How Tesla Builds Electric Cars | Tesla Motors Part 2 (WIRED)

WIRED

30 Jul 201303:26

Summary

TLDRIn October 2010, Tesla acquired a former GM-Toyota joint venture factory in Fremont for a low price during the industry's struggle. They revamped the factory, aiming for a clean, bright, and open environment similar to SpaceX's, to foster quality production. With 160 advanced robots and a focus on automation, they also recognized the need for human intelligence, leveraging talent from nearby universities. The Model S's unique components required extensive in-house processes, including machining, coding, and painting, leading to high integration and speed, which are crucial for innovation and adaptability. The factory holds significant potential for future growth.

Takeaways

🏭 The Tesla factory in Fremont was previously a joint venture between General Motors and Toyota called NUMMI, which was acquired by Tesla at a low price during a struggling industry period.
🚀 The factory was refurbished with inspiration from the clean and open environment of the SpaceX factory, emphasizing a bright and quality workspace.
💡 The factory design includes white ceilings and columns, and the addition of skylights to create a sense of ease and quality, which is believed to enhance the production of quality products.
🤖 Tesla utilizes about 160 state-of-the-art robots for diverse tasks, highlighting the importance of automation for repeatability and accuracy in manufacturing.
🧠 Despite the efficiency of robots, the script emphasizes the importance of human intelligence, suggesting a balanced approach where humans are utilized for tasks that benefit from their intelligence.
🌟 The factory's location in Silicon Valley allows access to a pool of highly educated talent from prestigious universities, which is leveraged to improve automation.
🚗 The Model S electric vehicle has unique components like drive units, battery packs, and modules that are not found elsewhere, requiring extensive in-house manufacturing processes.
🔧 Tesla performs about 95% of its manufacturing processes in-house, including machining, coding, painting, and the production of the central display, indicating a high level of integration.
🔄 The in-house manufacturing allows for speed, innovation, adaptability, and flexibility, which are seen as intrinsic values for the company's future growth.
📈 The script suggests a significant potential for growth, with opportunities to expand the product line and bring more offerings to the market.
🛠️ The Tesla factory represents a commitment to continuous improvement in process efficiency and a unique approach to combining automation with human expertise.

Q & A

What was the factory in Fremont before Tesla acquired it?
-The factory in Fremont was previously the home of NUMMI, a joint venture between General Motors and Toyota.
Why was Tesla able to purchase the factory at a low price?
-Tesla was able to purchase the factory at a low price because the auto industry was struggling at the time.
What was the state of the Tesla factory when they first acquired it?
-The Tesla factory needed to be refurbished from scratch when they first acquired it.
What was the inspiration for the design of the Tesla factory?
-The design of the Tesla factory was inspired by the SpaceX factory, which was clean, bright, and open.
What changes did Tesla make to the factory to improve the work environment?
-Tesla painted the ceilings and columns white, added skylights for natural light, and focused on creating a quality and comfortable work environment.
Why is the use of automation important in the Tesla factory?
-Automation is important in the Tesla factory for process efficiency, repeatability, and accuracy of motion in tasks.
How many robots does the Tesla factory utilize, and what are they capable of?
-The Tesla factory utilizes about 160 robots capable of performing very diverse tasks with the latest technology available.
What is the advantage of having highly educated people in Silicon Valley working on Tesla's automation?
-Highly educated people from nearby universities can help improve the automation processes, leveraging their talent and knowledge.
What makes the production of the Model S unique compared to other vehicles?
-The Model S is unique because many of its components, such as the drive units, battery pack, and battery modules, do not exist anywhere else and require more sub-processes within the factory.
What percentage of the production process does Tesla handle in-house?
-Tesla handles about 95% of the production process in-house, including machining, coding, painting, and the center display.
What are the benefits of having a high level of integration in the Tesla factory?
-A high level of integration speeds up production, enhances innovation, adaptability, and flexibility.
What opportunities does the future hold for the Tesla factory in terms of growth and product offerings?
-The future holds opportunities for growth and bringing more products to the market, with huge potential for the Tesla factory.

