Dear Reader,
Just a quick update to the profile I shared last week on Wright’s Law.
Elon Musk, CEO of Tesla and SpaceX, was interviewed this week in south Texas at SpaceX by Sandy Munro, automotive engineer and CEO of Munro & Associates based in the Greater Detroit area. Munro & Associates works with automotive companies around the world on product development and manufacturing processes. Elon and Sandy spent much of 50 minutes discussing the 3 technical topics we explored last week. I list those 3 topics again below.
Elon stated casting the rear under-body segment as one piece eliminates the need for 300 robots required to build the same segment out of 70 separate pieces.
The interview is on technical topics, but it does provide great insights into the innovation taking place at Tesla if you are interested. Consider it due diligence. Times for specific sections are also provided below.
9:47 Autopilot
17:10 Megacastings
22:15 Structural Battery Pack
Another 300 robots are eliminated when Tesla begins casting the front underbody segment as one piece. Elon stated Tesla previously used 1,000 robots on the vehicle body production line. So two process improvements for front and rear underbody segments will eliminate the need for 60% of those robots (600 out of 1,000). Those robots can now go towards use at other Tesla factories under construction in Berlin and Austin, Texas where these casting processes will also be used.
And last week’s profile is now Part 1 in a Series on Disruptive Innovation. I will share Part 2 tomorrow.
This 3-Part Series will cover:
Disruption according to Wright: Y=aX^b
How Steve Jobs Disrupted Intel
How to Disrupt a Pandemic
And the 3 key Tesla technical topics we explored last week to build operating leverage with investments into process improvements and product innovation.
Tesla will manufacture their own structural battery pack using new 4680 cells integrated directly into the chassis.
Tesla installed and incorporated the largest casting machines in the world into production. A casted one-piece underbody segment replaces 70 parts previously built and assembled to make the same component.
Telsa is developing and piloting autonomous navigation with a beta version of its Full Self-Driving service. They are using about 1,000 Tesla owners to pilot this beta version and update the software every few weeks with improvements. Sandy and Elon discussed how this feature when operational could save more lives than all other automotive safety features combined.
Best,
Stephen Pittman