Tesla's gives an update on its upcoming more affordable vehicle
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The third-quarter earnings call for Tesla offered intriguing insights into the direction and focus of the company's upcoming next-gen vehicle, dubbed the Model 2 or the $25,000 car.
While drawing on a comparison to Cybertruck's production challenges, Elon Musk declared this vehicle will be more conventional for production with the overarching goal of achieving an unmatched level of manufacturing efficiency.
Functional Beauty: The Aesthetic Vision
The next-gen car is predicted to be the most produced car in Tesla's lineup, with the potential scale and reach of the Model 2, with implications suggesting it could match the combined volume of other Tesla models. The "high-volume, low-cost" will be simpler in design and technological features to achieve a production speed unprecedented in the auto industry. The mention of achieving "units per minute level that is unheard of" paints a picture of Tesla's commitment to scale and affordability.
Breaking away from the enchantment often associated with Tesla vehicles, Musk set the stage for a different kind of vehicle in the Model 2. Described as "utilitarian," this new vehicle won't be about enchanting consumers but serving a functional purpose. Despite this, Musk reassured that the car will still bear Tesla's signature beauty.
The Quest for Affordability
A dominant theme throughout the call was the relentless push towards reducing costs and improving operational efficiencies. Vaibhav Taneja, Tesla's Chief Accounting Officer, pointed out the myriad challenges and variables in managing product margins, especially given the ongoing factory upgrades.
Nevertheless, company representatives remain unwavering in their dedication to cost reductions for 2024, showcasing Tesla's commitment to affordability. As Taneja describes, this "cost attack" strategy involves meticulous examination and improvement of every line item, highlighting Tesla's dedication to affordability at every turn.
Musk equated their cost-reduction strategy to a "Game of Thrones" where even saving pennies mattered. Musk highlighted the importance of such savings, highlighting how even small elements, like unnecessary internal stickers or QR codes, are being scrutinized for their contribution to the vehicle's cost.
Driving down the costs for the Model 2 isn't just about large-scale production adjustments; it's about scrutinizing every tiny detail. Musk illustrated the cost anatomy of a vehicle, emphasizing the challenge of saving even $0.40 on each of the approximately 10,000 parts in a car.
What This Means for Model 2
All these cost-saving strategies are directly tied to Tesla's aspiration to introduce the Model 2 at an unprecedented price point. By focusing on "pennies" and being "ruthless" in their cost-cutting measures, Tesla is gearing up to deliver a vehicle that doesn't just promise efficiency and sustainability but also unparalleled affordability.
The road to the Model 2 is evidently layered with challenges. Still, if there's one takeaway from the earnings call, it's that Tesla is more committed than ever to making the dream of an affordable electric vehicle a reality for the masses.
As a continuation of our series on Tesla’s patents, we’re taking a look at how Tesla optimizes the performance of AI - FSD, in this case - in autonomous vehicles and robots. Patent WO2024073115A1 goes over efficiently running complex AI models on specialized hardware.
Before we dive into this article, we recommend reading our article on How FSD Works and our other article on Tesla’s Universal Translator for streamlining FSD deployments. While they’re not necessary, the background knowledge will help you appreciate all the details behind how Tesla does their optimization.
Just like before, we’ll be breaking this down into sections and making them as easily understandable as possible.
AI Subnetworks
FSD isn’t a monolithic entity - it is composed of smaller, specialized sub-networks, each dedicated to a specific aspect or function of autonomous operation. This modular design means that Tesla can work on improving one or all sections through training. When one section is improved, the end-to-end nature of the AI also means that the other sections will learn to adapt to the improvements and, therefore, perform better. It also allows for more efficient processing and adaptability during deployment and initial platform training.
These sub-networks might be responsible for tasks such as:
Recognizing and interpreting traffic signals
Detecting and tracking moving objects including vehicles, pedestrians, cyclists, and more
Maintaining lane position and navigating roads
Generating 3D maps of the surrounding environment
Planning paths and making real-time driving decisions
This division of labor allows FSD to handle the complexities of autonomous driving with greater efficiency and precision
Tailored Compilers
Different hardware components are good at different things - and they also require different types of instructions. CPUs, GPUs, and specialized AI accelerators (NPUs) all have unique architecture and capabilities.
