This is why me and others have been laughing at everyone that either that they will catch and pass Tesla shortly. Total BS. They haven't changed the way they do business will therefore fail.
For a couple of years, I worked at Danaher Corporation, a big industrial outfit, and they had maybe a couple of pieces of the puzzle, but they couldn’t get out of their way. They had production Cells, they had one piece flow, they even had the idea of rapid changes, but they were top-heavy with management, pretty much zero empowerment of employees, and pure dogmatism on stuff they thought they copied from Japan but somehow got bastardized crossing the ocean…. Honestly it was a nightmare. I was an engineer, so, you can imagine how tormented I was by MBA idiots. Danaher loved its MBAs.
Love it Lars. Divide the process down to its simplest components. Divide those components into step and procedures. Anyone can change a step. The digitally test it, then implement if it shows improvement. Absolutely brilliant. Never seen the likes, company wide. What a huge advantage they've got. No one will every catch them with this innovation.
MBAs are often not incentivised to actually innovative, they play whatever system is in place and usually it's a system which rewards building your own little empire in order to climb the ranks. There's nothing in it for them so basically they don't do it. They are also rarely engineers and see technology as something to be feared and tamed rather than developed as the core driver of company value it really is - just my 2 cents after 30 years in various companies working in technology.
This is one of your best videos, Lars, that explains just why Tesla is light years ahead of the "competition" - and that includes the new guys on the block as well as the legacy auto makers - you've totally hit the nail on the head - and this is something that the so-called "analysts" just don't understand, as well as the so-called "competition" ... thanks for such a clear and concise explanation!!
I like that he explains why _'Competitors'_ *won't* _'catch Tesla',_ beyond saying they *can't.* None of them are willing to follow the advice of Experts *THEY* hire. Instead, after being given a roadmap to success and even cribbing a _'cheat sheet'_ that offers insight to how Tesla does things, they choose to dismiss it all without trying it first. The essence of the _'Not Invented Here'_ philosophy that *Sandy Munro* often speaks of as a harsh criticism of Detroit automakers and how they are run by MBAs instead of Engineers.
I’ve been following Tesla for a while but this video was still mind blowing. I hope they can keep that amazing innovation culture going and avoid the stagnation that somehow seems to cripple so many companies.
The problem with systems like Scrum or Agile is that they are usually confined to the IT department. Tesla is one of the few companies where Agile is build into everything. That way it can show its strength. Joe's videos are highly recommended watching material.
I’m an engineer, and it is a big part of the problem as you say, lawyers and MBAs, pretty much they are complete parasites, however, I can assure you that most engineers aren’t that good either. The problem is not that all the people are good in one profession like engineering and all the lawyers are evil, the problem is that we don’t know how to separate the wheat from the chaff in every profession. There are lots of horrible engineers that are good-looking and big talkers, and maybe they play football in college, and they become the leader even though they don’t deserve it. We simply haven’t figured out how to filter out bullshit. I mean this especially as applicable to large organizations. However, it looks like Tesla has kind of figured it out. Elon says they have a policy of “no assholes.“ Employees can report on persons that are, in whatever way, “assholes“ and they will be warned about their behavior and they must change or they will be terminated. This policy alone would have saved the last company I worked for which was a long established manufacturing company that had just collected way too many assholes along the way. And being an asshole pretty much guarantees you are incompetent.
Lars, Well done! What a great Summary of Agile principles, cell manufacturering, and automated testing to make the pace of innovation go supersonic! Cheers, Eric
Twitter is a CRIMINAL ENTERPRISE and Elon is exposing them!! They have been CHEATING their advertisers via erroneous Daily Active User data and stockholders via their SEC reporting!!!
I’ve been waiting 10 years for this video. All that matters is “The Pace of Innovation”. Everyone fails to understand how fast it is and that it is accelerating.
What Elon said before, he's not afraid to open source and let other people copy, especially Chinese companies. By the time they copy tesla stuff, tesla already already making products that is 2-3 years newer, so they are copying the old stuff. Rate of innovation is the key....Chinese company can't even keep up with tesla!! you think auto legacy maker can?? it's impossible. Tesla operate with Chinese mentally fast but with innovative ideas. Chinese operate with Chinese speed but with copy ideas
Lars, I would find an episode showing the changes factory workers have developed and implemented. Not the big things like gigacastings but small changes created during the build process by individuals or small groups of workers. Also showing how the workers were recognized for these improvements.
If you can find it, please share. This is one of the most guarded secrets in Tesla and why Elon says the "factory is the product". So, I won't hold my breath. Good luck.
Another great vid Lars! Keep it up and can’t wait for the book! Joe has a wealth of knowledge and share so much insight. That said, I bet there’s so much that isn’t being shared.
Thanks for showing us glimpses of the incredible pace of innovation and improvements in TESLA that is surely a welcome change from the massively polluting ice car industry!! PEACE
It's fun to watch people slowly realize that their favourite legacy auto maker is actually not the technical innovation powerhouse that their advertising would have you believe. As Tesla's slowly appear on our streets the scales are falling from the eyes for some but a few are still holding out, surely BMW or Mercedes will do something decent? But no, they haven't and won't, they aren't setup to challenge Tesla and they don't even seem to want to. They'll all hybrid their way into obscurity despite government bail outs and millions spent trying get back their dwindling customer base.
