Skip to main content
No. of Recommendations: 1
However, in the past Tesla had made it clear that it wants to build its own chips to power its self-driving ambitions. That's why it hired Jim Keller two years ago from Advanced Micro Device, Inc. (AMD - Get Report) . Before that, Keller played a significant role behind developing the A4 and A5 processors for Apple Inc. (AAPL - Get Report) .

He was serving as a Tesla VP and a leader in its Autopilot program. Keller's last day working with the automaker was Tuesday, becoming just another key departure for the automaker this year. Pete Bannon will take over Autopilot's hardware program while Andrej Karpathy will be in charge of Autopilot software.

Basically the author (as I have been) are still puzzling why Tesla tried to create their own autonomous driving chip when they had Nvidia, who makes the best of the best products, has invested billions and will continue to invest billions in the technology moving forward. Meanwhile Tesla, having hired an ex Apple/AMD chip designer, thought, without any core competency or infrastructure was going to build the hardware and software and the roadmap all on its own. The question is, how the heck could Tesla keep up. Pure arrogance that Tesla was smarter than all the rest.

Another important aspect of the article, is that after a tear down of the Model 3, an auto manufacturing expert loved the car but his opinion was that Tesla could have mowed down the competition had they outsourced the manufacturing (he did not like their process).

Manufacturing is suppose to be a Tesla core competency (and Musk thought he could build a new and more modern factory to work on building easier to build electric cars). This I can understand. They still may get it right (probably will).

But it does show why a company should stick within its core competencies and outsource everything else.

Behemoths like Google and Amazon and Microsoft have core competencies in both software and hardware building (not necessarily chip building) but that is a shoot off of their core competencies, so one could see why they might want to try, albeit, they cannot build a better CPU and a better ASIC that is worth the cost is tbd. Google has at least made an ASIC that is basically as good as Nvidia's GPU, at least for the functions Google wants from it.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.