Sandy Munro: This New Thing From Tesla Will Destroy All Competition

every time somebody opens their mouth and says that can happen Elon shows up with oh here you want to look at that well you know I don't think that's going to work and it's always the same you want to be a naysayer go ahead go and be a Hindenburg I don't give a rat's ass at the end of the day eventually you're always going to lose always because especially if you're betting against Elon Musk every boardroom at every suppliers they're going to be in a panic attack it's mind-blowing rivian buys this cell and if you buy it that means you're paying a profit margin to that supplier so if Tesla's making their own cell where does that profit cost go it's eliminated in this video Sandy shares some really interesting details about the future of Tesla and of course the future of the competition this video goes through all sorts of really interesting futures or I would just say some really exciting stuff and Sandy also goes to talk about why you should never bet against musk so enjoy watching on what we saw on the investor day and I'm going to actually give kind of my first take is I thought the presentation was extremely Technical and there was a lot of the fine points in there that I think may have gone over the heads of the institutional investors there I think that is a really accurate statement from Sandy just stop for a minute and realize with me Tesla at their fourth generation and they're not happy with that they just need to improve it they want to improve the engineers that are working day and night to improve to the fifth generation or maybe the sixth while the competition are still at the third generation and even at their first generation it's not good enough and they're satisfied with that Tesla currently uses this generation of Powertrain on all their vehicles the model S plaid uses this the model 3 the model y the model S the model X it's already in our opinion world-class leading in their ability of cost reduction and re use and the ability to apply the same powertrain gear train inverter strategy on all their different models whether it's a rear-wheel drive standard Range model 3 whether you have a front wheel drive unit that is an induction machine instead of internal permanent magnet they're still using this architecture it shows me that they're working on this would be their their fourth generation because this is third because if you go back to the model S and model X there's been multiple Generations I know there's been a lot of focus on hardware for but a new generation of Powertrain means that they're not going to be happy with the status quo because Tesla could still have manufactured this type of Drive Unit for another decade and still probably been competitive with most the oems in the world so many of the oems that are that are trying to catch up or emulate what Tesla's doing they're now just getting there at this point it's called gotcha I mean don't mind my funny reactions but you need to make something as good enough or even that costs the same but most competitors out there they have double the cost oh what Tesla does right now because you have two options whether you make them yourself or buy them when you make them yourself if you have as good engineers at Tesla and the most competitors don't so you gotta have to buy them from the competitor which adds up the cost of the car so again this is why this does better and another thing from the presentation 75 reduction in silicon carbide and roughly a thousand dollars cost for the Drive Unit a thousand dollars cost now imagine you are a tier one supplier and you supply gearboxes Motors inverters and you're charging two thousand twenty five hundred thirty five hundred yeah average for for for a unit and now Tesla just said it's going to cost us a thousand bucks now when you walk into another OEM and try and sell your two thousand dollar unit they're gonna say hey how can Tesla make it for a thousand bucks Hyundai or their CEO is called soda there have been I would say in the comfort zone for the last quite decade or two they haven't done any Innovation at all in the field even though they have the most selling car in the world even in history but they have done nothing in the electric field which is really interesting and Hyundai especially Hyundai doesn't have any name at all in the electric field or the EV space they have the hydrogen that doesn't do anything which is really bad but Sandy describes this is not my words I'm just telling you what he said I'm gonna say something really interesting that not that many people know about back in 2007 Hyundai made a big investment on Tesla but just after a couple of years they sold their steak just imagine if they kept their investment in Tesla imagine that combination between Tesla and Hyundai they would have made some insane cars but yeah Hyundai is dumb enough to do and sell their shares on this we put this into context I I mentioned I mentioned before that I work with pretty much every car company on the planet one of the guys that really impressed me was EG Toyota and that was the grandfather of the guy that just got removed and he said something that I wrote down and I use it all the time our current success is the best reason to change we have to be permanently dissatisfied permanently dissatisfied in order to get better and better and keep ahead of the competition not to talk a lot about this about the gigafactory or something but it's one of the most brilliant designs of any other car manufacturer out there it's just insane the way that the manufacturer is engineered to make it so easy for the parts to control by to move by and make it way way way faster this is what they shared in the investor Day lately which I found really fascinating this is a good example of of uh the old Toyota's approach to getting the job done permanent dissatisfaction they're always looking to try and get better and that brings us to the next one which I was totally blown away at this is a 4680 battery it's a dry process to form the cathode and the anode they all have electrolyte it was good so yeah it has an electrolyte but everybody else is using something that requires you to boil away a solvent that really isn't good for the environment these guys have figured out how to compress it and put it together watching how they put it together the difference between one basic unit that does all