Great video John it’s good to see someone with your expertise affirm Tesla’s presentation on their new approach. It was super frustrating hearing the financial media’s take on it.
The Financial Media is paid for. Legacy Auto spends millions in advertising. The talking heads only say what is put on the teleprompter and the instructions on what & how to say what they say come from the people paying the money.
Thank gosh you get it John. Great for us all… And Tesla individual investors You were however too kind… The legacy automakers have just been handed their notice publicly … In 2 years they are GOING TO BE CRUSHED! Gob smacked RIP ya all! MARY YOU are LEADING … a dead man walking “THE General” to its own demise! The valley of the shadow of death for GM and the year of its likely occurrence etc is in Nuevo Mexico in 2025.
With how many people, analysts, etc that seem to have had the point of Master Plan Pt 3 just go over their heads ... it's really nice to see those that understood what occurred.
Fantastic video. Writing, presentation, historical context, the analysis. John needs to do more solo reporting on Tesla like this. A rare combination of legacy industry insight and appreciation for innovation.
@@MSportsEngineering he used to have a laugh @ Tesla from my recollection, nobody laughing now at Tesla, not even Bob Putz, wonder if he will be back in AD as guest, oh Mary Barra did say GM will be#1in BEVs by 2025, what a joke she is.
John, Bravo! I'm a Detroiter who owns a Tesla and is a stockholder so I follow the industry very closely. I am appalled by the lack of education, ability to assimilate information to take time to comprehend what Tesla is doing. by the so called financial sector. WSJ had two girls on who knew very little about Tesla and said Tesla offered very little information. The same with so many other so called auto experts who said the information was ho-hum.. You, on the other hand, hit it out of the park. I have been impressed with your evolving opinions about Tesla and its accomplishments. I am so much more likely to watch both your Network and After hours after watching some meaningful discussions. Keep up the good work. I can picture you driving that Model S Plaid. May I suggest having some Tesla owners on your show. It would increase your audience greatly. To characterize Tesla's next generation platform process as revolutionary is spot on! With a smile on my face. Thanks, again.
This actually the best content outlining the actual significance of investor day; way smarter and insightful than anything Bloomberg/CNBC or anyone in the MSM put out. Incredible stuff, keep it up.
Another person who gets it. John, this was an excellent video. I simply loved the history clips, your story telling and you are right, I think the best part of the presentation was this bit about how Tesla are going to change the way their cars are built. It makes perfect sense. It's incredible to think of all the car manufacturers today in the world, not one of them had thought of this idea. How come Tesla is so different?
Elon, nor people that have success with him think of this quarter, or the financial year, and their bonus. A few years ago on after hours there was a discussion of the PT cruiser, the most shocking thing was it made money, but the people who designed it, moved on after it went into production, so when the mid life refresh was meant to happen, their was no one to say this is a good thing to do, and the car died. Managers at the legacy car companies are trying to get the next bonus, the next promotion, if what they do works why change? Why spend the personal/political capital to try and change someones opinion when it might cost you something.
There always that one person that comes along and reimagines an industry (ex. Phones, Internet, Auto, Health etc.) Just look back at cell phones were created or personal computers.
Of course you got the significance of what Tesla laid out for everyone! It makes me wonder about the qualifications of many of the "auto analysts" for large funds, responsible for investing millions of dollars, that clearly don't get this very clear message from Tesla??
Super presentation. I was astounded that so many people thought it was a big nothing presentation. I was spellbound too. And wanted to buy more stock immediately!
Thanks John. Amazing how there seemed to be two completely different presentations given at exactly the same time. I guess that is true for almost any experience.
I found it interesting that today, Tesla installs the computer at the beginning of assembly, and the computer detects and tests parts as they are added. I don't know if that is common in the industry.
No its not common, actually Tesla is the only one - not even Nio or Xpeng do it that way. The computer not only detects but is the built in the quality control and test of all sub assemblies of the car as it is built and operated all the time. And it is used for most of the service and manintenance work afterwards till its end. You can perfectly well say, the car is built around the computer. Drive train, displays, additional displays in the S/X etc. are all known to every car. e.g. the chargers and power electronics are identical between ALL cars since Plaid/3/Y. Each car knows what parts it has built in and adjusts accordingly. Down to charging, discharging, sentry mode, motor temps. Everything.
Nope, none are doing anything close to this. Tesla has a virtual car, and for each car, they have all the information duplicated in the database, so in any problem, they will know exact all the components at highest detail level possible...
Nothing Tesla does is common in the industry !!! I too found that part to be so simple, yet so profound !! By-the-way, no other OEM can do this because the computer in the car only runs the entertainment system, all the other computers are from suppliers that can barely talk to other computers through the CAN Buss.
The electrical part makes a similar difference. Going to 48v is huge and going from bus to start pattern even better. Using ethernet is smart too, did you see how thin those wires are ...
The Unboxed process was the one thing that stood out the most to me from investor day. I hope you can eventually do an Autoline After Hours with manufacturing experts to talk through the pros and cons of the Unboxed process.
💯 Agree with you John! Kathy Wood said Tesla was a disrupter in more than one way and challenging the OEM's over automobile production is just another example. OEM's have a lot of catching up to do. An all 48-volt architecture (not mild hybrid) is another example of Tesla moving the needle in car production. I cannot wait to see Tesla's next gen platform!
