Henry Ford’s Masterstroke: Elon Musk's Playbook for Running Tesla

[@ConnectingODots]

Get TypeAI PREMIUM now! Start your FREE trial by clicking the link here: bit.ly/Mar24ConnectingTheDots LET ME KNOW how you liked this video and who do think was right - Ford going for GROWTH or the Dodge Brothers for DIVIDENDS 🚀If you liked this video, Consider supporting me on Patreon, Get Ad-Free access and exclusive content: www.patreon.com/ConnectingODots

[@JonGZBOS]

I follow dozens of tech/tesla related channels but yours is by far my favorite. I always watch it immediately when I see it.

[@ConnectingODots]

Wow, thanks! It means a lot

[@autoselectricos-americalat9276]

Very good video. I appreciate the fact that it is not a click and bait video, as 90% of KZbin videos are nowadays.

[@dewiz9596]

The first one by this presenter that I saw was how General Motors “Sold the Farm “ to China during the 2008 Financial Crisis. I haven’t missed an episode since. I just wish I had the werewithal to be financially supportive.

[@jarrettmontano6776]

If I see a connecting the dots episode I watch it every time

[@citizenblue]

This channel is super underrated. He's pretty active on 𝕏, too.

[@georgepelton5645]

Interesting and well researched video. The business dynamics of Ford and Dodge as both partners and competitors is certainly interesting. It seems that history is repeating itself, with Tesla and EV disruption vs. Ford and disruption of automobiles and moving assembly line. Both have shareholders with short term thinking vs. visionary CEO with plan for bigger things in the medium-longer term.

[@cathyk9197]

How ironic that one of Hery Ford's early business 'flops' became Cadillac 🤣🤣🤣

[@caz0663]

The moment Tesla starts paying dividends is when it stops being a disruptive growth company and I will stop buying additional TSLA. Tesla is all about improving engineering, speed of production and lowering affordability… not paying quarterly dividends to shareholders. Berkshire Hathaway is successful because it grows by buying solid companies to add to its portfolio, it doesn’t pay its shareholders dividends as that would significantly hamper its ability to grow. Tesla is successful because it reinvests into products and services where the total addressable markets are huge and affordable first movers can have a large advantage… not having to raise capital is one less step in their growth process.

[@andrewvercillo6225]

I feel like Elon wants the stock to grow so everyone invested does well. Especially his employees and small guys like me and you. He will make it happen

[@jhoncho4x4]

Selling millions $$$$$$$ in carbon credits to Stellantis and other manufacturers likely helps it stay in business. The Hemi V8 has been discontinued; may want to dump those stocks.

[@danharold3087]

I find it sad that so many are willing to write Henry Ford off for his flaws without giving him the credit due for his vision.

[@AlanFennell]

Sound a bit like Elon. 👀

[@danharold3087]

@@AlanFennell That in a parallel people make but it is flawed on both ends.

[@dennisd9804]

Excellent analysis, Connecting the Dots! The shareholder value case study that you talked about with Ford is something I am very familiar with as my background is in Finance; short-term shareholder sentiment ruled over long-term dominance. Ford was focused on increasing TAM while Dodge focused on short-term dividends. TAM is the winner. Tesla, as well as other tech companies, understand this. Thanks for the video as always!

[@evdave528]

History repeats, Sounds like Teslas mission all over again

[@Tuano-vq1jw]

Great video mate

[@ConnectingODots]

Thanks 👍

[@klauszinser]

​@@ConnectingODots I knew most but I was not aware of the strong influence of the Dodge Brothers. As a side note, it must have been in the mid 1990's being at the Henry Ford Museum where there was also the Edison lab, the building of the Wright brothers, the Heinz etc. Showing a lot of US history.

[@bootiemacarthur9182]

Government reaction to corporate pains would be a telling comparison!!

