe: thank you. [applause] gov. sandoval: we will get him some boots as well. [laughter] this is aiffe: surprise. class, including teddy roosevelt, from 19 no wait for the first meeting of the national governors association. 1908 for the first meeting of

the national governors association. [applause] gov. sandoval: i will have to get you a real cowboy belt. now, i will talk a bit about my initiative. i first and foremost want to thank all of you for your confidence and trust in me and giving me the privilege, the absolute privilege, to be the next chair of the national governors association. looking forward to working with governor bullock, my great friend from the great state of montana -- there's a lot of work to do in the next year. we all appreciate that this organization is the best there could possibly be to share policy solutions, advocate for states with our federal partners and most importantly, really highlight our legacy as laboratories of democracy. , i wouldurther i do like to take a few moments to announce my chair's initiative,

which is called "ahead of the curve: innovation governors." that drone was a teaser of what you are going to see in the next year. this initiative will highlight technology and how governors and those we govern can stay one step ahead in our rapidly changing world. new digital and advanced technologies are transforming our world and altering the ways and industries operate, affecting every aspect of our citizens' lives and states'economies. from how we heat our buildings the cars that drive themselves, we are witnessing the fourth industrial revolution. ahead of the curve will have to focus areas. energy and transportation. which i havees personally seen change the economy and the quality of life in my home state of nevada.

with respect to energy, advances in storage, renewable energy, energy efficiency management, micro-grids and smart grid communication are all part of an energy revolution that holds promise for lowering cost, creating new jobs and improving performance. transportation. technologies such as we just saw , drones, electric and autonomous vehicles and ridesharing are reshaping the movement of people and goods with potential improvements to safety, mobility and accessibility, not to mention convenience. we are also going to examine technology and s impact on other sectors such as health, education and public safety. for my chairim initiative is for governors to become aware of technological

changes happening in the world and the opportunities they bring all of us. we will provide governors and state teams with resources necessary to develop a roadmap for policy efforts based on next the ideas and peer-to-peer sharing. we will have meetings between now and our meeting in washington, d.c. in february. the first, i'm proud to host with governor hickenlooper in the great state of colorado. the second will be in las vegas. everybody loves to come to las vegas, right? inwill be in las vegas january at the same time as the consumer electronics show. these summits will educate all of us on key topics and to share our successes and ideas. we will be developing detailed maps that tell the story of technology innovation and its impact nationally and for each state. you've likely seen these in story maps that nga has

developed along with the help of our longtime corporate fellow as you entered the session today. all of you should have a one-page sheet in front of you that is going to be able to explain and inform you more about what our activities are going to be. again come i'm very excited about this next year. i would respectfully ask for all of your support and help. i'm looking forward to working with our global friends with us today from all over the world. we have some good things coming. .ow, for the main event i'm really thrilled to introduce the man who is arguably the personification of technological innovation. elon musk. i have this very long introduction i prepared which highlighted his experience as the cofounder, ceo and product

architect at tesla, the cofounder and ceo and lead and the for spacex cofounder of paypal. i know him as the man who is developing the tesla giga thackeray -- giga factory in my home state of nevada. the giga factory will be the largest producer of lithium-ion batteries in the world. which will spur the next electric vehicle revolution as well as energy. i know many of you are avid readers. when i was thinking about what i was going to say about elon, i came upon a passage i wanted to share with all of you. captures howreally i feel about elon musk. the progressive development of man is vitally dependent on invention.

it is the most important product of his creative brain. is theimate purpose complete mastery of mind over the material world, the harnessing of the forces of nature to human needs. this is the difficult task of the inventor who is often misunderstood and unrewarded. but he finds ample compensation in the pleasing exercises of his powers and the knowledge of being one of that exceptionally privileged class without whom the race would have long ago perished in the bitter struggle against the elements. does anybody know who wrote that passage? nikola tesla. this passage is from the beginning of "my inventions," which he wrote himself. there are some like tesla,

edison, the wright brothers come jobs,, jobs -- ford, marconi and musk whose vision transcend time. rare entrepreneurs who make the impossible possible. i know each governor has a vision for his or her own states. responsibility to connect policies to help our citizens and our states thrive. hisve asked elon to share thoughts on how governors can not only stay ahead of the curve but become innovation governors. with that, please join me in welcoming elon musk. [applause]

