By sending their factories abroad, American companies saved labor costs, but they lost the daily feel for ways to improve their products. Musk bucked this trend, largely because he wanted to have tight control of the manufacturing process. He believed that designing the factory to build a car—“the machine that builds the machine”—was as important as designing the car itself. Tesla’s design-manufacturing feedback loop gave it a competitive advantage, allowing it to innovate on a daily basis.