Wow John, I just learned the history of how OEMs build cars and it's fascinating. I believe the likes of Ford really want to do something but their hands are tied with the intricacies of dealerships and unions. History is actually being made right in front of their eyes, and only startups like Rivian will benefit from Tesla's success. Great show and this is why I'm locked to this channel. Thanks for taking us down memory lane.
John, it is so great to see how far you've come. I remember the fire side chat style before COVID, when Sandy Munro came on the show and warned all of you naysayers about his findings in the Tesla teardown. That was the moment when I first saw a 'legacy' engineer begin to recognize why us 'Tesla Fanboys' were so fanatical about the company. I have been watching your channel and how you have been slowly convincing yourself that EV's are going to truly disrupt the automotive industry in the next couple of years. With this video, I can see that you now feel that this is a certainty, and that you give full credit to the company which is about to cause it. Welcome to the brightside!
John your great! I am glad a %40 reduction in Tesla's process is no big deal. It buys me more time to add to may Tesla stock at a low price. I am expecting another 12-18 months before the stock is given it do. Till then I am piling on with dollar cost averaging and buying the dips. Hope others are too.
Great show John. Really appreciate your knowledge and experience in the auto industry. You pull it all together in an objective, 'big picture' way. Thank you.
The financial media! They are still debating if Tesla is just a car company. Tesla develops its own back office software (typically this is sw from SAP and Oracle), and they have come up with top 2 supercomputer (Dojo) in the world, all done in house. Can someone tell me which other car maker has ever done anything like that?
Tesla continues to impress. Now, they are even moving to change the entire automotive industry. Many at Tesla are wearing thinking caps to work. Great presentation by the folks at Autoline Network.
Tesla: We need to use Optimus robots to assemble cars Tech: Optimus can't contort the same as humans. Optimus can only assist Tesla: Let's make our cars in a way that Optimus can assemble them Tech: Unbox the assembly line into discrete, fully accessible sections - assemble those sections into a car. ALL Optimus friendly.
Don't believe the lies from Telsa and Elon Musk the Trump supporter The way Tesla wants to make cars is very bad it is totally unrepairable and disposable. If a Tesla has a tiny Bingle it will be a total unrepairable write-off Tesla is taking away your right and ability to repair your own car. We need cars to be made normally so they can be repaired I will never ever buy a Tesla or speaking nicely about them again after all this bullshit you stupid yanks say All American Made cars are ugly rip off lemon dangerous lemons
Nice video John. I am sure some where in the comments people will call you a fanboy, but you might be among the last journalists who tries to report on the facts and give context not motivated by an agenda. When you look at Tesla company culture, there is a cost cutting and improvement mindset no one else has captured. Go back five years or so, people complained about range, charge times, places to charge, 12 volt batteries failing, and so on. Tesla has built out the best charging network in both up time and number of chargers, but they have not slowed down on that. They evolved the charging stations to be easier and quicker to install. Tesla have good range. Work well in cold places thanks to the octovalve among other innovations. The list goes on. I love the enhancements to quality control they laid out as well. Tesla struggled with quality but as Sandy Munro and others have noted, huge improvements by Tesla. I really believe Tesla will quality levels exceeding current top builders of vehicles of anykind. If Tesla was 3-to-5 years ahead of the competition, I would say they are now 7-to-9 years ahead. GM and VW had made claims of crushing Tesla by 2025, but there is basically zero chance of that. I want to see many manufacturers do well in the EV space, so I hope GM and others just use Tesla as an example to follow and do it. As you noted John, the industry has not truly changed that much in many decades. Toyota and their just in time systems was the last major change, unless you count massive outsourcing.
John, spot on. However, I have seen some rather big front end ICE assemblies go into vehicles. I think you just gave Tesla a productivity enhancement idea - multiple final assembly stations rather than a final assembly line.
This was really fascinating! Very insightful. Keep up the great work guys. I’ve been watching for at least five years now and there is always something to learn from your reporting.
@5:35 _automated_ which is where *Optimus SubPrime* comes in. You can put *two* of them on a rotating belt so when the process is finished, the next part can be put in front of the next robot on the line to start the process all over.
I am also surprised by the stock markets reaction to this presentation. Tesla literally announced the biggest change in automotive assembly process in decades, explained exactly how they are going to do it, and nothing happened. GM can come out with a statement “We will beat Tesla in 2 years”, provide zero plans and zero explanation for it, and everyone goes crazy. Why?
Dude you nailed it! We all know why. Those Harvard analyst Boys just want Some BS to fill in the blanks. They don't care if its a GM fairy tale or not.
I sort of understand the madness. Wall Street analysts have a fiduciary (legal) duty to recommend or buy based on what is presented as fact. If they 'make up' the numbers they can potentially be sued. So the numbers are super important to them. Although Tesla outlined their genius plan to crush the competition the lack of timescale means shorter term investments have trouble knowing how far out the profits will be. As a long term investor I accept higher short term risk but these guys absolutely want it all spelled out to feel comfortable in keeping their jobs. It seems most institutional money is value based and craves stability and certainty over growth. Look how they ran to bonds as soon as such became 'profitable' as proof of this, even though Tesla will out perform them by hundreds of percent in all probability.
