Hello everybody, and welcome back to the show.
Today we'll be discussing the consequences of Australia's
Online Safety Act and its first substantial action against a
major tech platform X, formerly known as Twitter.
And the platform faces a fine for failing to answer questions
from Australia's Safety Commissioner about his efforts
to tackle Child Exploitation and grooming.
This could potentially have significant consequences not
just for X, but also for other tech platforms, advertisers, and
users alike. In March of 2023, E Safety
Commissioner Julie Ingham Grant handed down the decision to find
X around $380,000 after the platform failed to respond to
key questions related to child safety.
While this may seem like a paltry sum for a corporation of
this scale, the real damage may be to XS reputation.
And what's more, failure to comply could result in steeper
fines, up to 493,000, 402 dollars daily back dated all the
way to March. Inman Grant points out that this
is also addressing some of the most heinous crimes committed
against children. Now it's worth noting that all
tech companies, including Meta, Apple, Google and others, were
found to have serious shortfalls of combating child sexual abuse
materials. C Sam and Grooming, Whoever XS
non Compliance was specifically described as more serious.
In some instances, X chose not to answer questions at all,
while in others it provided inaccurate information.
This is particularly concerning, especially when considering the
responsibilities of a platform with such broad user base, which
includes young adults and teenagers.
And earlier this year, X stated that it was working hard to make
his platform safer, specifically to keep child's sexual
exploitation material off its domain.
However, Australia's E Safety report clarified that X's
proactive detection of C Sam fell to 75% from 90% after mass
layoffs. This is problematic because it
contradicts the company's own public statements.
Now, the E Safety report was not kind to X, pointing out that
they failed to provide median response times for user reports
about C Sam. They were not alone, as Google
also failed to offer this metric, but it's a critical
measurement to evaluate how swiftly a platform reacts to and
removes harmful content. Besides, the report also raised
concern about X's lack of investment in technology to
prevent Child Exploitation during live streams or detect
grooming activities. Although X claims that children
are not our target, customer, reports show that Generation Z,
aged between 11 and 26, is the platform's fastest growing
demographic. For the Australians, this isn't
just about imposing fines or regulations.
According to Inman Grant, the goal is to force these platforms
into greater transparency and thereby improve online safety
measures. Inman Grant acknowledges that
while many platforms may find this process confronting, it's
essential for the sake of child safety.
But it wasn't just X that came under the E Safety Commissioner
scrutiny. Google received a formal warning
for failing to provide sufficient responses.
Google's reluctance to comply despite its maturity and
resources Puzzled grant. Both Google and X seem to be
failing in their corporate responsibilities to keep their
platform safe, particularly for children.
And a major point of concern is this issue is that X did not
provide meeting response times to use reports of sexual Child
Exploitation material. Now this missing information
obscures how swiftly X addresses and removes harmful content,
creating a lack of transparency that is both problematic for
regulators and to the public. Google was also cited, and
another worrisome aspect lies in X's customer base.
While the company maintains that its services are not
overwhelmingly used by children, Linda Yaccarino confirmed once
again that Gen. Z is rising in the ranks now.
Our particular focus of E Safety's enforcement efforts is
to encourage universal reporting method for C Sam across
platforms as a potential path towards increased transparency.
This could streamline the process of monitoring and
eliminating hazardous content, improving safety measures more
systematically in the long run. However, E Safety's report
clearly spells out that X's response to compliance notices
have been disappointing and their commissioner was vocal
about the need for tangible action.
Her viewpoint echoes a broader sentiment.
Tech companies, regardless of their size or the reputation,
must put child safety at the forefront of their operations.
X isn't alone in falling short of the regulatory expectations,
though. Google, for example, was also
issued a formal warning, and the platform did not provide
satisfactory answers to questions posed, adhering
instead to vague and generic responses.
This suggests that even tech giants are struggling, or
perhaps unwilling, to fully engage with regulators on these
significant issues. An even more perplexing
situation is Google's failure to use its own CSAI match
technology to detect known child sexual exploitation videos on
some of its services. This raises questions about why
such a technologically advanced company would not utilize
available tools to combat this grave issue.
The debate extends beyond just X and Google.
