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Tesla’s Jerome Guillen Talks Gigafactory 1 & Working For Elon With 60 Minutes

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Published on December 10th, 2018 |

by Kyle Field

Tesla’s Jerome Guillen Talks Gigafactory 1 & Working For Elon With 60 Minutes

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December 10th, 2018 by Kyle Field

60 Minutes spent some time with Tesla’s leadership over the last few weeks, including a sit-down with Tesla President of Automotive, Jerome Guillen, at Tesla’s Gigafactory 1 in Sparks, Nevada. The lighthearted interview touches on the current state of the Gigafactory and gets into what it’s like to work directly with Elon Musk. This perspective comes from someone who has been a clutch player on the Tesla team for the last 8 years.

Engineering Fundamentals
Jerome Guillen isn’t your typical business leader. Much like Elon Musk, he built up his own core competency in hardcore engineering, holding a doctoral degree in engineering from the University of Michigan. Before coming to Tesla, Jerome cut his teeth at Daimler subsidiary Freightliner before stepping up to lead central projects at Daimler, like the launch of its carsharing service, car2go.

Since joining Tesla, Jerome has led the Model S program, led the Tesla Service program, led the Tesla Semi program, and most recently, led the Model 3 program, including the establishment of the General Assembly 4 line — also known as the line in the tent.

I Dream In Giga
As anyone familiar with the company knows, the core of Tesla’s business is batteries. The company does happen to sell batteries in some sexy packages, like automobiles and cutting edge stationary energy storage products, but no joy can be had without thousands millions billions of lithium-ion batteries being produced first. Tesla has taken its battery business to the next level with Gigafactory 1, which Jerome shared already builds more batteries than the rest of the world combined. What’s mind blowing about that is that Gigafactory 1 as it stands today is only 30% complete.

That hurts my brain, but means that Tesla has plenty of room to grow at Gigafactory 1. The factory churns out gigawatt-hours of batteries thanks to endless hours of work put in by the 7,000 employees there and a few hundred robots. The video of the interview with Jerome shows some of Tesla’s battery cell conveyors that move the individual cells around in their own little conveyor carts. The segments remind me of minecarts from Minecraft.

The mainstream media focused its coverage on the Model 3 production ramp because that’s where the more visually exciting elements of the Model 3 are built, assembled, painted, and the like, but an equal amount of effort went into expanding and improving operations at Gigafactory 1.

Gigafactory 1 is where every 2170 battery cell that went into a Model 3 was put together. They also bundle up those cells into the battery modules and battery packs that power each car. The Gigafactory is the unsung hero in the Model 3 production ramp and it is clear that it will continue to be the backbone for Tesla’s projects moving forward, particularly since its Fremont, California, automobile factory is approaching or at full capacity.

Jerome said that the Gigafactory was a key component of Tesla’s strategy, since building everything in a single factory is seen as critical in lowering the cost of production as the company pushes for increasingly more affordable electric vehicles.

Working With Elon
Jerome also touched on his relationship with Elon in the interview, noting that Elon was not alone in asking for the impossible from his team during the Model 3 production ramp. Jerome was also pushing the team. That included long hours for Jerome, but no sleeping at the factory for him. While at the Gigafactory, Elon actually slept on the roof of the facility. Jerome said that the views up there are amazing but that “it gets a little cold at night,” with a laugh.

Keeping with the spirit of the 60 Minutes interview with Elon, she asked if Elon was just there as a cheerleader. The question speaks to either her lack of background prep on Elon or a desire to poke and prod at the raw edges just to provoke a response that might earn some headlines. Either way, it’s awkward, but Jerome said Elon is a leader and that he never seems to stop pushing:

“It’s always at the limit of the comfort zone. This is what it takes. What we’re trying to do is very difficult and it’s not going to happen just by cruising. There’s a lot of innovation, a lot of technology, and we are doing this to make the vehicle less expensive so more people can afford them and more people can drive electric,” Jerome said.

He closes by reinforcing the reason Tesla exists. They are doing all of this to make electric vehicles more affordable so more people can drive electric. It is so different than the way any other company operates and yet it just makes so much sense. We need revolutionary products and solutions and that’s what Tesla is bringing to market, but it requires painstaking, difficult, world-changing work. At the end of the day, Jerome is still able to smile and seems to enjoy doing what he’s doing at Tesla.

