Elon Musk Gigafactory Opening Speech

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Elon Musk Gigafactory Opening Speech

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[Elon Musk Gigafactory Opening Speech]

TESLA
GIGAFACTORY
GRAND OPENING
07.29.2016

[Elon Reeve Musk:]
So, okay, just going through the Tesla mission.

TESLA MISSION
Accelerate the world’s transition to sustainable energy

Obviously, the Tesla’s mission is to accelerate the transition to sustainable energy. So, obviously, it’s incredibly important that we do.

Yeah.

[Elon Musk:]
It matters to the world. It matters if it happens sooner or later. It matters if it happens at scale and that’s what the Gigafactory is about. It’s about being able to making enough electric cars, enough stationary battery packs that it actually moves the needle from a global carbon-production perspective – so that it actually does really change the world.

GIGAFACTORY
Massive Scale | Affordability

[Elon Musk:] Source: LYBIO.net
So that’s why – it’s so – It has to be big, because the world is big, okay that’s why. So, the crazy thing is, that what you are seeing here is only 14%. It is 1/7th of what the completed factory will be. But we have been able to increase the output of the factory compared to the original design by a factor of three. So, ultimately with think that the factory will produce about 150 gigawatts and we will talk a bit about that. Yeah, so…

All right, so starting with what’s needed for the Gigafactory is – the Model 3? So, this is really about being able to make enough [battery] cells, enough batteries to make hundreds of thousands and ultimately millions of electric cars and to do so at a massive scale and in a way that is affordable to people. And so it doesn’t matter – I mean cars obviously needs to be affordable. Otherwise, no one will buy them. So, in order to achieve that, there are really two key dimensions that are necessary. One is to make – to keep iterating the technology – to design the technology to be better and better and have multiple versions. And so this would be our third generation – third major generation of technology and then economies of scale.

GIGAFACTORY

[Elon Musk:]
So, we’re driving those to the absolute maximum with the Gigafactory and that’s why it’s so big. It’s big for a reason.

[Jeffrey Brian “JB” Straubel:] Source: LYBIO.net
There just wasn’t enough factory capacity anywhere else in the world. We didn’t have an option. This factory will have the output of all the lithium-ion factories combined when it’s done.

[Elon Musk:]
Yeah, exactly. The basic math was that in order to make half a million cars a year, we would need every lithium-ion battery factory on Earth that makes batteries for phones, laptops and cars, just to achieve that output. So it’s like well, clearly, that’s not being built, because you would be able to see it on a satellite picture, okay. So either we figure out someway to build this thing or they will not be the cars that are needed. So, we kind of just first said ok, we’ve got to just start building this thing and hopefully people buy into it and start to believe. You know – we’re only be able to do this because of you guys, so it’s – without you, this could not be possible. So I just want to say thank you very much. Ok.

[Elon Musk:]
In order to achieve this, we really have to design the factory as the machine. So a lot of the way that people look at factories is kind of – is often thought it was kind of like a boring thing like making photocopies or something. It’s just like catalogue engineering. But it’s just totally the wrong way to look at it. You really need if you look at a factory like it’s a product, like it’s a giant machine that builds the machine. And it deserves actually more innovation and more engineering skill than the product itself.

[JB Straubel:]
Yes.

[Elon Musk:]
And that’s what we’ve done with the Gigafactory.

[JB Straubel:] Source: LYBIO.net
Yeah, we have some of our best engineering team is working on actually laying out the factory and looking at how to fit more density and more equipment into the same footprint.

REDESIGNED MANUFACTURING PROCESS

[JB Straubel:]
And this is really key to how we’ve been able to reduce the cost of the cells and the batteries that come out of here so much. You know that intense engineering effort is you know, what that drives this improvement. It’s not just, as Elan said; it’s not a copying machine, it’s not just replicating things that have been done before, we’re reinventing that battery manufacturing process from end to end.

[Elon Musk:]
Yeah – I can’t emphasize enough how important this conceptual framework is because really almost everywhere they just think of the factory as – as a bunch of machines like basic machines that are stuck together to produce copies, but – and it’s mostly pulled from cataloges and you can get this machine from that person that – that company, this machine for another company, but if you applied that same principle to product design, it wouldn’t make any sense.

REDESIGNED MAUFACTURING PROCESS

[Elon Musk:]
Like if we try to make the Model S out of parts from a bunch of different cars – it would be ridiculous, it would be like a bumper from a Honda, a steering wheel from this, a – you know, a motor from something else – it would look like different –

[Audience:]
— from Camry!