the all the spooling and whatnot versus a factory a huge Factory full of uh full of equipment with with chemical reprocessing and everything else it's mind-blowing it's mine the footprint alone uh between the two is like the difference between um a football field and and a and some kid playing hopscotch and every single car company you have to buy some stuff or parts you can't make every single part you yourself that's almost impossible back in the back in the day but nowadays Tesla makes literally every single part in the car because if you make the parts yourself the profitability on the car increases and you can use that money to go back and spend it on research and innovate more in the car and this is I think the biggest point out here or the biggest Advantage is that Tesla cars have and other cars as we said you buy the parts which means you pay more money which means again you do less research and you increase the price on the consumer again if you're a company that buys most of the stuff or most of the parts to integrate their car and you're trying to compete with a company that makes all of this stuff and all of the parts their own they make them in-house so they don't have to pay anyone else you can't compete basically you're just competing with someone that really knows what they're doing and this is also impacts on the software because you're making parts that gonna integrate directly to the software you don't have to do that much work on that side either and this is why the Tesla software is way better than the other cars that's that's the that's the difference we're we're looking at a huge amount of change to go to the to the new 4680. technology aside why does it matter you may be watching this like who cares Sandy who cares Corey this is why it matters they're stamping those cans inside that plant we walk by right and they were actually stamping them as we were standing there right they're rolling up the anode they're rolling up the cathode inside that plant without a hundred yard oven plus upstairs they've got the they've got the powders that they need yep they grind everything up they put it all together they do the the chemical formulation on the fourth floor that they say isn't there but really is and then that powder goes down into those machines and they're cranking this stuff out and I'm telling you what we were watching them and they spin pretty fast uh I mean this is really really brilliant back to my point Sorry Sandy if you look at this rivian cell rivian buys this cell and if you buy it that means you're paying a profit margin to that supplier that supplier exists and makes profit that's how companies exist so if Tesla's making their own cell where does that profit cost go it's eliminated it's passed on all the way up through the vehicle so the more vertical integration you have and the most expensive part of the car is the battery so they just wiped out one of the largest pieces of profit loss by doing it themselves right then they also build the packs themselves most people Outsource pack pack assembly right there's integrators that build packs they're building the packs themselves they're building the seats themselves they're doing IPS themselves and this is the advantage and they're castings themselves and all the other things that everybody else I mean you talk to any Harvard guy any Harvard MBA and he'll tell you for sure you've got outsourced Outsource Outsource you know what that dance is dead I don't know if anybody has got a brain but or any sorry let me rephrase that anybody with a brain anybody with a brain should be able to see the difference between wow should be able to see the difference between I'm doing this internally I understand the technology cold I understand and formulate my own chemistry I make my cans I know exactly how many are I'm going to be able to make I don't have to worry about the con trying to control the market or find out if I ship sunk and all my batteries happen to be in it is he just trying to say I don't think I would be alive till then we hope not of course we love Sandy I've been criticized on a number of TV stations and whatnot I can remember when McElroy Sandy didn't you know I I mean really and truly everybody was so sunk dead positive that you had to Outsource and I kept asking what was the reason for that well we can get it cheaper well you can't it's not possible that that's trickery that comes into your into your finance department but here's the deal if you can make them yourself and you can control the process yourself and you can basically come up with new formulation of what goes into this bath yourself you're going to lead the parade everybody else that's going in this direction you're buying chemistry from somebody that is giving you a lot of smoke you're you're out of your mind seeing that that dry process was a giant Revelation now that that to me was just phenomenal we can look back at this video in maybe 15 25 years and lastly recently just literally said the other competitors need to follow are they going to perish and they literally said the rules the EV sector should follow the 48 terawatts or most of them will perish as I said Tesla dictates the rules the weight reduction is a cost reduction which is a speed increase which is in itself a cost decrease I told you this Engineers are really smart we can look back at this video in maybe 15 25 years and the entire Auto industry most likely will have shift shifted to 48 volts a bench is faster than that I I'd say that if we don't know everyone else I'm telling you I think it's going to happen a lot faster all they need we talked about the castings those wherever the hell that thing is for for 10 12 14 years nobody went for it until Tesla did these guys came out with this this big casting here and talked about the other castings that are coming down two years like in in basically two years Idris got a shitload of yeah new orders I guarantee you everybody on the planet I can carry I think right now all the guys that do all the solenoids and all the 12 volt whatever stuff they're sitting there going ah and they're they're going to make the switch because there's a another thing you should know too let's look at these two that would be the wire size for 48 volts this is the wire size for 12 volts I need I need more wire it gets heavier every time you move to a slightly higher amount of voltage that's what pushes the amperage