Tesla’s cyber truck. Image: Tesla
–
What it means to report that Tesla is 6 years ahead
The competition dismantles every new Tesla car. And by “disassemble” is meant the literal meaning. Not that of German rappers à la Kool Savas.
When Tesla delivered the first Model 3 at the end of 2017, a German manufacturer also secured one of the first copies for the equivalent of 185,000 euros. Long before the first public imports in Europe. The Süddeutsche Zeitung found out. The managers of the premium manufacturer not named by name were able to put the car through its paces. Then it was broken down into its individual parts.
But disassembling Teslas is also a business. A business that is worth billions.
A company that specializes in this type of technical analysis is Munro & Associates in the United States. Technical devices of all types are put through their paces. At the end, a comprehensive report appears. This helps competition in industry, but also large investors, when considering investing in a company.
The Model 3 was also scrutinized in 2018. The corresponding M&A report is 2400 pages and initially cost $ 87,000 (now $ 60,000).
Thanks to the Autoline Network videos, Sandy Munro has blossomed into a veritable YouTube star. Image: Autoline network
–
The Autoline Network oversaw the entire appraisal process by Munro & Associates. Videos of it were published before the full report was available. Very early, in February 2018, CEO Sandy Munro was shown the first time he was examining Model 3. The older gentleman was not at all amused and criticized various security aspects. The gap is visible from Mars and he hates the door handles: “Since the 1990s, I haven’t closed the more laborious trunk doors.” The two professional whiners Statler and Waldorf from the Muppet Show can not only cut a slice in terms of Munro’s mustache. At the same time, the Motzki identifies itself as a mechanical snob.
When Sandy Munro gives a first expertise, then it has the weight. His list of defects became the mantra of many Tesla opponents. Quite a few speculators who bet on a fall in Tesla shares (shortseller) repeatedly cited these first Munro reviews.
But the shortsellers paid a high price. The stock is known to have exploded in recent months and the pessimists’ losses have been in the billions.
A little more patience would have paid off. Munro was already more reluctant to criticize during the driving tests. The driving behavior is excellent and the vehicle contains many little cool things.
However, the expert really got going six months later when the dismantling process had reached the electrical components: «The electronics, the density, is out of this world. The layouts are wonderful – a symphony of engineering. » Munro also liked the battery: «Originally I thought LG had the best batteries, then Samsung came out, LG continued to improve, but now – sorry guys – this is the best battery. It gives 50 percent more power with only 20 percent more volume. »
Munro’s conclusion: Model 3 is profitable – with an incredible margin of 30 percent.
A Japanese company recently joined in the praise for Tesla electronics. She also dismantled a Model 3 on behalf of the publisher “Nikkei Business Publications”. The headline-grabbing conclusion:
As the?
The Japanese are also big fans of Tesla’s electronic components, especially the so-called “Hardware 3”, the central control unit of the car. It is developed by Tesla and can process the huge amount of data of the autopilot as well as all other electronic needs of driver and car. “We can’t build something like that,” quotes “Nikkei Asian Review”, an engineer from a Japanese competitor. And that has deep roots.
The real problem with conventional car manufacturers is not of a technical nature. Some of them could build a similar control unit themselves in a few years. The Japanese engineer believes that it could be that far in 2025 – hence the 6-year lead. However, the bigger challenges are structural.
The conventional auto industry is dependent on a network of specialized suppliers, individual component manufacturers, spare parts suppliers and middlemen. If you fight an opponent who has a 30% margin and can reduce the price sharply if necessary, you can no longer afford this network and loyalty to your partners. The ballast must be dropped. It’s about hundreds of thousands of jobs.
Conventional brands are still carmakers who install electronics. But Tesla is an electronics company that builds a car around it and then sells it without intermediaries. It is a paradigm shift. And he explains Tesla’s enormous advantages in terms of margin, battery efficiency, autopilot and the still exclusive software updates on air. But he also explains the repeatedly criticized build quality, which primarily affected the first copies of the delivery.
What should not be forgotten in the discussion: The soup is often eaten hot. The Munro videos are also commercials for his reports. Munro sells – and with good headlines. Nikkei Business Publications also wants to sell the report to as many customers as possible for the equivalent of CHF 10,700. A headline that Tesla is six years ahead cannot hurt.
Therefore, we return to the German competition for a little more neutrality, which examined a first Model 3 at the end of 2017. But here, too, it sounds the same: The “Süddeutsche Zeitung” writes that the engineers were amazed. Especially when it comes to electronics: “Compact, expandable, fully integrated, modular, easily accessible, well protected, inexpensive and amazingly clever in many details – that was the judgment of the experts”.
It will be shown who will disassemble whom in the future. The competition Tesla or vice versa – literally, but also in the sense of Kool Savas.
PS: I would also like to mention a long interview with Sandy Munro. For an hour he philosophized about the future of the auto industry. Worth it.
