This series originally aired in twenty twenty two. the. May twenty thirteen is just after midnight in Detroit. I have to admit this is one hell of a car general. others chief executive, dad, Ackerman is a covert mission under the cover of darkness. He doesn't Anyone to see what he's doing on the cold deserted street to the motor city he's driving a test Gm vice chairman, steve, girsky, is riding shotgun The car hits one hundred miles per hour with a whisper like its barely trying war. Just think pushes you back here see I do miss the roar. The engine, though that's weird

Men are obsessed with a model ass from mechanics to marketing. risky looks at the large computer screen embedded in the elegant dashboard. Is one hell of a car, no wonder p will it going nuts over this. It's like a hot day, I drive a folded and it's a good car, but this thing so sweet. I. Like I'm being unfaithful act in smiles as the car smoothly rounds curve in the road or too fast clip he's. focused analytical man with an engineering degree from the naval academy. He's worked in telecom and knows about fast pace technology become increasingly frustrated with a lack of fresh thinking in research and development, gm actor. and pulls the card was stop in his driveway, both men, out to examine the evie ackerman points at the back seat.

Look at the back seat steve. What do you see? room and plenty of it. Exactly just like the vote had when we were placing the battery pack under the frame. Now tesla does the same thing: for some damn reason: we move the battery between the seats interiors cramped as hell. Why we using our own innovations, good question and a for the model. Ass is up there with a volts. Even when the vote is max doubt the electric in its running on gas. Well then, what your play! I think we get Crack team to dissect what test doing every aspect a young crew of engineers, planters salespeople g, needs to catch up with tat. Little affords to damn late. the two men shake their heads and had there ever ways, acquisition, gets back into the model, ass grip,

the steering wheel, harder and guns the car into the night. Without a sound, we get support from audible, you know with audible, you get to access an incredible selection of audio books across every genre, from best sellers and new releases to celebrity memoirs, mysteries and thrillers even business. That's right! There are tons of I listened would interest listeners of business wars, including the art of business, wars narrated by yours, truly in it, you'll learn How lessons about determination, ingenuity, patients grid and other traits they contribute to a victorious. Enterprise are invaluable, whether you software, slinging freelancer or the ceo of a multinational manufacturer, new members can try, audible, free for thirty days head on over to audible, dot com, slash, be double your text, be w two five hundred five hundred I just learn, discover credit cards. Do something pretty awesome

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in our last episode. Tesla grew from silicon valley, boutique shop to a potential read to Detroit either still make up a small percentage of car soul the trend line tells the story teslas get value is way up around twenty billion dollars. That's over four hundred percent from last year. gm is up by twenty five percent. At this rate, tesla could wipe the floor with gm in a decade and other major automakers ford toy nissan honda and shabby are taking notes No one wants to be bringing up the rear, the bat to dominate. The easy market is on near devastating financial and production issues. Tesla is fine. Lee churning out hundreds of its model s cars every week from its new acquired five acre factory,

facility is on par with any plant in Detroit, but despite The trappings of success. Tesla has serious problems to solve like how to get cars to the people who want to buy them. that's something that the traditional automakers with their vast network of dealerships does very very well, and it will do everything it can to keep that advantage to overtake tessellae in the EU market. This is episode three motor city fight back its main twenty thirteen at the tesla offices in palo, alto, California,. MR walter's, come in elon musk le graphs disinterest, the second. He extends his hand to seventy zero bill. Walter's he's here the texas automobile dealers, association representing

fourteen hundred dealers throughout the state walter's is a gracious texan, a veteran lobbyists to seeing his share of battles. Mr mosque, Well, I'm here to say we want to work with you in texas. You can do things just as you like. as long as its legal you need dealerships, tesla cells, direct using high tech, interactive showrooms customers order their cars online, making Dealers irrelevant When Tessa arrived on the scene in two thousand nine detroit, thousands of franchise dealers laughed, the tiny company pose no threat. Now, that's changed, tesla has temporarily sidestep texas is anti direct sales law. Ample and to do the same in other states and now Here's walter's wanting to talk about dealerships mosques his head at walter's, dismissive lee, sorry, but

