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HowElonMuskTurnedTeslaIntotheCar CompanyoftheFuture
ByJoshuaDavis EmailAuthor September27,2010| 2:00pm| Categories:WiredOctober2010

TheTeslaModelS(right)andthe12.8inchrotor(left)atitscore. Photo:AdrianGaut Seealso: RoadTest:FourEVsYouCanDriveThisYear ElonMusklookslikeakidwhojustwalkedintoatoyfactory.The39yearoldCEOofupstartcar companyTeslaMotorsstandsonthemainflooroftheNewUnitedMotorManufacturingplantandlookswith awefromonegiantpieceofmachinerytothenext.Thecarfactory,knownasNummi,islocatedinFremont, California,butitsanindustrialcityuntoitself.Itencompasses5.5millionsquarefeetandcontainsaplastics moldingfactory,twopaintfacilities,1.5milesofassemblylines,anda50megawattpowerplant.Since1984, ToyotaandGeneralMotorshadrunNummitogether,producingasmanyas450,000carsayearhereuntilit wasshutteredinApril.Now,inaremarkableturnofevents,Muskownstheplace. Heseemsassurprisedasanyoneatthisdevelopment.Foryears,theexuberantlyambitiousentrepreneur wasntevenallowedtovisit.Plantmanagersapparentlyfrownedontheideaofapotentialcompetitortouring thefacility.Notthattheyhadmuchtofear:In2009,Teslamanagedtoproduceonlyabout800high
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performanceelectricsportscarsanichemanufacturerinanindustrythatchurnsoutmillionsofvehicles. ButMuskneverintendedtobeanicheplayer.Aftermakingroughly$180millionasacofounderofPayPal,he helpedgetTeslaoffthegroundin2004withaninitialinvestmentof$6.3million.Thestartupsaudacious businessplanhadthreesteps.First,developahighend,highperformancesportscartoprovethatelectric vehicleswerebothcoolandfeasible.Second,rolloutaluxurysedanthatwouldcompetewithhighendbrands likeBMWandMercedes.Third,producehundredsofthousandsoflowcostelectricvehiclesforthemasses. Muskhaspulledoffthefirststep.In2008,TeslareleasedtheRoadster,atwoseatsportscar,andhassincesold justover1,300.By2009,thegovernmentagreedtoloanthecompany$465millionfromanalternativevehicle fundtolaunchphasetwo:ChallengethecarindustryheadonbymassproducingtheTeslaModelS,astylish fourdoorsedanpoweredbymorethan7,000lithiumionbatteries. Justoneproblem:Muskdidnthaveafactory.TeslawasoutsourcingmostoftheRoadstermanufacturing, assemblingthecarsonebyoneinagaragebehinditsshowroominMenloPark,California.(Thebuildinghad oncebeenaChevroletdealership.)Fabricationonamassscalewasobviouslyimpossiblethere.Muskneededa legitimatefacilitylikeNummi,buttheplanthadrecentlybeenvaluedatnearly$1billionwaybeyondwhata smallstartupcouldafford. ButinMarchofthisyear,Nummiplantmanagersgotanunexpectedcall.AkioToyoda,presidentofToyota,had givenpermissionforMusktoconductaclandestinetour.ToyodawantedtoseewhetherMuskwasinterestedin buyingthefactoryandneededtokeepitquiettopreventmediaattentionfromscuttlingadeal.Atthetime,the carindustrywasintheprocessofretrenchingaftertheeconomicmeltdownof2008.GMhadalreadypulledout oftheplantafterdeclaringbankruptcyin2009,andToyotaplannedtostopproductioninlessthanamonth. Therewerenttoomanypeopleinterestedinbuyinga200acrewhiteelephantofacarfactory,soToyoda openedthedoorforMusk. OnhisfirstvisittoNummi,Muskdonnedahardhat,abluejacket,andplasticsafetygogglesandactedas inconspicuousaspossibleinthehopesofnotbeingrecognized.AsaNummiplantmanagerledhimdiscreetly throughthefactory,hegawkedatthemassivescaleoftheplaceandtriedtosuppresshisexcitement.Hundreds ofToyotaCorollasandTacomatrucksrolleddowntheassemblylines.Thousandsofpeoplebuzzedabout.Itwas everythinghehaddreamedofforTesla.Heofferedwhathehadbudgetedforamoremodestfactory:$42 million.Amonthlater,tohisastonishment,theofferwasaccepted. Now,onhissecondvisittotheplanthisfirstasitsownerMuskistryingtogethisbearings.Justfiveweeks earlier,Teslahadgonepublic,netting$238millionandmakingitthefirstAmericancarcompanytocomplete aninitialpublicofferingsinceFordin1956.Asaresult,thecompanyhasaccesstomorethan$700million,a significantportionofwhichwillgotowardretrofittingthefacility.Itsadauntingtask.Muskwalkspastrow afterrowofmotionlessroboticdrills.Amultitoncranestandsidlebesidea60foottallsteelpress.Theceiling soarshighoverhead,makingeventhepresslooksomehowsmall.Foramoment,Muskappearsoverwhelmed bywhathesgottenhimselfinto. Holycrap,thisplaceisbig,hesays,butthenheflashesasmile.Itsperfect.

