In a rapidly changing marketplace, carmakers need to learn to think quickly, create and implement what they need real-time. At the moment, only Tesla operates this way. The slow speed of all other car manufacturers, unfortunately, slows down the speed of the world's transition to sustainable energy.
Nevertheless, Tesla continues to keep pace with the times and the pressing problems and needs of humanity. Sandy Munro is shocked by the speed with which Tesla is innovating, rapidly changing the expectations for the entire industry. In his video, he raises a number of important issues and analyzes car companies and future prospects.
Munroe says that, in order to achieve price parity with internal combustion engine vehicles, EV makers must reduce the cost of producing battery cells. In 2018, according to Munro's calculations, for the Model 3, Tesla produced them at $136 per kWh. In 2020, for Model Y, this price was already $108 per kWh, which is a significant drop. However, in order to achieve price parity, the cost must fall below $100 per kWh. Munro believes that, in the next 10 years, the value of EVs will decrease rapidly. And the reason for that is innovation and economies of scale.
Tesla is a great example as it is spearheading these changes. For Model Y, the company has made significant changes. Introducing the heat pump and Octovalve, which replaced the PTC heater and "Superbottle,” redesigning the thermal management system in a play to reduce range depletion caused by the HVAC system.
Munro recently learned that, after he broke down Model Y in April, Tesla has already made 13 noticeable improvements. Munro was stunned because he had never even heard that anyone could make so many improvements in just three to four months. Tesla acts with the speed of thought.
According to Munro, the whole point is that the company does not follow more traditional industry methods or norms, which other automakers pay special attention to—for instance, in which year a model was released. If Tesla can improve something, then they immediately implement it in its cars and simply carry on with production.
- The rotor from the front motor of Model 3 was made from copper, but in Model Y, Tesla changed this to cast-in-place aluminum and this resulted in huge savings.
- Megacasting saved Model Y over 170 stamped parts and hundreds of steps and operations. Plus, 14 stations complete with robots and complicated fixtures were no longer needed. That Tesla has made this a reality is a great demonstration of how the company is committed to innovation, and this is exactly what will leave competitors in the dust.
At the same time, Tesla is ready to share its developments with others, because the company has a global goal—to accelerate the world's transition to sustainable energy. Tesla is open to licensing software and it could supply powertrains and batteries.
Tesla is open to licensing software and supplying powertrains & batteries. We’re just trying to accelerate sustainable energy, not crush competitors!— Elon Musk (@elonmusk) July 29, 2020
Tesla has established itself as a company striving for innovation and rapid change and this is exactly what other automakers are not doing. While OEM automakers are delaying the process and working inefficiently, Tesla has pulled ahead to achieve its goals as soon as possible.
© 2020, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.