Source: 60 Minutes via Reddit

Musk suggests Tesla’s new chairwoman won’t rein him in

Musk suggests Tesla’s new chairwoman won’t rein him inNew York – Tesla CEO Elon Musk dismissed the idea that the company’s new chairwoman can exert control over his behavior.
Robyn Denholm, an Australian telecommunications executive, was appointed chairwoman of Tesla’s board last month, replacing Musk as part of as part of a securities fraud settlement with U.S. government regulators.
But Musk said “it’s not realistic” to expect Denholm to watch over his actions because he remains the electric car company’s largest shareholder.
“It’s not realistic in the sense that I am the largest shareholder in the company,” Musk said in an interview with CBS’ “60 Minutes,” broadcast Sunday evening. “I can just call for a shareholder vote and get anything done that I want.”
Musk, who owns about 20 percent of Tesla, gave up the chairman role under a settlement with the Securities Exchange Commission, which had charged the CEO with misleading investors in August with a tweet that said he had “funding secured” for taking the company private.
The SEC settlement also required the company to vet Musk’s tweets and other comments about the company before they are released to the public. Musk also shrugged off that provision, saying none of his tweets have been censored so far and the company does not review his posts to determine beforehand whether they could potentially affect the company’s stock price.
“I guess we might make some mistakes. Who knows?” Musk said.
Musk said he does not respect the SEC, but when asked if he would obey the settlement, he said: “Because I respect the justice system.”
Denholm’s appointment in November drew a mixed response from corporate governance experts, who praised her financial expertise but questioned her ability to carve out an independent path for a board that has been dominated by Musk.
Denholm has been on Tesla’s board for five years. She is the chief financial officer and strategy head at Telstra Corp. Ltd., Australia’s largest telecommunications company, but will step down from that company after a six-month notice period and work at Tesla full-time.
Musk told “60 Minutes” interviewer Lesley Stahl that he had hand-picked Denholm.
The SEC settlement would allow Musk to return as chairman after three years, subject to shareholder approval. Musk said he would not be interested.
“I actually prefer to have no titles at all,” Musk said.
Amid its CEO’s erratic behavior, Tesla delivered on promises to accelerate production of its pivotal Model 3 sedan, progress seen as essential to the company’s ability to repay $1.3 billion in debt due within the next six months.
The company also fulfilled a pledge to make money during the third quarter, and Musk has said he expects the company to remain profitable. He said Tesla would consider buying any plant that rival GM closes as part of a restructuring plan that could cost up to 14,000 jobs.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Electric cars could spell end of front-wheel drive, VW exec says

Volkswagen ID Crozz concept
First it was Tesla, now Volkswagen.

Ever since British designer and engineer Alec Issigonis developed the original Mini Cooper for 1959, front-wheel-drive vehicles have been consolidating their hegemony on the car market.

Volkswagen itself was one of the main champions of front-wheel drive when it switched from the rear-wheel-drive Beetle to the front-wheel-drive Golf as its mainstream car in the 1970s.

DON'T MISS: Volkswagen details the foundation for 10 million electric vehicles

As it begins its transition to electric cars, Volkswagen's head of e-mobility in North America, Matthew Renna, said at a round-table discussion with journalists at the LA auto show last month that electric cars will mark the end of FWD, according to a report in Motor Trend.

Not that a front-wheel-drive electric car is inherently bad. Most electric cars today are FWD, including the VW e-Golf and the Nissan Leaf.

The advantages of FWD for gas cars included better space efficiency, less weight, lower cost, and better foul-weather traction with the weight of the engine over the drive wheels.

READ THIS: VW’s new U.S. CEO: The tipping point on EVs is already here

The relatively small motor in an electric car doesn't bring such a space or cost penalty and is easy to mount in the front or back or both for all-wheel drive. With AWD, electric motors give automakers more direct control of power or brake torque at individual wheels, which can be even more effective for snow or ice traction than focusing weight on one end of the car or the other.

With no compelling reason to put the motor in the front of the car and drive the front wheels, Renna said, “With the improved dynamics of rear-wheel drive, that lends itself to being a bit better for a rear-drive platform. If it's the same efficiency and the same cost, dynamics would prevail.”

CHECK OUT: Track Mode released to make more of Tesla Model 3 Performance

Furthermore, in an electric car with relatively even weight distribution (because it doesn't have a heavy engine hanging off one end or the other), the rear is where you want power to go, because that's where the body weight transfers when the driver accelerates.

The other reality is that in an electric car, batteries are the most expensive component, not motors. Adding a second motor up front to deliver all-wheel drive is likely to make all-wheel-drive cars more affordable than ever before.

Tesla patent application: GPS should be more precise with cameras and cars

Tesla wants with cameras, image recognition and the data of other cars as a reference the positioning accuracy of the Global Positioning System for autonomous driving. December 10, 2018, 9:20 am, Andreas Donath Tesla dashboard (Image: Stephen Pace/CC-BY 2.0) Where am I? Autonomous cars want to know this very well, but with conventional GPS data,… Continue reading Tesla patent application: GPS should be more precise with cameras and cars

Volkswagen ID Lounge: luxury SUV will lead electric line-up

Volkswagen is preparing to unveil the fifth member of its new ID range of electric models. A seven-seat SUV, which goes under the internal working title ID Lounge, will be revealed at the Shanghai motor show in April. It is being developed as a luxurious range-topping model with exterior and interior dimensions similar to the… Continue reading Volkswagen ID Lounge: luxury SUV will lead electric line-up

