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CNBC Exclusive: CNBC Excerpts: Tesla & SpaceX CEO Elon Musk Speaks with CNBC’s Carl Quintanilla on “Squawk Alley” Today

WHEN: Today, Friday, November 4th

WHERE: CNBC's "Squawk Alley"

Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Tesla and SpaceX CEO Elon Musk and CNBC's Carl Quintanilla on "Squawk Alley" (M-F, 11AM-12PM ET) today, Friday, November 4th. Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000565416, http://video.cnbc.com/gallery/?video=3000565418, http://video.cnbc.com/gallery/?video=3000565419, http://video.cnbc.com/gallery/?video=3000565420 and http://video.cnbc.com/gallery/?video=3000565421.

All references must be sourced to CNBC.

MUSK ON SPACEX

I THINK WE'VE GOTTEN TO THE BOTTOM OF THE PROBLEM. REALLY SUPRISING PROBLEM THAT'S NEVER BEEN ENCOUNTERED BEFORE IN THE HISTORY OF ROCKETRY. AND IT BASICALLY INVOLVES A COMBININATION OF LIQUID HELIUM, ADVANCED CARBON FIBER COMPOSITS AND SOLID OXYGEN. OXYGEN SO COLD THAT IT ACTUALLY ENTERS SOLID PHASE. SO IT'S NEVER HAPPENED BEFORE IN HISTORY…SO THIS WAS THE TOUGHEST PUZZLE SOLVED THAT WE'VE EVER HAD TO SOLVE. IT LOOKS LIKE WE'RE GOING TO BE BACK TO LAUNCHING AROUND MID-DECEMBER.

MUSK ON ISS APPROVAL

INSTITUTIONAL SHAREHOLDER SERVICES HAS—I MEAN, THEY'RE THE LEADING INDEPENDENCE EVALUATOR IN THE WORLD AND ACTUALLY HAVE A TENDENCY TO BE, IF ANYTHING, CONSERVATIVE IN THEIR RECOMMENDATIONS. SO ACTUALLY, WE ARE – I HATE TO SAY IT, BUT I THOUGHT THEY WOULDN'T RECOMMEND US BUT THEY DID. I'M VERY GLAD THEY DID.

MUSK ON SUSTAINABLE ENERGY

IF YOU HAVE SOLAR PANELS FACTORIES AND ELECTRIC CARS, YOU HAVE A COMPLETE SOLUTION TO SUSTAINABLE ENERGY FUTURE. BUT IF ANY ONE OF THOSE PIECES ARE MISSING, THEN YOU DON'T. SO IT'S JUST CRITICAL THAT ALL THREE PIECES ARE THERE BECAUSE I THINK THAT'S THE FUTURE WE AS HUMANITY WANT.

MUSK ON SOLAR ROOF

I REALLY THINK IT'S GOING GET TO THE POINT WHERE IF YOU GET A NORMAL ROOF, IT'S SORT OF ODD. IT'S GOING TO BE LIKE OF COURSE YOU GET A SOLAR ROOF BECAUSE IT LOOKS BETTER, IT LASTS LONGER, IT'S GOT BETTER INSULATING VALUE, AND IT COSTS LESS WHEN YOU FACTOR IN THE ELECTRICITY THAT IT GENERATES. LIKE WHY WOULD YOU GET ANYTHING ELSE?

MUSK ON TIMING

I THINK THE TIMING IS JUST RIGHT IF NOT – I MEAN, FRANKLY, WE MAY BE A LITTLE LATE. I WOULDN'T SAY THAT WE'RE EARLY. IT'S REALLY AN ACCIDENT OF HISTORY THAT THE COMPANIES ARE EVEN SEPARATE. IN MY ORIGINAL PLAN, ORIGINAL BUSINESS PLAN FOR TESLA, I PLANNED FOR TESLA TO DO SOLAR PANELS. BUT AT THE TIME, THERE WASN'T THE OVERLAP BECAUSE WE DIDN'T HAVE THE STATIONARY STORAGE FOR HOUSES, WE DIDN'T HAVE THE BATTERY POWER FOR HOUSES.

MUSK ON EQUITY

WE DON'T NEED TO DO AN EQUITY ROUND OR GENERAL CORPORATE DEBT IN ORDER TO REACH CASH FLOW POSITIVE WITH THE MODEL 3. SO THERE'S ACTUALLY, THERE IS NO EXPLICIT NEED FOR US TO RAISE MONEY. THERE MAY – IT MAY BE PRUDENT FOR US TO RAISE SOME CAPITAL AS A BUFFER AND JUST TO DERISK THE BUSINESS, BUT WE'VE NOT YET DECIDED WHEN THAT MIGHT BE.

MUSK ON AUTOPILOT

AUTOPILOT DIDN'T STEER AWAY OR BREAK AWAY FROM THE TRUCK THAT CROSSED THE HIGHWAY. AUTOPILOT DIDN'T VEER OFF THE ROAD AND SMASH INTO ANYTHING. IT JUST, IT STAYED IN LANE, BUT THE NATURE OF THE TRUCK THAT WAS CROSSING THE HIGHWAY WAS SORT OF VERY UNEXPECTED AND, UNFORTUNATELY, THE DRIVER WAS NOT LOOKING AT THE TIME AND DIDN'T TAKE ACTION.

MUSK ON DEALS

IT TOOK MONTHS TO VET THAT THROUGH OUR INDEPENDENT BOARD MEMBERS OF BOTH COMPANIES AND CONFIRM THAT IT WAS AN ARM'S-LENGTH TRANSACTION. AND IT WAS JUST VERY UNWIELDY. NOW, WE ARE GOING TO DO HUNDREDS IF NOT THOUSANDS OF DEALS OF THAT SIZE AND BIGGER. THERE'S JUST NO WAY TO HAVE – ARE WE GOING TO RUN THEM ALL THROUGH THE INDEPENDENT COMMITTEE? IT'S JUST – THERE'S NO WAY TO DO THAT EFFECTIVELY.

MUSK ON HILLARY CLINTON

I THINK HILLARY'S ECONOMIC POLICIES – HER ENVIRONMENTAL POLICIES PARTICULARLY ARE THE RIGHT ONES, YOU KNOW. BUT ALSO, I DON'T THINK THIS IS THE FINEST MOMENT IN OUR DEMOCRACY IN GENERAL.

MUSK ON DONALD TRUMP
I FEEL A BIT STRONGER THAT PROBABLY HE'S NOT THE RIGHT GUY. HE JUST DOESN'T SEEM – HE DOESN'T SEEM TO HAVE THE SORT OF CHARACTER THAT REFLECTS WELL ON THE UNITED STATES. IT'S JUST, I DON'T KNOW. NO.

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