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"Elonhashugesteelballs,"hisexwifenotesonherblog."Hetrulydoes." Photo:NigelParry Wardrobe:LouiseChen/SaksFifthAvenuestylist:MicahBishop/ArtistUntiedgroomer:Tamara Brown/ArtistUntied Justthreeyearsago,TeslaMotorswasinbigtrouble.Thecompanysinauguralproductthe$109,000Tesla RoadsterwasduetobeginproductioninSeptember2007,butaninternalauditdoneoverthesummer revealedthatthecosttoactuallybuildthecarhadclimbedto$140,000.Itwasamoneyloserbeforeasingle unithadbeendelivered. Muskwastheleadinvestorbutwasntrunningthecompanythen,andhewastakenabackbythestateofaffairs. Hedbeenledtobelievethatmanufacturingthecarwouldcost$65,000anddecidedtoinvestigatethe discrepancyhimself.HevisitedthebodypanelfabricatorinEnglandanddiscoveredthatthefacilitydidnthave therighttoolstodothejob.Thecarwasntjusttooexpensiveasthingsstood,itcouldntevenbebuilt. Atthispoint,Muskandotherinvestorshadsunknearly$100millionintothecompanyanddidnthaveasingle cartoshowforit.MartinEberhard,CEOatthetimeandoneofTeslasfounders,wasdemotedandinamatter ofmonthsleftthecompany.MichaelMarks,aninvestorandformerheadofelectronicsmakerFlextronics, steppedinasinterimCEO. Marksimmediatelydrewupalistofroadblocksstandinginthewayofthecarbeingbuilt.Thetransmission didntwork,theairconditioningdidntwork,thequalityoftheseatswasunreliablethelistkeptgoing.The situation,Markswroteinanemail,wasalotscarierand[more]pressingthanIthought.Allworkonthe
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Roadsterwasputonholdthecompany,Musksays,wasinanearfatalfinancialsituation.Hehadboasted thatSiliconValleysmartscouldbeathideboundoldDetroitatitsowngame.Nowthatwasntlookingsoeasy. Attheendof2007,Muskdecidedtoputanother$20millionintoTesla.Hewasntreadytoconcededefeat, becauseforhimtherewasmoreatstakethanjustcreatingaviablecompany.Thecombustionenginehadmade theworlddependentonoil,resultinginclimatechange,massivetransfersofwealthtooilproducingcountries, andheightenedgeopoliticaltensions.Muskbelievedthattheautoindustryhadtoomuchfinancialandpsychic investmentintheenginetoadmitthatthe19thcenturytechnologyhadoutliveditsusefulness.Tesla,however, couldjumpstarttheelectriccareraandhelpsolvetheproblem. Theimpactofswitchingtoelectricswouldbetransformative,Muskbelieved.Withthecombustionengine, wevebeenlargelystuckwithoiltoproducefuelfortransportation.Electricity,ontheotherhand,canbe producedinmanywaysbyacoalpoweredplant,anuclearreactor,ahydroelectricgenerator,awindfarm,ora solararray.Inaworlddominatedbyelectriccars,allthesepowerproducingtechnologieswouldbespurredto compete,encouraginginnovation.Whatsmore,anelectricengineisinherentlymoreefficientthana combustionengine:Onegallonofgasolinecouldbeusedtogenerateenoughelectricitytopoweranelectric vehicleforhundredsofmiles. Despitethemanufacturingchallenges,Teslasengineershadsuccessfullydesignedadurableandpowerful batterypackusinglithiumionlaptopcells.Itwasnoeasytask.Lithiumionbatteriescanexplodeifoverheated, sotheteamcameupwithaninnovativecoolingsystemthatcirculateswaterandantifreezeinsealedtubes throughoutthebatteryarray.Theyinstalledsensorsthatwoulddisconnectthebatterywithinmillisecondsin theeventofacrashorifsmoke,humidity,orwaterenteredthepack.Atthesametime,itprovided200 kilowattsofjuiceenoughtoletthe288horsepowermotorrockettheRoadsterfrom0to60inlessthanfour seconds. Theautoindustrybegantotakenoticeofthelittlestartupwiththebigideas.InJanuary2007,GMunveileda prototypeelectricvehiclecalledtheChevroletVolt.InaninterviewwithNewsweek,BobLutz,thenGMsvice chair,said,IfsomeSiliconValleystartupcansolvethisequation,nooneisgoingtotellmeanymorethatits unfeasible.Thatsameyear,DaimlerunveiledplanstodevelopanelectricversionofitsSmartcar.Suddenly, themajorcarmakersweremovingintoelectricssofastthatTeslariskedbeingleftbehindbythewaveithad generated.

