The REAL Reason Elon Musk is Developing a CHEAPER Tesla

Elon Musk is on a mission to revolutionize the electric vehicle market by bringing an affordable and innovative vehicle to the masses. With part 3 of his master plan already underway, many may have overlooked the importance of Tesla's Investor Day presentation, but make no mistake, this is a crucial step in Musk's plan to scale the sustainable electric products to extreme levels to truly dominate the market, costs must be drastically reduced and Tesla's cheapest car, the Model 3, while one of the best-sellers worldwide still falls short of the price, market size Addressable automotive increases exponentially as the price begins to fall below where the Model 3 is today, which is why Elon Musk has introduced Tesla's next-generation platform that will allow a cutting-edge electric vehicle to enter the true automotive space by taking a series of interdependent actions to reduce costs by 50 percent.

From Model 3 levels, Tesla has the potential to attract the most customers, but with this

cheaper

vehicle this could have a shocking impact, as Tesla is barely scratching the surface of the current car market, but has put your gaze on a new era of sustainability and affordable transportation and before we continue, let's stop using Yahoo Finance, stop using Google Finance and take a look at our website, the isopened.com marketplace, where we have instant stock quotes and a new set of financial data going back 15 years and it's all freely available. Elon The master plans for Musk's now Tesla Trilogy have always been an open secret;

It lays out a path for the next 10 years or so and tries to get everyone on board, whether its employees, investors or the general public, even competitors, can easily see what Tesla is. Even if they decide to admit it in the most recent case of Tesla's investor day where the third part of Elon Musk's master plan was disclosed, many seem to misunderstand or be bored with the company's aspirations and its roadmap towards a fully sustainable future. for the entire planet. This can be on par with being paralyzed by boredom during a detailed explanation of how to cure a deadly disease.

For example, Tesla faces the mammoth task of converting fossil fuel-burning industries around the world to renewable electrical sources, which It also offers unfathomable opportunity. A central part of this plan is Addressing transportation, which is where Tesla has focused most of its efforts since the company's founding, according to Tesla, replacing the entire vehicle fleet with electric vehicles will eliminate approximately 21 percent of vehicle use. fossil fuels in the world. Tesla has already set up the vehicle line. It's needed to accomplish a lot of this task, but the biggest missing piece is a widely affordable car that will ultimately make up the bulk of the company's vehicle sales in January.

Elon Musk foreshadowed that Tesla had already started working on a platform that would achieve this. and that vehicles built on this new platform would be produced in greater volume than all other Tesla vehicles combined, but in order to deliver such a low-priced car, Tesla needs to make another radical change in the cost of vehicles, which requires a complete rethinking of how manufacturing is done. fact and Elon Musk is certainly not doing this alone, having the master plan being an open secret is beneficial in gaining unanimous support from all parties involved, it appears that Elon Musk has given a directive to challenge all individuals and teams of Tesla to reinvent how a car is built to reduce the cost by 50 percent Now this seems similar to a very popular success story from another tech startup that completely revolutionized the company from the top down in the early 2000s Amazon was struggling with its IT infrastructure as different teams within the company used different software and systems to communicate with each other, causing inefficiencies and delays in the company's operations to address this issue.

Jeff Bezos, Amazon's CEO, issued a mandate in 2002 that required all teams within the company to communicate. each other using only APIs or application programming interfaces, this meant that each team had to create protocols, rules and tools that could communicate with other teams' API endpoints and access their functionality. The use of APIs within Amazon not only improved communication between teams but also allowed the company to offer its IT infrastructure as a service to other companies, which eventually led to the creation of Amazon Web Services or AWS in 2006. AWS is now one of the most popular cloud computing platforms in the world and its success can be traced back to Bezos' initiative.

Elon Musk has issued a similar mandate to guide and direct the company according to the next phase of his plan. Tesla is responding by starting with the foundation that design, engineering, manufacturing and automation come together under one. Roof for the first time with all the teams responsible for these processes sitting down and communicating together to present the next vehicle platform again. This has never happened before at this stage of development at Tesla. Typically, these teams are separated by different managers or other people. types of silos, but in this case they all depend on one person, so this, along with Tesla's deep level of experience and infrastructure, has allowed the company to redefine how vehicles are made.

One of Tesla's first steps is a plan to design and produce 100 percent. Of the hardware controllers inside your next-generation vehicle, these are items like the HVAC controller, infotainment, charging, tire pressure monitors, and many more. This will give the company more oversight and control over its supply chain at the component level. They will still have suppliers providing materials. or parts to build and assemble these controllers, but this measure will not only improve the quality of the controllers themselves but will also reduce the delivery time of the components. Model Y had 61 percent of its controllers built into a house.

Cyber ​​Truck aims to advance this to 85 percent and the Next Generation vehicle will be at one hundred percent. Doing this also allows for other benefits, such as being able to have granular control of each component's software so they can communicate seamlessly with each other, this ties into the Amazon analogy. from before, but at a hardware level where each component of the vehicle can obtain any information it needs from any other component. Tesla uses Sentry mode as an example here, which may require detailed information from various sensors, cameras, etc. of the vehicle, which must be processed all together.

To sound an alarm or send alerts, for example, Tesla may be outsourcing a component of its vehicle for which it may not have access to certain data that may be useful to further improve the accuracy of Sentinel Mode and therefore So, incorporate everything. In one home, they can quickly add that feature or make that useful data accessible without needing to go through some cross-company process that could take months or years or never happen. Another benefit of moving the drivers in-house includes an important task for Tesla. To change your low voltage system from a 12 to 48 volt architecture, every component must be compatible with this new voltage, so it is necessary to make the transition at the same time as traditional automakers cannot do this because they depend on many different systems. suppliers and coordinating each of them to create a new product at the same time is practically impossible.