through you can get a you can get away with a smaller wire size eyes think about it okay now these wires are normally really tiny I could never show you because there are times anytime that you can reduce the size of anything and reduce the weight of anything you're going to get more range the 48 volt system has been talked about since I joined Ford Motor Company in 1978 and nobody did anything about it oh we can't get the suppliers to move on that yeah the reason you get more range is not because you're not going to reduce the amperage and current needs of whatever you're doing if you're steering if you're steering the car you're going to need the same amount of amperage eject the voltage up the wire size drops so the cost and the weight of the wires drop so now here's how this actually makes a difference if you can cut out 15 to 25 kilograms of copper out of the car now the vehicle weighs less so if the vehicle weighs less it has a cascading effect now the amount of effort needed in that steering rack drops by maybe one half a quarter of a percent the whole vehicle benefits from it right now the vehicle is lighter so it gets you can get more range with slightly less batteries now you have slightly less batteries so in order to truly make a next-gen vehicle that's low cost you have to do everything the best way possible right and Tesla decided that they're going to forego the entire Supply base and said we are developing automobiles the way they should be developed we're not relying on the vestigial past of 12 volts I I think it's the biggest takeaway from the entire event Sandy as he said he'd been trying to convince other auto manufacturers to use the 48 wall what they never did and the reason to that is they were relying on other manufacturers to buy their parts and these manufacturers didn't want to switch to 48 watt so they never could so they never could change but Tesla is the one that controls the supply and demand so basically they said f them we're gonna change the 48 wall and that's what basically they did when you drop the wire diameter by about a half to get to 48 volts copper is one of the more expensive components and one of the more heavy components that are in vehicles that's why a lot of people will swap high power from copper to aluminum aluminum conducts as well but not as well and not as good but it weighs a whole lot less and it costs a lot less as well so moving to the 48 volt system is going to put every component supplier on notice yep that's this let's say copy or you're going to perish they're having a panic attack notice the words he didn't say they're stressed or anything he said they're having literally a panic attack I've never seen Sandy describe other car manufacturers or other car CEOs they're literally having a panic attack not literally but you get the idea and I'm telling you right now I believe that there's got to be every Board Room at every tier three those are tier three kind of guys tier three in some cases tier 4 suppliers they're going to be in a panic attack something interesting most of the new stuff that Tesla gonna make are going to be produced in the new gigafactory in Mexico and at another point the wages in Mexico are way lower than any other reason that Tesla have their gigafactory in which is going to be really really effective for the costs how are we going to get to how are we going to get to 48 volts they probably looked at it but they probably never thought they'd ever ever have to do anything because in essence Engineers aren't allowed to design for 48 volts and purchasing agents we're going to say I can get a cheaper one if it's a 12 volt and that's kind of like the way it works unfortunately in the Auto industry I believe that the Mexican plant is a genius move because the labor rates are lower actually and we we've done studies that found that in some places in some situations Mexico is cheaper than China why go to China if you can get to Mexico ago if they're going to make that twenty four thousand dollar car like they said they were going to um then I believe that Mexico is the right facility and this new facility I believe is going to have the new vehicle in it and it'll have all these changes that we've been talking about and probably a whole lot more a quick notice here most people think that this the manufacturers can even produce more than one million units per year and uh I say why not as the existing plant that they've got in Texas if it's the same size and you're making a smaller vehicle it'll have less options and it'll have less Parts guess what it's going to be it's going to be a couple million yeah I'm thinking two and a half maybe even three million out of that plant I'm people are gonna kill me yeah you can't make a three million out of a plant but you know what you can't make anything out of 48 volts I heard that too and you know what oh you can't make these batteries can never be made every time somebody opens their her mouth and says that can happen Elon shows up was oh here you want to look at that well you know I don't think that's going to work and it's always the same you want to be a naysayer go ahead go and be a Hindenburg I don't give a rat's ass at the end of the day eventually you're always going to lose always because especially if you're betting against Elon Musk don't do it and don't bet against Elon Musk the message from Sandy is clear never bets against Elon Musk because he's gonna always always prove you wrong you know mondra and Associates are tear down experts or tear down engineers and they're basically every single time they do a tear down to Tesla cars they're surprised again from how fast they optimize their cars or from how fast they improve the quality of their cars or from how fast they do everything they listen they really listen to the viewer or the customer or even Sandy himself and he said it so many times every single time D he said to Elon do something about the car to improve it he does this so fast so the takeaways from this video is never better against Elon and always if you want to win you get a copy Tesla because everything they do is way ahead of every other car company out there that was it for this video hope you enjoyed watching and don't forget to click on the like button

Channel: Tesla And Other Stuff

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Id: wmPliRnQhU8

Length: 19min 36sec (1176 seconds)

Published: Thu Jun 22 2023