Introduction and Context:

Elon Musk welcomes the audience to the Tesla Design Studio, acknowledging the high level of media interest in the event. He points out that many people only recently started paying attention to Tesla and electric cars, which were once considered “stupidity squared.”

Initial Challenges and the Roadster:

Musk recalls Tesla’s humble beginnings in 2008 when the company had made only one car, the Tesla Roadster. Despite the car’s initial reliability issues, it was created to break the stereotype that electric cars were slow and ugly. The Roadster aimed to be fast, aesthetically pleasing, and to have long-range capabilities. This was Tesla’s first attempt to challenge the automotive status quo.

Transition to Luxury Sedans with Model S:

After the Roadster, Tesla sought to compete with luxury gasoline sedans. Musk emphasizes that the Model S was developed in a corner of SpaceX’s rocket factory, highlighting its grassroots development. The car aimed to prove that electric vehicles could outperform their gasoline counterparts, serving as a powerful statement for electric mobility.

Name Conundrums and Popular Reception:

Musk shares an anecdote about naming Tesla cars. The Model S was so named because it’s a sedan, but Musk humorously recalls not realizing the name could be read as “models.” He also mentions that Ford threatened to sue Tesla for wanting to name a car Model E, thereby preventing the S, E, X lineup.

Expanding the Product Line:

Musk details the complexity of the Model X, an SUV with a myriad of technological features, likening it to a “Faberge egg meets a spaceship.” He also introduces the Model 3, an attempt to bring electric cars to a broader audience. The Tesla Semi and a new generation Roadster are also mentioned as future offerings, underlining Tesla’s diverse product strategy.

Summary:

Musk outlines Tesla’s journey from a company that initially made a single, often malfunctioning car, to one that has produced over 550,000 vehicles. Through this journey, Tesla has aimed to change public perception about electric vehicles and successfully compete with traditional gas-powered vehicles.

Underestimation of Manufacturing:

Elon Musk emphasizes that the complexities and value of manufacturing are often underappreciated. While creating a prototype is relatively straightforward, mass-producing it at scale and with reliability is a far greater challenge. For instance, Musk points out that designing the manufacturing system for rockets is ten times harder than designing the rocket itself. In the automotive domain, the complexity rises to being a hundred times harder than designing the vehicle.

Factory Challenges:

Elon recalls the acquisition of the Fremont factory, originally called NuMe. Contrary to public perception, owning a factory doesn’t equate to an ability to produce any car. When Tesla acquired this factory, it was virtually empty; all the valuable equipment had been taken. Transforming this “derelict warehouse” into a functioning car factory required immense effort from a highly skilled team. Today, the factory employs 20,000 people across multiple shifts and is densely packed with both people and robots, resembling a “giant cybernetic collective.”

Mass Manufacturing in the US:

Elon notes that the last American company to achieve mass car manufacturing before Tesla did was about 100 years ago. This highlights the monumental challenge that Tesla overcame in establishing mass production. The real issue isn’t coming up with a car design but building a sustainable and efficient production system.

The Gigafactory:

A significant obstacle was sourcing batteries, electric motors, and power electronics. Elon’s solution was to build the Gigafactory, capable of producing at least 50 gigawatt-hours of cell output. At the time of its planning, the total global output of lithium-ion batteries was only about 30 gigawatt-hours. The Gigafactory was constructed in the time it would have taken merely to acquire permits in California. When complete, it will be several times the size of the Pentagon and will produce more lithium-ion batteries than the rest of the world combined.

Elon Musk underscores the monumental challenges and importance of the manufacturing process in creating a product. Whether it’s mass-producing vehicles or rockets, the manufacturing system is often the most complex and underappreciated element of the endeavor.

Chinese Factory Development:

Elon Musk discusses Tesla’s expansion into China through a new factory. The factory is planned to be the equivalent of Tesla’s Fremont car factory and the Nevada Gigafactory combined. Elon highlights the rapid progress, contrasting the groundbreaking ceremony to the factory’s current state. The factory aims to produce affordable versions of Tesla’s Model 3 and Model Y cars for the greater China market.

