Ciaccia: Do you think that battery costs can come down markedly over the next five years?
Ahuja: I think that in past experience, typically, it averages to about 8% annually. It doesn't necessarily happen every year - there are step functions. The cumulative annual effect is 8%. The product development cycle that we see at these cell manufacturers are these cost reductions will continue in the future at roughly the same rate.
Ciaccia: You touched on power trains before. Tesla does a lot of other work for Toyota and Daimler Benz. What kind of relationships do you have with the two of them, and do you foresee any kind of expansion with other manufacturers to make electric vehicles more than just a niche market?Ahuja: Our relationship with both Toyota and Daimler, I would say, has been extremely constructive and growing. Clearly they have taken a bigger picture approach as well, since they have decided to invest in Tesla in addition to being our commercial partners. The two are fairly diligent in dealing with commercial decisions in an ongoing basis. We see a growing opportunity at both Toyota and Daimler, and clearly we've continued to announce the progression of those partnerships, with Daimler, including the recent program where they announced
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