TobuildthenewTeslaModelSMuskneededtobuyafactory. Photo:AdrianGaut MusktriedtoacceleratetherolloutoftheRoadsterbyhiringZeevDrori,anononsenseformerIsraeli paratrooperandmicrochipexecutive,totakeoverasCEO.WhileDrorifocusedonsolvingtheRoadsters problems,Muskstartedtothinkaboutwaystobringinmoreincome. Oneoptionwastotrytoridetheelectricwavebysellingbatterypackstothelargermanufacturers.Theincome couldkeepTeslaalivelongenoughtoeventuallycompeteheadtohead.Afterall,electricvehiclesweregoingto needbatteries,andMuskwasconvincedthatTeslahadthebestpowerpacks.Ofcourse,mostmanufacturers werentinclinedtomakeahugebetonastrugglingstartup.

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Thesleek,roomyinteriorofTesla'sModelS. Photo:AdrianGaut Still,Musktried.InSeptember2007,heflewtoStuttgart,Germany,andmetwithagroupofDaimler executives,wholistenedskepticallyasMusktoldthemhowgreathistechnologywas.Theywerentsold. ButtwomonthslaterMuskgotanemailfromHerbertKohler,Daimlersheadofadvancedengineering,saying thatheandsomeotherDaimlerexecswouldbeinCaliforniainsixweeksandwouldbewillingtolookatTeslas technology. ItwasallMuskneeded.HeimmediatelycalledJBStraubel,TeslasCTO. WeneedtomakeanelectricSmartcarinsixweeks,Musksaid.Canyoudoit? StraubelpointedoutthatitwouldmeanhedhavetopullengineersofftheRoadsteratatimewhentheywere stilldesperatelytryingtosolveproductionproblems.Itwasatoughcall,butMuskbelievedthatiftheycould provethemselvestoDaimler,theycouldwinavaluablecontract.Inadditiontothemuchneededcash,itwould validateTeslaintheeyesoftheworld.Theyhadtotry. Straubelhadanotherquestion:Wherewashesupposedtogetaregular,gaspoweredSmartcartoretrofit?At thetime,DaimlerdidntsellSmartsintheUS. Withabitofresearch,hediscoveredthatthecarsweresoldinMexico.Hemadeafewcallsandlocateda dealershipinTijuanawithstockonhand.Hehurriedlydecidedtosendsomeonetofetchacar.ATeslaengineer suggestedafriendwhowasfluentinSpanish,and,afteraquickcall,theguyagreedtomakethetripsouth. Straubelwalkedovertothefinancedepartment.Ineed$20,000incashinabagrightnow,hesaid.Were sendingsomeonetoTijuanatobuyaSmartcar. ThefinancepersonnotedthatalotcouldgowrongwiththatscenariobutgotStraubelthemoney.Threedays later,theengineersbuddyshowedupatTeslaheadquarterswithabrandnewSmartcar. Straubelandhisteamremovedthe83horsepowergasengineandsettoworkbuildingacustombatterypack thatwouldfitinthetinycarsenginecompartment.Next,theyrefashionedaRoadstermotortopowerit.When theygottootired,theynappedunderneathastaircase,butthepoundingoffeetoverheadmadeithardtostay asleepforlong. Finally,atoneoclockinthemorning,fiveandahalfweeksaftersettingtowork,thereengineeredSmartwas fullyassembled.Straubelgotinthedriversseatandswitchedonthepower.Hegoosedtheacceleratorand rocketedoutofthegarageandintotheparkinglot.WhenStraubelflooredit,thefrontwheelsliftedoffthe groundandthebacktiresleftmarksontheasphalt. StraubelcalledMuskandtoldhimthecarwasreadyfortheGermans.

