4.5 • 705 Ratings
🗓️ 28 August 2019
⏱️ 11 minutes
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0:00.0 | Welcome to Axis ProRata, where we take just 10 minutes to get you smarter on the collision of tech, business, and politics. |
0:12.9 | I'm Dan for Mac. On today's show, Facebook tightens its political ad rules and the rise of strawberry-picking robots. |
0:19.4 | The first, Elon Musk's power outage. |
0:21.9 | So when most people think of Elon Musk, they tend to think about Tesla or SpaceX, or maybe |
0:26.2 | even PayPal, which he founded previously, or even further, maybe Thameshrowers or Robert |
0:31.8 | Downey Jr.'s Iron Man. |
0:33.3 | But in upstate New York, Musk is known primarily for promising to pull the region out of its post-steel-making doldrums by pledging to build thousands of solar energy panels per day out of a gleaming white factory in Buffalo, which would employ up to 5,000 people. |
0:47.9 | But it hasn't really worked out that way, as detailed in a new Vanity Fair piece by Bethany McLean, a veteran business journalist known for helping |
0:54.6 | to expose the fraud at Enron. The history here is that Tesla, a few years back, bought Solar |
0:59.3 | City, which had been founded by Musk's cousins in an arguably conflicted deal that remains |
1:03.8 | the subject of shareholder litigation. Musk then did what Musk does, made huge mouth-watering promises, |
1:10.1 | getting Buffalo so excited that the state of New York gave him $750 million to build the |
1:15.4 | new factory, dubbed Gigafactory 2. |
1:18.3 | Trouble is, Solar City didn't really know how to make solar panels. |
1:21.4 | It had always bought them elsewhere and then provided installation and consumer financing. |
1:25.8 | And from what McLean can tell, it still doesn't necessarily know how to do it now, at least |
1:30.5 | not as well as any rivals, thus creating a giant money suck for Tesla today and a giant headache |
1:36.3 | for public officials like Governor Andrew Cuomo who championed the factory, which right now |
1:40.7 | employs fewer than 350 people. |
1:43.1 | The bottom line is that Buffalo is a long way from Silicon Valley, |
1:45.5 | where vaporware and reality distortion fields are the norm. |
1:48.5 | For the city, it's yet another massive disappointment. |
... |
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