[Elon Musk:]
– right exactly. It wouldn’t make any sense to actually make a car from bits and pieces of other cars. You really need to design a car as an integrated product from the ground up. And that’s the same approach we’ve taken to the Gigafactory and is really, really quite unusual for that to be the case.

Imagine the Factory as a Machine | Design the Machine from First Principles of Physics | Optimized Speed and Density

[Elon Musk:]
Um… so, yeah, and then in terms of analyzing how the factory should work, I’m big fan of using physics as an analytical framework for physics.

[Audience:]
[inaudible]

[Elon Musk:]
Physics – yeah!

Imaging the Factory as a Machine

Design the Machine from First Principles of Physics

Optimize Speed and Density

[Elon Musk:]
Yeah, physics is true, everything else is debatable and even physics is questionable. So that – design of the factory from physics post principles means really optimizing the density of the factory. So you can think like the fundamental efficiency of the factories is the density of useful stuff, like what percentage of the volume of the factory is actually useful stuff versus not useful stuff.

And then output of factory is the exit velocity of products from the factory. So we’re actually just, just applying that throughout or through every step of the process, we’re actually fairly confident that this at least maybe a five to ten fold, at least five I think and maybe ten – maybe ten or more fold of potential improvement in production capability. In this image you guys can see maybe some of you can see on the screen is actual CAD of the factory.

[JB Straubel:]
You know just like a great machine, the entire factory is in CAD; every pipe, every electrical conduit, every piece of ductwork and every piece of equipment building the cells. So we’ve modeled all that to fit it in with a littlest – the minimum wasted space. Everything is basically almost touching each other on every floor. So that was necessary to build this amazing machine and many factories aren’t done this way. They’re just – you build a shell and then you sort of randomly put equipment in there, but this was very different.

[Elon Musk:]
Yeah. It’s essentially designed like a very high, high density multilayer integrated circuit like an advanced CPU, which is really – and actually when you think about it, it’s like obviously how it should be done. And I think actually over time, the manufacturing process may look a lot like one of those superfast chip pick and place machines. Its super optimized for speed and density. I mean if you think about like how did we improve the capability of your phone or your laptop, it wasn’t by making a really giant computer of the size of a table, it was by increasing the clock speed and the density and those same principles applied to manufacturing. So I am really excited about revitalizing manufacturing. I think it’s sort of – it needs love and we’re going to give it.

[Audience:]
[Applause]

And…

[Elon Musk:]
Yeah, go ahead.

VERTICAL INTEGRATION

Raw Material Input Bunch of Stuff Happens Finished Goods Output

[JB Straubel:] Source: LYBIO.net
And we’re also expanding the scope of what people typically thought of as a battery factory. We’re going all the way from the basic raw materials that that going to making up a cell, all the way through to the finished battery packs under one roof in this single factory, historically it’s gone between a lot of different factories.

VERTICAL INTEGRATION

Raw Material Input
Buch of Stuff Happens
Finished Goods Output

[Elon Musk:]
It’s a three step process, which we’ve outlined for you. All of our secrets are right here. Raw material, bunch of stuff happens, outcome is a car.

[Audience:]
[Applause]

[Elon Musk:]
So the vertical integration is it’s pretty important because like one way to think of manufacturing efficiency is how long a journey did that molecule take from when it was mined. So if it was mined in one part of the world then went to – then went halfway across the world to get processed then back half way across the world to get processed another way. And eventually does several trips around the world before it finally ends up in a finished product, that’s obviously just a – like that’s fundamentally going to be expensive.

It’s just like you can’t send things on round the world trips and expect it to be cheap or affordable. It’s just not going to happen. So it makes sense ultimately for railcars of raw materials to come in one side and then for finished vehicles to exit the other side. So, I mean, today we – we – it’s sort of split up we’ve got the vehicle factory in Fremont, California. We’ve got the battery factory here in Nevada. But um… I think for Gigafactory two and beyond, I think we’re just going to integrate that into one, one big facility.

[Audience:]
[Applause]

[JB Straubel:]
And just to give you a sense of scale you know that I think you guys have seen the models hopefully as many of you have gone tours, but to make it sort of more – more real, you know -this factory is going to be about six million square feet of ground area…

GIGAFACTORY SCALE
6 Million Square Feet

[Elon Musk:]
And that’s just the footprint.

[JB Straubel:]
Yeah just the footprint.

[Elon Musk:] Source: LYBIO.net
It will be the biggest building in the world, biggest single building in the world by footprint and second only in volume to the Boeing factory in Washington State.

93 Boeing 747 Jets

[JB Straubel:]
It’s really, really huge. And if you sort of think of you know something that maybe you’re familiar with like a 747, that’s pretty big, right.