It impacts the entire tech industry.
Various other companies, including major names like Apple
and Microsoft, have been noted for having serious shortfalls in
their measures against Child Exploitation.
And given these gaps, there's a growing urgency for tighter
regulations that enforce stricter standards.
Australians Online Safety Act sets a precedent in holding tech
companies accountable for their role in online safety.
This legislation and the action stemming from it could inspire
similar measures globally. But for that to happen, there
needs to be an industry wide awakening.
Companies must be proactive, transparent, and fully compliant
in their approaches to online safety.
Next, we're peeling back the curtain a little bit on Spacex's
grand plans and a little bit of drama that's going on with the
next generation of their spacecraft.
The Starship seems like Elon Musk and the SpaceX team are
also pushing boundaries down at Boca Chica Starbase, Texas.
From successfully landing and reusing Falcon 9 rocket boosters
to planning uncrued missions to Mars, this company has been
hitting milestone after milestone and continues to
progress day in, day out. But things haven't always moved
smoothly, and timelines often stretch beyond original
projections. In this episode, we'll discuss
the hurdles, updates, and future plans of Spacex's Starship.
Now, SpaceX has established itself as a pioneer in the
commercial space sector. Last year, the company managed
to conduct 70 launches using Falcon 9 rockets, each featuring
a reusable booster stage, and this innovation and reusability
has significantly cut down costs, allowing for more
frequent launch schedules. However, Musk is not a stranger
to setbacks. Promises of timelines often
outpace actual progress, and ambitious projects can run into
delays. Back in 2016, during an
International Astronomical Congress in Guadalajara, Mexico,
Musk revealed Spacex's initial designs for what was then called
the Interplanetary Transport System, or the ITS aim was for
the first uncrewed landing on Mars to occur in 2022, followed
by the 1st flight with people on board in 2024.
Fast forward to today, and although there has been a test
flight of Starship, it didn't go very smoothly.
The spacecraft lost control during its ascent, leading to
its detonation for safety reasons.
Now a second Starship is already on standby.
According to Musk, the next move now depends on the Federal
Aviation Administration, which is expected to issue a new
launch license sometime soon, And Musk shared some updates on
Starship design. The second stage engines will
ignite before separation from the booster, this time, a
procedure known as hot staging, designed for maximum efficiency.
But it's also a complicated operation that could lead to
unexpected challenges. And while SpaceX has been known
for its engineering progress, navigating through regulatory
frameworks remains very challenging.
The company is currently awaiting approval from the FAA
for the next IFT 2 Starship test flight from Boca Chica Starbase,
Texas. And this isn't the only
regulatory hurdle, though. The US Fish and Wildlife Service
has received a final biological assessment from the FAA,
initiating a 30 day review period that could be extended to
the spring of 2024 under certain conditions and according to the
Fish and Wildlife Service Re, initiation of formal
consultation under the Endangered Species Act is
necessary when there's significant change in a project
and its impacts. This review is a result of
Spacex's newly implemented Water Dillard system, part of a list
of 63 corrective actions recommended after the
unsuccessful launch of the first Starship test flight.
This new system has already been deployed during static fire
tests of Booster 9, which is set to be the next SpaceX launch
vehicle, and Elon Musk is no longer explicitly stating that
humans will be on Mars by 2024. However, he does have other
ambitious plans for Starship. One such goal is the quick turn
around between launches, which would involve catching the Super
heavy booster in the Starship upper stage in mid air after
they returned from the missions. Musk says that it's a decent
chance of this happening within the next year.
Now. Additionally, SpaceX is planning
to launch its next generation Starlink satellites using
expendable versions of the Starship.
Now, the question that still remains unanswered is when will
Starship land NASA astronauts on the moon?
While Musk acknowledged that a lunar Lander version is in the
works, he emphasized that the design will not deviate much
from a spacecraft intended for Mars missions.
Now Artemis 3, NASA's program to land astronauts on the moon, is
currently scheduled for late 2025, but it could be pushed
back further. Spacex's Starship was chosen as
the human landing system for this mission, and a senior
SpaceX official noted that there is a backlog with FAA work
leading to delays in the licensing progress in the
process and Starship. This could have ripple effects
in the Artemis program's timeline as well, and there's
also political pressure mounting for SpaceX, especially as its
vice president of build and flight reliability is set to
testify before the Senate Subcommittee on Space and
Science. This hearing will likely cover a
range of issues, from suborbital flights to lunar surface
habitats, and is crucial for SpaceX.