The plant in Mexico being claimed to be 2x bigger than Texas, , one could venture a guess they could have 2 car assembly line and 1 line for batteries or 3 lines for cars. Time will tell. I'm sure (and I hope) legacy OEMs are watching too.
Manufacturing engineers over the years must have thought of module assembly, and then "wheel-shaped hub & spoke" module paths to the emerging car in the center. Surely this was a master's or PhD thesis subject somewhere in Mechanical or Manufacturing Engineering. Picture it: Modules are assembled separately, then rolled over to the center of the room, where the modules are all mated together. These days you can simulate it of course to measure time savings.
Very exciting! I knew about Ford's early experiments with the assembly line but didn't know they were inspired by the milling and meat industries. From giga castings to the new assembly line, Tesla has been showing some really original thinking.
Well to make 4680s Elon and drew said they had the in house battery engineering&design teams all study businesses like paper mill's and bottling plant's. He wants cells coming out at machine gun speed(I amended that to gau gatling gun speeds. 😀 Nothing new under the sun really. Just more mimicry and imitation. Tesla isn't afraid in any phase of design to fail forward fast. I can't wait to watch the mx giga go up. I predict at least one major legacy oem bankruptcy when that plant is open&fully ramped. 👍🏻😎
You forgot to mention that Tesla is finalizing the development of their own Optimus robots to do the actual assembly of the cars. Tesla showed a video of this happening, but no one seems to have recognized the significance of that short video. Even Sandy Munro missed it.
John you and Sandy have MANY many high level automotive and manufacturing connections. Along with what about a century of combined industry experience? Will you both do whatever you can to help the legacy ice dinosaurs or will you just watch them SINK? 🤔
Did you not see them doing exactly that for several years?? They are borderline on their knees already. Jim in Ford gets it though…just his hand is tied because of unions and dealerships
@@wolfgangpreier9160 Very true! At first they will be "too big to fail" and will get bailed out. But that will only save them for a while.... (GMs last bailout saved them for about 15 years). But at some point, if you don't employ many people, and don't make a profit because you don't make things that people want efficiently, what will be left to bailout?
@@TheLastMoccasin Yes, i guess 2030-2035 will be the big extinction event of many industrial players. Including car manufacturers, power plant and turbine builders and many more.
@@wolfgangpreier9160 Yep! I think some of the bankrupcies will happen this decade, but to your point they might be just the wasteful bailout part where we pour good taxpayer money down the drain on failed companies that have been disrupted. It's the circle of life.... just let it play out!
Mary did it! 😆 Good luck to GM and other legacy automakers as they will be so slow to change and organized labor will also keep them from progressing and reducing labor costs. Also, their dealers will make it difficult to compete with Tesla on value. The next couple of years will be real interesting.
7:05 It does not say that the cost of assembling the car will be cut in half. It clearly says "Cost of Goods Sold", i.e. manufacturing cost of the whole car will be halved. But that is due to many reasons, not just this one. E.g. that will be a smaller vehicle. And actually it is not new news that the new vehicle will be cost half to produce then M3. It would be good to see how much the assembly will be cheaper.
Watching a video like this leads me to one BIG theme: That America can still be a manufacturing juggernaut. For all the lovers and haters of Elon out there, what’s becoming more evident as time passes is that Elon is restoring America’s legacy of being able to create and manufacture the best things on Earth…
The machine that makes the machine. First it was the best planned factory to improve efficiency, now it will be the best planned approach to building and assembling the pieces. The best part is no part. While others are watching in awe, Tesla continues to rethink and create better ways. Catch me if you can.
Reminds me of another commentator who had a truly brilliant comment on how far ahead tesla really is vs the competition. They said sometimes in a race a car that appears to be leading is really just about to get lapped again. And Elon has said multiple time's 2nd place to tesla can't even see them with a telescope.😀
Others will not compute! They Cannot catch up! Standing on ones gapeing Mouth and lip, one Can only try to lean forward into what was being Announced. War! Tesla’s launching rocket wash! But for legacy automotive and manufacturing History the future is now defined This was a public CHALLENGE / declaration! Try not… There is NO Try!
But where's my shiny new computer rendering of the next model and its countless variations for the sake of variation? ;) Great video. Tesla has built a great culture that encourages cross team collaboration which is difficult as companies grow larger.
It's understandable that analysists haven't a clue. They only understand seeing a shiny new car, which 99% of those are old cars with a new grill. The fact they are always wrong about Tesla makes you wonder who actually pays them to be wrong or are they just incompetent?
In Louisville plant years ago, they used 2x4 for spacing between the chassis. There was discussion with the Union about increasing the the number of units per hour and there were negotiations related to that and the party's were making no progress. Management finally reached an agreement but they also shortened each 2x4 by 6” and dirtied the cut off end with oil and dirt and increased the throughput even more, without the workers even knowing
@0:13 Yes it will *Mr McElroy.* This will be the biggest change since *Henry Ford* introduced the *Production line.* What makes the new _parallel-serial_ line configuration possible is what *SpaceX* learned about tile installation while building *StarShip.* The _painted_ outer sheet metal parts _don't_ have to be involved in the construction of the vehicle's frame or internal components. It took 100 years for somebody to see it, but now that they have, I expect that everybody will be building their EVs this way ... hopefully before they all go bankrupt.