I think that your thesis is mostly correct, but I want to suggest some slight changes. First, VW's new Trinity platform. Yes, it is taking 6-7 years to bring to production. But the correct comparison with Tesla is for Tesla's new products, not minor changes to existing products. Cybertruck, Semi and the new Roadster have been on timelines quite similar to VW's Trinity timeline. It takes time to go from concept, to prototype, to producibility engineering, to production; it takes time to line up suppliers for factory equipment and parts; and for both VW and Tesla, they needed new factories, too. None of this can be done overnight - though we have to applaud Tesla's sheer speed at constructing new factories. They are amazing. Second, I take issue with the claim that Tesla doesn't have a budget. What they don't have is a *rigid* budget. A budget can be merely predictive, a forecast. Tesla uses predictive budgets. Their financial weenies wouldn't know what to do with themselves if they didn't have them! But the budgets get adjusted constantly and rapidly based on changes from the factory floor - and Tesla can do this, because they're in such a robust cash flow position. That was not always the case. During the Model 3 ramp, for example, Tesla sweated bullets over budgetary compliance. They had to. They were about 6 weeks from running out of cash! Approvals for deviations went all the way up to Elon - who slept on the factory floor so he could be available to approve or deny requests. So Tesla has used rigid budgets, but with an accelerated pace for changing them. Trust me, Elon turned down requests for funds more than once during the Model 3 ramp. Money was tight! You used the term 'budget' as if it were synonymous with 'rigid budget.' The other automakers do indeed use rigid budgets, and it's a disadvantage when it comes to the pace of change. The other points you made about the pace of change at Tesla seemed accurate to me. I honestly can't wrap my head around Tesla's automated testing for production. That has to be an awfully complex hunk of software, and the pubic knows very little about how it works. But it does seem to work! I don't know how other automakers will ever manage to duplicate what Tesla is doing with testing. It's way outside of the box for large scale production.
Urgelt, you are doing something called 'double speak'. Either Tesla is disruptive and totally different from legacy automakers or it isn't. I cannot see ANY similarities between Tesla and legacy automakers. I believe you might be in denial because you fear change just as much as the legacy automakers. Tesla breaks all the rules of capitalism.
@@TomUlcak That is a black-or-white viewpoint, Tom. The world is full of shades of gray. Tesla is doing many things quite differently from legacy auto - astonishingly so. They're an innovation factory. I'm glad they are disrupting the status quo so thoroughly; this is the road to making our civilization better. But Tesla is pragmatic right down to its boot heels, and if something legacy auto does works great, they won't hesitate to incorporate it into their business model and production methods. Tesla did not invent snap-fit fasteners, for example. Legacy auto has used them for many years. Tesla uses *more* of them, but again, this is a different shade of gray, not black-and-white. Ditto for castings. Castings have been around for many years, too. Most of Tesla's castings are unremarkable; several are gigantic, and this is a departure from standard practice as well. If you can only see the world in binary terms, you're missing an awful lot of subtle details. Perhaps this doesn't matter much for outside observers, but I assure you, Tesla's engineers can't afford to be that mistaken, or to write off everything legacy auto does as stupid. Some of it isn''t. Not enough to save them from disruption, but not everything legacy auto does can be dismissed out of hand. If something better is feasible, Tesla is likely to try it; but a fair bit of what Tesla does draws from the same playbook legacy auto uses. Tires and suspensions are great examples - Tesla generally uses commercial standard parts for both. They tune them for their cars; so does legacy auto. But then Tesla goes and rids itself of lead-acid 12-volt batteries that won't have to be replaced for the life of the vehicle, which no-one else has managed, or (apparently) even considered. There are a lot of examples like that to point to. Yep, they're innovative, butTesla is not ignoring what legacy auto does that works. And neither should we.
@@Urgelt 'disruption' is radical change from the status quo. Tesla is like no other company ever. you can't slot Tesla into the capitalist model. It doesn't operate like a traditional company. This is not binary thinking. it's looking at the reality of what is happening. just as wall street can't figure out Tesla, neither can you. you can't be 'the same' at the same moment you are 'different'. Yellow is not blue.
I see the results of Tesla's continuous improvement in manufacturing in the two Model Ys I have -- an early 2020 Model Y Long Range and a late 2021 Model Y Performance. When I did a 300-mile caravan of the 2 starting with the same SOC, I was surprised to learn that the MYP got exactly the same range as the MYLR -- down to the single digit percent. That was despite the MYLR having the tires pumped to 44psi while the MYP tire pressure was as delivered. So 18 months of Tesla continuous improvement at Fremont effectively erased the distinction between a 330 mile rated MYLR and a 303 mile rated MYP. The Performance Model Y (which is essentially the un-nerfed Long Range model) is worth every penny of the ~$5k delta.
THe unions would prevent anything from happening at the legacy automakers in terms of productivity and changes. The Chinese will last for a while but they won't keep up either. Thanks Lars.
great vid! in future will 10 yr old models still be able to have new wires etc fitted by tesla service? Seems eventually there would be some critical obsolesce?
I had the exact same experience, found a way for the company to make +1$Million MORE in PROFIT with almost 100% certainty, based on 10 years of data, yet the answer was NO! It's not in out budget to spend about $8K/month to make +$100k PROFIT. Same thing happened on several projects....
23:00 VW's Trinity Platform -- emphasizing the Holy Ghost component of the Holy Trinity so that, should it fail to materialize, VW can say 'We told you it was a ghost'.
How about battery replacement ? Say after 10 years and you get a new battery, do you get an updated and better battery ? Batteries efficiency change quite a bit. So do you get a higher Milage batter ?
If you have to change the battery yes. Tesla does not keep old part in storage building. They make new once. And with their structural battery pack they can not change just a battery modul, they will change the whole battery pack. (Only take 35 bolts to change it 😉) And in 10 years it will be completely different than what they are today, so they would kind of have to 👍
@@BestInTESLA I understand the battery replacement on MX is $22k, I suppose that will go up though in 10 years because of inflation or stay the same because of new battery tech efficiencies ?
I've long thought that biz school people (seekers of MBAs) were the least imaginative students, yet I'm STILL shocked by how slow such folks are to see reality, to adjust away from their comfort zones. How clear does it have to be that Elon is on the right track and others follow feebly, too timid to accept risk and make real changes? They could have begun closing the gap several years ago, making them at least somewhat competitive. Instead, they waited too long, hoping for a non-existent Hail Mary that would somehow save them. Their failures will be blows to workers, but will establish a new normal and cull the weak. Social/economic Darwinism we can watch in real time. The next few years will see huge upheavals in the form and location of productivity, legacies dying, the millenium's Wright Bros. flying. Tho I'm old, I love being on the tech train, invested in and feasting on innovation and applied futurism.