As it continues to push the envelope in space exploration
technologies. And in the labyrinth of these
regulations and bureaucratic obstacles, SpaceX is finding
itself at the crossroads of innovation and policy.
This testimony isn't just about SpaceX, it's a marker for the
entire industries. Companies like Blue Origin,
Virgin Galactic, and others will also weigh in shaping the
conversation from suborbital tourism to long term lunar
habitation. Now, this juncture is
particularly pivotal for Spacex's Starship program.
The Human Landing system for NASA's Artemis missions is in
play here, and according to SpaceX officials, the snail's
pace of FAA approvals has become a critical path item, putting
pressure on an already challenging Artemis timeline.
Now, the need for a series of demonstration flights, ranging
from ship to ship refueling to uncrewed lunar landings means
that the FAA's foot dragging could stretch these critical
months into very critical years. And to navigate these hurdles,
SpaceX and its industry counterparts will have to
advocate not just for the individual ventures, but for a
more streamlined regulatory framework that accommodates the
unique demands and potentials of commercial spaceflight.
Now, this is not just about reaching Mars or going back to
the moon. It's about shaping the rules and
the expectations that will govern humanity's access to
space for decades to come, not just for astronauts, but for
normal people like you and me. And as SpaceX deals with an ever
changing timetable subject to the whims of regulatory bodies
and the realities of technological innovation, they
find themselves in a challenging yet pivotal position.
Musk's dreams of interplanetary travel in a new aerospace
exploration hinge not only on the hardware his company is so
adept at creating, but also on a broader regulatory environment
that is agile enough to keep pace with the speed of modern
innovation. Moving on to our next topic,
we're going to unpack Elon Musk's Tesla and their latest
offering. And no, it's not another
electric vehicle. It's actually a limited edition
set of beers that you could drink, retailing for a hefty
$150.00. We'll also touch upon the
contrasting fortunes of Elon Musk and Bernard Arnault, owner
of luxury conglomerate LVMH, and how Tesla's merchandising may
move some people that were interested in a cyber truck to
stick with it. Now Tesla, the electric vehicle
giant, has given us yet another curveball.
The company known for its disruptive automotive technology
is now brewing beers. Yes, that's right, Tesla is
releasing an exclusive set of beers dubbed Tesla Cyber Beer,
along with a pair of ceramic steins called Cyber Steins.
These are specifically designed to reflect the aesthetics of
Tesla's much anticipated Cyber truck.
Tesla's offering 211 ounce bottles of lager with unique
notes of herb, spice, tea and citrus, all wrapped in an
exquisitely designed gloss black sleeve in a sip these beers in
style. The kit also includes 2 matte
black ceramic steins with a design mimicking the angular
structure of the cyber truck. These are not just drinking
vessels, but are also being viewed as future collector's
items. The beer will start shipping in
October, but there's a catch. The offer is limited to
individuals who are at least 21 years old and reside in the
United States. And after adding tax and about
$15 for shipping, the total cost for the beer and the steins is
$176.63. Now, Earlier in the year, Tesla
has already dipped its toes in the brewing industry with a $30
Giga beer celebrating the opening of its Berlin
Gigafactory. Tesla's move into alcohol isn't
just a one off affair Seems like a deliberate attempt to
diversify the brand's portfolio for the future.
It's a nice little trinket to have a collector's item for the
future. And while Tesla's stock has
performed very well this year, increasing Elon Musk's wealth by
approximately $100 billion, Bernard Arnault of LVMH is
seeing a downturn in his fortunes.
Arnault's estimated net worth fell by more than $5 billion
recently, mainly due a decline in the LVMH stock.
