Menu
Buying a Tesla should be as easy as buying a pizza

Buying a Tesla should be as easy as buying a pizza

My First Million

507 views 8 hours ago

Video Summary

Elon Musk challenged the team to simplify the car buying process, comparing Tesla's 64 clicks to buy a car with Domino's 10 taps for a pizza. This led to a significant reduction in car configurations available for purchase.

The head of manufacturing, Greg Reicho, and the head of engineering, Doug Field, were consulted. They confirmed that simplifying the build-to-order combinations from 360,000 to just two would drastically streamline manufacturing. Musk agreed, and now customers can choose from only two or three configurations when buying a Tesla.

Short Highlights

  • Elon Musk aimed to reduce the number of clicks to buy a car from 64 to 10.
  • This involved reducing build-to-order configurations from 360,000 to two.
  • Manufacturing and engineering heads supported the simplification.
  • Today, Teslas have only two or three configurations available.

Key Details

The Challenge of Online Car Sales [00:00]

  • Elon Musk initiated a project to simplify the online car buying experience.
  • He noted that it took 64 clicks to buy a car on Tesla's platform.
  • This was compared to Domino's pizza, which required only 10 taps to purchase.

    "Hey, look, we got to figure out how to sell cars online."

Reducing Configurations for Simplicity [00:22]

  • The team explored the impact of reducing 360,000 build-to-order combinations.
  • They found that customers were only purchasing two specific configurations.
  • The question was posed: what would it mean to manufacturing if there were only two options?

    "out of all these 360,000 combinations of build to order, people are only buying two."

Manufacturing and Engineering Support [00:31]

  • Greg Reicho, head of manufacturing, expressed enthusiasm for the simplification.
  • He stated that he had been waiting for such a change to drive efficiency.
  • Doug Field, head of engineering, was also consulted.

    "Oh my god, I I've been waiting for this day for somebody to really drive this because you know what that would do to our factory."

Elon Musk's Decision [00:40]

  • Elon Musk listened to the input from Greg Reicho and Doug Field.
  • He recognized the benefits of simplifying the manufacturing process.
  • Musk made the decision to proceed with the reduction in configurations.

    "Yeah, we have to do this."

The Result: Simplified Tesla Purchases [00:45]

  • As a result of the decision, Tesla's car buying process was simplified.
  • Customers now see only two or three configurations when purchasing a Tesla.
  • This change significantly streamlined the factory operations.

    "So, if you go to buy a Tesla today, you'll see you've got two or three configurations on there."

Other People Also See