The other OEMs can not follow this change of the production line. They would have to unlearn and relearn everything they know about their business. They simply can not afford to do so. A new company may be able to follow it, but how many new companies will start producing a million cars in the future? I predict: Zero.
@@jamesvandamme7786 True. Just like the german car manufacturers who have taken Europe hostage and prevented the new EU law that 2035 all fossil burning cars are to be extinct. Too many managers. We just have to wait untill they all die out themselves in the next years and then stop fossil burning vehicles in 2032 anyway. Oopsie..
Wow I wasn't actually sure if this was a "new new" method of automotive assembly just based on the hype reactions from fans. But coming from John and his knowledge of the history this is incredibly exciting. Can't wait to see new line up and running
It is not new for shipbuilding. Shipbuilders could not use the assembly line method so this is how they speed up ship construction. They built large superstructure that later gets mated together into one ship. The difficulty with this system is that you need higher precision to make sure the modules all fit together. The same with painting you need very precise painting shop to make sure the color hue match up between different modules.
I would like to also hear your thoughts about Tesla showing the Optimus bot video along with the modular assembly process. Do you think they were hinting (loudly?) at the possibility of Optimus workers assembling parts of the modules? I could see where a 'worker' located in a fixed position assembling the same part(s) continually would be the kind of repetitive boring job that is ideal for humanoid bots. Do you think there could be a few Optimus bots ready to go to work by the time GigaMexico opens for business?
IMO that's one of the bigger reasons why they want to move to modular assembly. There will be traditional robots putting together parts of the car, but as the "Optimus" bot learns more abilities it will replace more and more human workers every year. It baffles me that most people see this scenario as pure science fiction when we KNOW this type of work is not all that complex (ie pick up one small part and screw it on the larger part). It's not at that stage yet today in early 2023, but in just a few years it may well be.
Great video John it’s good to see someone with your expertise affirm Tesla’s presentation on their new approach. It was super frustrating hearing the financial media’s take on it.
The Financial Media is paid for. Legacy Auto spends millions in advertising. The talking heads only say what is put on the teleprompter and the instructions on what & how to say what they say come from the people paying the money.
They were expecting a flying car for the new Freedom Cities we are going to build.
When was the last time financial media actually understood what is being presented? It usually takes them a week or a month to get it.
Thank gosh you get it John.
Great for us all…
And Tesla individual investors
You were however too kind…
The legacy automakers have just been handed their notice publicly …
In 2 years they are GOING TO BE CRUSHED!
Gob smacked
RIP ya all!
MARY YOU are LEADING … a dead man walking
“THE General” to its own demise!
The valley of the shadow of death for GM and the year of its likely occurrence etc is in Nuevo Mexico in 2025.
Elon Musk be beating the stupid out of his engineers
@1:22 *Clarence Avery* is one of the most forgotten names in history. Thank you for bringing it back,
With how many people, analysts, etc that seem to have had the point of Master Plan Pt 3 just go over their heads ... it's really nice to see those that understood what occurred.
Fantastic video. Writing, presentation, historical context, the analysis. John needs to do more solo reporting on Tesla like this.
A rare combination of legacy industry insight and appreciation for innovation.
Sandy Munro also talked about this but your explanation is so well presented for laymen like us. Thanks!
Simplification of the car/manufacturing process also reduces the number of recalls. It would be great to see how much this is worth.
John McElroy = one time Tesla skeptic and critic has become one of Teslas and Elon Musk fans, it seems , thank you John, you have come a a long way!
That’s the beauty 😬 he is not a fan of anyone 👍 he just says exactly the way he sees it, which is why he is still at the top of automotive reporting
He has always been balanced and objective. Skeptic is definitely not the right word.
@@MSportsEngineering he used to have a laugh @ Tesla from my recollection, nobody laughing now at Tesla, not even Bob Putz, wonder if he will be back in AD as guest, oh Mary Barra did say GM will be#1in BEVs by 2025, what a joke she is.
I was thinking the same. John jabbed at Tesla in the past but now he has joined the Tesla Cult. Welcome!
Fantastic 10,000 foot view, thank you!
The 5th grade excel sheet ninjas at Wallstreet couldn't understand anything from Tesla's technical presentation
John, Bravo! I'm a Detroiter who owns a Tesla and is a stockholder so I follow the industry very closely. I am appalled by the lack of education, ability to assimilate information to take time to comprehend what Tesla is doing. by the so called financial sector. WSJ had two girls on who knew very little about Tesla and said Tesla offered very little information. The same with so many other so called auto experts who said the information was ho-hum.. You, on the other hand, hit it out of the park. I have been impressed with your evolving opinions about Tesla and its accomplishments. I am so much more likely to watch both your Network and After hours after watching some meaningful discussions. Keep up the good work. I can picture you driving that Model S Plaid. May I suggest having some Tesla owners on your show. It would increase your audience greatly. To characterize Tesla's next generation platform process as revolutionary is spot on! With a smile on my face. Thanks, again.
I'm with you.
This actually the best content outlining the actual significance of investor day; way smarter and insightful than anything Bloomberg/CNBC or anyone in the MSM put out. Incredible stuff, keep it up.
I agree that this was the best summary of the significance of investor day. I will be watching this channel more.
No one wants to talk about it but Tesla just made it so robots can do it all, fulfilling Elon's original vision.