Hi Van. It definitely is puzzling on why not just copy what Tesla is doing, at least other car company should have done this at some of their production facilities. Setting up production sales is not hard to do compared to setting up a production line. I can say this, having been involved in manufacturing as an engineer up until the late 1990s, and that I visited companies all over the world including the big car manufacturers, the management at these companies, the idiot MBAs, they become so insular and so much believers in their own inbred ways of doing things, that they think everyone else on the outside is inferior. I can’t tell you how many lectures I had to listen to about the Ford way of doing things, or the Danaher wait, and then be looked down upon as if I were some kind of sub human creature from another planet, even though I was a senior research and development engineer at my own company. A few companies were good, a very very few, and none were great until Tesla came along. Of course I’ve never worked with them. But I wish.
@@steveperreira5850 Steve: Thanks for real-world examples of my point. It may well be that the kind of people who seek MBAs, who want to be bosses, are usually very insecure, naturally unadventurous and defensively clannish (frat boys, country clubbers). Search "the Dunning-Kruger effect."
The IRA will be a saving grace for legacy thinking, government $$ to prop up old ideas. Lobbyists & donations have value. Dems should have developed a higher level intervention including a carbon tax, a faster processing of red tape for mining & processing.
@@steveperreira5850 Tesla took some management principles from Defasco Steel in Hamilton Ontario. No unions, profit sharing and take suggestions from the people doing the work seriously. The result was that Defasco was turning out superior product and had 6 months of back-orders while their unionized brothers down the street at Stelco were starving. Things that make you think.
One of the most important things Joe Justice said was that Tesla is also doing something more than agile and he couldn't quite figure out what it was yet. I wonder what specifically he saw that made him say that?
We already warned Volkswagen responsibles of training and Human Resources in 1994 that a new paradigm to go with employees is necessary for innovation. We asked 7 personally relevant simple questions to measure 8 relevant Qualities. On 3 they where weak leading even to lie and make Dieselgate possible. So Tesla is about trust and responsibility and possibly also make mistakes, but only once!
They don't keep a big supply of parts as Tesla changes parts every single day. So that can make them a bit slow in getting the new parts from the factories.
Tesla is simply using technology to make a factory into an ever changing development center and the production center all at the same time. That means change isn't something that requires an interruption to production but is already allowed for in the production line. So a product is always changing as needed. This model makes the production line free flowing and ever changing. It's more like the flow of a river. It's not ridged but ever changing. That's not something you can do without designing it that way from the very beginning.
I can imagine the leaders at Toyota, VW, GM and most of the other OEM saying: RUBBISH ! We have been building cars for over 100 years, no one knows how to make them better, and pushing their old and tired system over the precipice of oblivion. As evidenced by their EV response to Tesla, building their old cars as always have, but with electric motors. while millions upon millions of their old customers, surely more intelligent than them are patiently joining Tesla interminable waiting lists to get one of those technological pricey marvels, more apt to increase their value as a used car, than lose most in mere few years of an ICE ownership.
Great video and I admire what Tesla is doing. However, most people will not be able to tell how advanced Tesla cars are compared to other manufacturers. Simply put it this way, other manufacturers don’t need to keep up the pace and technology. They just need to paint themselves the right image to their audience.
It'd be great if many US companies would learn from Tesla since not only Auto is slow, ineffective and frustrating when it comes to innovation!! 😄😁😆 SCRUM is great, still just one piece .....
Lars, you are very entertaining. I own a Tesla and am not worried about which company is winning. There are many EVs coming to the market. Many have features that Teslas brought to the market. Some actually have improved on Tesla features. They may never catch up but the consumer benefits from competition. I want Tesla to feel pressured to improve features on the cars. One issue that Tesla has is that they don't really want to abandon previous cars to add features that require hardware. With the refreshed Model X and Model S they made that type of move. Also some of the deleted options are annoying, my has the USB ports that are power only. (22 M3LR) earlier cars came with Homelink. My 2013 GMC Yukon has Homelink as do most GM products. I can get it for $300 but it's a $75 part that they removed. Tesla is stingy. Not a great idea.
I worry my MX car computer, chips, motherboard, FSD sensors, wiring etc will become obsolete in 10 years, like a 10 year old iPhone. Will that ever happen to Tesla cars or will their be upgrades available to purchase for all that ?
Now that Mr Diess is gone. The new Porsche CEO cannot make changes without going to the board. So... VW will be on the road trying to make changes as the bus goes along at 80 MPH. Which they will never be doing.
Hej Lars, thanks for the comprehensive run down! If you should still need supporters for your book, i'd be willing. I count myself a fan of Joe, bit there is one thing i have been thinking about for quite some time now, and your video and book make me want to point it out: From my (sure - limited) point of view it looks like Joe is our only source of information about all these Tesla internals. I love what he talks about and believe in the principles, but i am not sure if this reflects - in detail or at all - what happens inside Tesla. And Joe has some often repeated punch lines (e.g. his "Tiki Bar atop Starbase launch tower") that to my knowledge are either stretching the boundaries of artistical freedoms, or are blatently false. All in all, i have my doubts. And it would be great if you could confirm his info from other sources. For the actual impact of your book i would actualy deem that advisable. Thanks again and looking forward to the book! Bests Simon
Agree.Specially with the part of the process wherein legal approval is obtained in minutes. I find that going against experience in the bureaucracy of government.
Lars, this is a minor, minor quibble about your intro, but it's been bugging me for many months now, so I thought I'd toss it out for your consideration. Whatever the topic of a video is going to be, you typically introduce it by saying something like, "So let's look at the process of pickling herrings, and dive right in". The "dive right in" phrase evokes a sense of progress that clashes with stating the detailed information gathering activity as if it occurs _before_ the "diving", rather than after/because of that diving. Whew; sorry for fumbling around so badly. To paraphrase Oddball, "Oh, man, I just _use_ English; I don't know what makes it _go_ ". Anyway, I'm saying the example would feel better if it were stated as, "So let's dive right in, and look at herring-pickling in detail".