TheTeslaEffect
Althoughitmaybeatinystartup,TeslaMotorshasenergizedtheautoindustry.Hereshowthecompanyhas influencedcarmakersandsuppliersworldwide.AllisonDavis

Atieva
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Theelectriccarbattery startupwasfoundedin 2007byformerTeslaVP BernardTse.

Teslamadeadealin2009 tosupplybatterypacksfor theelectricversionofthe Germanautomakers Smart.Daimlerhasalso invested$50millionin Tesla.

Theworldslargest carmakerhaspartnered withTeslatobuildelectric RAV4satTeslasplantin Fremont,Californiaa facilitythatTesla purchasedfromToyota.

TeslacofounderIanWright startedthiselectricvehicle technologycompanyin 2005.Itshighperformance car,theX1,lappedTeslas Roadsterina2010test race.

GM

Freightliner

Volkswagen

ALTe

In2007,GMvicechairBob TheUStruckmaker(owned Germanysbiggest FoundedbythreeexTesla LutzcreditedTeslawith byDaimler)purchased automakerhiredTesla execsin2008,this helpingtogetthecorporate Teslasbatterytechnology cofounderMartinEberhard companygivesoldgas greenlightfortheChevy in2010touseinafleetof in2010toleaditsbattery guzzlersEVmakeovers. Volt,whichhitsshowrooms commercialhybridelectric lab. laterthisyear. trucks. IllustrationbyMWMGraphics TheDaimlerexecutivessatdowninTeslasconferenceroommidmorningonJanuary16,2008.Musk walkedthemthroughaPowerPointpresentationthatexplainedtheadvantagesoftheRoadsterstechnology. Kohlerwasntimpressed.Hewasntheretotalkaboutaflashy,limitedrunshowcar.Hewantedtoknowif TeslacouldmassproducebatterypacksquicklyfortheSmart.Hisfrostydemeanorindicatedthat,inhis opinion,itdidntseemlikely. Weveactuallygotsomethingtoshowyou,MusksaidandaskedtheDaimlerexecstofollowhim. KohlerspottedtheshinynewSmartsittinginthemiddleofthegarageanddidntsmile.Itmighthaveseemed likeagimmickatfirstMuskmanagedtogetaSmartintotheUS.Bigdeal. Itselectric,Musksaid. Whatdoyoumean?Kohlerasked. WeputinaTeslabatteryandmotor. Kohlerexaminedthecar.Straubelhadbeencarefulnottoalteritsshapeorinterior,soitwasimpossibletotell thatithadbeenmodified. KohlergotbehindthewheelandMuskhoppedinthepassengerseat.WhentheGermansteppedonthe accelerator,thecarboltedoutofthegarageanddisappeared.StraubelwaitednervouslywiththeotherDaimler executives.After15minutes,theSmarttorebackintothegarage.Straubelnoticedthatthenormallytaciturn Kohlerwastryinghardnottosmile. Letsexploreapartnership,KohlertoldMusk. Overthecourseof2008,TeslasolvedtheproductionproblemsontheRoadsterand,onebyone,thecars startedtohitthestreets.Thereviewswereglowing.CarandDrivercalleditarevelationandMotorTrend gushed,TheRoadsterisacoolautomobiletechnically,acoolerautomobiletodrive,andanhistoricgame changerinourperceptionofbatteryelectricvehicles.Muskaccumulatedhundredsofordersforthe$109,000 car.Itlookedlikethecompanymightsurviveafterall. Musk,however,wasntinterestedinjustsurviving.Thoughhesaidthecompanycouldreachprofitabilityifit focusedjustontheRoadsterandthebatterypackbusiness,hedidntreininhisambition.Thepoint,afterall, hadneverbeentosupplyfastcarstorichpeople.Thepointwastotransitiontheworldtoelectric transportation.Heobviouslydidntthinksmall.Hisothermainbusiness,arocketcompanycalledSpaceX, aimedtoreplacethespaceshuttleandeventuallytakepeopletoMars.WithTesla,theRoadsterwassimplya
