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Ford Raptor can't drag BYD Leopard even though it uses aired-down all-terrain tires for extra grip, while BYD only uses ordinary tires. Now you know why Ford's CEO conceded Ford is 25 years behind BYD, and why they're desperate to keep Chinese EVs out of the US.

494,700 次观看 • 1 天前 •via X (Twitter)

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China spent 25 years failing to build a globally competitive domestic car industry through hundreds of billions of dollars of subsidies and forced partnerships. Then they tried something radical. In 2018, they invited Tesla to build a wholly-owned factory in Shanghai. No joint venture required. Chinese officials called it the "catfish effect" - Tesla would force domestic companies to compete or die. The impact was brutal. When Tesla's Model 3 launched in 2020, it quickly became China's best-selling EV. BYD's total vehicle sales actually fell 7.7% that year to just 427,000 units. By competing with the world's best, BYD was forced to address what they were missing: Chinese EVs had great battery tech and software, but the cars weren't appealing. So BYD learned design. Sales exploded. Today BYD sells over 4 million vehicles annually - 10x their 2020 numbers, and more than Tesla globally. America should do the same thing. In the long run, the only way to win high-tech manufacturing is to actually compete against the very best in the world. We should encourage BYD and other leading Chinese companies to build factories in America in exchange for the access to the U.S market. This would allow us to build up process knowledge and the the relevant supply chains domestically, and force American companies to catch up. The alternative is to fall further and further behind. I talked to Arthur Kroeber Arthur Kroeber, one of the sharpest observers of China’s economy, about this and much more. Full episode out tomorrow.

Dwarkesh Patel

424,236 次观看 • 1 年前

Ford CEO Jim Farley on why it's so difficult for legacy car companies to get software right & why Tesla’s vertically integrated approach is the right one: “We farmed out all the modules that control the vehicles to our suppliers because we could bid them against each other, so Bosch would do the body control module, someone else would do the seat control module, someone else would do the engine control module. We have about 150 of these modules with semiconductors all through the car. The problem is the software are all written by you know 150 different companies and they don't talk to each other. So even though it says Ford on the front, I actually have to go to Bosch to get permission to change their seat Control software. So even if I had a high-speed modem in the vehicle and and I had the ability to write their software, it's actually their IP and I have 150, we call it the loose Confederation of software providers, 150 completely different software programming languages, you know all the structure of the software is different. It’s millions of code and we can't even understand it all. That's why at Ford we've decided in the second generation product to completely insource electric architecture. To do that you need to write all the software yourself, but just remember car companies have never written software like this, ever, so we're literally writing how the vehicle operates the software to operate the vehicle for the first time ever.” via Everything Electric Show:

Sawyer Merritt

1,172,741 次观看 • 1 年前

Elon Musk says BYD is about to match Tesla's quarterly sales. Tesla had been the world's largest EV maker for a decade. Cybertruck. Model Y. Model 3. Millions of cars shipped, every product line profitable. "BYD is reaching Tesla production or sales in quantity." Then Musk explained why BYD was the leading edge of a bigger wave. "There's going to be a massive flood of Chinese vehicles and basically most manufactured things." Musk named the wave: **the Chinese flood**. Musk, who had toured BYD's factories and seen their cost curves up close, knew the math wasn't theoretical. A flood of Chinese vehicles meant BYD, Geely, Nio, Xpeng, Li Auto, Zeekr, and a dozen more companies each shipping a million-plus units a year into export markets at price points Western manufacturers could not match without losing money on every car. BYD. Geely. Nio. Xpeng. Li Auto. Each one growing 30 to 50 percent year over year. Every shipping at a price point Detroit could not survive. After Musk drew the curve, every global automaker's 2030 forecast became a question of survival, not market share. Musk, on what scaling really meant: "China is extremely competitive in manufacturing." Which player in your industry is one quarter from making you the second-largest? P.S. I made a playbook breaking down 100+ most powerful decision making mental models used by history's greatest thinkers. 5,000+ downloads. 113 five-star reviews. Grab a free copy here: If you're new here, GeniusThinking is a gallery for the greatest minds in economics, psychology, and history. Follow along for more similar content. — Elon Musk ( Elon Musk ), CEO of Tesla and SpaceX, on Dwarkesh Patel's ( Dwarkesh Patel ) podcast

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98,324 次观看 • 2 个月前