it's not going to work for us excuse me a note, wants to buy from a price gouging dealer. It's a terrible experience we are eliminating that to differ MR mosque We had almost three million dealer sales in texas last year. Now: listen, I'm unaware and of in billion dollars to beat the? U S, franchise laws that includes Axis walter, is shocked, Safety of everyone in texas depends on the quality control of a dealership network. That's twenty! million people. Now this is a system that works, Walter's waits uncomfortably for a response. Doesn't even bother to reply. He pulls his bow and starts texting. Finally, Walter speaks so This is all just about you, then now it's asks turned to be shocked,

people getting his face like this mosques, dumps. Out of the room shouting to an assistant. Hey get. This guide us out of here must can walk out on a meeting but teslas headed for legal confrontations that are more difficult to dodge in then enfranchise dealers around the country are fine. bag. Carolina is betting, a bill to ban tesla's online sales, Demons in new york in massachusetts are threatening to do the same. Virginia won't, allow tesla, open stores, fury and if you can't sell your cards well, you ve got a serious problem. its july, twenty thirteen gm detroit corporate headquarters listen up people. chasing tesla here, and we got a job ahead of us. There are all proving to be a big disruptor dan

Since stands before the cream of the crop of general motors young talent. Ask, foresees assembled to dissect tesla includes everybody from engineers to managers to salespeople a manager speaks up teslas definitely pushing the envelope with a model. Ass buddy is actually a threat to gm. I mean it still, essentially a niece company right the model ass costs around thousand dollars. Now now, that's it. our for rich green tech lovers is Joe six back gonna. By that across and stares at the manager. I dont want to the mistakes gm made by underestimating toy and honda. They came up with a cars that caught on why we looked the other way. Now guess what toy it is the biggest carmaker in the world that used to be us what about safety. Those lithium eye on batteries are highly susceptible to fire and in that

seventeen inch computer touch screen mounted therein the dash that's just accident waiting to happen. It's like driving around with a laptop test. screen is not only a web browser. It control every element of the car from media to energy consumption, to navigation, it's pure silicon valley, technology and think about it. Tesla says there next model and twenty sixteen will have a driving range of well over two hundred miles on a single charge and it'll sell for under thirty five thousand bucks. the room is silent. The threat is clear, so I am asking you is that even possible? I don't see how I it's way too costly to build an e with those capabilities, but that's. It Actually what we need to do create in easy with a two hundred mile range for around thirty thousand dollars. We make that

and we can kill tesla ackerman pause. in scans the room, we're going Do this gm budgeting, seven billion dollars for research and development this year. Let's get our money is worth it's november, two thousand and thirteen in washington, d c, with a brand new car or apa tablet deep within the national highway traffic safety administration offices. Officials are examining cellphone footage of a model s in flames on a highway outside of seattle thing is really blazing. Oh yeah, the fire and having a tough time whether those lithium ion batteries are flammable as hell

apparently ran over some kind of metal debris in the battery pack exploded same as the ones in tennessee and mexico test The worst nightmare has come true and, it's going viral. The companies it had eliminated the fire danger of the thousands of batteries packed into a model ass. They were wrong, is lucky. No one was hurt in any of these incidents. We need to condemn a formal investigation before that happens well, even maskos, already tweed about all that he's inviting us to examine the cars we need his invitation who's. This guy think he is, since there First, fire in october, mosque is deep. To damage control mode, strong, defending his cars on social media in his blog rights that, There have been over four hundred deaths and twelve hundred serious injuries in the united states alone. Do

gasoline car fires compared to zero deaths and zero injuries due to tesla fires. I think it could be defective batteries too. in the town The model ass, meanwhile he's getting hugely positive reviews, including an excellent crash rating from the innate tee. I say itself, but the one too, punch of the viral fire video and the announcement of the n h, I say probe its tesla hard. Tesla stocks plummet by six percent during crash tests. Two years ago, the chevy vote had a similar situation though the in hd essay ultimately stated, the hybrid was safe as any gas car sales took a nosedive the main selling point of the model ass has been its high tech problem, free design. With that reputation in question test. faces a dilemma that could sing them. less.