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proofofconceptthatsetMuskupforthenextstepinhisbusinessplan:theModelS. ThedifficultiesMuskencounteredwiththeRoadsterhadntmadehimwaryofinnovation.Infact,inthe summerof2008hegotbolder:Torevupthesedaneffort,hehiredMazdasleadNorthAmericandesigner, FranzvonHolzhausen,andtoldhimthathewantedafourdoorcarthatseatedseven. ThatsanSUV,notasedan,vonHolzhausenresponded. MuskcounteredthatvonHolzhausenhadarareopportunitytodesignsomethingnew.TheRoadsterwasbased onamodifiedLotuschassisthatwasmanufacturedinEnglandandshippedtoTeslaforfinalassembly.Withthe ModelS,theyweregoingtobuildtheirownchassisfromthegroundup.Sincethisnewplatformdidnthaveto accommodateexhaustpipes,thermalshieldingtoprotectagainstengineheat,orbulkycatalyticconverters, therewouldbealotofextraspace.Thatmeantitwastheoreticallypossibletoputinathirdrowofseats.Musk didntjustwanttobuildafunctioningelectricsedanhewantedtoredefinewhatasedancouldbe. GiventhepositiveresponsetotheRoadster,Muskwasconfidentthathewouldbeabletoraiseanother$100 millionthatsummertosendtheModelSintoproduction.GoldmanSachswasarrangingthefinancingand soundedbullish.Thenthesubprimemortgagecrisisbegantospiraloutofcontrol.Suddenlymajorbankswere onthevergeofcollapse.Thelastthinginvestorswantedtodowasputmoneyintoastartupcarcompany.By October,Goldmanhadmadelittleprogress,andMusktoldthemtogiveup. Weekafterweekthroughthefallof2008,MuskwatchedTeslasbankbalancedrop.Histeamhadbeenableto bringdownthecostofproducingtheRoadstertoapproximately$95,000byrenegotiatingsuppliercontracts andredesigningpartstobesimpler.Still,Teslahadpresoldthecarin2007tohundredsofbuyersatadiscount priceof$92,000.Costswerecontinuingtodroptheycouldmakeittoprofitabilityiftheydidntgooutof businessfirstbutbytheendoftheyear,Teslahadlessthan$500,000inthebank.Theywereindangerofnot makingpayroll.BloggersmountedaTesladeathwatch. Muskwasdowntothelast$20millionorsoofhispersonalfortune.TeslaandSpaceXhadconsumedtherest. Ifheheldontothe$20million,hecouldwalkawayandstillberich.Hewas37yearsoldhehadplentyoftime totrysomethinglessrisky. Hecalledhisyoungerbrother,Kimbal,whohadinvestedmoremodestlyinTesla,andtoldhimthatthe companyneededanothercashinfusion.Thetwohadmademillionstogetherin1999whentheysoldZip2,an onlinemediaservicescompany,toCompaq.Kimbal,wholivesinBoulder,Colorado,wasabouttoorderacoffee atStarbuckswhenhisphonerang.Hesteppedoutsideintothecoldtotalk. Youreallythinkitsrationaltoputmoremoneyin?Kimbalasked,implyingthatmaybeitwastimetomove on. Weresoclose,Musksaid.Kimbalcouldhearthestressinhisbrothersvoice.Musksmarriagetonovelist JustineMuskhadjustfallenapart,andoneofhisSpaceXrocketshadrecentlyfailedtoreachorbitinabotched launch.Still,Muskwantedtotakeonmorerisk. Daimlersalmostthere,hesaid.TheRoadstersalmostthere.Wecantquitnow. Muskknewwhatneededtohappen:MaketheRoadsterprofitableandbuildbatterypacksforDaimler,thenuse thatrevenuetostayalivelongenoughtogetloansfromthegovernmentandlaunchtheModelS.Hewasready toputthelastofhismoneyin,butifanyoneofthosethingsdidntcomethrough,itdbeover.Itdidntmatter. Muskwasconvincedhecouldpullitoff.HehadaskedDroritostepdownasCEOandtookovertherole himself.Hewasgoingallin. Elonhashugesteelballs,hisexwifenotesonherblog.Hetrulydoes. Kimbalactuallyfoundhimselfbelievingtheycouldmakeitandagreedtoputinmoreofhisownmoney.Musk soonpersuadedmostofhisotherinvestorstoponyupemergencyfunds,raisingatotalof$40million.The