Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo illustration: Annelise Capossela/Axios. Photo: Zhang Peng/LightRocket via Getty Images

Tesla CEO Elon Musk, who has spent more than a decade trying to disrupt the traditional auto industry, is sounding more and more like the man most closely associated with it: Henry Ford.

Why it matters: In his quest to build affordable electric cars for the masses, Musk is starting to embrace many of the ideas pioneered by Ford's founder — things like vertical supply chains and an obsession with manufacturing efficiency. A century ago that approach helped to popularize the American automobile by lowering the cost of the Model T.

What's happening: Musk is making batteries, computer chips and many vehicle components in-house — and securing supplies of raw materials.

  • He's either bucking the prevailing industry trend that favors outsourcing to lower-cost global supply chains — or coming full circle.

Like Henry Ford in the early 20th century, Musk was ridiculed at first. But even Tesla skeptics are surprised by the leaps the electric vehicle company has made in its manufacturing capability and efficiency.

  • Two years ago, after taking apart a Tesla Model 3, "I couldn't believe how bad the body was [put together]," says Sandy Munro, a former Ford Motor engineer whose consulting firm, Munro & Associates, specializes in reverse-engineering and competitive analysis for the auto industry.
  • "Everything else blew me away," he tells Axios, referring to Tesla's electric power train.
  • Now, after poring over every inch of a disassembled Model Y, its newest product, Munro says Tesla's improvement is remarkable.
"They're going to go from worst to first in a short time."
— manufacturing expert Sandy Munro

Details: Tesla still has work to do on paint quality and fitting body panels together, but several engineering innovations stood out, says Munro, whose findings are summarized in this video.

  1. Tesla's new proprietary computer chip. Designed in-house to one day enable full self-driving capability, the new chip is manufactured in Texas by Samsung.
  2. The "mega-casting" of the car's body. The entire rear of car is shaped from a single aluminum casting, rather than hundreds of pieces of steel welded together. That translates into better quality, less weight and easier assembly.
  3. Tesla's unique materials. By inventing its own aluminum alloy, Tesla eliminated multiple steps in the body manufacturing process.

What to watch: With Tesla adding factory capacity on three continents (including Austin, Texas, next year) and competitors entering the EV space, too, demand for batteries is increasing, and raw materials could become an issue.

Flashback: Henry Ford's mission was to build a simple, reliable and affordable car that average Americans could afford. Efficient manufacturing was the key.

  • Aside from inventing the moving assembly line in 1913, his biggest idea was an "ore to assembly" manufacturing complex that became Ford River Rouge.
  • "He bought all the different elements so that the raw materials would go into one side of the Rouge and 28 hours later come out as a finished automobile," said Ford Motor corporate historian Ted Ryan.

One other similarity: Like Henry Ford in the 1930s, Elon Musk has a history of anti-union behavior.

The bottom line: A century apart, these two automotive pioneers shared many of the same ideas.

Go deeper

Jan 15, 2021 - Economy & Business

The cloud-based car is arriving

Illustration: Annelise Capossela/Axios

The notion of the car as a "computer on wheels" is moving past the realm of hype and closer to reality, which will transform the driving experience and improve road safety, too.

Why it matters: The arrival of long-promised technologies like 5G connectivity and new high-performance computers means cars will improve over time, instead of depreciating the minute they leave the dealer lot.

Dion Rabouin, author of Markets
44 mins ago - Economy & Business

Biden's inflation danger

Illustration: Sarah Grillo/Axios

President-elect Joe Biden's $1.9 trillion stimulus proposal has economists and bullish market analysts revising their U.S. growth expectations higher, predicting a reflation of the economy in 2021 and possibly more booming returns for risk assets.

Yes, but: Others are warning that what's expected to be reflation could actually show up as inflation, a much less welcome phenomenon.

Ina Fried, author of Login
3 hours ago - Technology

CES was largely irrelevant this year

Illustration: Sarah Grillo/Axios

Forced online by the pandemic and overshadowed by the attack on the Capitol, the 2021 edition of CES was mostly an afterthought as media's attention focused elsewhere.

Why it matters: The consumer electronics trade show is the cornerstone event for the Consumer Technology Association and Las Vegas has been the traditional early-January gathering place for the tech industry.