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“Software is in many ways the heart of the new vehicle experience,” he said. “From the powertrain to the warning chimes in the car, you’re using software to create an expressive and pleasing environment. The level of integration that the software has into the rest of the Model S is really impressive. Tesla is a benchmark for what we do here.” Not long after this chat, Giuli left Ford to become an engineer at a stealth start-up. There was little the mainstream auto industry could do to slow Tesla down. But that didn’t stop executives from trying to be difficult whenever possible. Tesla, for example, wanted to call its third- generation car the Model E, so that its lineup of vehicles would be the Model S, E, and X—another playful Musk gag. But Ford’s then CEO, Alan Mulally, blocked Tesla from using Model E, with the threat of a lawsuit. “So I call up Mulally and I was like, ‘Alan, are you just fucking with us or are you really going to do a Model E?’” Musk said. “And I’m not sure which is worse. You know? Like it would actually make more sense if they’re just fucking with us because if they actually come out with a Model E at this point, and we’ve got the Model S and the X and Ford comes out with the Model E, it’s going to look ridiculous. So even though Ford did the Model T a hundred years ago, nobody thinks of ‘Model’ as being a Ford thing anymore. So it would just feel like they stole it. Like why did you go steal Tesla’s E? Like you’re some sort of fascist army marching across the alphabet, some sort of Sesame Street robber. And he was like, ‘No, no, we’re definitely going to use it.’ And I was like, ‘Oh, I don’t think that’s such a good idea because people are going to be confused because it’s not going to make sense. People aren’t used to Ford having Model something these days. It’s usually called like the Ford Fusion.’ And he was like, no, his guys really want to use that. That’s terrible.” After that, Tesla registered the trademark for Model Y as another joke. “In fact, Ford called us up deadpan and said, ‘We see you’ve registered Model Y. Is that what you’re going to use instead of the Model E?’” Musk said. “I’m like, ‘No, it’s a joke. S-E-X-Y. What does that spell?’ But trademark law is a dry profession it turns out.”* What Musk had done that the rival automakers missed or didn’t have the means to combat was turn Tesla into a lifestyle. It did not just sell someone a car. It sold them an image, a feeling they were tapping into the future, a relationship. Apple did the same thing decades ago with the Mac and then again with the iPod and iPhone. Even those who were not religious about their affiliation to Apple were sucked into its universe once they bought the hardware and downloaded software like iTunes. This sort of relationship is hard to pull off if you don’t control as much of the lifestyle as possible. PC makers that farmed their software out to Microsoft, their chips to Intel, and their design to Asia could never make machines as beautiful and as complete as Apple’s. They also could not respond in time as Apple took this expertise to new areas and hooked people on its applications. You can see Musk’s embrace of the car as lifestyle in Tesla’s abandonment of model years. Tesla does not designate cars as being 2014s or 2015s, and it also doesn’t have “all the 2014s in stock must go, go, go and make room for the new cars” sales. It produces the best Model S it can at the time, and that’s what the customer receives. This means that Tesla does not develop and hold on to a bunch of new features over the course of the year and then unleash them in a new model all at once. It adds features one by one to the manufacturing line when they’re ready. Some customers may be frustrated to miss out on a feature here and there. Tesla, however, manages to deliver most of the upgrades as software updates that everyone gets, providing current Model S owners with pleasant surprises. For the Model S owner, the all-electric lifestyle translates into a less hassled existence. Instead of going to the gas station, you just plug the car in at night, a rhythm familiar to anyone with aPDF Image | SpaceX and the Quest
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