[@Future_Fortunes_DE]

Thanks for your high quality content! ❤

[@LegendaryInfortainment]

That's about as good as it gets in disruption primers.The Dodge brothers proved that the better way to skin a cat was only proven to be different, and Mr. Ford showed how disruption is done professionally. Industry won a great deal, but shareholders.... not so much necessarily. Loved it! Thanks again.

[@fredhearty1762]

Great insight! The parallels with today are striking. Thanks for doing the research and presenting findings so coherently.

[@ConversionCenters]

Thank you for this video, well done. The story has been told that the Dodge Brothers were very impressed by Henry Ford's engine design. Of course they became intimate with this engine because they were going to be manufacturing it for Ford (two cylinder horizontally opposed 8HP). It is suggested that this drove the Dodges to drop other contracts to focus on Ford. Ford's partner Malcomsen was a significant businessman in Detroit (largest coal distributor). Ford's strategy from day one with his "original partners/shareholders" was to secure/buy out their shares. He accomplished this over time. All of the original shareholders were eventually bought out by Ford. Another important point was the car market as a whole and it's exponential growth. The Dodge's were at the hub of the car business and measured the growth and most importantly capacity/efficiency. If you "can't make the cars fast enough" your timing is correct, not unlike Tesla Motors some years back or Sun Micro systems when they started. My experience is a 35% to 40% markup on a "supplied auto part to an OEM." I assume the Dodge brothers estimated a better return on their "manufacturing investment" if they built and sold their own cars. From 1903 to perhaps 1917 Ford's principle goal was to reduce the cost of his product (eventually the model T). River Rouge as you mentioned allowed Ford to make the rubber, glass and steel from commodities. Wood for the Model T was grown by Ford in northern Michigan. Man hours per car went from 720 minutes to 93 minutes. As you stated the problem for Henry Ford was that cars cost too much to capture the broad market. Every labor hour he could shake out of the car got him more unit volume. During the period of the law suit that you covered very well, Ford knew the Dodges wanted to sell him their shares. They were building a large plant and building the market presence for Dodge branded cars. A large check from Henry would help with liquidity. You observations on responsibility to the shareholder are in play today. Numerous startup EV companies like Like Lordstown Motors or Fisker most recently used SPAC's to raise capital. It is fabulously difficult for a pre-revenue company to fund and manage operations whilst carrying the costs of producing quarterly reports and maintaining a public narrative that sustains their stock price. All of that with no revenue, just burn rate. Ford and Malcomsen made money right away thanks to an order sheet that could barely keep up with and a solid markup on the product. They issued a dividend (shareholder profit distribution) to their shareholders in the second quarter of operations. It really is about timing.

[@ConnectingODots]

Thank you for the detailed and well thought of reply, Interesting. I think you'll find my Highland Park video interesting, shows a lot about Ford's ideas kzbin.info/www/bejne/bafZXpqqlK6nnJo

[@ConversionCenters]

@@ConnectingODots We are working on an EV industry startup. One element involves a battery pack racking system that is connected to the grid. Your background in Tesla operations inspires this question: How long is the lag from a completed battery pack to installation into a Tesla. Is there a storage phase? The other MFR's are not efficient as packs can be stored for some days before installation in a vehicle. The design is for any and all manufacturing facilities that have an inventory of battery packs waiting to be installed in a final product.

[@Marcus30983]

Thank you!

[@ConnectingODots]

Thank you Marcus. I highly appreciate it 🙏

[@douglaswatt1582]

Another great review and deep dive by connecting the dots. I never cease to be amused by the so-called experts who know nothing about technology and are applying well-worn if not worn out plutocratic formulas. It's so obvious that many of these individuals are simply interested in wealth, not social value (or maybe they just see the two as synonymous and truly believe in Gordon Gekko's meme that greed is good). Without any understanding oftentimes about how disruption really works, despite the fact that there is now solid research on this as a consistent phenomenon, especially from Tony Seba. The best organized disruptors inherit the entire space of the disrupted industry. And then some.