What Elon said before, he's not afraid to open source and let other people copy, especially Chinese companies. By the time they copy tesla stuff, tesla already making products that is 2-3 years newer, so they are copying the old stuff. Rate of innovation is the key....Chinese company can't even keep up with tesla!! you think auto legacy maker can?? it's impossible. Tesla operate with Chinese speed mentally but with innovative ideas. Chinese operate with Chinese speed but with copy ideas
Lars, I appreciate your dedication to constantly thrashing the difference between Tesla and legacy auto, but I don't hear you mention as often how legacy auto has no compunction to adopt Tesla's methods as long as no BEV manufacturer can meet demand. A situation I expect to exist for at least the next five years. As such, you might want to pace yourself. A lot can change in five years, and this is a long time to repeat the same message.
Change has nothing to do with capitalism per se, it has to do with effective entrepreneurship. Hope you're not thinking that communism could do it better.
@@darylfoster7944 this is a typical reply. 'hey, at least we aren't totally shitty'. that's not good enough. it's like going to a restaurant serving shitty food and saying 'well, at least it's not actual shit'. quit parroting propaganda. use your brain and eyes and ears. LOOK around at the world capitalism has built.
@@TomUlcak I'm not going to argue with you. Capitalism has produced wealth beyond imagination, and has lifted billions from abject poverty and misery to a life of comfort. It is demonstrably, empirically better than any other system. End of story.
@@darylfoster7944 and, again, the same OLD propaganda. capitalism has also brought perpetual global war and a huge wealth gap. 100s of millions languishing in poverty and war. There is no argument here. You are disconnected from reality.
Wow!, that TRINITY VW looks a lot like the Tesla model S!. All the legacy auto makers just wanna be a Tesla but you can't just do it cosmetically it's just a bit more than that!... R.I.P. LEGACY!
So Tesla never has to worry about industrial espionage because any detailed schematic taken of one of their cars in the morning is obsolete by the end of the day...
Thirty-two Queens, Sixteen Knights, Sixteen Bishops, Sixteen Rooks, and an army of Sixty-Four Pawns. Must be nice. I learned more from games of Chess I lost than those I won. Assured Domination would be nice though. The certainty of Winning might make one sloppy. Don't play Chess with a Pigeon, though. They'll knock over the pieces, $#!+ on the board, then proclaim themselves _'The WINNER',_ just like *GM.*
Soon, Tesla will own the tire companies as well or make one up with tires that do not need replacement up to 1,000,000 miles. There have been a lot of new inventions (supposedly), but nothing for the consumers.
@@EZ2NVDon , do we need their synthetic rubber? Maybe not! There is graphite and newer materials. Elon has the best tech research to develop manufacturing them en masse.
Legacy automakers couldn't keep up with your pace of videos... far less Tesla innovation. This was another great one Lars. Thanks.
Truth!!!! 💥
This is why me and others have been laughing at everyone that either that they will catch and pass Tesla shortly. Total BS. They haven't changed the way they do business will therefore fail.
For a couple of years, I worked at Danaher Corporation, a big industrial outfit, and they had maybe a couple of pieces of the puzzle, but they couldn’t get out of their way. They had production Cells, they had one piece flow, they even had the idea of rapid changes, but they were top-heavy with management, pretty much zero empowerment of employees, and pure dogmatism on stuff they thought they copied from Japan but somehow got bastardized crossing the ocean…. Honestly it was a nightmare. I was an engineer, so, you can imagine how tormented I was by MBA idiots. Danaher loved its MBAs.
Did Tesla ever have to issue a recall due charging fires so bad, you couldnt park in your garage anymore? (Chevy)
You cant understand Tesla success without seeing how bad others have not only failed, but caused injury, even without the vehicle moving...
Love it Lars. Divide the process down to its simplest components. Divide those components into step and procedures. Anyone can change a step. The digitally test it, then implement if it shows improvement. Absolutely brilliant. Never seen the likes, company wide. What a huge advantage they've got. No one will every catch them with this innovation.
MBAs are often not incentivised to actually innovative, they play whatever system is in place and usually it's a system which rewards building your own little empire in order to climb the ranks. There's nothing in it for them so basically they don't do it. They are also rarely engineers and see technology as something to be feared and tamed rather than developed as the core driver of company value it really is - just my 2 cents after 30 years in various companies working in technology.
This is one of your best videos, Lars, that explains just why Tesla is light years ahead of the "competition" - and that includes the new guys on the block as well as the legacy auto makers - you've totally hit the nail on the head - and this is something that the so-called "analysts" just don't understand, as well as the so-called "competition" ... thanks for such a clear and concise explanation!!
I like that he explains why _'Competitors'_ *won't* _'catch Tesla',_ beyond saying they *can't.* None of them are willing to follow the advice of Experts *THEY* hire. Instead, after being given a roadmap to success and even cribbing a _'cheat sheet'_ that offers insight to how Tesla does things, they choose to dismiss it all without trying it first. The essence of the _'Not Invented Here'_ philosophy that *Sandy Munro* often speaks of as a harsh criticism of Detroit automakers and how they are run by MBAs instead of Engineers.
I’ve been following Tesla for a while but this video was still mind blowing. I hope they can keep that amazing innovation culture going and avoid the stagnation that somehow seems to cripple so many companies.
They can, they will.
Why? The employees are all shareholders.
How do you do it? Each of your videos is better than the last! And, they're all great!
I have to keep being reminded of this, which means I need to work on making my brain younger!!!
The best budget is No budget.
Sorry, this never gets old.
The problem with systems like Scrum or Agile is that they are usually confined to the IT department. Tesla is one of the few companies where Agile is build into everything. That way it can show its strength. Joe's videos are highly recommended watching material.
