Jawwwn
@jawwwn_
posting into the void 📺🫡••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Joined June 2012
1.4K Following 28.7K Followers
“It was vertically integrate, or die.”
@elonmusk explains exactly when a company should vertically integrate:
“The top suppliers would not work with us, or we would get their D team.”
“Which team would you give to the startup everyone’s saying will go bankrupt?”
“We tried outsourcing.”
“You need a fast feedback loop with engineering. If that feedback loop is all the way out in Thailand—there’s just no way.”
“Let’s say there’s a problem with the cells—you’d only find out it didn’t work 5 months later.”
“That’s a recipe for disaster.”
Via @thirdrowtesla @wholemars @battleangelviv @Gfilche @Kristennetten @vincent13031925 @Sofiaan @kimbal
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SpaceX employee #13# @_Eric_Romo describes the moment @elonmusk and SpaceX knew they had to become vertically integrated:
"They're canonically so vertically integrated now. But at the time, we were outsourcing basically everything."
"Any time we would need some new part built, it was like, 'Send the drawing to the vendor and get it built.'"
" Maybe two weeks later, if you're lucky, you get this part back."
"One of the [vendors] was always the quickest, pretty cost-effective, and very communicative. We were really reliant on this one."
"I remember sitting in the bunker in Texas underground with @lrocket and the team, and we get a call from that vendor and he's like, 'Hey sorry, but we're shutting down. We're closing our doors.'"
"We realize we have to go hire as many people from that vendor as we can, and we have to build up the internal capacity because that's what's going to help us iterate."
" It's all stuff that seems super obvious now."
"But in 2003, that was not so obvious at the time."
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