companywasgoingtohaveonelastshot. Butunderneaththebravado,Muskwonderedifhewouldhavetostartoverwithnothing.Hesoongotatasteof whatthatwouldbelikewhenhefoundhimselfborrowingmoneyfromfriendstopayhislivingexpenses.At thatpoint,everydaywaslikeeatingglassandstaringintotheabyssofdeath,hesays. TheemergencyfundskeptTeslaafloat,andalmostimmediatelythingsstartedtounfoldjustasMuskhad predicted.InJanuary2009,Daimlerfinallyfeltconfidentenoughtobuy1,000batterypacksfortheSmartina dealworthmorethan$40millionforTesla.Then,inMayofthatyear,Daimleragreedtobuyanearly10 percentstakeinthecompanyfor$50million,givingTeslaavaluationofmorethan$500million.More important,apioneeroftheinternalcombustionenginewasvouchingforthetinyelectriccarstartup. Throughoutthefinancialturmoilattheendof2008,vonHolzhausenhadfocusedondesigningtheModelS.In March2009,hedfinishedaprototype.Itwascertainlynoordinarysedan.Thecarhadthesexy,slopinglinesof aPorscheandthemuscularstanceofaBMW.ThecompanyunveileditinfrontofhundredsofpeopleatMusks rocketfactorynearLosAngeles.WhenvonHolzhausendramaticallypulledasilversheetoffthecar,itsparkled underwhitespotlights. Youllseethatthisisntsomeshowcarthatdoesntdowhatitsaysitlldo,Musktoldthecrowd.Itllgofast withalotofpeopleinit. Muskgotbehindthewheelandbeganzippingguestsupanddownthestreet.Thecarimpressed.Itfeatureda sleek17inchtouchscreenonthecenterconsole,andsinceitlackedacombustionengine,therewasroomunder thehoodforaspaciousstoragearea.Thebatterypackwasflat,rectangular,andtuckedunderthefloorboard,
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whichmeantthatitdidntinfringeonthepassengerspace,givingthecaranice,openfeel.Andwiththecargo areainthefront,therewasspaceintherearforanextrarowofseatsfacingbackward.JustasMuskhadasked: roomforseven.Removingthedesignconstraintsofacombustionengineopenedupthesedantonew possibilities. Theturnaroundcontinued.ThreemonthsaftertheModelSunveiling,thefederalgovernmentannouncedthatit wouldloanTesla$465milliontobringthesedantomarketaspartoftheAdvancedTechnologyVehicles ManufacturingLoanProgram.Establishedmanufacturersreceivedsubstantiallymoretodeveloptheirelectric vehicleprograms.Ford,forinstance,wasawarded$5.9billion,andNissangot$1.6billion.Muskrelished pointingoutthat,unlikeTesla,thoserecipientsoflargerloanswerentevensellingelectricvehicles.Thenagain, hehadnevermassproducedacar.Theloanswouldgivehimtheopportunitytodojustthat.Buttherewasa hitch:Themoneywouldntbedisburseduntilhefoundaplacetobuildthecar. OnemorningthisApril,MuskwalkedoutofhisBelAirhousewearingatiecoveredinfakeblood.Deepak Ahuja,TeslasCFO,wasflabbergasted.Fordays,theteamhadbeenpreparingforabreakfastmeetingwithAkio Toyoda,exchangingemailsonthefinepointsofJapanesebusinessetiquette,includinghowtobowandthe propertwohandedprocedureforpresentingabusinesscard.Now,minutesbeforetheToyotapresidentwas duetoarrive,MuskwaswearingaHalloweenjoketieemblazonedwithpumpkins,skeletons,andfakeblood. Hewasgoingtoruineverything. AhujaglancednervouslyatDiarmuidOConnell,Teslasvicepresidentofbusinessdevelopment.OConnell didntknowwhattosay.TheystoodawkwardlyforamomentinfrontofthehousewhileMuskstartedtapping outanemailonhisiPhone. ThenMusklookedupatthemandbrokeintoabroadsmile.Igotyouguys!heblurtedandstartedlaughing. Muskwantedtodiffusetheapprehensionofmeetingthepresidentoftheworldslargestcarmaker,andthe