Outlines

00:00

🏭 Tesla Factory Transformation

The script discusses the transformation of a factory in Fremont, originally a joint venture between General Motors and Toyota, into a Tesla facility. The factory was acquired by Tesla in October 2010 at a relatively low cost during a challenging time for the industry. The aim was to refurbish the factory from the ground up, inspired by the cleanliness and openness of the SpaceX factory. The focus was on creating a bright, open environment with white ceilings and columns, and incorporating skylights to enhance the sense of quality and comfort for workers. The goal was to foster a culture of continuous improvement and process efficiency, utilizing the latest in automation with 160 robots and leveraging the local talent pool from prestigious universities in Silicon Valley.

Mindmap

Keywords

💡Factory

A factory is a building or site where goods are manufactured or assembled. In the context of the video, the factory in Freemont was originally home to NUMMI, a joint venture between General Motors and Toyota. It was later acquired by Tesla in 2010 and refurbished to create a production environment similar to that of SpaceX, emphasizing cleanliness and openness to foster a sense of quality and innovation.

💡Refurbish

To refurbish means to renovate or make something look new again. In the script, Tesla's decision to refurbish the factory from scratch signifies a complete overhaul of the facility's infrastructure and environment, aiming to create a workspace conducive to efficiency and quality production.

💡SpaceX

SpaceX is an aerospace manufacturer and space transport services company founded by Elon Musk. The reference to SpaceX in the script highlights the company's factory's cleanliness and organization, which Tesla sought to emulate in its own factory to inspire a culture of precision and innovation.

💡Robots

Robots are machines capable of carrying out a series of movements automatically. The script mentions Tesla's use of approximately 160 robots, emphasizing the integration of automation in the production process for tasks requiring repeatability and accuracy of motion.

💡Automation

Automation refers to the use of technology to perform tasks with minimal human intervention. Tesla utilizes automation to the fullest, as described in the script, to improve process efficiency and maintain high standards of production quality.

💡Quality

Quality is the standard of something as measured against other things of a similar kind; it is the degree of excellence of a product or service. The script discusses the importance of creating an environment that promotes quality, such as painting ceilings and columns white to make the factory bright and inviting.

💡Process Efficiency

Process efficiency is the measure of how well a process is performing in terms of using resources to achieve the desired outcome. The script mentions Tesla's constant efforts to improve process efficiency through the use of automation and a well-organized factory environment.

💡Silicon Valley

Silicon Valley is a region in Northern California known for its high-tech innovation and research. The script refers to the availability of talent from prestigious universities in Silicon Valley, which Tesla leverages to improve automation and innovation in its factory.

💡Model S

The Model S is an electric vehicle produced by Tesla. The script discusses the unique aspects of building the Model S, such as the need for specialized components like the drive units, battery pack, and battery modules, which are not found in other factories.

💡Integration

Integration in this context refers to the degree to which different parts or elements are combined into a cohesive whole. The script highlights Tesla's high level of integration, doing about 95% of its manufacturing processes in-house, which speeds up innovation and adaptability.

💡Innovation

Innovation is the process of translating an idea or invention into a good or service that creates value or for which customers will pay. The script discusses the intrinsic value of speed in innovation, adaptability, and flexibility, which is facilitated by the factory's high level of integration and in-house processes.

Highlights

Tesla acquired the factory in Freemont in October 2010, previously a joint venture between General Motors and Toyota.

The factory was purchased at a low price during the industry's struggle.

The factory was refurbished from scratch, inspired by the cleanliness and openness of the SpaceX factory.

The factory was designed with white ceilings and columns, and skylights for a bright and quality atmosphere.

Quality is linked to the psychological comfort of workers in a well-lit and clean environment.

Process efficiency is constantly improved through the use of automation.

Tesla employs approximately 160 of the latest robots on the planet for diverse tasks.

Humans are recognized as more intelligent than robots, used where their intelligence adds value.

Silicon Valley's talent from top universities is leveraged to improve automation.

The Model S's electric vehicle components are unique and require more in-house sub processes.

Tesla does about 95% of its manufacturing in-house, including machining, coding, painting, and the center display.

High level of integration within the factory speeds up innovation, adaptability, and flexibility.

Tesla has significant growth potential and plans to bring more products to the market.

Robots excel in repeatability and accuracy of motion in manufacturing tasks.

The factory's design and operations reflect a commitment to quality and efficiency.

Tesla's factory is a model of vertical integration and in-house manufacturing capabilities.

The factory's location in Silicon Valley provides access to a skilled workforce from nearby universities.