elon: good afternoon. gov. sandoval: welcome. elon: thank you for having me. gov. sandoval: we appreciate you being here today. it's difficult to know where to start. let's start with what drives you. when you wake up in the morning, do you see a problem and you want to solve it? elon: the thing that drives me is that i want to be able to think about the future and feel good about that. can to have what we the future be as good as

possible. to be inspired by what is likely to happen and support the next day. me, is what really drives trying to figure out how to make sure things are great. that is the underlying principle behind tesla and spacex. it's pretty important that we accelerate the transition to sustainable generation and consumption of energy. it is inevitable, but it matters if it happens sooner or later. making life will to planetary that multi-planetary -- making life

multi-planetary and ultimately make contributions to the. that contra visions to that -- and ultimately making contributions to that. gov. sandoval: that is exciting. elon: particularly for americans. america is a nation of excel ccelers.- a people who chose to give up the known in favor of the unknown. that the united states is a distillation of the human spirit of exploration. that's why it appeals to americans so much. you can see this when there was -- and wase tragedy

the dream of exploration that was dying along with those people. thoseandoval: i'm one of like many of you who remember exactly where you were when the tragedy happened. you have 30 plus governors here today. we are very excited about your willingness to be with us. you hopefully heard me talk a bit about my initiative, which is being ahead of the curve. what do you tell us as governors , what should we be thinking about in terms of innovation and developing public policy the future -- for the future? elon: it is important to get the roles right. of legislative and executive action, it is sort of

professional sports or something. if you don't have the rules , if the game is an set up properly, it is not going to be a good game. it's really important to get the rules right. in therth noting that united states, the rules are still better than anywhere else. it's very easy to put something in place which is an inhibitor to innovation without realizing it. in terms of the regulatory environment, is always important to bear in mind that regulations are immortal.

they never die unless the mac sleep goes and kills them and they gain them up -- they gain a lot of momentum. nobody goes and gets rid of them afterwards. there used to be a rule in nearly days when people considered automobiles -- it was a scary thing. you have to carry a lantern in front of the automobile in a lot of states. there has to be someone with a lantern on a pole. you really can't have that regulation. that's really awkward. regulation done correctly and being right with the times. it's always good to go back and scrub those periodically and

make sure they are still serving the greater good. --e sort of tax structure what is economically incentive and what is not economically incentive? i'm saying common sense things economics 101 -- whatever you and sent that incentivize will happen. does whatever you incentivize will happen. -- whatever you incentivize will happen. the economics should favor innovation. importantrticularly to protect small to medium-sized companies. for a new company to grow when it's just a seedling or a sapling. it needs a lot more protection.

versus when it is a giant redwood. it's important to give support to small to medium-sized companies on the innovation front. ones that -- i favor supporting smaller companies. gov. sandoval: what would your response be? there are critics out there with regard to incentives. beneficiaryen the of incentives, economic incentives with regard to the giga factory. what would you tell those people? were ahose incentives little overstated.

the giga factory is a $5 billion capital investment to get that factory going. thisn't actually know until we did the press years, the-- over 20 extra incentives added an $1.3 billion. they took what added up over 20 years and made it sound like the state was writing is a $1.2 billion check. i'm still waiting for the check. unless it got lost in the mail. i don't know. this is the way the press works, of course. 20you divide $1.3 billion by what tesla is on average

-- it's basically sales and use tax abatements. $70et on the order of million of sales tax abatement divided over 20 years. for something which has a $5 billion capital cost to get going and would have to generate $100 billion over that time to achieve a $1.3 billion tax benefit. essentially, it's a little over 1% over that time. that is great. the way it was characterized in the press.