bloodytieseemedtodothetrick.AhujaandOConnellstartedlaughing,too. MusktookthetieoffasaconvoyofToyotaSiennaminivansandaLexuslimousinepulleduphisdriveway. Bodyguardssteppedoutofthevehicles,followedbyafloodofToyotaexecutives.Foramoment,nobodyknew whattodo.Toyodahadcalledthemeetingtodiscussbusinessopportunities,butnobodyhadmethimbefore. MuskfidgetedwithhisphonewhileAhujawonderedwhetherheshouldbow. OConnellspokeupfirstandintroducedMusk.Toyodasteppedoutofthecrowdandeveryonestartedshaking hands.Somuchforbowing,Ahujathought. ToyodanoticedMusksredRoadsterinthedriveway,andtheconversationquicklyturnedtothecar. Youwanttotakeitforaspin?Muskoffered. Inamatterofminutes,the53yearoldToyodahadtheacceleratorfloored,pinningMusksheadtotheseat. ToyodawasacertifiedToyotatestdriverandhadcompetedatthe24hourNrburgringenduranceracein Germany.Muskcouldtell.Toyodachattedinarelaxedwayashewhippedthecararoundcornersinthehills aboveSunsetBoulevard.Musktriedtofocusontheconversation.Toyodasaidhewantedhiscompanytobe moreentrepreneurial.ThatswhyhehadwantedtomeetMuskandgivetheRoadsteratryinthefirstplace.He likedthefactthatMuskhadmanagedtobringthevehicletomarket.Plus,itseemedlikeafuncar. WhentheygotbacktoMuskshouse,theyatebreakfast,thenToyodaclearedhisschedulefortherestofthe morningandgotbackintheRoadsterwithMusk.Hewasntdonedrivingthecar. Toyodapilotedthemontothe405freewaythetopwasoffandthewindwhippedtheirhairastheyaccelerated. Theyspedsouth,towardSpaceX,whileToyodaslimoandfleetofminivansattemptedtokeepup.Attherocket factory,thetwomenhunchedoverMuskscomputerandgleefullywatchedrocketlaunchvideoslikeapairof 12yearolds.MuskaskedifToyodawantedafrozenyogurttherewasafroyocartinthefactory.Itsounded good,andafewminuteslatertheywereeatingyogurtamidhulkingrocketfuselages.Itwasalotoffun. Fourweekslater,Toyotadecidedtoinvest$50millioninTesla.Theautogiantalsosignedontodevelop prototypeelectricvehicleswiththestartupandindicatedthatitwouldsupportMusks$42millionofferforthe billiondollarNummifactoryinFremont. DuringthepressconferenceannouncingthedealatTeslaheadquarters,Toyodatookthemicrophoneandtalked aboutgettingtodrivetheRoadsterandhowithadimpressedhim.HedecidedtoworkwithTesla,hesaid,so thatToyotacouldlearnfromthesmallcompanysspiritandenergy.WhenaskedbyaReutersreporterwhy hehadchosentopartnerwithTeslaamongalltheelectriccarstartups,ToyodalookedoveratMusk.Musk chan,hesaid.Ilovehim. Whatsthedisengageforce?Muskasks.HeswatchingacomputersimulatethefabricationofaModelS partatTeslasvehicleengineeringdepartment.Thebig,singleroomofficeisfilledwithmorethan100 engineers.Desksareclusteredbysubspecialtyaerodynamics,suspension,interiorsandMuskdoesaweekly walkthroughtomonitorprogress.Nowhewantstoknowexactlyhowametalstampingmachinewillreleasea bodypanel. Thepressisspringloaded,repliesthemanufacturingengineerrunningthesimulation.Hesbeenwiththe companyonlythreeweeks.Beforehearrived,nobodywasfocusedonhowtooptimizethemetalstamping process.ItssomethingTeslaisfiguringoutasitgoes. Theclockisticking.MusksaysModelSproductionwillstartin2012,lessthantwoyearsfromnow.Tohelp himpullitoff,Muskhashiredanimpressiverosterofseasonedautomotiveengineersandmanufacturing
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How Elon Musk Turned Tesla Into the Car Company of the Future | Wired Magazine | Wired.com