Tesla engineers quickly dive into making the model s work. A car I'd lower than most vehicles, so rode debris could impact the motors underneath the car The solution is cheap. but it is relatively simple: raise the body add a time tedium shield underneath the card of further protect the thousands of lithium ion batteries it works teslas sales. Stay, steady and roadside fires disappear the end, She s a closes. Its investigation must wheat to his ever growing army of followers. The model ass is the safest car in america. At the end of twenty thirteen slow is on track to sell twenty three thousand model s sudan's. That's too, In thousand more than musk had promised, but he wants to increase that to half a million

in a single year become And he is weathered scrutiny from the national highway traffic safety administration, but the litigious speck of the franchise dealerships is going away, especially a test test case enemy bill walter's and that axis automobile dealers, association back by theme of eight lobbyists must travels to the state capitol in Austin. but Walter's team, far out numbers teslas worse, yet The dealers association is donated about two and a half million dollars to politicians during the twenty twelve elections that buys a lot of good will. Musk announces. lands to come back fighting in twenty fifteen. But right now he's sing, a battle that could cripple model less production and plans, a third generation av.

As tesla loses speed. Detroit, takes the lead, it's a Moreover, the silent beating heart of the electric machine, the batteries and that provides just the kind of opening detroit is looking to exploit. if ever dreamed of growing, so many fresh herbs that your friend and family all start to call you early. Of course you have. We all have an with miracle grow. It's easy which he that very specific dream just plant. Your herbs in miracle, grow potting mix nets. Basically it you'll grow healthier, stronger herbs, verses, unfed plants and it's perfect for indoor and door containers to now, let's go that dream a reality? Herb miracle grow? all you need to know to grow. We get support from thermidor.

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The its december twenty. Thirteen at tesla headquarters in palo, alto, California, hello, gentlemen, elon musk walks into the meeting room smiling, he said Separating good news about battery prices and full of executives from Panasonic have come in from Japan. The company been teslas battery supplier, since two thousand six hello, Ilan We don't need to ask how you doing The monolith is enjoying tremendous success can gradually since damn right, and good for us and good for panasonic. I think two years ago, Panasonic was undercut. Buy cheaper chinese competitors and lost billions on flat screen televisions and mobile phones? spin rough

We have laid off over ten thousand workers, but we're structuring our focus toward battery production, which is why renewing and growing our partnership with tesla makes so much sense. All good wilson. Fifty thousand a year and the same for the model acts in twenty fifteen, It's gonna be huge demand for the model three, when a day beauty in twenty seventeen, I'm looking at half a million a year as usual. Mascot Streaming, big, but if interest and demand keep rising, he may not be far off It all hinges on having millions of lithium ion batteries on hand, keep assembly lines moving around the clock without the cells, tesla compete with detroit mosques. at the panasonic, ribs and weights. The good news. No doubt offer a price cut to reflect. This huge increase in orders

is an exciting growth period. You lot panasonic. be happy to accommodate teslas needs, I'm sure we and work out the price increase? Excuse me: price increase guess so shocked he's not even yelling. That's right is there a problem, musk smiled a problem no nothing. We can't deal with thank For your time, gentlemen, minute. Panasonic executives, leave turns to his manager. He stood. Lay com, ok, here's the plan. we're building our own battery factory, the man you're just stares at him and mustard up a nod its daunting, maybe even crazy idea. That's the way musk operates, Making lithium ion cells is not easy, and building a factory for such a task is not cheap.

To create millions of batteries. Tesla engineers estimate they'll nita structure more than four times the size of disneyland. It will populated by some six thousand five hundred workers and cost around five billion dollars, but the benefits are enormous. making batteries under its own roof will bring down costs being alone test can finally mass produce an affordable, easy for under thirty five thousand dollars if they can pull it off, tesla could compete as a major automaker and move would allow ie vs climb out of a niche market that no company, big or small, from tesla nissan chevy has been able to do. The only problem Is the five billion dollar price tag tesla has roughly

hundred million dollars to span but panasonic isn't going away? Yoshi model is a veteran panasonic. Vice president, with a keen knowledge of western business practices. When we of mosques plans reaches him. He steps and to calm things down in may, pain relations he reaches two tesla asking what he can do you want to get an answer. its january twenty fourteen in palo alto. California, Ellen ask an teslas chief technical officer, cofounder J b struggle taking a drive to clear their heads. J b where we gonna get the funds for this factory, its in that. Must gain strabo have been ruminating on. The answer is the key to teslas future work