The luxury conglomerate posted weaker than expected sales,
indicating challenges in the luxury sector Amid global
economic shifts. Arno and Musk have often been
neck and neck in the race for the title of the world's richest
person. But as Tesla diversifies into
areas traditionally dominated by luxury brands like LVMH, we must
wonder as Tesla's entry into high end merchandising like
cyber beer in additional pressure point to Bernard are
no. Now let's not forget that this
is not Tesla's first far right into merchandising, the
automaker had early released a $250 bottle of tequila shaped
like a lightning bolt. Although they had initially
filed the name for the liquor Tesla Kela, they had to drop the
idea due to industry regulations.
Tesla's merchandising gamuts are more than just stunts.
They offer unique, limited edition items that aligned with
the company's brand identity, and the diverse range of
products from Tesla seems to extend the company's ethos into
other aspects of lifestyle as well.
Whether it's a Gigafactory themed beer or lightning bolt
shaped tequila, Tesla's merchandise feels like an
extension of the futuristic disruptive brand image.
Now the divergent in fortunes between our No and Musk isn't
just about beers and luxury products, the side of how
different industries are responding to the current global
economic environment. LVMH is feeling the pinch from
weakening consumer trends, especially in its key markets
like China. And on the other hand, Tesla
seems to be riding high in the diversification strategy which
seems to be paying off. Luxury sector in the tech
industry often cater to a similar clientele who are
willing to pay a premium for high quality exclusive products.
So when Tesla moves into the merchandising game, could it be
stealing some of another luxury markets Thunder?
It's kind of an intriguing question to think about.
And shifting gears a little bit, NASA recently launched the
Psyche mission aboard a Falcon Heavy SpaceX rocket.
It's headed toward a unique asteroid between Mars and
Jupiter. It's embarked on an ambitious 6
year journey that could change our understanding of our whole
solar system as fueled by solar powered propulsion and propelled
by state-of-the-art thrusters. This spacecraft aims to collect
data from the asteroid Psyche, which is believed to be an
exposed planetary core. Now this groundbreaking mission
could offer crucial insights into the violent history of
planetary formation and even the early solar system and how the
Earth was formed. This sets up the stage for
future space expeditions as well.
Now, spacecraft propulsion technologies are continuously
advancing and the Psyche mission is a case in point.
It utilizes solar electric propulsion to journey through
space, A more efficient form of travel compared to traditional
chemical rockets like Spacex's Falcon Heavy and Falcon 9 and
Starship. Now.
This kind of propulsion uses electromagnetic fields to
accelerate ions of xenon gas, offering the potential for
higher speeds and greater maneuverability.
Now, a spacecraft is estimated to accelerate to speeds of up to
124,000 mph, A considerable feat that could influence the
engineering of future deep space missions.
And the mission also includes a cutting edge optical
communication system called DSOC, or the Deep Space Optical
Communication System. This system uses a near infrared
laser to transmit data offering ten to 100 times the bandwidth
of conventional radio wave systems that NASA currently
uses. Now, what this means for space
exploration is a huge deal. Higher data rate returns could
facilitate more sophisticated scientific experiments, not to
mention enable smoother communication for future human
missions. To the moon for something like
the Artemis program, or to Mars with something like Spacex's
Starship, this could be a game changer, opening up doors to
more ambitious projects like manned missions further out of
the solar system or district asteroid mining.
Now NASA's Psyche mission isn't just a scientific exploration,
it's a technological trial run for what could be the next era
of space exploration. With advanced propulsion systems
and breakthrough communication technologies on board, Psyche
could be a milestone in humankind's external quest to
explore our final frontier of space.
And that's such The mission has wide reaching implications for
future space travel, making it not just a venture to watch, but
a cornerstone for what may come next in our journey through this
cosmos. And in this next part of the
zooming in on a burning issue, the tension between SpaceX and
the US government, especially the FAA.
SpaceX has had an explosive year, launching rockets at a
staggering rate and turning the space industry on its head.
However, the government seems to be playing catch up.
Struggling to issue licenses and regulate this game changing
activity Is this regulatory lag hampering Spacex's ambition and
by extension, the future of American space exploration?
Now let's kick things off by talking about Spacex's flight
rates. It's been launching rockets more
than 70 times this year, about once every four days, which is
shaking the foundations of the Space Flight industry.