Tesla is doing it all at once by leveraging its own vertical integration. In turn, a 48-volt architecture will reduce energy losses by 16 times when manufacturing the vehicle. more efficient and will increase your range, it will also allow for thinner cables and reduce material, especially copper cables which are not cheap. Tesla is also implementing local controllers connected to Ethernet to reduce wiring harness complexity. By doing this, Tesla can reduce. in the number of cables and connectors in the vehicle, which will simplify the wiring harness installation process, this change makes long-term vehicle repair and maintenance easier, especially if they reduce or eliminate the number of crossover cables in the car , so this is

real

ly revolutionary. how the internal parts of the vehicle are now manufactured in terms of the vehicle chassis Tesla had filed a patent a few years ago to cast the entire body and frame of a vehicle in one go using what looks like four orthogonal Giga presses and separately Elon Musk has said in the past that with the gigapress Tesla will make cars the same way toy cars are made.

The pattern also continued with increasingly larger gigapresses by Tesla, going from a 6,000-ton press for the model's castings and to a 9,000-ton press for the underbody of the Cyber ​​truck, it seems. It stands to

reason

that for a small, compact car like Tesla's affordable next-generation vehicle with a large enough gigapress, the entire body of the vehicle could be completely cast, which would speed up the process and reduce material and welds. It was necessary to put everything together, however, after analyzing Tesla's Investor Day presentation, this no longer seems to be the case for one

reason

:

real

toy cars do not have much complexity and those that are released in one go usually They don't have engines. or hundreds of meters of wiring and controllers, but act as decorative pieces.

Tesla made no mention of a huge full-car Giga press and instead introduced a parallel assembly process where they divide the vehicle into five core sections that can be built simultaneously and then joined together. together in a final step, this includes the Giga's front and rear castings, but at two separate stations in the assembly process it appears that making the entire vehicle part would actually be disruptive and slow things down, as Tesla workers would be obstructed by the large metal frame. while inserting components into the vehicle, which is exactly what they are trying to avoid, one of the purposes of having five stations working in parallel is that the number of operators or the density of operators for each station can be increased, which speeds up the how quickly the vehicle section can be completed and prepared for final assembly.

Tesla also showed off rows and rows of stamped vehicle side panels, further implying that they won't be Giga pressed in any way. It seems that the Giga press used for the affordable compact Tesla will still be limited to the front and rear castings, although Tesla could make sure to include as many components as possible as part of these individual castings, the battery pack will also be It is located between the front and rear castings and is intended to enter through the floor of the vehicle. which would make little sense, it wouldn't be possible if the entire rigid frame of the car, including the battery pack, was already pre-molded on a gigapress, so it seems like a complete car gigapress might be off the table if the transition to a parallel one. assembly process Tesla will be able to reduce its manufacturing footprint by 40 percent and reduce wasted time by 30 percent during investor day Tesla stated that previously the vehicle was partially assembled for painting and then disassembled and then reassembled at the end of this This is because they need to paint the entire car in one go to maintain the consistency of the paint, but not only that, but parts like the Giga casting, which is an internal component, would receive paint, which It is a waste of material, so when painting the car once. at one of its five main parallel stations and painting only the parts that need it, Tesla once again saves time and costs.

Now, Tesla chief designer Franz von Holtzhausen said on the Ride the Lightning podcast that he was considering the cyber truck style for other vehicles that also We know from Tesla's investor day that there will be a robo-taxi variant of the low-cost Tesla. cost and therefore if Tesla plans to sell millions, ultimately tens of millions of units per year, this low-cost model could have a few different key variants and if there is a stainless steel model that does not need painting at all , it appears that Tesla's modular manufacturing process easily supports switching to different body types. Elon Musk also once imagined the model without a steering wheel, so perhaps this will be developed into the robotaxi variant. of Tesla's next generation car and therefore the parallel manufacturing process seems to add moreflexibility now if Tesla can really create a step-change between the Model 3 and the next-generation vehicle and reduce prices by 50 percent, which seems very possible given the major changes in control and assembly roller voltage wiring In parallel, they then appear to be on track to begin delivering the 25,000th car that Elon Musk originally announced at the Tesla Battery Day 2020 event, the vehicle aiming to begin production at Tesla's yet-to-be-built gigafactory in Mexico and probably will. start producing cars in 2024, assuming there are no major obstacles Now, if Tesla makes the batteries for these vehicles in the United States, in Texas, for now they can get battery production tax credits of up to $45 per kilowatt hour for cells and battery packs, and even more interesting. for consumers is that while Tesla plans to develop its next-generation platform at its multiple gigafactory locations, it appears that the Mexico gigafactory will comply with IRA rules as long as the vehicle is assembled in North America, including Canada or Mexico. eligible for the 7500 tax credit so this would reduce the price of a car from twenty five thousand dollars to 17500 making it ultra affordable on par with some of the cheapest ICE vehicles on sale and would unlock all segments of the automotive market for Tesla to sell and so Tesla can further take advantage of the lower cost of labor in Mexico and at the same time obtain all the benefits of the tax credit.

These factors are the icing on the cake in keeping costs down for Tesla's next-generation compact car. Do you think Tesla? They will be ready by 2024 with their new manufacturing process to build a car at fifty percent of the current cost and truly replace fossil fuels by bringing an affordable vehicle to the masses. Don't forget to watch my video about Tesla's next-generation engine improvements, hit the like button and subscribe. We would really appreciate it and a big shout out to all our sponsors who helped us support our channel. Your support helps us continue creating great content. Thank you very much to all. to see