like, ok, that is neat -- it's helpful for setting up the factory and 1% helpful over the next 20 years. gov. sandoval: that sounds pretty reasonable. elon: yeah. that was helpful. there are a lot of other factors as well. we actually had slightly bigger incentive packages from other states that were offered. we factored in how quickly we could get the giga factory into operations. what were the risks associated with the progress? what would be the logistics costs over time for transferring packs and powertrains to a vehicle factory in california? togetherhose factors

let us to make the decision in favor of nevada. working with your team was great. we were coordinating. juste card was also feeling that another part was also just feeling really welcome within the state. that is what led us to make the decision for the giga factory. then we have another factory in europe doing solar panels. it will be the biggest solar panel producer in north america when it's done. we expect to establish two or three more giga factories in the u.s. in the next several years, as well as a couple overseas. the overall objective of tesla is really what set of actions

can we take to accelerate the advent of sustainable reduction in consumption of energy -- sustainable consumption of .nergy how many years of acceleration was it? samplean accelerate energy by 10 years come i would consider that to be a great success. even five years would be pretty good. that is the overarching optimization. gov. sandoval: you talk about interplanetary travel and sustainable energy and the vehicles a little bit. would you want things to look like in 5-10 years associated with energy and autonomous vehicles?

i think things will grow exponentially. there's a big difference between five and 10 years. is probably in 10 years , more than a half of new vehicle production is electric in the united states. will probably be ahead of that because china has been super pro ev. chinese environmental policies are way ahead of the u.s. their mandates for renewable energy far exceed the u.s. we are under the impression that orna is dragging their feet are somehow behind the u.s. in terms of sustainable energy promotion, but they are by far the most aggressive honor.

-- aggressive on earth. the coalition of chinese car manufacturers wrote the chinese government to take for them to slow down the mandate. the expect a percent electric vehicles by next year. the cannot physically do it. china is by far the most aggressive on electric vehicles and solar. that is a common misperception that they are not. there's one way to figure this out. , half of all production i think will be ev. i think almost all cars produced will be autonomous and 10 years. almost all. it will be rare to find one that is not in 10 years.

that will be a huge transformation. , newhing to bear in mind vehicle production is only about 5% the size of the vehicle fleet . how long does a car or truck last? 15-20 years. onlyehicle production is roughly 1/15 of the fleet size. even when new vehicle production switches over to electric or autonomous, that still means the vast majority of the fleet on the roads is not. it will take another 5-10 years before that becomes the majority of the fleet. if you are to go out 20 years, overwhelmingly, things are electric and autonomous. fully anonymous.

gov. sandoval: no one will have to touch the steering wheel? elon: there will not be a steering wheel. in 20 years. it will be like having a horse. people right horses, which is cool --\ gov. sandoval: having a regular car will be like having a horse? elon: yeah. [laughter] gov. sandoval: it will be unusual to use that as a mode of transport. let's talk about the energy peace and rooftop solar and storage. elon: first of all, it's important to appreciate that the earth is almost entirely solar power today. the sun is the only thing that

keeps us from being the temperature of cosmic background radiation, three degrees above absolute zero. without the sum, we would be a frozen ice ball. energy is of tremendous. then 9% plus of all energy on earth. -- 99% plus of all energy on earth. big, butvilization is compared to the amount of energy that reaches is from the sun, it is tiny. if you wanted to power the entire united states with solar a fairlyt would take small corner of nevada, texas, utah -- you only need about 100 miles by 100 miles of solar panels to power the entire

united states. the batteries you need to store the energy to make you have 20 4/7 power is one mile by one-mile. one square mile. that is it. -- this ise graph what 100 miles by 100 miles look ls like. there's a little pixel -- that is the size of the battery pack you need to support that. gov. sandoval: you talked about 20 years from now -- some of us will still be using horses. what will the energy peace look like? weatherby transmission lines -- will there be transmission lines? elon: please of energy is

roughly divided into three areas. they are more or less equal at a high level. about a third of energy is user transportation. about a third is used for electricity. about a third is used for heating. -- of thet to have electricity production, call it something in the order of 10% is renewable. maybe 15%. means there's a massive amount of solar that needs to be produced and connected in order to be fully sustainable. transport,kling nonrenewable electricity is needed -- we will need a combination of utility scale

solar and rooftop scale solar combined with wind, geothermal and hydro and some nuclear for a while in order to transition to a sustainable situation. massive, massive growth and solar -- in solar. it's very important to have rooftop solar in neighborhoods because otherwise, they will need to have massive transmission lines built. people don't like having to mission lines through the neighborhood. i agree. you want to have some localized energy production combined with utility that's rooftop solar, utility solar that is really going to be the solution from a physics standpoint.