Now, SpaceX is clearly operating at warp speed, but there's a
hiccup. The government seems to be
lagging. Spacex's vice president of build
and reliability expressed his concerns and plans to voice them
at a Senate hearing this week. The goal is to press Congress to
simplify regulations and hire more Federal Aviation
Administration staff for license issuance.
Now here's the kicker. SpaceX is not just concerned
about the speed, but also the volume.
With other industry players stepping in, they anticipate a
specific and significant industry problem.
The government's slow pace might be a choke point, preventing the
private sector from soaring to new heights and launching more
frequently. It's not just SpaceX.
This could impact the entire Space Flight industry.
Or consider the case for Spacex's inaugural Starship
flight last April. It had to be terminated due to
uncontrolled tumbling, resulting in an FAA investigation.
And the FAA demanded 63 corrective actions for SpaceX,
delaying further Starship launches, a tug of war between
private innovation and public regulation.
And that's kind of how it worked.
For now, SpaceX officials have reported that they spent two
years securing the initial Starship launch license.
It had been waiting months for the second.
Tim Hughes, who's Spacex's senior vice president for global
business and government affairs, mentioned that SpaceX is eager
to fly, but is waiting for the government to catch up.
According to Hughes, if a company can build a rocket
faster than it can be regulated, something is going on.
Hughes suggested the need for regulatory reforms to address
this imbalance. Now this brings us to another
salient point, NASA's involvement.
In 2021, NASA awarded SpaceX a $2.9 billion contract to use
Starship for its Artemis program, and given the national
importance, SpaceX officials argue that such projects should
be prioritized by the FAA. One would expect such a venture
to be fast track Now. It's no secret that Elon Musk
has been critical of regulators now specifically targeting the
FAA for its slow pace. In late 2020, SpaceX launched A
Starship prototype in violation of its FAA license.
Musk made his opinions clear through his tweets, stating that
the FAA's existing rules are not suited for an industry that's so
drastically different from what it was just a decade ago.
Recent interactions between Musk and the senior FAA officials
were described as cordial and productive, yet the FAA is yet
to comment on the matter. They have, however, mentioned
the keeping up with the industry is a challenge they're willing
to rise to. Despite the bureaucracy, it
seems like there's room for improvement and perhaps a middle
ground where both parties can meet.
And according to the FAA officials, the agency has been
requesting additional resources for years but has seen little
action. Currently, they've reallocated
all resources from Spacex's other programs to focus on the
next Starship launch. This means Falcon projects are
on hold for the moment, showcasing the strain that the
FAA is experiencing in keeping up now forecasting the future.
The FAA license just 15 launches in 2015, and that number is
expected to reach 288 by 2027. With SpaceX planning on as many
as 12 launches a month next year, and new rockets from ULA
and Blue Origin on the horizon, the demand for FAA oversight
will only multiply over time. If not addressed now, the
problem could spiral into something unmanageable now.
SpaceX expressed that the current situation is
jeopardizing not just to them, but also US leadership in
spaceflight. The regulatory approach is
clashing with the pace of innovation, putting a damper on
the industry's future. However, he emphasized that the
goal is not to compromise public safety, but to find a way to
move efficiently within that framework.
So where do we go from here? It's a balancing act.
Striking harmony between innovation and regulation is the
need of the hour. Let's hope that the upcoming
Senate hearing sheds a little bit of light on this issue and
paves the way for constructive solutions.
And finally, we're going to cover two major developments in
the realm of Elon Musk's ventures.
First, we're going to talk about Tesla's upcoming Gigafactory in
Mexico and what that means for infrastructure, both locally and
potentially globally. And we'll switch gears and talk
about Tesla's recruiting and the use of the X platform for that,
and also the challenges that Tesla faces when it comes to
growth and advertising. Tesla is in an early planning
stage for a new Gigafactory located in the state of Nuevo
Leon, Mexico, and the company is collaborating with the local
government to determine the necessary investments in
infrastructure to make this factory as successful as
possible. And according to Reuters, this
factory will produce Tesla's $25,000 car, as is expected to
significantly stimulate economic growth in that region.
For the factory to run smoothly, Tesla has requested several key
pieces of infrastructure in Mexico, including road and rail
networks and electric energy substations.
