The Musk-Led Manufacturing Revolution Nobody Is Talking About [Video]

When most analysts discuss Tesla, they focus on new vehicles or the electric vehicle company’s advancements in autonomy. Yet, according to Launch i/o CEO Jeff Lutz, one of the most significant—and under-discussed—developments at Tesla is happening not in its design studios or on the road, but in its factories. Lutz, a former executive at Google and Motorola, argues that Tesla’s true innovation isn’t just the electric vehicles or robots it’s building, but how those products are being made. The company’s first-principles approach to manufacturing is a radical departure from the industry norm, focusing not just on cheap labor or existing models, but on rethinking the entire production process.

Tesla is creating factories that are the product—designing, testing, and perfecting every element just as they do with their cars.This focus on manufacturing efficiency, Lutz believes, will lead to a dramatic reduction in production costs, potentially bringing them closer to zero. And this shift in how products are built—rather …