[@MrFoxRobert]

Thank you!

[@sudeeptaghosh]

Awesome video.. this is your forte ..

[@Coltn3125]

As always amazing video.

[@joezip6389]

Very well done video. All you will need to do in a few years is substitute the name Tesla for Ford.

[@ConnectingODots]

That's the idea😀

[@johnkilonzo3344]

This channel has really quality content

[@derrickstableford8152]

Outstanding, and to see the comparisons to today. Very funny.

[@jayc3110]

That was a remarkable story. A little snippet of automobile history,, which I was totally unaware of. You narrated and put together this wonderful story so well. Always enjoy the episodes you upload on connecting the dots . One of my favorite channels.. thank you for your efforts and best wishes.😢

[@Mentorman63]

Nicely done. While the narrator doesn't have the pipes of a pro, it is more like a Microecon 404 class...informative and proper.

[@timothykeith1367]

Death cancelled both of the Dodge brothers in 1920. Innovation was over. The Dodge car that was ahead in design in 1915 was only updated through 1926. Death wins.

[@CharlesMatheson-w1z]

Henry Ford made the model T the best selling car of the time by selling it cheaper than the competition and going on quantity over huge profits on each car.

[@dewiz9596]

Dodge Brothers succumbing to Spanish Flu. . . almost like “deus ex Machina”

[@bobholland9924]

That was an excellent video

[@wplaat]

great video. Keep going :)

[@georgelewis8831]

Now do one on how Tesla did much more than ford! And is going beyond cars: transforming the world to sustainable energy - he is changing the world: Energy, Bot, robotaxi etc. Elon deserves to have his story told in this way!

[@Michaelngo102]

This is similar to Tesla FSD Auto Car moment.

[@dewiz9596]

History repeats repeats repeats

[@QuiLe-qw5jb]

👏👏👏👍👍

[@johannesdolch]

Ross Gerber really showed his colors. It's become very clear that he never was anything but a pretty face and an empty suit. Hilarious. Looks Bias is a real thing.

[@johnanon658]

That channel probably did not like Ford for his views on a particular “religious” group

[@DoriansPortrait]

I'm aware that this probably isn't meant to be a political channel or anything, but it seems like anytime that there is something that is built to be for the people whether it be company principal government etc. At some point it inevitably becomes all about gain at the expense of the common man. They exahalt themselves above every else, and everyone else is beneath them. I'm getting to where I don't like my own country. While I'm sure that early America was maybe slightly my more virtuous and by extension more honorable than the current version, I can't help but feel that present day America is more synonymous with greed, corruption, and, gain for most organizations/structures.

[@DoriansPortrait]

Yeah I'm definitely going to be a black sheep here in this comment section. I can tell, but I actually don't really care much for Elon musk and as far as I'm concerned his Tesla is not very affordable nor is there much infrastructure for it.

[@shaylennaidoo]

Tesla has wasted its advantage on the CT instead of the Model “2” a low cost, cheap EV car for the average consumer that Henry Ford would have enthusiastically endorsed (as per your video)

[@rickden8362]

Spam. You already did this topic. Are you that hard up for content you have to repeat yourself.

[@ConnectingODots]

Chill, this is the first and only time I did this topic - I just renamed the video and changed the thumbnail because previous combo received 6K views at a time most comparable videos recieve 60K

[@rickden8362]

@@ConnectingODots It reeks of desperation.

[@user-gv4cx7vz8t]

​@@rickden8362it's your response that reeks. Critic, rebrand thyself!

[@rickden8362]

@@user-gv4cx7vz8t Really, I know imitation is the sincerest form of flattery, but in your case you're just lazy.

[@DingoAteMeBaby]

Wow. Is that not literally what Jobs did?

[@jeffreyfwagner]

It is important to note that when Ford "founded" a company, it was done with zero money put up by Ford himself. So when he bailed out of a company he had nothing at risk. Investors believed in him.