Tesla's next-gen vehicle may drastically reduce manufacturing costs
A century ago, Henry Ford revolutionized automobile production by introducing the moving assembly line, a concept that changed manufacturing forever and made cars accessible to the masses. Today, we stand at the brink of another manufacturing revolution, this time led by Tesla. The company is reinventing the assembly line for the electric age with its forthcoming $25,000 car, also referred to as Redwood.
Unboxing the Future: Tesla's Modular Manufacturing
At the heart of Tesla's innovative production approach is the "unboxed" manufacturing system. This new method breaks from the century-old linear assembly process by adopting a modular, more flexible framework. Unlike traditional manufacturing lines where vehicles inch forward on a conveyor belt to have parts added sequentially, Tesla's unboxed system assembles cars in a manner reminiscent of assembling Lego blocks. Components are pieced together in dedicated subassembly areas, only coming together in the final stages.
Tesla’s $25,000 car means tossing out Henry Ford's 100-year-old assembly line - Autonews
"Instead of a large, rectangular car moving along a linear conveyer belt, parts are assembled simultaneously in dedicated areas and then all put together at the end. Tesla says the change… pic.twitter.com/heaxn4oS91
This modular approach is not just about breaking away from tradition; it's a strategic move to outmaneuver stiff competition from Chinese EV startups, which benefit from robust government support and an efficient local supply chain. By adopting a method that echoes the assembly techniques of the consumer electronics industry, Tesla aims to reduce its manufacturing footprint by over 40%, promising faster and more cost-effective factory construction.
Robotic Precision and Reducing Costs
The unboxed system is set to dramatically lower vehicle production costs. Estimates suggest that manufacturing costs could be slashed by as much as 50%, enabling the construction of vehicles in significantly smaller factories. This efficiency is partly attributed to advanced robotics, like the Optimus Bot, which enhances operational efficiency and safety while providing unprecedented flexibility in manufacturing.
Tesla's introduction of the unboxed manufacturing system is not merely a technical evolution; it's a strategic adaptation designed to cement Tesla's position in a rapidly evolving automotive landscape. By drastically reducing costs and enhancing production efficiency, Tesla is not just aiming to compete with Chinese EV manufacturers but is also setting a new standard for vehicle production worldwide.
Embracing Manufacturing's Electric Future
Tesla's approach could serve as a blueprint for the future of manufacturing, challenging established norms and encouraging other industries to reconsider their own production methods. Just as Ford's assembly line became a hallmark of industrial manufacturing, Tesla's unboxed system may become synonymous with the next production era, characterized by flexibility, efficiency, and sustainability.
In essence, Tesla is doing for the electric vehicle what Henry Ford did for the gasoline car: making it accessible, affordable, and adaptable to the needs of the modern world. As we witness this new chapter in manufacturing history unfold, it's clear that Tesla's innovative spirit is not just about creating cutting-edge vehicles; it's also about reshaping automotive production for the 21st century.
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The greatly anticipated FSD v12.4 is around the corner, with Elon Musk mentioning that it will be going to employees this weekend, with limited external testers next week.
Several significant improvements are coming with V12.4, which is being compared to the leap in performance that was previously seen between V12 and V11.
Improved Comfort and Reduced Interventions
There are quite a few improvements expected with V12.4, which Musk has said will be focused on user comfort by reducing hard accelerations and sudden braking. According to Musk, FSD v12.4 is also expected to have a 5-10x improvement in time between user interventions, which means that Tesla is rapidly approaching its goal for the Robotaxi announcement on August 8, 2024.
Steering Wheel Nag Removal
FSD V12.4 is expected to eliminate the steering wheel nag, as Musk confirmed its removal last week. The camera-based driver monitoring system will be taking over, providing a hands-free experience. These improvements will most likely benefit owners who have cabin cameras with infrared lights the most, while Tesla may continue to use steering wheel nag as a fallback mechanism.
Driverless Autopark
The second key feature that may be included in v12.4 will be Banish Autopark, previously known as Reverse Summon, allowing you to choose a parking spot, exit the vehicle and have the car park itself. Whether this feature makes it in v12.4 is yet to be seen, but Musk has mentioned that parking without a driver is coming soon.
Automatically Seek Parking Spot at Destination
Finally, your Tesla will now traverse a parking lot and automatically enter Autopark mode when arriving at a destination, according to a post from Musk.
Eligibility and Branch
Tesla recently added FSD v12.3.6 to the 2024.14 branch with updates 2024.14.5 and 2024.14.6. This makes it very likely that Tesla’s next FSD version will also be based on 2024.14, meaning that it will be available to any vehicle on 2024.14.x.
For users on update 2024.3.25, this means that they’ll receive all of the features included in updates 2024.8 and 2024.14, which should make it a massive update.
Release Date
Musk has mentioned that FSD V12.4 is going out to employee vehicles for internal testing this weekend, with external testing starting next week. The rollouts typically go slower than predicted but looks like we may see this begin shipping to customers by the end of the month.
Today, as part of a broader change of tariff rates on Chinese goods, U.S. President Joe Biden announced that he’ll raise tariffs on electric vehicles imported from China, increasing the rate from 25% to 100%, effective this year.
This increase won’t just impact the import of vehicles, but also the rate for lithium-ion batteries produced in China, which will be moving from 7.5% to 25%.
Impact on Competition
The immediate impact of this new regulation is significant for Chinese manufacturers, who have been regarded as Tesla’s largest and greatest competition. Given the tariff hike, this means that new Chinese manufacturers, such as Nio, XPeng, or BYD, will either need to set up production in North America, or be subject to the increased import tariff.
Nio’s vehicles cost between $40,000 USD to $70,000 USD in China based on today’s conversion rates, and with an import tariff of 100%, an imported vehicle’s price would be doubled to $80,000 USD to $140,000 USD, not including other fees. Chinese manufacturers will have to closely weigh the advantages and disadvantages of opening up the North American market, with challenges including vehicle homologation, new tariffs, and a difficult EV market.
Tesla and Chinese Tariffs
Elon Musk recently visited China, engaging with officials to build a foundation for what is currently the world’s largest electric vehicle market. With the potential import of Chinese EVs becoming restricted to the United States, this places Tesla in an advantageous position over its Chinese competitors who have yet to establish their brands in North America.
On the other hand, this could also impact Tesla, as they import Chinese batteries for usage in some vehicles in the United States.
Tesla does not import Gigafactory Shanghai vehicles to the US, but has been increasing North American battery production lately, with expansions in Lathrop, California and a new facility in Sparks, Nevada.
Canadian Tariffs
In Canada, the Model 3 and Model Y are currently being imported from Gigafactory Shanghai. Given Canada’s close following of US foreign policy, this could impact either the prices of Tesla vehicles in Canada or have Tesla shipping vehicles from Fremont and Texas to the United States once again, should Canada also adopt a similar tariff policy.
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