That's what I'm thinking we, panasonic for probably half the funding as desperate to do business, that's for sure, and whichever eight we end up building in we get them too a major incentives and say ten kind of construction costs. We'd be bringing in thousands of jobs in excellent gambit, California would be good close to home but what about sparks nevada is and they jump at the idea, if we can get that going, we can have you come out for a visit. He can watch it you bulldozers at work and middle, sell the idea we're moving forward with their with panasonic, hell ass. The and know that secrecy is important if the site publicized, it will appear. The tesla is already good to go. Nevada will have no reason to kick in funding and incentives, its risky

but if it pays off the company's problems are solved. A month later, you're motto makes the trip to nevada Strabo guides him around. The side is bulldozers shift around massive amounts of dirt places. A hive of activity is pure theater, but it looks like a major project is under way, the motto buys the rooms he tells his bosses, they need to team up with tesla or be left in the coal. In July the union between tesla and panasonic, to create a large scale. Battery factory hits the press musk calls it the gig factory. In reduce battery costs in turn reducing the sticker price for any tesla ii. In the coming weeks, the spot nevada, site will become official

nothing standing in the way of tesla taking on detroit for evie dominance and pushing electric vehicles beyond a niche market, but ask isn't waiting to see whether that will go his way. Now he has his eyes set on going to war with detroit over the big car market on the planet, china, the in two thousand nine china which decide the united states, as the world's leading auto market itself, our position ever since general motors alone, so three million vehicles annually in china. In the last three years, company has over forty models and seven brands on sale in the country with mercury suvs being a huge draw. The growing middle class a gm is hardly alone

Sellers and twenty fourteen include models by hunt I hyundai volkswagen and nissan, but China, is choking on its own pollution, which help to make it the largest market for electric cars on the planet in April must personally delivers the first nine model s sedans in beijing. The recipe in pay about one hundred twenty two thousand dollars each for the EU. Their part of is growing wealthy demographic who flawed luxury cars, just the people mosque wants October twenty second, when he fourteen tesla headquarters in palo alto. California, Two tesla sales representatives are hunched over their laptops nerve sleaze scanning new site, well, Michigan screwed, us we're completely show.

Down from directly selling in their state. No sir. I've, given that michigan his motor cities, homestake rebound can govern a rick Snyder quietly signs bill. Fifty six, oh six, barring d, auto sales to consumers, but he expect evidence not is up for reelection election last thing he wants to do was upset michigan cartel of dealers right. But what takes offers it. Now we can't even display cars, not even tesla, gallery. This could set a nasty precedent. Accompanies high tech Interactive galleries in shopping malls have helped start direct sales bans in texas and other states, but not going to work in michigan the test. sales rep points to scream and roses his eyes James response, Mary, bar as saying gm is afraid of competition. They just want a level playing field the

I tesla bill is not the first time the general motors has backed a legislative lee capping of tesla seven months ago, ohio legislature plan to let the company sell cars directly gm pulled no punches, sending a or to ohio governor john casing, complaining The bill would allow tesla to compete under a different set of rules. The state senate killed. It main battle is in michigan where bill fit. Six. Oh six has ground teslas state wide sales to us reaching halt, and that rather, the media's attention, but among powerful players in detroit, not all of it Think it's about just levelling the playing field. Hours after the michigan governor puts down his pen billionaire michigan businessman. Dan gilbert is guest house the chat show squawk box. His guest is down

mavericks owner mark cuban butts words is not on the agenda bill Six. Oh six is yeah we obviously I'm not a big fan of that area. they sends a bad message when lobbyists can really convince a governor and a legislature to do their bidding for them with this country be like every industry, just logging. Today we want on these dealers. Just You man up incomplete, like everybody else, does what you have a legislature and ban innovation, it's kind of crony capitalism. but his model, less sales interim cut throat battle with american franchise dealers mosques, while hard tweeting is about to explode and in one of its most lucrative market in china, we get support from net sweet by oracle

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when he fourteen beijing, china, too, in this manner. Having a morning coffee at a neighborhood restaurant one I gazes out the window. While the their casually thumbs through his phone. You ordered a tesla right model, plus can't wait for it to be delivered its abuse for car, tesla sales are on. The rise in china must knew too get market where each these are all the rage one I frowned at his phone have you seen this tweet from elon musk? Now, What's it all about, talking about an updated version of the model. S musk is addicted to tweeting, he's directly against traditional advertising in the detroit model. But he uses social media constantly. I go from zero to sixty three point two seconds. What She got. One must s. Car is nuts is like taking off from a carrier. It's just bananas, its