IT?! That's laughable. As an IT pro with over 20 years of experience, I can tell you that IT is the worst.
@@TomUlcak That's your experience.
Tesla IS an IT department.
@@bru512 Tesla is a new kind of company. not an old timey IT department.
Agile was invented and is most strongly represent in commercial software development - a very different beast to IT.
This!!!!!!
This is what those outside of our Tesla community (and many who are in it) don’t truly understand.
Brilliant Lars keep banging the drum!!
Great episode. Looking forward to your upcoming book!👍
I plan to watch this again. Mind blowing video. Thanks for doing a great job!
Lars, you put your finger right on the button. Awesome job Thanks.
Good video BIT.
Thanks for the reminder... be nice!
engineers have always been the best. they’ve been held down by lawyers and MBAs who are just trying to justify their own existence.
I think you are 100% right, the cars are their identity, hard to changes. Teslas identity is more of " how can we make better".
Yesterday, I couldn't spell engineer. Now I are one.
😅🤣😂
I’m an engineer, and it is a big part of the problem as you say, lawyers and MBAs, pretty much they are complete parasites, however, I can assure you that most engineers aren’t that good either. The problem is not that all the people are good in one profession like engineering and all the lawyers are evil, the problem is that we don’t know how to separate the wheat from the chaff in every profession.
There are lots of horrible engineers that are good-looking and big talkers, and maybe they play football in college, and they become the leader even though they don’t deserve it. We simply haven’t figured out how to filter out bullshit. I mean this especially as applicable to large organizations.
However, it looks like Tesla has kind of figured it out. Elon says they have a policy of “no assholes.“ Employees can report on persons that are, in whatever way, “assholes“ and they will be warned about their behavior and they must change or they will be terminated.
This policy alone would have saved the last company I worked for which was a long established manufacturing company that had just collected way too many assholes along the way. And being an asshole pretty much guarantees you are incompetent.
Stunning video! Thank you.
Love all your videos Lars, but this one is a step above.
1:35 to 1:57 Track in the snow- Incredible driving!
Lars,
Well done!
What a great Summary of Agile principles, cell manufacturering, and automated testing to make the pace of innovation go supersonic!
Cheers, Eric
Elon is going to get from under the Twitter Contract. The man has nine lives! Congrats Elon.
Twitter is a CRIMINAL ENTERPRISE and Elon is exposing them!! They have been CHEATING their advertisers via erroneous Daily Active User data and stockholders via their SEC reporting!!!
What a video, Lars! Amazing!
Thanks!
Well done ! Thank you very much 👍🏻💯
Great episode, appreciate the learning.
You are getting many videos that are on the next level. Great job.
A+ and home run video. Your graphics are awesome too. Top 5 tesla channel.
I’ve been waiting 10 years for this video. All that matters is “The Pace of Innovation”.
Everyone fails to understand how fast it is and that it is accelerating.
It’s a exciting as hell technology
What Elon said before, he's not afraid to open source and let other people copy, especially Chinese companies. By the time they copy tesla stuff, tesla already already making products that is 2-3 years newer, so they are copying the old stuff. Rate of innovation is the key....Chinese company can't even keep up with tesla!! you think auto legacy maker can?? it's impossible. Tesla operate with Chinese mentally fast but with innovative ideas. Chinese operate with Chinese speed but with copy ideas
Lars, I would find an episode showing the changes factory workers have developed and implemented. Not the big things like gigacastings but small changes created during the build process by individuals or small groups of workers. Also showing how the workers were recognized for these improvements.
If you can find it, please share. This is one of the most guarded secrets in Tesla and why Elon says the "factory is the product". So, I won't hold my breath. Good luck.
Another great vid Lars! Keep it up and can’t wait for the book! Joe has a wealth of knowledge and share so much insight. That said, I bet there’s so much that isn’t being shared.
THANKS4GIVING: Awesome posting young man
Thanks for showing us glimpses of the incredible pace of innovation and improvements in TESLA that is surely a welcome change from the massively polluting ice car industry!! PEACE
Lars deserves more subscribers. He’s on par with Rob Maurer, Dave Lee, SMR… they all have totally different takes, and each is worth a look.
Your videos are the highlight of my day 🫡
Excellent topic and summary of reasons why Tesla's lead is unassailable! Love your content Lars!
Thank you Lars. 👍🏻
Excellent, informative, enthusiastic. One thing... seems the Model Y is for now back to the 2170s until the 4680s ramp.
Elon doesn’t play chess with 32 queens, he plays chess with quights.
His quights can move like knights, or bishops or rooks and can take en passant.
Haha. The quights only take en passant when they're really bored but they always confuse opponents so thoroughly that they forego their next move.
It's fun to watch people slowly realize that their favourite legacy auto maker is actually not the technical innovation powerhouse that their advertising would have you believe. As Tesla's slowly appear on our streets the scales are falling from the eyes for some but a few are still holding out, surely BMW or Mercedes will do something decent? But no, they haven't and won't, they aren't setup to challenge Tesla and they don't even seem to want to. They'll all hybrid their way into obscurity despite government bail outs and millions spent trying get back their dwindling customer base.
Hey, General Motors... good luck.
I think that your thesis is mostly correct, but I want to suggest some slight changes.
First, VW's new Trinity platform. Yes, it is taking 6-7 years to bring to production. But the correct comparison with Tesla is for Tesla's new products, not minor changes to existing products. Cybertruck, Semi and the new Roadster have been on timelines quite similar to VW's Trinity timeline.
It takes time to go from concept, to prototype, to producibility engineering, to production; it takes time to line up suppliers for factory equipment and parts; and for both VW and Tesla, they needed new factories, too. None of this can be done overnight - though we have to applaud Tesla's sheer speed at constructing new factories. They are amazing.
Second, I take issue with the claim that Tesla doesn't have a budget. What they don't have is a *rigid* budget.