Exactly. This new process will make it easier to use T-bots for much of the assembly work. Tesla's labor costs will be hugely reduced.
They’ll make the robots other OEMs have to purchase in order to eventually duplicate this new revolutionary process. 🤯
@@alojah8 I am convinced almost all of them will be out of business by the time they are ready to sell optimus.
and the robots will make the robots 👍😎✊
Another person who gets it. John, this was an excellent video. I simply loved the history clips, your story telling and you are right, I think the best part of the presentation was this bit about how Tesla are going to change the way their cars are built. It makes perfect sense. It's incredible to think of all the car manufacturers today in the world, not one of them had thought of this idea. How come Tesla is so different?
Maybe because Elon is not of this Earth, he constantly thinks of Mars .
Elon, nor people that have success with him think of this quarter, or the financial year, and their bonus.
A few years ago on after hours there was a discussion of the PT cruiser, the most shocking thing was it made money, but the people who designed it, moved on after it went into production, so when the mid life refresh was meant to happen, their was no one to say this is a good thing to do, and the car died.
Managers at the legacy car companies are trying to get the next bonus, the next promotion, if what they do works why change?
Why spend the personal/political capital to try and change someones opinion when it might cost you something.
No union
No advertising
No dealers
No entrenched bureaucracy
Alien technology
There always that one person that comes along and reimagines an industry (ex. Phones, Internet, Auto, Health etc.) Just look back at cell phones were created or personal computers.
Fascinating stuff! John is like Paul on the road to Damascus. He has “seen the light”
Of course you got the significance of what Tesla laid out for everyone! It makes me wonder about the qualifications of many of the "auto analysts" for large funds, responsible for investing millions of dollars, that clearly don't get this very clear message from Tesla??
Jonas got it.
Deutsche Bank gets Tesla.
Super presentation. I was astounded that so many people thought it was a big nothing presentation. I was spellbound too.
And wanted to buy more stock immediately!
Thanks John. Amazing how there seemed to be two completely different presentations given at exactly the same time. I guess that is true for almost any experience.
I found it interesting that today, Tesla installs the computer at the beginning of assembly, and the computer detects and tests parts as they are added. I don't know if that is common in the industry.
No its not common, actually Tesla is the only one - not even Nio or Xpeng do it that way. The computer not only detects but is the built in the quality control and test of all sub assemblies of the car as it is built and operated all the time. And it is used for most of the service and manintenance work afterwards till its end. You can perfectly well say, the car is built around the computer. Drive train, displays, additional displays in the S/X etc. are all known to every car. e.g. the chargers and power electronics are identical between ALL cars since Plaid/3/Y. Each car knows what parts it has built in and adjusts accordingly. Down to charging, discharging, sentry mode, motor temps. Everything.
Nope, none are doing anything close to this. Tesla has a virtual car, and for each car, they have all the information duplicated in the database, so in any problem, they will know exact all the components at highest detail level possible...
Nothing Tesla does is common in the industry !!! I too found that part to be so simple, yet so profound !!
By-the-way, no other OEM can do this because the computer in the car only runs the entertainment system, all the other computers are from suppliers that can barely talk to other computers through the CAN Buss.
ua-cam.com/video/JOAI1uzZMU4/v-deo.html
@@bbcooter388 Exactly! They cannot do it because they don't have a central computer, just individual drive units for the cars systems.
I am so glad that you see what Tesla is about, good job John!
Great video! Most don’t se the paradigm shift in manufacturing coming from Tesla but you clearly do. Thanks for the info!
Your segment and Sandy Monroe's are insights into the changes in the industry. Well done. Keep making them !
Historically the younger lot gets/appreciates the new way of doing things. Not here first Munroe changed opinion on Tesla and now John. Interesting.
The electrical part makes a similar difference. Going to 48v is huge and going from bus to start pattern even better. Using ethernet is smart too, did you see how thin those wires are ...
@6:25 _Adhesives_ to cement the components that have _snapped_ together on spikes like *SpaceX* installs a tile to a *StarShip.*
Awesome analysis!!!!
Creative thinkers always trump “we are used to doing it this way and it works” …..so we’re not changing anything.
You are awesome John ! Thanks!
The Unboxed process was the one thing that stood out the most to me from investor day. I hope you can eventually do an Autoline After Hours with manufacturing experts to talk through the pros and cons of the Unboxed process.
Exceptional analysis John. I too found the presentation to have profound implications for the future of manufacturing. Exciting stuff!!!
Great Video! Your definitely smarter than those Harvard educated analysts! 👍
50 years of experience 😅
💯 Agree with you John! Kathy Wood said Tesla was a disrupter in more than one way and challenging the OEM's over automobile production is just another example. OEM's have a lot of catching up to do. An all 48-volt architecture (not mild hybrid) is another example of Tesla moving the needle in car production. I cannot wait to see Tesla's next gen platform!
Tesla production is at the bottom of the industry and there initial quality shows it.
Wow John, I just learned the history of how OEMs build cars and it's fascinating. I believe the likes of Ford really want to do something but their hands are tied with the intricacies of dealerships and unions. History is actually being made right in front of their eyes, and only startups like Rivian will benefit from Tesla's success. Great show and this is why I'm locked to this channel. Thanks for taking us down memory lane.
