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May 5, 2019 by Steve Hanley
Tesla's fully autonomous driving ability is made possible by a custom-designed computer chip integrated into its autopilot computer or engine control unit. Tesla's new advanced neural network chips, essential parts of the 3.0 autopilot, are manufactured by Samsung in Austin, Texas, according to the TechCrunch.
In fact, 75% of the value of the company's new computer, which Tesla calls the brain that allows its autopilot 3 to come out, is available, comes from outside China. But as he is assembled by Quanta Computer in Shanghai, he is subject to a 25% retaliatory tariff imposed by Trump's mismanagement to punish the Chinese who sell too many items to Americans. Quanta Computer is a big deal in the world of technology. It manufactures components for Apple, Amazon and Verizon.
Earlier this year, Tesla requested an exemption from the tariff. "Tariffs require us to find a new supplier, pass on increased costs to the end customer, or reduce operational costs in our internal operations, which has the opposite impact on what we are proposing. [we believe] to be the intent of the tariff, "writes Tesla in its request for relief. Here are more of the company's application:
"Tesla's decision to start production [of the new Autopilot computer took] six months from development to production. With condensed timelines like this, there is no room for testing a vendor who does not already have considerable experience. … The choice of another vendor would have delayed the 18-month program with clean room setup, chain validation and staff training.
"Tesla was unable to find a [U.S.] manufacturer with the necessary expertise to produce the Autopilot ECU 3.0 with the required specifications, the required volume and the time required for Tesla's continued growth.
"Tesla's leadership position depends on our ability to deploy these advances and components in volume, which we could not do with the current pricing structure. These rates are detrimental to our continued growth and sustainability in a very challenging industry.
"Tariffs require us to find a new supplier, pass on increased costs to the end customer, or reduce operational costs in our internal operations, which has the opposite impact on what we are proposing. [we believe] be the intention of the tariff.
"The purchase of a new supplier increases the risk of poor quality parts, which can lead to quality problems that could affect the safety of our vehicles and the end product … We can not risk the lives of our customers. customers because of a defect of their supplier. "
The Trump administration, however, had none. It was discovered that the waiver request was denied in March, shortly after it was filed. In a letter to the company, the US Trade Representative's General Counsel informed Tesla that the waiver was denied because "it concerns a product of strategic importance or related to the" Made in China 2025 "program or to other Chinese industrial programs. " retroactive exemption request for the hardware inherited from the 2.5 autopilot, for the same reason.
"Made In China 2025" is China's strategic plan to produce more high-value goods, particularly in the areas of artificial intelligence, electric vehicles and robotics. The White House sees this effort as a direct threat to US tech and automotive companies.
So while Apple, Amazon and Verizon are allowed to continue their relationship with Quanta Computer, Tesla – which probably produces automobiles with the highest US content of any manufacturer – is forced to bear the brunt of the blood feud. against the Chinese. Yes, it seems right.
So, as short sellers and opponents scream about Tesla's inability to market a $ 35,000 car, the US government is making it more difficult. Of course, Tesla could sell a disconcerted version with fabric seats, rubber floor mats and crank windows without the help of an electronic driver, but that would defeat Tesla's stated mission to build electric cars. world class among the safest. vehicles available.
None of this has any weight with the Trumpies, who are committed to leaving it to the Chinese to please their boss. Oh, and do not believe for a minute that punching Elon at the same time does not please some historic builders who are giving away a lot of campaign money at election time.
As usual, Tesla takes all his time and advances, reversing all obstacles in his path. But it would be nice if the government was not responsible for creating some of these obstacles. You can do two things about it. One, buy a Tesla. Second, refuse to vote for unscrupulous politicians.
About the author
Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and wherever the singularity could lead him. His motto is: "Life is not measured by how many breaths we take, but the number of moments that take our breath away!" You can follow him on Google + and on Twitter.
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