Tesla uses a compiler toolchain to translate FSD into machine code that is specifically tailored to each hardware component. This ensures that instructions are executed optimally on each processor, maximizing performance and efficiency.
Strategic Assignment
To further optimize performance, Tesla employs a system that intelligently assigns each FSD sub-network to the most suitable hardware component. This ensures that computationally demanding tasks are handled by the most powerful processors while simpler tasks are delegated to more efficient units.
This strategic assignment of tasks maximizes the overall efficiency of the system, ensuring that each component operates within its optimal performance range.
Optimized Scheduling
The order in which the hardware executes instructions also plays a crucial role in performance. Tesla's system includes an "execution scheduler" that determines the most efficient sequence of operations, minimizing delays and maximizing real-time responsiveness.
This optimized scheduling ensures that the FSD can react quickly and make informed decisions in dynamic driving situations - or quick-response situations with Optimus - like catching a ball.
While the demo here has been confirmed to be teleoperated, Tesla has said they’re working to let Optimus do this autonomously in the future.
To reduce the computational burden and power consumption of FSD, Tesla employs a technique called "quantization-aware training." This involves training FSD to work with lower-precision numbers, which require less processing power and memory. Essentially - rounding.
This approach allows the AI to operate efficiently without significantly compromising accuracy, striking a balance between performance and resource utilization.
Clock Synchronization
In hardware systems with multiple chips, maintaining precise timing is crucial for accurate and synchronized operation. Tesla's system incorporates mechanisms to synchronize the clocks of all processing units, preventing timing errors and ensuring seamless coordination between different components.
This precise clock synchronization is essential for FSD to make accurate real-time calculations and respond effectively to changing conditions.
Redundancy and Failover
To ensure reliability and safety, Tesla's system supports redundant hardware configurations. This means that if a critical component fails, a backup component can seamlessly take over, preventing disruptions in operation.
This redundancy and failover capability is crucial for maintaining the safety and integrity of autonomous systems, especially when driving. Tesla has built-in both physical and software redundancy to FSD, ensuring that it maintains a minimum standard of safety when operating autonomously.
In Simpler Terms…
Imagine a large company (FSD) with different departments (sub-networks) responsible for specific tasks. Each department has its own specialized tools and equipment (hardware components). Tesla's system acts like an efficient management structure, assigning the right tasks to the right departments, providing them with the appropriate tools, and coordinating their efforts for optimal productivity and performance.
Tesla takes the good old motto of reuse, reduce, and recycle quite seriously. In this case, they’ve decided to upcycle an old Shell gas station into a beautiful new Supercharger site.
This isn’t a new move by any means—companies like St1 Nordic and Circle K have already started transitioning their gas stations in EV-heavy nations like Norway into pure EV chargers—but it is still truly inspiring. It’s a clear sign that the world is transitioning toward cleaner energy and shifting toward EVs.
That shift has definitely been happening faster in Europe, where the adoption of EVs has been greatly assisted by the reduction of gasoline and diesel subsidies, and the more tight-knit and closer-placed communities tend to make EV ownership a far easier transition than in North America.
Gas Station Turned Supercharger
In the heart of Córdoba, Spain, a transformation has taken place that really demonstrates what the future looks like. A once unremarkable Shell gas station has been reimagined and now proudly displays the iconic Tesla logo, illuminated with the same energy that fuels the Supercharger stations below.
An inspiring and futuristic transformation
TheEVuniverse
While the design remains much the same, Tesla’s small but subtle changes have already moved it from the usual gas station with a dimly lit sign to a futuristic place to charge your EV.
There are a total of eight V4 stalls set up utilizing a V3 Supercharger cabinet, capable of the usual 250kW. These are not yet powered by the upcoming V4 cabinets that will be capable of charging at 500kW.
It’s a bold move by Tesla to repurpose a gas station into a Supercharger, but it is also a testament to the company's commitment to accelerating the world's transition to sustainable energy. While Tesla believes in adding Superchargers at locations with plenty of amenities that will aid drivers during road trips, this makes a clear statement that electric cars are the future.
It is super exciting to see Tesla do this, and we’re hoping to catch even more of this in the future. This isn’t a one-off phenomenon. We’re going to see more and more gas stations get converted into futuristic charging stations as more people embrace electric vehicles around the world, so take this as a hint of more to come.
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