we will talk a lot about fusion and all that. there's a giant fusion reactor in the sky that is really reliable. it comes up every day. [laughter] elon: if it doesn't, we've got bigger problems. gov. sandoval: somebody asked me to ask you this. we talk about workforce today. are robots going to take our jobs? seemuch do you artificial intelligence coming into the workplace? elon: on the artificial intelligence front, i have exposure to the most cutting edge ai. i think people should be really concerned about it. i keep sounding the alarm bell. going on thebots streets killing people -- they

don't know how to react because it seems so ethereal. we should be really concerned about ai. i think we should -- ai is a rare case where we should be proactive in regulation incentive reactive. by the time we are reactive in ai regulation, it is too late. normally, the way regulation is set up is that a whole bunch of bad things happen and there's public outcry and after many years, the regulatory agency set up to regulate the industry. there's a bunch of opposition from companies who don't like being told what to do by regulators. it takes forever. , in the past there's been bad but not something which fundamental risk

to the existence of civilization -- ai is a fundamental risk to human civilization. in a way that car accidents, drugsne crashes, faulty or bad food were not. they were harmful to a set of individuals, but not harmful to society at whole. ai is a fundamental risk for human civilization. i don't think people fully appreciate that. it is not fun being regulated. it would be prettier some. that's pretty irksome. in the car business, we can the department of transportation and regulatory

agencies in every country. in we get regulated by faa -- in space, we get regulated by the faa. do you want to get rid of the faa? and just take a chance on manufacturers cutting costs on aircraft? hell no. that sounds terrible. [laughter] people are libertarian -- we should keep an eye on the aircraft compass and make sure their building good aircraft. there's a role for regulators that is very important. i'm against overregulation, for sure, but we have to get on that with ai pronto.

there will certainly be a lot of job disruption. robots will be able to do everything better than us. all of us. not sure exactly what to do about this. [laughter] it's really the scariest problem to me. i really think we need to get regulation ensuring the public good. you have companies having to race to build ai or they will be made uncompetitive. if your competitor is racing towards ai and you don't, they will crush you.

they're like, we don't want to be crushed, so i guess we need to build it, too. that's where you need the regulators to come in and say -- maket need to really sure this is safe. then you can go. otherwise, slow down. to doed the regulators that for all the teams in the game. sure the shareholders are saying why are you disrupting ai? we better do that. 12% of jobs are transport. transport will be one of the first things to go fully autonomous. the robots will be able to do everything, bar nothing.

elon: let's move back -- gov. sandoval: let's move back -- what will that look like? elon: it is going well on that front. if somebody orders a model 3 today, they will get it late next year. we just started production. we made the first production unit last week. the thing that is not well cars and anybout kind of new technology is how hard it is to do the manufacturing. it is vastly harder to do the minute lecturing by a measure of 100 then to make that one of something. or 60 people, we can make a prototype of practically

anything in six months. , weanufacture that thing who spent three years and that is really fast. it's excruciatingly slow at first and then it grows exponentially. extrapolate -- if it's real slow at first, it will be real slow -- we will make five cars a week forever. it will be 10 cars a week, the 20's week, than 40 cars a week, then 5000 cars a week -- 10 cars a week, then 20 cars a week my week, thenars a 5000 cars a week. gov. sandoval: i wanted to give an opportunity for the governors to ask some questions. i was told he would be willing

to do that. elon: yeah. gov. sandoval: great. governor scott? gov. scott: we in vermont have partnered in terms of power -- and will homes carry power as a backup device for 24 hours. it's been really interesting from my perspective. i'm curious about vehicles and where we are going in the future or how far in the future do these cars themselves become the charging device? like the roof and deck lids and hoods. or did the batteries get so efficient that you don't need that and then you just power up? where are we going in the future with battery storage? elon: there's three legs to the stool. his electric cars, stationary battery pack and solar power.

