Welcome back to my blog, I hope you’ll enjoy this week‘s post. I am posting part of Elon Musk‘s speech given on March 22, 2022 at Giga Berlin Brandenburg. The reason I am focusing on his speech in this blog post is that I believe it is a historically significant speech.  It contains a roadmap for the future of our world as we transition away from fossil fuels and into a clean energy future, involving solar, wind, and battery storage and electric vehicles.

Elon’s speech inspires us to look towards a more positive future. So grab a warm blanket, a good beverage, and enjoy! 

Thank you for your hard work which has led to this great day, and it was amazing to see how excited the customers were to receive their cars. It was just super good vibes and it bided very well for the future of Giga Berlin Brandenburg. 

I think it’s worth remembering that every car that we make is a step in the direction of a sustainable future. The thing about this factory and the cars that we make is that it gives people hope about the future and it’s like it’s very important to have reasons to be excited about the future. Often people are depressed or sad about the future because they think it won’t be good but what we’re doing here is with every car we make, with every battery we make, we’re making the future better. So what you are doing really matters, it makes a difference. 

I’m sort of working on the Master Plan Part 3. Yes, it’s going to be good. But a huge part of that is scaling to high volume. So in order for us to really affect the world in a positive way- because we get a lot of press, we get a lot of attention- but say how many vehicles have we made as a percentage of total vehicles in the world? Because there are 2 billion vehicles in the world. Well, so far, we’re actually well below 1% and not even 1/2 a percent. So, it’s essential for us to really affect the future in a positive way. We have to make a lot of cars. It’s the only way. So that’s why we call it a Gigafactory, it’s very big.  

We’re starting off with the Model Y and we’re going to do a number of exciting additional vehicles here. So I think this overall is going to be a center of excellence for sustainable energy in general, and it’s really going to help the world. I look forward to doing it with you and once again, thanks for everything!

In addition to the work that we do here, we also inspire and encourage the rest of the industry to go towards electrification. I think it’s fair to say that without Tesla, without the work that the Tesla team has done, the rest of the industry would not be moving so quickly towards electrification. That’s also why we open-sourced our patents. We have made our patents freely available to the other car makers, because it was the right thing to do.  No other company has done that far as I know. At Tesla, we really try to do the right thing. We want to be a company that you can believe in, in your heart and soul. In order to do that, we must be a company that does the right thing.

In response to a question about when Tesla would go to South America, and maybe some other markets, Elon stated,

We definitely want to go to the world, the challenge we have right now-  it’s a high-class problem - the orders we have are well in excess of our production, so sometimes people will say, “why aren’t you in all these other markets and why don’t you make all these other different versions of the product like different cars like where is the Tesla semi-truck and the Cybertruck and the Roadster?”  The challenge we have is that our orders far exceed our production, so, you know… ‘ A high-class problem.’ But we need to have our production get to the point where it exceeds our current orders and then it makes sense to expand to additional markets and to have additional products. Because, if we add complexity and we don’t add production volume, then we’ve not actually done anything more. 

The good is a function of how many vehicles we are able to make. As we are able to ramp up production and satisfy demand in our existing markets, then we will expand to other markets and we will also add additional products. Last year there were a lot of supply chain challenges with chips, everyone knows about the chip shortage. This year there are still some chip shortages. Next year, I think will be a challenge with total battery production. Certainly, if you start going, like 2 to 3 years out, it’s all about how many gigawatt-hours of battery are produced. That will be the limiting factor. 

And then going even further down into the supply chain, what is the right battery materials that are being mined and refined? And obviously, you want to do that in an environmentally sensitive way. In the grand scheme of things is “how many terawatt hours of battery can be produced per year.”  Our rough calculation is that about 300 TWHR  is needed to transition the world to a sustainable energy economy. This is a lot of batteries basically. So we want to try to do as much of that as possible. I think we are doing a pretty good job, we are growing by 70% to 80% per year on average and maybe even faster than that in the future. So that is, I think, the answer to ‘why not more markets, and why not more products?’ 

When asked what he was most proud of, Elon responded,

I am most proud of the amazing work done by the Tesla team, to scale at the rate that we are scaling and make compelling products that people love. You know, you think about, how many products can you buy that you really love? It’s so few, you know, and it would be great if people made more products that you love. 

And Tesla is a rare company that actually makes products you love. It brings you joy every day, that’s great.  If you look at our rate of growth, Tesla is the fastest-growing company in history that makes a large manufactured product. So the next fastest was the Ford Model T and that was 100 years ago and we are actually growing faster than the Ford Model T, which is crazy!

Elon Musk explains Giga Berlin Model Y will be offered in a deep complex red and liquid silver

With respect to colors, which colors will be available from this factory? 

Colors are always a challenge because when you think about You do not only need to manufacture it but you need to service it and fix it for like 20 years. You have to think about what are we going to put the service team through? You know, managing all these colors? So we have to be careful with a total number of colors but, we obviously are going to make some special colors here because  - and it’s more than just color itself but it’s the layers of paint to get the dimensionality -  we’re going to make a really special red, which I think a lot of people have seen. It’s like 13 layers of paint. The layers give you dimensionality. It makes the color look deep and complex. and then we will also have silver. It will have maybe eight layers, and it’s going to be really special. Like kind of liquid silver and a deep red. A deep complex red. In a few months, we will make this special deep dark red and quicksilver. 

I think it will be the best paint on any production car that is not made for a show or something like that.  And you have to design the paint job especially for 13 steps.

Elon answered questions about battery composition, as well as when FSD beta might come to Europe, 

I think will be ready to show it to regulators in the European Union, maybe in two or three months. But then we have got to do quite a lot of work for all of the special use cases in Europe. As you know, the roads vary quite a lot by country. The road rules, and the way the lines are painted, are different. And then you have to recognize all the different languages. It’s quite difficult to do full self-driving in Europe. Much more complex than say, the USA or Canada. There are a lot of little tricky things, the rules are not the same. But I think, probably, we can start doing FSDbeta maybe later this year in Europe. Depending on regulatory approval. Things are different in the USA, in the USA, things are legal by default. In Europe, they are illegal by default.
So, we have to get approval beforehand, whereas in the USA, you can do it on your own cognizance, more or less. 

But as for what the next target is, Elon responded

I guess the next target is, to really scale production this year, and try to make as many cars as we can. We want to complete the development of the Cybertruck and be ready for production next year. Hopefully, have enough battery pack capability to start the Tesla semi-truck. Hopefully, we may complete the engineering of the new roadster, and then there are some future products that are also pretty important. There’s also stationary storage, new versions of the Tesla solar roof and Powerwall 3. There are a lot of things. So we have a very exciting product pipeline.

When asked what makes him happy, Elon responded with,

There was a question from the audience was about production capacity and Elon responded,

Twenty million cars in 10 years. And that would be a good number because there are 2 billion cars and trucks in the world that are in active use. So 20 million would be one percent of the global fleet per year.

Waving goodbye, Elon said,

This was my eleventh blog post and one of my favorite.  I am extremely thankful that Tesla Giga Berlin-Brandenburg is open and producing wonderful electric vehicles.  Each vehicle will bring happiness and joy to its owners.  I have owned a Tesla since December 2019, and I love driving it around Austin.  I went to see Gigafactory Texas a few days ago, and I am very excited about the future of electric vehicles made in Texas.  I hope to learn more about both Gigafactories over time. I know that you also share this enthusiasm with me and many others.  We are truly living in exciting times. 

_{Gail Alfar, [edited by Sarah Alfar], Exclusive to What’s Up Tesla – All Rights Reserved. March 26, 2022}