A Tesla's new factory will certainly be a monumental
addition to Mexico's industrial sector, not just as an asset for
producing cars. It's seen as a catalyst for
regional growth and development, and the government of Nuevo Leon
has acknowledged the importance of building necessary
infrastructure like roads, schools, and health centers to
support this new venture. However, there's still much to
be done. For smooth operations, Tesla
needs an electric energy substation and electric lines to
be built where the plant will be constructed.
Additionally, a railway yard is requested to help in
transporting materials to the factory.
These needs present both challenges and opportunities for
local governments and companies in the area.
Now, just last month, Tesla secure the environmental permits
necessary for beginning the initial construction phases.
This is a significant step, providing the company 26 months
to prepare the site and carry out construction activities.
The aim is to complete the plant by the end of 2025, a highly
anticipated milestone for Tesla in Mexico.
This isn't an isolated initiative for Tesla though.
The company has been exploring several locations worldwide,
including India and Thailand for additional factories, but the
Mexican factory is the most recent to receive official
confirmation and the stakes are very high.
With permits in hand and a deadline insight, the clock is
ticking to get everything in place.
A project has drawn considerable attention not only for its
economic prospects but also for its ambitious timeline.
Securing the environmental impact permits was a significant
leap forward, but now comes the complex task of getting the
infrastructure bill a task that Tesla can't be done alone.
Now collaboration with the government and possibly other
private entities will be crucial and necessary for Tesla to move
forward with this. Now, this undertaking showcases
Tesla strategic focus on global expansion.
It also highlights the complexities involved in
developing the infrastructure required for such a large scale
project and the need for electric substations.
Electric lines and railway yards are not just logistical
requirements, but vital components for Tesla's long term
success in the region. Now switching gears a little
bit, let's talk about Tesla Recruiting's recent update on
the X platform. The company announced The job
roles can now be viewed through people's X's profile.
This development paves the way for companies to use similar
features to inform people about job openings they're looking to
fill. This new feature brings another
dimension to the X platform, which is increasingly becoming a
multi faceted social media site. Now users have favorably
compared this feature to LinkedIn.
Although the X platform aims to be a little bit above and beyond
being a mere employment focused platform, feature updates aim to
make it a comprehensive social media destination encompassing
features like live streams and long form written work.
Now the potential of X as an Everything app is massive, the
Elon Musk even projecting that the All in one social media
platform could reach a market cap of $1 trillion.
And the evolution of X from what we've seen so far shows a trend
toward increasing user engagement and providing a wide
array of features that can make it an indispensable part of
people's digital lives. One more item on the agenda
today is Tesla's growth strategy, or more specifically,
the debate about whether Tesla should spend on major media
companies. Gary Black, a fund manager and
Tesla supporter, argues that Tesla should reconsider its
emphasis on price cuts as a growth strategy.
Online polls and social media discussions indicate that many
Tesla fans and investors share this sentiment.
The issue of Tesla's advertising, or the lack
thereof, was raised during the last annual shareholder meeting.
Elon Musk showed openness to the idea, but so far Tesla's
advertising spending has remained minimal.
Instead, price cuts have been the primary strategy to boost
sales and interest, much to the frustration of shareholders like
Gary Black who think it's not working efficiently.
Now Gary Black's point price cuts are effectively a marketing
expense brings a new perspective to the discussion.
With Tesla's U.S. market share among EVs slipping and a
significant reduction in gross margins.
Black and others argue that a focused ad campaign might be a
better use of resources. And the absence of advertising
has put Tesla in an interesting contrast with competitors like
Ford and General Motors or experienced marketers.
The challenge for Tesla then, lies on whether it will adjust
its strategy to include advertising, which could help
the brand resonate with a broader audience now.
All right folks, that's it for today's episode.
We've covered a lot of ground, from Tesla's Mexican Gigafactory
and its infrastructure requirements to the ever growing
X platform in the ongoing debate around Tesla's advertising
strategy. These topics illustrate the
multifaceted challenges and opportunities that lie ahead for
Elon Musk and his ventures. And thank you so much for
listening to the show today. Don't forget to hit the
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And remember, each eisode is 10 minutes or less designed to
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Take care of yourselves and each other, and I'll see you in the
next one.