with those three things come even can have a completely sustainable energy future. , it will be aront common nation of rooftop solar desk ality scale solar combination of rooftop solar and utility scale solar. one of the things that is missing up till now is having rooftop solar that looks good. that's where we got the solar glass roof we are developing. we're doing it in different styles so it matches the aesthetics of a particular house or regional style. i think that is actually pretty important. the conventional flat-panel roofswill be for flat -- putting solar panels on the

cars is not that helpful because the service area of the car is not very much. and cars are often indoors. it's the least efficient space .o put solar >> may be a wrap of some sort. the components of the vehicle themselves. elon: i don't think so. >> i will scrap that idea. [laughter] elon: it's just way better to put it on the roof. i really thought about this. i pushed my team. is there some way we can do it on the car? technically, if you have some sort of transformer like thing that will pop out of the trunk like a hardtop convertible that

wretched solar panels over the -- ratchetsatches solar panels over the car and provided you are in the sun, that would be enough to generate 20 have 30 miles a day of electricity -- 20-30 miles a day of like his be. it's a difficult way to do it. i thought about maybe we should. >> thank you for being here. with your background in payment systems, you understand the important role of security in transactions. elon: cyber security is a huge concern. >> in the vehicles you are building now, there are incredibly complex software systems. elon: it is like a laptop on wheels. >> can you share with us your thoughts on cyber security and when you have us

a rolling fleet? one of the biggest risks for autonomous vehicles is somebody achieving a fleetwide hack. in in principle if someone was able to hack the autonomous -- for example, say send them to rhode island. that would be the end of tesla. a lot of angry people in rhode island, that for sure -- that's for sure. sure that aake fleetwide hack is impossible and that people in the car, they have override authority on whatever the car is doing. button that no amount of software can override the will ensure you have control

of the vehicle. that's pretty fundamental. car, if someone gained access to the car, there are multiple substances that have encryption. it would access from the train or the braking system. it is my top concern from a security standpoint. or any specific hack can occur. it's kind of crazy today that we comfortably in a world that george orwell would have thought is super crazy. carry a phone with a

microphone that can be turned on any time without knowledge, with a gps that knows our position and a camera, and all of our personal information. willingly it's kind of wild think that's the case. apple and google have the same challenge of making sure there cannot be a fleetwide hack or systemwide hack. for a specific hack. that's a top concern. it's going to become a bigger concern. tesla is pretty good at software compared to other car companies.

i do think it's been to be a bigger challenge to ensure security. >> thank you, governor. thank you for speaking to all the governors today. it's an honor to have you here. gasoline -- gasoline prices one to $3.5 per gallon, there was an interesting hybrid vehicles. you saw those vehicles become very much in demand and gasoline prices have fallen, we have seen a reversal of that. wondering to what extent you have a concern about the future of electric vehicles in the face >> thee very low prices? economics, they kind of set the slope of the curve. question inwn -- no

my mind whatsoever that transport will go fully electric. everything, planes trains, automobiles. it's a question of what that timeframe is. the economic structure drives that timeframe. that's really what it amounts to. the big challenge is that there -- in the cost of fossil fuels. probability weighted, harm of changing the chemical constituency of the atmosphere and ocean.

since it is not captured in the price of gasoline, it does not drive the right behavior. it would be like if there was no penalty, just do as much as you want. and other things like software with co2 at the top because there are so many on the fossil fuel side. i feel like those guys feel like it wasn't because obvious when they were creating their own gas companies that it would be bad for the environment and they worked really hard to create those companies and if you like now they are being kind of attacked on moral grounds.

when they didn't really start those companies. true we cannot change to a sustainable situation. those guys will also fight pre-hard to slow down the change. >> governor hutchison. then governor hickenlooper and an audience questions. >> thank you for being here. the short version of the question and slightly longer, do you ever feel pressure by others expectations of you and your endeavors in light of the progress you have made so are? -- made thus far? when you look at tesla alone, you look at a company with a $54 billion valuation, and seemingly

my typical margin metrics know -- andball -- metrics seemingly by typical margin metrics, by no justifiable reason. matchedenuity cannot be by those trying to commercialize it, has that ever affected how you think? >> it is tough one there are high expectations. record several times saying that the stock price is higher than we have any and thatdeserve area where sure true based on we are today and have been in the past. reflects a lot

of optimism and where it will be in the future. that quitehat makes a difficult emotional hardship those is that expectations sometimes get out of control. i hate disappointing people. i'm trying really hard to beat those expectations. a lot of times really not fun, i have to say. to -- i'm'm not going going down with the ship.