A budget can be merely predictive, a forecast. Tesla uses predictive budgets. Their financial weenies wouldn't know what to do with themselves if they didn't have them! But the budgets get adjusted constantly and rapidly based on changes from the factory floor - and Tesla can do this, because they're in such a robust cash flow position.
That was not always the case. During the Model 3 ramp, for example, Tesla sweated bullets over budgetary compliance. They had to. They were about 6 weeks from running out of cash! Approvals for deviations went all the way up to Elon - who slept on the factory floor so he could be available to approve or deny requests. So Tesla has used rigid budgets, but with an accelerated pace for changing them.
Trust me, Elon turned down requests for funds more than once during the Model 3 ramp. Money was tight!
You used the term 'budget' as if it were synonymous with 'rigid budget.' The other automakers do indeed use rigid budgets, and it's a disadvantage when it comes to the pace of change.
The other points you made about the pace of change at Tesla seemed accurate to me.
I honestly can't wrap my head around Tesla's automated testing for production. That has to be an awfully complex hunk of software, and the pubic knows very little about how it works. But it does seem to work! I don't know how other automakers will ever manage to duplicate what Tesla is doing with testing. It's way outside of the box for large scale production.
Urgelt, you are doing something called 'double speak'. Either Tesla is disruptive and totally different from legacy automakers or it isn't. I cannot see ANY similarities between Tesla and legacy automakers. I believe you might be in denial because you fear change just as much as the legacy automakers. Tesla breaks all the rules of capitalism.
No. Getting changes approved (by anyone) is not what is holding up the Cybertruck or the Semi.
@@lengould9262 I did not make that point, Len, so it's not mine to defend.
@@TomUlcak That is a black-or-white viewpoint, Tom.
The world is full of shades of gray.
Tesla is doing many things quite differently from legacy auto - astonishingly so. They're an innovation factory. I'm glad they are disrupting the status quo so thoroughly; this is the road to making our civilization better.
But Tesla is pragmatic right down to its boot heels, and if something legacy auto does works great, they won't hesitate to incorporate it into their business model and production methods.
Tesla did not invent snap-fit fasteners, for example. Legacy auto has used them for many years. Tesla uses *more* of them, but again, this is a different shade of gray, not black-and-white. Ditto for castings. Castings have been around for many years, too. Most of Tesla's castings are unremarkable; several are gigantic, and this is a departure from standard practice as well.
If you can only see the world in binary terms, you're missing an awful lot of subtle details. Perhaps this doesn't matter much for outside observers, but I assure you, Tesla's engineers can't afford to be that mistaken, or to write off everything legacy auto does as stupid.
Some of it isn''t. Not enough to save them from disruption, but not everything legacy auto does can be dismissed out of hand. If something better is feasible, Tesla is likely to try it; but a fair bit of what Tesla does draws from the same playbook legacy auto uses. Tires and suspensions are great examples - Tesla generally uses commercial standard parts for both. They tune them for their cars; so does legacy auto.
But then Tesla goes and rids itself of lead-acid 12-volt batteries that won't have to be replaced for the life of the vehicle, which no-one else has managed, or (apparently) even considered. There are a lot of examples like that to point to.
Yep, they're innovative, butTesla is not ignoring what legacy auto does that works. And neither should we.
@@Urgelt 'disruption' is radical change from the status quo. Tesla is like no other company ever. you can't slot Tesla into the capitalist model. It doesn't operate like a traditional company. This is not binary thinking. it's looking at the reality of what is happening. just as wall street can't figure out Tesla, neither can you. you can't be 'the same' at the same moment you are 'different'. Yellow is not blue.
The 32 extra queens part is what did it for me😂
Excellent video Lars, so instructional! 👍🏻
CI/CD but in car manufacturing. That's honestly pretty cool!
"Autonomous" is the correct spelling. Just nit-picking. Great video. Again. Thanks.
What? Not every Tesla goes though the crash test before it leaves the factory??? 😂 (12:48)
> Only newborn babies go through an extensive number of crashes as part of final assembly and testing.
😅🤣😂
@@carlwest859 😁🤣 Cruel real life!
I see the results of Tesla's continuous improvement in manufacturing in the two Model Ys I have -- an early 2020 Model Y Long Range and a late 2021 Model Y Performance. When I did a 300-mile caravan of the 2 starting with the same SOC, I was surprised to learn that the MYP got exactly the same range as the MYLR -- down to the single digit percent. That was despite the MYLR having the tires pumped to 44psi while the MYP tire pressure was as delivered. So 18 months of Tesla continuous improvement at Fremont effectively erased the distinction between a 330 mile rated MYLR and a 303 mile rated MYP. The Performance Model Y (which is essentially the un-nerfed Long Range model) is worth every penny of the ~$5k delta.
But Tesla is spending earned cash. VW is spending loan money from investors who demand reports and forecasts.
Definitely that is part of the problem. Micromanagement from investors who know nothing.
THANKS LARS….THE PACE OF INNOVATION…IS THE 🔑 KEY AND OTHERS DON’ T KNOW WHAT OR WHERE THE LOCK 🔒 IS 🤷♂️💚💚💚
That’s a GREAT point well said
Thorough explanation. V Good.
THe unions would prevent anything from happening at the legacy automakers in terms of productivity and changes. The Chinese will last for a while but they won't keep up either. Thanks Lars.
great vid! in future will 10 yr old models still be able to have new wires etc fitted by tesla service? Seems eventually there would be some critical obsolesce?
"32 Queens". I love it.
Brilliant!
Lars, how are you on this sunny morning in Goonellabah on North Coast NSW? SO TRUE
Lars, I use your video on how you run your company
I had the exact same experience, found a way for the company to make +1$Million MORE in PROFIT with almost 100% certainty, based on 10 years of data, yet the answer was NO! It's not in out budget to spend about $8K/month to make +$100k PROFIT. Same thing happened on several projects....
23:00 VW's Trinity Platform -- emphasizing the Holy Ghost component of the Holy Trinity so that, should it fail to materialize, VW can say 'We told you it was a ghost'.