Brilliant explanation
John, it is so great to see how far you've come. I remember the fire side chat style before COVID, when Sandy Munro came on the show and warned all of you naysayers about his findings in the Tesla teardown. That was the moment when I first saw a 'legacy' engineer begin to recognize why us 'Tesla Fanboys' were so fanatical about the company. I have been watching your channel and how you have been slowly convincing yourself that EV's are going to truly disrupt the automotive industry in the next couple of years. With this video, I can see that you now feel that this is a certainty, and that you give full credit to the company which is about to cause it.
Welcome to the brightside!
Great presentation, Nothing hidden just the facts, best you've done so far!
Thank you.
WOW, huge respect John, and great info about Model T as well.
You are a gem in the industry!!!!!
John your great! I am glad a %40 reduction in Tesla's process is no big deal. It buys me more time to add to may Tesla stock at a low price. I am expecting another 12-18 months before the stock is given it do. Till then I am piling on with dollar cost averaging and buying the dips. Hope others are too.
I thought it was an amazing presentation. Only people who can see further understood this. Thanks for covering
Great show John. Really appreciate your knowledge and experience in the auto industry. You pull it all together in an objective, 'big picture' way. Thank you.
And this has been History lessons with John...
The financial media! They are still debating if Tesla is just a car company. Tesla develops its own back office software (typically this is sw from SAP and Oracle), and they have come up with top 2 supercomputer (Dojo) in the world, all done in house. Can someone tell me which other car maker has ever done anything like that?
Tesla continues to impress. Now, they are even moving to change the entire automotive industry. Many at Tesla are wearing thinking caps to work. Great presentation by the folks at Autoline Network.
John, your videos are a pleasure to watch - your insight into the auto business is unsurpassed. Thank you.
Good video! Simple, no-nonsense, clear, and concise. Well done.
Thanks for this info!
More fabulous information, thanks, John!
Tesla: We need to use Optimus robots to assemble cars
Tech: Optimus can't contort the same as humans. Optimus can only assist
Tesla: Let's make our cars in a way that Optimus can assemble them
Tech: Unbox the assembly line into discrete, fully accessible sections - assemble those sections into a car. ALL Optimus friendly.
*Tesla's #1 weapon against those who would be competitors: **_economics_*
Fantastic video, best explanation I’ve seen on this subject.
Don't believe the lies from Telsa and Elon Musk the Trump supporter
The way Tesla wants to make cars is very bad it is totally unrepairable and disposable. If a Tesla has a tiny Bingle it will be a total unrepairable write-off
Tesla is taking away your right and ability to repair your own car.
We need cars to be made normally so they can be repaired
I will never ever buy a Tesla or speaking nicely about them again after all this bullshit you stupid yanks say
All American Made cars are ugly rip off lemon dangerous lemons
Nice video John. I am sure some where in the comments people will call you a fanboy, but you might be among the last journalists who tries to report on the facts and give context not motivated by an agenda.
When you look at Tesla company culture, there is a cost cutting and improvement mindset no one else has captured.
Go back five years or so, people complained about range, charge times, places to charge, 12 volt batteries failing, and so on. Tesla has built out the best charging network in both up time and number of chargers, but they have not slowed down on that. They evolved the charging stations to be easier and quicker to install. Tesla have good range. Work well in cold places thanks to the octovalve among other innovations. The list goes on.
I love the enhancements to quality control they laid out as well. Tesla struggled with quality but as Sandy Munro and others have noted, huge improvements by Tesla. I really believe Tesla will quality levels exceeding current top builders of vehicles of anykind.
If Tesla was 3-to-5 years ahead of the competition, I would say they are now 7-to-9 years ahead. GM and VW had made claims of crushing Tesla by 2025, but there is basically zero chance of that.
I want to see many manufacturers do well in the EV space, so I hope GM and others just use Tesla as an example to follow and do it. As you noted John, the industry has not truly changed that much in many decades. Toyota and their just in time systems was the last major change, unless you count massive outsourcing.
Very informative, thanks John
John, spot on. However, I have seen some rather big front end ICE assemblies go into vehicles. I think you just gave Tesla a productivity enhancement idea - multiple final assembly stations rather than a final assembly line.
This was really fascinating! Very insightful. Keep up the great work guys. I’ve been watching for at least five years now and there is always something to learn from your reporting.
This is gold! Thank you for recognizing and sharing this with us.
@5:35 _automated_ which is where *Optimus SubPrime* comes in. You can put *two* of them on a rotating belt so when the process is finished, the next part can be put in front of the next robot on the line to start the process all over.
I am also surprised by the stock markets reaction to this presentation. Tesla literally announced the biggest change in automotive assembly process in decades, explained exactly how they are going to do it, and nothing happened. GM can come out with a statement “We will beat Tesla in 2 years”, provide zero plans and zero explanation for it, and everyone goes crazy. Why?
Dude you nailed it! We all know why. Those Harvard analyst Boys just want Some BS to fill in the blanks. They don't care if its a GM fairy tale or not.
I sort of understand the madness. Wall Street analysts have a fiduciary (legal) duty to recommend or buy based on what is presented as fact. If they 'make up' the numbers they can potentially be sued. So the numbers are super important to them. Although Tesla outlined their genius plan to crush the competition the lack of timescale means shorter term investments have trouble knowing how far out the profits will be. As a long term investor I accept higher short term risk but these guys absolutely want it all spelled out to feel comfortable in keeping their jobs. It seems most institutional money is value based and craves stability and certainty over growth. Look how they ran to bonds as soon as such became 'profitable' as proof of this, even though Tesla will out perform them by hundreds of percent in all probability.