specialists.GilbertPassin,theformerToyotaexecutiveinchargeoftheNummifactory,joinedTeslainJanuary. PeterRawlinson,formerlyatopengineerwithJaguarandLotus,isnowMuskstopModelSengineer. Rawlinsonistaskedwithrapidlyfinalizingthesedansspecificationsinadvanceoffabrication,andhehosts Muskswalkthroughs.Heguideshisbossovertothenoise,vibration,andharshnessteam,whosejobisto minimizeallthreeunwantedattributes.Theengineersreplaytheirlatestsimulation,whichshowsthatthe ModelSwillbequieterandsmootherontheroadthanmostothercars. Sweet,Musksayswhileexaminingthedata.Weregonnahavethehighesttorsionalfrequencyever. RogerEvans,anoise,vibration,andharshnessengineer,pointsoutthatthebatterypackactuallymakeshisjob easier.Evansspent15yearsatFordtryingtomakecarsandtrucksquieter.Outofnecessity,Fordsdesigners placedatunnelintheframeoftheircombustionvehiclestomakeroomforexhaustpipesandadriveshaft.It makesacarlessstiffandcreatesmorenoise,buttherewasnothingtobedoneaboutit.NowEvansdoesnthave tocontendwithexhaustpipesandadriveshaftthecarsunderbellyisperfectlyflat,resultinginincreased rigidity.Thebatterypacksitsina9inchdeeprectangularmetalframethatsboltedontothefloorofthecar, addingevenmorestiffness.Thevehiclehasavibrationspecialistsidealcontours,andEvansseemsalmost giddyasheexplainstoMusktheplatonicidealhesachieved. Rawlinsonsotherengineerspullupsimulationsthatshowthecarwillfeaturesuperbaerodynamics,road handling,andsafetyattributes.Onthecomputer,thecarperformsbetterthananAstonMartin,costs significantlyless,andcanstowasurfboard. Ijusthopewegetgoodcorrelationwithourpredictivemodels,RawlinsontellsMusk. Inotherwords,Rawlinsonhopesthattheycanactuallybuildacarascoolastheoneontheircomputerscreens. AttheNummiplantthefollowingweek,Muskdonsahardhatandsurveyshisnewfactory.A60foottall wreckingmachinetearsdownawall,makingwayforwhatwilleventuallybeaTeslaassemblyline.Rightnow, itsjustadustypileofrubble. Passin,headofmanufacturing,leadsthewayintotheplasticsfactory,aseparatebuildingfilledwithhulking bumpermakingmachines.Thecontraptionsaresobig,MuskandfourTeslaexecutiveswalkinsideoneto inspectit.Theyresurroundedbymetalwallsdesignedtoslamtogethertomoldbumpers.Theunitisoffand thewallsarefarapart,butthereisasensethattheycouldpoundinatanymoment.Itfeelslikestandinginside agargantuantrashcompactor. Muskseemstolikethespace.Thegreatthingaboutthisplaceisthatitsetsusupforthenextgenerationafter theModelS,Musksays.Wecouldhave250,000carscomingoutofhereinfiveyears. Thatis,ifMuskcanpullofftheModelS.Thefactoryiscurrentlysetuptoproducecarsmadeofsteelanduses magnetstoliftandpositionparts.Tocutdownonweight,theModelSwillbebuiltoutofaluminum,whichisnt magnetic.Passinplanstoretrofitmachinerywithsuctioncupstoworkaroundtheproblem. Thereareplentyofotherobstacles:Teslahastohireaworkforce,dealwiththeunions,andwrangleparts suppliersforwhich20,000carsisstillasmallnumber.AndifandwhentheModelSdoesrollofftheline,Tesla willhavetofaceamarketplacecrowdedwithelectriccarcompetitionfrombigleaguemanufacturerslikeGM andNissan. NoneofthisseemstobotherMusk. Teslasfinancialsituationhasturnedaround,heexplains.Hefinallyhasthecapitalandtheinfrastructureto transformthecompany. Notthattheroadaheadistotallysmooth. Imnotstaringintotheabyssofdeathanymore,Musksays.Imjusteatingglassnow. ContributingeditorJoshuaDavis(www.joshuadavis.net)wroteaboutflushlessurinalsinissue18.07. Pages:Previous123456| FullPage|Next YouMightLike RelatedLinksbyContextly

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