How about battery replacement ? Say after 10 years and you get a new battery, do you get an updated and better battery ? Batteries efficiency change quite a bit. So do you get a higher Milage batter ?
If you have to change the battery yes. Tesla does not keep old part in storage building. They make new once. And with their structural battery pack they can not change just a battery modul, they will change the whole battery pack. (Only take 35 bolts to change it 😉) And in 10 years it will be completely different than what they are today, so they would kind of have to 👍
@@BestInTESLA I understand the battery replacement on MX is $22k, I suppose that will go up though in 10 years because of inflation or stay the same because of new battery tech efficiencies ?
Does anyone know if Fremont has installed the Giga press to make the model Y with castings?
This is part of the beauty of a non-unionized workforce. The Politics and, frankly Bullsh** doesn't exist so it doesn't even have to be ELIMINATED.
I've long thought that biz school people (seekers of MBAs) were the least imaginative students, yet I'm STILL shocked by how slow such folks are to see reality, to adjust away from their comfort zones. How clear does it have to be that Elon is on the right track and others follow feebly, too timid to accept risk and make real changes? They could have begun closing the gap several years ago, making them at least somewhat competitive. Instead, they waited too long, hoping for a non-existent Hail Mary that would somehow save them. Their failures will be blows to workers, but will establish a new normal and cull the weak. Social/economic Darwinism we can watch in real time. The next few years will see huge upheavals in the form and location of productivity, legacies dying, the millenium's Wright Bros. flying. Tho I'm old, I love being on the tech train, invested in and feasting on innovation and applied futurism.
Hi Van. It definitely is puzzling on why not just copy what Tesla is doing, at least other car company should have done this at some of their production facilities. Setting up production sales is not hard to do compared to setting up a production line.
I can say this, having been involved in manufacturing as an engineer up until the late 1990s, and that I visited companies all over the world including the big car manufacturers, the management at these companies, the idiot MBAs, they become so insular and so much believers in their own inbred ways of doing things, that they think everyone else on the outside is inferior. I can’t tell you how many lectures I had to listen to about the Ford way of doing things, or the Danaher wait, and then be looked down upon as if I were some kind of sub human creature from another planet, even though I was a senior research and development engineer at my own company.
A few companies were good, a very very few, and none were great until Tesla came along. Of course I’ve never worked with them. But I wish.
@@steveperreira5850 Steve: Thanks for real-world examples of my point. It may well be that the kind of people who seek MBAs, who want to be bosses, are usually very insecure, naturally unadventurous and defensively clannish (frat boys, country clubbers). Search "the Dunning-Kruger effect."
The IRA will be a saving grace for legacy thinking, government $$ to prop up old ideas. Lobbyists & donations have value.
Dems should have developed a higher level intervention including a carbon tax, a faster processing of red tape for mining & processing.
Honestly, Elon runs that company the way that I have always thought it should be done.
Me too. Empowerment of employees is the most important thing of all.
@@steveperreira5850 Tesla took some management principles from Defasco Steel in Hamilton Ontario. No unions, profit sharing and take suggestions from the people doing the work seriously. The result was that Defasco was turning out superior product and had 6 months of back-orders while their unionized brothers down the street at Stelco were starving. Things that make you think.
what's your thoughts on the semi truck dropping a motor?
One of the most important things Joe Justice said was that Tesla is also doing something more than agile and he couldn't quite figure out what it was yet. I wonder what specifically he saw that made him say that?
CAN YOU DO ANOTHER VIDEO OF (AEI) ALSET EHOME
Ford needs to read about OODA loops.
I finally figured out what GM is leading in, it is leading in speed of demise of the company.
That would make a good website name.
We already warned Volkswagen responsibles of training and Human Resources in 1994 that a new paradigm to go with employees is necessary for innovation. We asked 7 personally relevant simple questions to measure 8 relevant Qualities. On 3 they where weak leading even to lie and make Dieselgate possible. So Tesla is about trust and responsibility and possibly also make mistakes, but only once!
Tesla at chess. Nice analogy!
Why does it take month/s to get repair parts ? I had waits of 2 months and more for collision repairs because parts were not available.
They don't keep a big supply of parts as Tesla changes parts every single day. So that can make them a bit slow in getting the new parts from the factories.
@@BestInTESLA I think the speed of parts supply will improve when Tesla gets their own robo-taxi fleet to reduce taxi downtime.
Why did you stop doing the teslap?
Wow great vidéo
Tesla is simply using technology to make a factory into an ever changing development center and the production center all at the same time. That means change isn't something that requires an interruption to production but is already allowed for in the production line. So a product is always changing as needed. This model makes the production line free flowing and ever changing. It's more like the flow of a river. It's not ridged but ever changing. That's not something you can do without designing it that way from the very beginning.
I need to see this Interview. 😅 please 🎉
I can imagine the leaders at Toyota, VW, GM and most of the other OEM saying: RUBBISH ! We have been building cars for over 100 years, no one knows how to make them better, and pushing their old and tired system over the precipice of oblivion. As evidenced by their EV response to Tesla, building their old cars as always have, but with electric motors. while millions upon millions of their old customers, surely more intelligent than them are patiently joining Tesla interminable waiting lists to get one of those technological pricey marvels, more apt to increase their value as a used car, than lose most in mere few years of an ICE ownership.
Slap! Mic Drop!
Great video and I admire what Tesla is doing. However, most people will not be able to tell how advanced Tesla cars are compared to other manufacturers. Simply put it this way, other manufacturers don’t need to keep up the pace and technology. They just need to paint themselves the right image to their audience.
Wow 😯
It'd be great if many US companies would learn from Tesla since not only Auto is slow, ineffective and frustrating when it comes to innovation!! 😄😁😆 SCRUM is great, still just one piece .....