@@garethrobinson2275 But yet they still go GA GA at any unsubstantiated future plan GM makes.
@Tony Simi Yes but GM give them numbers so they don't have to take responsibility. Not safe for investors of course.
Enjoyed the info. 21st century pioneering.
Wow this is a top notch video from John⭐️⭐️⭐️⭐️⭐️
Great report! I too missed the what and how concerning assembly line reformation.
Great Video John.
The plant in Mexico being claimed to be 2x bigger than Texas, , one could venture a guess they could have 2 car assembly line and 1 line for batteries or 3 lines for cars. Time will tell. I'm sure (and I hope) legacy OEMs are watching too.
Manufacturing engineers over the years must have thought of module assembly, and then "wheel-shaped hub & spoke" module paths to the emerging car in the center. Surely this was a master's or PhD thesis subject somewhere in Mechanical or Manufacturing Engineering.
Picture it: Modules are assembled separately, then rolled over to the center of the room, where the modules are all mated together.
These days you can simulate it of course to measure time savings.
This channel should have at least 1M+ subs for the quality of content and industry news it supplies
Love these single topic shows with a sniff of history. Great work John.
Very exciting! I knew about Ford's early experiments with the assembly line but didn't know they were inspired by the milling and meat industries. From giga castings to the new assembly line, Tesla has been showing some really original thinking.
Well to make 4680s Elon and drew said they had the in house battery engineering&design teams all study businesses like paper mill's and bottling plant's. He wants cells coming out at machine gun speed(I amended that to gau gatling gun speeds. 😀
Nothing new under the sun really. Just more mimicry and imitation. Tesla isn't afraid in any phase of design to fail forward fast.
I can't wait to watch the mx giga go up. I predict at least one major legacy oem bankruptcy when that plant is open&fully ramped. 👍🏻😎
They called it first principle thinking over in Tesla 😅
Excellent segment John! I really enjoyed the historical references!
Hey John, please, PLEASE, tell Wall Street! It’s astounding what Tesla will do to completely revolutionize manufacturing.
Pass this video along 😅👍 he did his part.
Kudos Jon. Excellent take
Thanks John!
That is why I watch your show. I did not get how Tesla s modular approach can save much money. Now I know : ) Great show.
You forgot to mention that Tesla is finalizing the development of their own Optimus robots to do the actual assembly of the cars. Tesla showed a video of this happening, but no one seems to have recognized the significance of that short video. Even Sandy Munro missed it.
That's how powertrains are manufactured/assembled.
John you and Sandy have MANY many high level automotive and manufacturing connections. Along with what about a century of combined industry experience? Will you both do whatever you can to help the legacy ice dinosaurs or will you just watch them SINK? 🤔
Did you not see them doing exactly that for several years?? They are borderline on their knees already. Jim in Ford gets it though…just his hand is tied because of unions and dealerships
This matters!!! .... Every end, has a beginning, and this might just be the beginning of that end for Legacy Auto.
Its not, they just have to get used to never again make any profit after 2025. The American, Japanese and German tax payers will pay the price.
@@wolfgangpreier9160 Very true! At first they will be "too big to fail" and will get bailed out. But that will only save them for a while.... (GMs last bailout saved them for about 15 years). But at some point, if you don't employ many people, and don't make a profit because you don't make things that people want efficiently, what will be left to bailout?
@@TheLastMoccasin Yes, i guess 2030-2035 will be the big extinction event of many industrial players. Including car manufacturers, power plant and turbine builders and many more.
@@wolfgangpreier9160 Yep! I think some of the bankrupcies will happen this decade, but to your point they might be just the wasteful bailout part where we pour good taxpayer money down the drain on failed companies that have been disrupted. It's the circle of life.... just let it play out!
Mary did it! 😆 Good luck to GM and other legacy automakers as they will be so slow to change and organized labor will also keep them from progressing and reducing labor costs. Also, their dealers will make it difficult to compete with Tesla on value. The next couple of years will be real interesting.
Wow , very well said , and a history lesson to boot . Thanks John , it simply does not get any better than that .
7:05 It does not say that the cost of assembling the car will be cut in half. It clearly says "Cost of Goods Sold", i.e. manufacturing cost of the whole car will be halved. But that is due to many reasons, not just this one. E.g. that will be a smaller vehicle. And actually it is not new news that the new vehicle will be cost half to produce then M3.
It would be good to see how much the assembly will be cheaper.
John dropping knowledge. Great video sir. Thank you.
Watching a video like this leads me to one BIG theme: That America can still be a manufacturing juggernaut.
For all the lovers and haters of Elon out there, what’s becoming more evident as time passes is that Elon is restoring America’s legacy of being able to create and manufacture the best things on Earth…
That is really cool. Great video and explanation.
In the first minute I already liked the way you were explaining how far ahead Tesla is.
The machine that makes the machine. First it was the best planned factory to improve efficiency, now it will be the best planned approach to building and assembling the pieces. The best part is no part. While others are watching in awe, Tesla continues to rethink and create better ways. Catch me if you can.