wouldn't's -- i recommend anyone start a car company. [laughter] it's not a recipe for happiness and freedom. >> governor hutchinson. thank you for your frank observations about explanation -- about exploration. i look at the spirit of exploration, which is the hallmark of america. what is your comment on nasa, its mission? i was in congress. i always felt like it is floundering, does not have the support of the american people as needed. comment on nasa, its mission, and what advice would you give us?

>> the password was i love nasa. -- nasa does a lot of good gives for which it doesn't -- doesn't get enough credit. they are not really into hard science, it is not the thing they are tuning in for. it's not that popular. but there are great things in terms of the telescopes, like the hubble and the james webb. the probes to the outer

solar system, those are really great things. to get the public excited you need to get the people in the picture. it is just 100 times different when there are people in the picture. if there is some criticism of picture, if in the you want to get the public support. to a scientist, where is the science and that? that's not what people are giving you money. the serious scientists, people just make things more expensive. so why do we have people at all, anywhere? sometimes the scientists are the ones who don't understand.

you got to have something that is going to fire people loved and get them really excited. i think of we had a serious goal of having a base on the moon and sending people to mars and said how are we going to do this? we have to change the way contracting is done. you can to these cost plus socialist contracts. as soon as you have done everything, business with substantial urgency goes away. you're maximizing the costs of the program because they could a percentage. they have become cost maximizers. people engage in cost maximize asian. tell them they would get punished if they don't.

it's critically important we change the contracting structure to be a competitive commercial bid. least two entities that are competing to serve nasa. and milestone base, concrete milestone. everything works in powerpoint. there is my presentation. milestone-based competitive commercial contracts with competitors and then you have to be prepared to fire one of those competitors if they are not cutting it. nasa has already done this and they did it with a commercial cargo transportation to the space station.

those a case for nasa actually -- they didn't have the budget to do anything else. going to like we are try this competitive commercial milestone-based contracting and it worked great. they awarded it to companies space x managed to meet the milestone. -- orbital science got across the finish line area so nasa has two suppliers. it is a great situation. that in thed commercial space. i can tell you the spacex team says we're going to do this before bowing.

in boeing's like we are to do this before spacex. that is good. it is good forcing function to get angst done. can't tell you how important that contracting structure is. there is way too much and government where it is a cost plus contract. economics 101. you shouldn't be surprised. if that company manages to find excuse excuse they're going tot double the profit. they are getting a percentage. they think they can do exactly that. and they are not going to say no to requirements. -- 10% of them are cockamamie.

for the 10% a cockamamie requirements, the contract will always say yes. there could be a future for you in government contracting at the same level. >> let's go to governor hickenlooper. >> like most governors i feel it refreshing to have the unbridled truth be at -- truth. you'll get calls from investors. i want to go back briefly because i think i wrote this down, he said that artificial intelligence is the fundamental existential risk of civilization. my opinion it is the biggest risk we face as a civilization. >> to a group of leaders, what

would you advise that we would address in such a large landscape that is obviously so important? elon: i think one of the rules of government is to ensure that -- and that dangers to the public are addressed. that is the regulatory thing. the first order of business would be to try to learn as much as possible, to understand the , to look the issues closely at the progress being made and the remarkable achievements of artificial intelligence. year i go, which is a -- lastt game to beat --, which was done by deep

mind, which is google, absolutely crushed the world's best player. now it can play the top 50 simultaneously and crush them all. that piece of progress -- case pace ofess -- that progress is remarkable. robotics can learn to walk from nothing within hours. faster than any biological being. the thing that is most dangerous , and it is the hottest -- the hardest to get your arms around because it is not a physical

, is a deep intelligence in the network. -- what could a deep intelligence in the network do? it could start a war by fake news and fake accounts and just by manipulating information. as an example i want to be the one to emphasize i do not think this actually occurred, this is purely a hypothetical. digging my grave here. there was that second malaysian airliner that was shut down on the ukrainian russian border. and that really amplified tensions between russia and the area if youive way

had an ai where the goal was to maximize the value of portfolio stocks, one of the ways to be to govalue would along line defense, short on consumer, start a war. how can it do that? a row over a war zone, then send an anonymous tip that an enemy aircraft is flying overhead right now. >> let's go to governor ducey. ducey we will finish our gubernatorial questions and then quickly in's and then one audience question, we are running short on time.