Year of the Solar Roof and Powerwall:

After overcoming production challenges with the Model 3, Elon is turning attention to Tesla’s solar initiatives. He states that this will be “the year of the solar roof and Powerwall.” Tesla had to previously allocate all resources to Model 3 production for survival, which affected other projects. The solar roof, along with Powerwall, is getting renewed engineering focus.

Challenges in Energy Storage:

Elon discusses Tesla’s Powerwall and PowerPack, which are part of the company’s energy storage systems. He mentions that they had to allocate cell production either to cars or to Powerwall due to limitations. However, with the Model 3 production stabilized, Powerwall and PowerPack production is set to ramp up. He also mentions the construction of large-scale energy storage systems, like the one in Australia and a gigawatt-hour scale project in California.

Sustainable Energy Future:

Elon emphasizes that the ultimate goal is a fully sustainable future that incorporates solar energy, battery storage, and electric vehicles. By integrating these elements, he envisions a future where sustainable energy production and consumption are achievable, describing it as a future one can feel “really excited and optimistic about.”

Elon Musk’s focus remains on expanding Tesla’s global reach and driving the transition to a sustainable energy future. The development of the Chinese factory plays a significant role in these goals, as do renewed efforts in solar and energy storage technologies.

Evolution of Superchargers:

Elon Musk discusses the inception and development of Tesla’s Supercharger network. In 2010, there were no Superchargers, making long-distance electric vehicle (EV) travel inconvenient. Tesla took it upon themselves to develop high-powered chargers, as no one else was building them at the time. The Model S was designed with a high-voltage DC bypass to enable fast charging directly into the battery pack.

Global Expansion:

Elon elaborates on the growth of the Supercharger network to a global scale. This network now enables Tesla owners to travel almost anywhere in North America, Europe, and most parts of China. He hints at further expansion, including into less-served areas like the Gobi Desert and Saskatchewan, which is under construction.

Supercharger Upgrades:

The third iteration of Superchargers was recently unveiled, capable of 250 kilowatts of power, up from the initial 75 kilowatts. This allows long-range Model 3 vehicles to charge at rates of about 1,000 miles per hour or 1,600 kilometers per hour. Version 3 Superchargers are already operational in the Bay Area and are planned to be installed globally.

Future Developments:

Elon shares that the rollout of new Superchargers was slowed down to integrate the new version 3 upgrades. With these now in operation, he promises a “radical improvement” in Supercharging worldwide by the next year.

Elon Musk outlines Tesla’s commitment to making long-distance EV travel not just possible, but convenient, through the continued expansion and upgrading of their Supercharger network.

Growth and Milestones:

Elon Musk discusses Tesla’s journey from producing one car 11 years ago to almost reaching a million vehicles in the next 12 months. This rapid growth serves as a testament to the dedication and talent of Tesla’s employees.

Environmental Impact:

Tesla has saved approximately 4 million tons of CO2 emissions, a milestone reached just before the presentation. This aligns with the company’s goal to accelerate sustainable energy and transport.

Industry Influence:

Musk highlights Tesla’s impact on the automotive industry, promoting electric vehicles (EVs) and even partnering with Toyota and Mercedes. Tesla has also open-sourced its patents, fostering an industry-wide shift toward electric vehicles.

Introduction of Model Y:

The primary announcement is the introduction of Tesla’s Model Y, a mid-sized SUV. Musk states it will be the safest in its category, with features like a low center of gravity and a 0.23 drag coefficient. The vehicle is expected to have a 300-mile range and be priced starting at $39,000 by 2021.

Self-Driving Features:

The Model Y will be feature-complete for self-driving capabilities by the end of the year. Regulatory approval will follow after extensive safety validation through billions of miles and kilometers of driving data.

Future Projections:

In a lighter note, Musk humorously suggests Tesla could be on Mars in 10 years. More realistically, he expects the Model Y to outperform the combined sales of the Model S, X, and 3, affirming Tesla’s market position.

Closing Remarks:

Musk ends by thanking supporters and speculating that the Model Y will likely be the most sought-after midsize SUV, encapsulating Tesla’s ongoing efforts to revolutionize the automotive industry.