Tesla patents technology for more accurate GPS positioning

With the advent of self-driving vehicles, GPS accuracy is becoming increasingly important and Tesla believes that it developed a technology that allows for a more accurate positioning by sharing data between vehicles, according to a new patent application. Tesla’s latest patent application called ‘Technologies for vehicle positioning’ was filed last year and made public this week.… Continue reading Tesla patents technology for more accurate GPS positioning

Electrify America installs California’s first 350kW EV chargers

Electrify America Californians now have access to some of the fastest electric vehicle chargers on the planet… even if people can’t really use those chargers yet. VW’s Electrify America has installed California’s first publicly available 350kW EV chargers at Simon’s San Francisco Premium Outlets in Livermore Valley, 40 miles from San Francisco proper. The shopping… Continue reading Electrify America installs California’s first 350kW EV chargers

Tesla May Consider Buying Idle GM Plants – Bloomberg

Tesla May Consider Buying Idle GM Plants Bloomberg Tesla Inc. Chief Executive Officer Elon Musk told CBS’s “60 Minutes” that he may be willing to buy some of the five factories General Motors Co. will idle next year … Go to Source

Tesla needs ‘seasoned’ operator to take on execution hurdles: Analyst

Tesla still has execution hurtles, says expert
2 Hours Ago | 03:28

Tesla needs to consider adding a “really seasoned operator” to manage the mass-market manufacturer, Consumer Edge Research's James Albertine told CNBC on Friday.

“They need to prove that there's true independent, sort of, checks and balances between the board and senior management,” the senior analyst said on “Power Lunch.”

Albertine, who is equal weight on the stock, commended CEO Elon Musk for making his mark in the automotive industry with his electric car company. But Tesla needs a “different skill set” to build 500,000 units a year and expand into China, he contended.

“There are significant execution hurdles ahead,” Albertine added.

Musk's leadership skills have come into question ever since he started acting erratically months ago. Most notably, he found himself in trouble with the SEC when he tweeted about taking the company private. He also appeared to smoke pot on a podcast.

Albertine said Tesla has to continue to progress from its third-quarter earnings before he decides to upgrade to a buy rating. He will take into consideration who the company nominates to the board of directors.

“This is a long overdue sort of call here for more streamlined kind of focus on operations and kind of corporate governance from an independent board perspective,” he said.

On Friday, a Jefferies analyst raised Tesla's price target from $360 to $450, saying the company improved productivity.

Shares of the automotive company reached a turning point Thursday when they closed higher than the roughly $360 conversion price on the $920 million in convertible bonds due in March. It was the first time they closed above that price since early August when Musk floated the idea of taking the company he co-founded private.

The stock dipped 1.4 percent Friday to close at around $358.

Tesla did not immediately respond to a request for comment.

Disclaimer

Electric upstart Rivian plans for dealers, but not to sell trucks

Rivian R1T electric pickup concept
Electric cars worry traditional car dealerships.

Tesla sells cars nationwide without dealers—even if buyers have to drive over state lines to get them in some cases. Electric cars eat into one of dealerships' main profit centers, service, because they don't need oil changes, spark plugs, or even air filters. And traditional dealerships have trouble selling electric cars; many have trouble even keeping them charged and ready for buyers to test drive.

That's why Rivian, the Michigan-based startup planning to sell a new electric pickup and SUVs, doesn't plan to have traditional dealers in most places.

DON'T MISS: Rivian R1T all-electric pickup revealed: 400-mile range, 160-kw DC fast charging

As with Tesla, buyers will order directly from the company. Unlike Tesla, though, Rivian does plan to enlist dealers, though most will only be for service and support.

Speaking with Green Car Reports and Motor Authority at the LA Auto Show, Rivian founder and CEO R.J. Scaringe said the company will open service dealerships to support its trucks, but plans to sell them directly to consumers.

READ MORE: Rivian R1S electric SUV goes family style with 7 seats, 410-mile range

When it comes to sales, the internet, he says, has brought consumers more knowledge than ever before about the vehicles they're buying and virtually put an end to haggling. With most cars selling at rock-bottom prices, it has cut into dealerships' bottom line in sales—which has never been one of their more profitable lines of business anyway.

“Existing dealers are all recognizing that there are changes happening to their business,” Scaringe told Motor Authority. “There are aspects of what the dealers do that don't get talked about enough,” he said, namely sales and service.

To that end, Scaringe says Rivian has received a lot of interest from dealers in becoming the company's service and support centers, which will allow them to focus on aspects of their business that are most successful. Those service dealerships could be at other brands' traditional car dealerships or at independent repair networks.

CHECK OUT: Why Tesla's court battle to sell cars in Michigan could set national template

The company will also set up its own stores or galleries similar to Tesla's to sell its 400-mile electric pickup starting in 2020. Its stores won't be in malls, but also won't look like traditional dealerships with a showroom surrounded by acres of parking lots to store lots of inventory, he said. Instead, they will be brand experience centers where customers can test drive and order cars. The company is already accepting $1,000 refundable deposits.

In states where such direct sales from automakers are forbidden, such as Michigan and Texas, however, Rivian may try to partner with existing dealerships to sell their trucks, he said.