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Tesla Model S Factory Tour in Fremont, CA

On DROdio

Sue and I took a tour of the Tesla Model S factory in Fremont, CA today.  This is the old NUMMI plant.  If you haven't heard the NUMMI story between GM & Toyota, and you're a car buff, there's a This American Life episode about it that's just mind blowing.  The net of it is that GM tried to learn Just In Time assembly practices from Toyota, they built a factory together for Toyota to transfer this know-how to GM, and GM completely blew it.  The factory shut down and was sitting idle after that fiasco.

When Elon Musk was looking for a place to build his new Model S sedan, he approached Toyota with a $50MM bid for it, which Toyota accepted.  Why would Toyota sell a car production plant arguably worth $1 billion or more for $50MM?  For the answer to that, you really have to understand the relationship between Musk and Toyota, which is well portrayed in this 2010 WIRED magazine article.

As a reservation holder for the Model S, I'm proud to support one of the most amazing entrepreneurs of our generation.  What makes Elon even more amazing is that he's not only revolutionizing the automobile industry, but the space industry as well, with SpaceX... at the same time.  Elon, my hat is off to you.

Below are a number of pictures and vidoes of the factory and the event, which was very well done.

Automotive Prisoner Dilemma - revisited

On Mike Dariano

From NBER

Heavier vehicles are safer for their own occupants but more hazardous for the occupants of other vehicles. In this paper we estimate the increased probability of fatalities from being hit by a heavier vehicle in a collision. We show that, controlling for own-vehicle weight, being hit by a vehicle that is 1,000 pounds heavier results in a 47% increase in the baseline fatality probability.

My version of the decisions

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