From MP2: What really matters to accelerate a sustainable future is being able to scale up production volume as quickly as possible. That is why Tesla engineering has transitioned to focus heavily on designing the machine that makes the machine -- turning the factory itself into a product. A first principles physics analysis of automotive production suggests that somewhere between a 5 to 10 fold improvement is achievable by version 3 on a roughly 2 year iteration cycle. The first Model 3 factory machine should be thought of as version 0.5, with version 1.0 probably in 2018. Can someone explain this in further details? What does Elon mean by this? How could this differentiate Tesla from other big manufacturers? Is this just a reference to a much closer cooperation with an external supplier? I have a basic knowledge about assembly lines, robots and networking (PLC engineer). I've seen the YT-video's about the Freemont Tesla factory and, to be honest, don't see a lot of difference in how other companies make cars. Tesla is relying on external parties for their automation, the same as other companies. I know that robot manufactures sometimes create customized product-lines for their big customers. Apart from the car production, I've already read on these forums that Panasonic worked on new machines for their battery production in the Tesla Gigafactory that will be are faster and more efficient to do the job. So if Elon would be talking about battery production instead of car production, it would've made more sense to me.