having your own personal, rollercoaster and dashed that's green literally lets you choose dr settings from normal sport or insane I want my. own personal roller coaster. He grabbed his phone and starts typing furiously What are you doing? Cancelling my order, but the new model, s mosques, ill timed gun, jumping tweet results in an launch of cancelled orders in china, leaving hundreds of model lessons in limbo, sales dry, by thirty three percent, as teslas chinese team goes urgent damage control to keep the company afloat in this burgeoning av market, china is the only country troubling tesla in twenty four the model ass is on its way to becoming the best selling car in norway for their gas or electric- take

the title that ford's held since nineteen eighty six, ass was already so twice as many cars is nissan volkswagen in Bmw the country even has a tesla owners club. That's three thousand strong, but all that love isn't just because the model less is fast and silent. Norway, prides itself on being environmentally aware. The cunt, fully embraces the evie movement with government backed incentives and goals to lower emissions, drastically testifies wily popular here, though there are only a handful of service centres around oslo, where repairs are made quickly and competently for owners in other regions, tesla transports, customers to and from the service centre tesla keeps close eye on norway because its I'm a small testing ground for the company, but sales booming?

Steamers in need of repairs are having a tough time. The lack of service locations has been a major point of attack not only in norway but by tesla chris in the state its in, I told you so moment for franchise dealers, disgruntled with mosques, direct sales approach. Detroit brand Have thousands of locations around the country, repairs are convenient and they have a point despite the fact that teslas iii, these require far less basic maintenance. Then gas vehicles bigger mechanic, Fixes are an issue mosque in true at tesla headquarters in california, armada the situation with growing concern. Norway is a preview of what's to come. repairs in the? U s. Take about a month in Norway, it's become double that or more just getting. An appointment can take weeks

with teslas model acts ass. You ve debut looming in months and the model three slated for twenty seventeen looking dicey. If test, Can't straighten out its repair situation detroit could take control of the e market, but Musk has a secret weapon he's here a fixture and that man is on a flight to norway. it's early. Twenty fifteen at the tesla offices in oslo test New chief operating officer, John mc neill, is meeting with the executive council of the country's tesla owners club thanks for meeting with me. I know you ve been experiencing lengthy repair periods. I know that's annoying of my model ass, but the door handles don't work right and the vote control in the steering wheel is caput. When I try

make a service appointment. I was told they could book me next year. He'll scans the room and smiles In innovative veteran customer service, expert He knows Norway's a key market on the global front for tesla gum. Its goal is to completely phase out gas powered vehicles in less than a decade ago. Someone needs to be supplying all those ease. A woman raises her hand she doesn't look happy haha yet, I waited five months to fix my battery and repair just made things worse, it about a used gas car I'd be better off Your service centres always overbooked. I hear you, I really do but we're dedicated to solving these issues being neo. Has done his research we, make at least eighty percent of repairs at the owners home office. or wherever it's convenient,

replacing a drive train. We can come to you and do the work where you are ramping up our service team. Here in Norway, We will absolutely heavier repair problems taken care of very quickly long it will be a thing of the past macneil, can feel the tension in the room lived people want to like their testimony. I thank her for that. Macneil thanks to himself increase manpower is one thing, but the company can possibly afford to build a new network of nation wide service centres once again, test le has put out another potentially catastrophic fire, but when not one out there are always seems to be smoke from another one on the horizon. Tesla has big pine, and for twenty fifteen

Sk is making promises that have his staffers sweating and detroit scoffing. says he plans to build an easy. They can go five hundred miles on a single charge. He's claim that the company will be worth seven hundred billion dollars and growth deeper, sent annually over the next ten years, yet in two slim twelve year existence its only shown a profit in a single quarter. An motors city is quick to point out that every tesla av sold loose this money now we'll prices are dropping. Raising the appeal of gas vehicles and tesla. Is headed for a nightmare confrontation with the government an incident it turns deadly from wondering

this is episode three of tesla verses. Detroit for business Where's, a quick note of Recreations you ve been hearing. In most cases, we can't know exactly what was said. Those you're drama, but their based on historical research, among our sources were power play by TIM Higgins and even must tesla space x and the quest for a fantastic future. By actually that I'm your host, david round. Peter Gill strap wrote this story voice acting stephen fu and Michel. Philippine Karen low is our senior producer and editor edited and produced by emily frost. Sound designed by kyle random are produced his dave shilling. Our executive producers are jenny, lauer, beckmann and martial louis

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