[Elon Musk:]
Right.

[JB Straubel:]
Well, we can fit about 100 747’s parked in the footprint of this building.

50 Billion Hamsters

[Elon Musk:]
Yeah, and I mean not only that I mean we can fit fifty billion hamsters.

[Audience:]
[Applause]

500,000 Cars
50 GWh | 2018 Factory Capacity

1,500,000 Cars
150 GWh | Full Capacity

[Elon Musk:]
So in terms of vehicles, the – we actually expect to get to 50 gigawatt hours a year of output in two years to give you a sense of what that size is. Total global output, I don’t know the 2015 numbers, but the 2014 numbers for total global output of lithium ion for all purposes throughout the world was only about 30 gigawatt hours. Okay, this is more than the entire planet produced last – in 2014, maybe it was obviously more last year, but still call it roughly – I figure out roughly that this one factory will produce as much as the rest of the world combined.

[Audience:]
Yes.

VEHICLE UNIT OUTPUT

500,000 Cars
50 GWh | 2018 Factory Capacity

1,500,000 Cars
150 GWh | 2018 Factory Capacity

[Elon Musk:]
And then as we get a couple of years later, perhaps 2020 or thereabouts, we expect the when the factory is fully built out, and like I said, you’re actually standing, where you are right now is the middle of the factory. You’re standing on middle of where the facory will be, when it’s complete. So we should have another party, I think. And so, when we figure our when it’s done. It should be able to do on the order of 1.5 million cars and also provide a lot of power for stationary stores for battery pack switchers, obviously which are going to be very important to pair with solar.

[JB Straubel:]
And all this is happening a lot faster than we even initially planned it could. With the amazing results from Model three, we’ve pulled ahead that half million cars by fully two years. So the building you see outside is almost doubling in scope just by next year in order to build those half million model 3’s per year.

[Elon Musk:]
Yeah. So that’s super, super exciting. I actually really love manufacturing. That’s great. It’s like what people should get into, I think.

MASTER PLAN: PART DEUX

Beautiful Solar and Storage | Expand to Major Vehicle Segments | Self-driving 10X Safer than Human | Your Car Makes Money for You

[Elon Musk:]
Part of the master plan. So really this four parts to it which is to make beautiful solar combined with battery storage, and to expand to all of the major vehicle segments in order to as quickly as possible move us away from while, get to a self driving capability that’s about ten times better than the average driver. So, I mean, that’s a lot of lives saved. So, 1.2 million people die a year in auto accidents, so that’s a lot of potential for lives saved there.

[Elon Musk:]
And then the ability to add your car to a shared fleet whenever you want. So whenever you’re, whenever you’re not using your car, you will be able to just tap, tap the Tesla app on your phone and add it or subtract it to the shared fleet. And you’ll be able to define like what – you know – who can use it like only five star users or anyone or only family or whatever. And then whenever you want it back, you can just tap, tap it and it will return to you.

[Audience:]
[Applause] Yes! Yes!

[Elon Musk:]
So – you know – most time when you look at cars, they’re sitting in a parking lot somewhere and they’re not being used and this has the potential to massively amplify the utility of vehicles and offset the cost of ownership.

[Audience:] Source: LYBIO.net
Yes! Yes!

[Elon Musk:]
And it’s totally up to you when you want to do it or not do it, it’s all yours.

[Audience:]
Will it find Pokémon for us?

[Elon Musk:]
It will – it find Pokémon for you, absolutely, of course, of course.

[JB Straubel:]
And you know as we said earlier a lot of people you know really doubted that there would be enough demand to even make a factory like this makes sense in this timeframe and you know – we started this way before the Model three launch event before we had all those reservations. And I think you know, it’s really a tribute to all of you guys as customers that are making this possible. So, yeah, I really, really thank all of you for doing this.

[Audience:]
[Applause]

[Elon Musk:]
I mean that’s basically the overview of the Gigafactory and what we’re up to.

[JB Straubel:]
There’s a lot of stuff to do already on our plate, but I think we better wrap it up with that.

[Elon Musk:]
Yeah.

[JB Straubel:]
So thank you guys very much. This is awesome…

[Elon Musk:]
Thank you.

[JB Straubel:]
I really appreciate it.

[Elon Musk:] Source: L Y B I O . N E T
All right.

Elon Musk Gigafactory Opening Speech

Elon Musk Gigafactory Opening Speech

Elon Musk Gigafactory Opening Speech. It wouldn’t make any sense to actually make a car from bits and pieces of other cars. Complete Full Transcript, Dialogue, Remarks, Saying, Quotes, Words And Text.

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