Part 7/14:
A critical industry transformation involves automakers shifting from traditional mechanical systems to digitally controlled, software-driven components. For example, steering-by-wire, brake-by-wire, and advanced driver assistance systems increasingly rely on highly integrated software. Traditional automakers are struggling to develop in-house software due to outdated waterfall project management methodologies and a lack of agile culture.
Hans explains that successful software development requires rapid iteration, short cycles, and collaborative environments—principles foreign to legacy automakers. Tesla's approach of integrating hardware and software development on an agile basis enables rapid updates, improvements, and iterations, giving it a competitive edge.