>> i really enjoyed your comments, as someone who spent a lot of his time trying to reduce and illuminate regulations, i was surprised by your suggestion to bring regulations before we know exactly what we are dealing with with ai. example used if i were to come up with a colorless, odorless, tasteless gas that was explosive, people would say you have to ban that and then we would have no natural gas. given so many examples of how ai can be annexed essential -- can be an existential threat. typically policymakers don't get in front of all governors -- front of entrepreneurs or innovators. >> the first order of his miss would be to gain insight.

right order of business would be regulatory, gain insight into the status of ai activity. make sure the situation is understood. then put regulations in place. and for sure the companies doing ai will squawk and say this is really going to -- it is going to move to china, it won't. has boeing moved to china? same on cars. the notion that if you stab less -- if you establish a regulatory regime -- none of them do.

unless it is really overbearing. was talking about making sure there is awareness at the government level. , think once there is awareness people will be extremely afraid, as they should be. >> one audience question. we will take firsthand that came up. right here. >> one audience question. >> thanks. early on in this administration you have argued it was best to engage and better to be in the room than not in the room. then the president assad to pull out, you said that was the last straw, you are going to drop off . what drove you to that and if you were still speaking to him today what would you say to the president?

doinghought it was worth -- it was worth trying. i got a lot of flack from multiple fronts for even trying. but some guy attacking me in , justage ads and what not for being on the panel. in every meeting i was just trying to make the arguments in -- andof -- in favor of sometimes other issues, we need to make sure our immigration laws are not unkind or unreasonable. in a few cases i think i did make some progress.

i really think the paris accord, if i stand on the councils i would be potentially saying that wasn't important, but it was super important, because i think the country needs to keep its word. it's not even a binding agreement. down. always slow it if there are job losses before we exit the agreement. maybe there will be job gains. there is no way i could stay on after that. i did my best. >> everybody, if you would please join me in thanking elon. [applause] thank you.

>> this brings us to the conclusion of our meeting. i want to thank our former chair for hosting us, all of you who have supported this organization. we will see you in washington dc in february. thank you for being here. our meeting is adjourned.

the national governors association wrapping things up on the third and final day of the summer meeting. if you missed any part of the

event you can go to c-span.org. many of the sessions will air again tonight on c-span starting at 8:00 eastern. >> this weekend, american history tv on c-span3, tonight on my recent history, appellation state university professor judkins browning discusses the failed attempt to take the confederate capital enrichment. >> haven't done an awful lot of research into what this looks like. on making sheset doesn't -- he basically puts his army on the virginia peninsula. >> sunday at 6:30 p.m. on the 325th anniversary of the salem witch trial, talking about the

primary sources from the trials compiled in the book records of the salem witch hunt. >> they want to know so much about innocence because -- there's a recent that arthur miller poached from him as it reads like a play. she says this, he said that. those descriptions as he is constituting it from his shorthand. >> former boston globe journalist on their book the road to camelot, inside jfk's five-year campaign. and was a junior in college it's the first time i ever heard the word charisma. richard nixon did not have charisma.

lbj did not have charisma. jack kennedy had charisma. i think he possibly could have tipped the balance. >> for our complete american history tv schedule, go to c-span.org. >> c-span's washington journal, live every day with news and policy issues that impact to you. morning, reports on the security of the u.s. energy grid and recent hacks the systems. then lawrence noble discusses how u.s. election laws apply to interactions with foreign nationals or governments. and former u.s. ambassador to iraq will talk about the significance of iraqi forces retaking the ice is held city of mosul.