Reminds me of another commentator who had a truly brilliant comment on how far ahead tesla really is vs the competition.
They said sometimes in a race a car that appears to be leading is really just about to get lapped again.
And Elon has said multiple time's 2nd place to tesla can't even see them with a telescope.😀
Others will not compute!
They Cannot catch up!
Standing on ones gapeing
Mouth and lip, one
Can only try to lean forward
into what was being
Announced.
War!
Tesla’s launching rocket wash!
But for legacy
automotive and manufacturing
History the future is now defined
This was a public
CHALLENGE / declaration!
Try not…
There is NO Try!
@@4literv6 Elon also said what matters is the pace of innovation. Not sure why anyone thought Tesla would stand still at any point!!
The other big announcements for me were 48 volt wiring through the whole car and a $1000 motor.
Without permanent (more expensive) magnets. Rare earth metals aren't actually that rare, but not even using them? dang it will cut costs greatly...
But where's my shiny new computer rendering of the next model and its countless variations for the sake of variation? ;) Great video. Tesla has built a great culture that encourages cross team collaboration which is difficult as companies grow larger.
Preach John!
Very nice. Thank you!
👏👏👏 GREAT JOB JOHN
Great view on all this!
It's understandable that analysists haven't a clue. They only understand seeing a shiny new car, which 99% of those are old cars with a new grill. The fact they are always wrong about Tesla makes you wonder who actually pays them to be wrong or are they just incompetent?
Hush, you dont want to wake up Bob Bobb and Joe King and Dave White .LOL
awesome insights, I was flabergasted by Wall st. and MSM 's yawning at MP part 3. Great video Sir!
So there are media and financial analysts who can't understand that which was clearly and thoroughly presented. Why are they employed?
Well done John. Finally, someone who gets Tesla!
Would love to see video reviews from y'all. You have great perspective from years of experience.
It is really refreshing to see how John's perspective has shifted with education / experience.
I have been watching Autoline for around 4 years.
I been watching Autolinedaily and John McElroy for over 10 years, maybe 15 or more.
Scotty Kilmer just posted an EV-favorable video. Freeze warnings in Hell.
In Louisville plant years ago, they used 2x4 for spacing between the chassis. There was discussion with the Union about increasing the the number of units per hour and there were negotiations related to that and the party's were making no progress. Management finally reached an agreement but they also shortened each 2x4 by 6” and dirtied the cut off end with oil and dirt and increased the throughput even more, without the workers even knowing
The student has become the teacher Grass Hoppa.
@0:13 Yes it will *Mr McElroy.* This will be the biggest change since *Henry Ford* introduced the *Production line.*
What makes the new _parallel-serial_ line configuration possible is what *SpaceX* learned about tile installation while building *StarShip.*
The _painted_ outer sheet metal parts _don't_ have to be involved in the construction of the vehicle's frame or internal components.
It took 100 years for somebody to see it, but now that they have, I expect that everybody will be building their EVs this way ... hopefully before they all go bankrupt.
The other OEMs can not follow this change of the production line. They would have to unlearn and relearn everything they know about their business. They simply can not afford to do so. A new company may be able to follow it, but how many new companies will start producing a million cars in the future? I predict: Zero.
@@wolfgangpreier9160 They have too many managers who will say NO!
@@jamesvandamme7786 True. Just like the german car manufacturers who have taken Europe hostage and prevented the new EU law that 2035 all fossil burning cars are to be extinct. Too many managers.
We just have to wait untill they all die out themselves in the next years and then stop fossil burning vehicles in 2032 anyway.
Oopsie..
@@jamesvandamme7786the best part is no part, the best rule no rule. Those rules can trap you.
@@Abebe345 Rule #1: "We've always done it this way."
Wow I wasn't actually sure if this was a "new new" method of automotive assembly just based on the hype reactions from fans. But coming from John and his knowledge of the history this is incredibly exciting. Can't wait to see new line up and running
It's not a line.
@@davincisghost9228 fair. New Systems*
It is not new for shipbuilding. Shipbuilders could not use the assembly line method so this is how they speed up ship construction. They built large superstructure that later gets mated together into one ship. The difficulty with this system is that you need higher precision to make sure the modules all fit together. The same with painting you need very precise painting shop to make sure the color hue match up between different modules.
Brilliant breakdown of the future of vehicle assembly. I really hope legacy automakers are taking detailed notes.
Well said. Piercing review vs all the FUD around.
I would like to also hear your thoughts about Tesla showing the Optimus bot video along with the modular assembly process. Do you think they were hinting (loudly?) at the possibility of Optimus workers assembling parts of the modules?
I could see where a 'worker' located in a fixed position assembling the same part(s) continually would be the kind of repetitive boring job that is ideal for humanoid bots.
Do you think there could be a few Optimus bots ready to go to work by the time GigaMexico opens for business?
IMO that's one of the bigger reasons why they want to move to modular assembly. There will be traditional robots putting together parts of the car, but as the "Optimus" bot learns more abilities it will replace more and more human workers every year.
It baffles me that most people see this scenario as pure science fiction when we KNOW this type of work is not all that complex (ie pick up one small part and screw it on the larger part).
It's not at that stage yet today in early 2023, but in just a few years it may well be.
John, still my Favorite video is you driving the Plaid! You have more energy than 33 Tesla rocket engines! Thanks!