Lars, you are very entertaining. I own a Tesla and am not worried about which company is winning. There are many EVs coming to the market. Many have features that Teslas brought to the market. Some actually have improved on Tesla features. They may never catch up but the consumer benefits from competition. I want Tesla to feel pressured to improve features on the cars. One issue that Tesla has is that they don't really want to abandon previous cars to add features that require hardware. With the refreshed Model X and Model S they made that type of move. Also some of the deleted options are annoying, my has the USB ports that are power only. (22 M3LR) earlier cars came with Homelink. My 2013 GMC Yukon has Homelink as do most GM products. I can get it for $300 but it's a $75 part that they removed. Tesla is stingy. Not a great idea.
What percent of customers would care about homelink? Is it more than cared about the handcrank back when Kettering introduced electric cranking?
@@lengould9262 you obviously missed my point.
I worry my MX car computer, chips, motherboard, FSD sensors, wiring etc will become obsolete in 10 years, like a 10 year old iPhone.
Will that ever happen to Tesla cars or will their be upgrades available to purchase for all that ?
10 years to change 😅 crazy VW...
See that FSD kicking off. Remember Apple iPhone OS 1? 🚀
Dude I work at GF1NV, I don't know what I am walking into every week.
banger
Now that Mr Diess is gone. The new Porsche CEO cannot make changes without going to the board. So... VW will be on the road trying to make changes as the bus goes along at 80 MPH. Which they will never be doing.
Legacy auto thinks Tesla has no moat. The pace of innovation is the moat.
Way2go Tesla
Hej Lars, thanks for the comprehensive run down! If you should still need supporters for your book, i'd be willing.
I count myself a fan of Joe, bit there is one thing i have been thinking about for quite some time now, and your video and book make me want to point it out: From my (sure - limited) point of view it looks like Joe is our only source of information about all these Tesla internals. I love what he talks about and believe in the principles, but i am not sure if this reflects - in detail or at all - what happens inside Tesla. And Joe has some often repeated punch lines (e.g. his "Tiki Bar atop Starbase launch tower") that to my knowledge are either stretching the boundaries of artistical freedoms, or are blatently false. All in all, i have my doubts. And it would be great if you could confirm his info from other sources. For the actual impact of your book i would actualy deem that advisable.
Thanks again and looking forward to the book!
Bests
Simon
Awesome if you want to be part of the launch Team just send me an email on BestinTesla@gmail.com 🙏🙏🙏
Agree.Specially with the part of the process wherein legal approval is obtained in minutes. I find that going against experience in the bureaucracy of government.
Lars, this is a minor, minor quibble about your intro, but it's been bugging me for many months now, so I thought I'd toss it out for your consideration. Whatever the topic of a video is going to be, you typically introduce it by saying something like, "So let's look at the process of pickling herrings, and dive right in". The "dive right in" phrase evokes a sense of progress that clashes with stating the detailed information gathering activity as if it occurs _before_ the "diving", rather than after/because of that diving. Whew; sorry for fumbling around so badly. To paraphrase Oddball, "Oh, man, I just _use_ English; I don't know what makes it _go_ ". Anyway, I'm saying the example would feel better if it were stated as, "So let's dive right in, and look at herring-pickling in detail".
What Elon said before, he's not afraid to open source and let other people copy, especially Chinese companies. By the time they copy tesla stuff, tesla already making products that is 2-3 years newer, so they are copying the old stuff. Rate of innovation is the key....Chinese company can't even keep up with tesla!! you think auto legacy maker can?? it's impossible. Tesla operate with Chinese speed mentally but with innovative ideas. Chinese operate with Chinese speed but with copy ideas
Lars, I appreciate your dedication to constantly thrashing the difference between Tesla and legacy auto, but I don't hear you mention as often how legacy auto has no compunction to adopt Tesla's methods as long as no BEV manufacturer can meet demand. A situation I expect to exist for at least the next five years. As such, you might want to pace yourself. A lot can change in five years, and this is a long time to repeat the same message.
Around 5:35. U.S. companies operate in a strictly top down structure. They won't change because capitalism abhors change.
Change has nothing to do with capitalism per se, it has to do with effective entrepreneurship. Hope you're not thinking that communism could do it better.
@@darylfoster7944 this is a typical reply. 'hey, at least we aren't totally shitty'. that's not good enough. it's like going to a restaurant serving shitty food and saying 'well, at least it's not actual shit'. quit parroting propaganda. use your brain and eyes and ears. LOOK around at the world capitalism has built.
@@TomUlcak I'm not going to argue with you. Capitalism has produced wealth beyond imagination, and has lifted billions from abject poverty and misery to a life of comfort. It is demonstrably, empirically better than any other system. End of story.
@@darylfoster7944 and, again, the same OLD propaganda. capitalism has also brought perpetual global war and a huge wealth gap. 100s of millions languishing in poverty and war. There is no argument here. You are disconnected from reality.
👏🏻👏🏻👏🏻✌🏻
Wow!, that TRINITY VW looks a lot like the Tesla model S!.
All the legacy auto makers just wanna be a Tesla but you can't just do it cosmetically it's just a bit more than that!... R.I.P. LEGACY!
New joke: e=mc2; it only matters if you have enough energy.
So Tesla never has to worry about industrial espionage because any detailed schematic taken of one of their cars in the morning is obsolete by the end of the day...
I like the "32 Queens" comment.
Thirty-two Queens, Sixteen Knights, Sixteen Bishops, Sixteen Rooks, and an army of Sixty-Four Pawns. Must be nice. I learned more from games of Chess I lost than those I won. Assured Domination would be nice though. The certainty of Winning might make one sloppy. Don't play Chess with a Pigeon, though. They'll knock over the pieces, $#!+ on the board, then proclaim themselves _'The WINNER',_ just like *GM.*
Soon, Tesla will own the tire companies as well or make one up with tires that do not need replacement up to 1,000,000 miles. There have been a lot of new inventions (supposedly), but nothing for the consumers.
Ok, pick up the slack and run with it. Out compete their supplier.
@@EZ2NVDon , do we need their synthetic rubber? Maybe not! There is graphite and newer materials. Elon has the best tech research to develop manufacturing them en masse.