Tuesday, August 31, 2021

The Tesla Network's Underground Advantage


Elon Musk knows how to cross-promote. The Boring Company uses Tesla vehicles in its Loop service. Space X uses Tesla Model X vehicles to transport astronauts to the launch pad. And who could forget when Space X launched a Tesla Roadster into space. It wouldn't be surprising to someday see a Lunar (or Mars) rover based on the Cybertruck with a large Space X logo on the side of the vehicle.

With this cross-pollination in mind, let's conjecture about the, yet to be deployed, Tesla Network. The Tesla Network is Tesla's planned robotaxi service. Of course, Full Self Driving is needed before there could be a robotaxi service. However, Tesla could launch a preliminary version of the Tesla Network that uses human drivers. This version of the network would be similar to Uber or Lyft, but with a 100% Tesla pure electric fleet.

Let's add one more component before putting the pieces together. The Boring Company Loop system is currently deployed in Vegas and under development in other cities. In this controlled environment, it will be much easier to achieve full self-driving.

Now, let's put this together. Imagine if the Tesla Network had access to the Loop tunnels. If the Tesla Network cars were human-piloted, they would drop into fully automated mode as they enter the Loop, they'd then navigate the tunnels, upon reaching the other end they'd return control to the human pilot as the car exits the Loop system. 

Consider a city that has a Loop tunnel system under the most congested portions of the city. In this example, there are Loop entry and exit points at the airport, the convention center, the multimodal park-and-ride, the stadium, and any other major attractions in the city. 

The Loop system would only be available to Tesla Network vehicles since they have the needed autonomous system to navigate the tunnels with high speed and to coordinate access with the other vehicles in the system.

This would be a major advantage that other ride-hail providers could not match. Image pulling out your phone, opening the "Tesla Hail" app, tapping in your destination; two minutes later a Tesla pulls up to the curb in front of you. You're in a westside suburb and you want to go to an event on the other side of town. It's rush hour (because it's always rush hour nowadays). You hop in the Tesla and head toward the crosstown highway. Instead of getting on the gridlocked highway, the car diverts to a corkscrew, you spiral down a level or two as the steering wheel tucks away, you enter a well-lit tunnel and accelerate to freeway speeds. The few other cars that you see are all engaged in a well-choreographed autonomous ballet. This is not a collection of rude and distracted drivers; this is an orchestrated, efficient system. 

After passing under the congestion of the city, you resurface on the eastside. The steering wheel redeploys and flashes for the driver to take control once again. The trip continues and you are dropped off with door-to-door service in half the time it would've taken on surface streets.

If this were available, why would you use any other service? 

Tuesday, August 24, 2021

Living In 2030


A friend was complaining about his electricity bill. He said, "With all this the heat this summer, I've been running the air conditioner a lot and the electricity bill is through the roof." 

He knows me well and before I could even say it, he said, "I know, speaking of my roof, I should put solar panels up there, right?" 

"Well, yeah," I said. "It makes more energy during the sunny summer months, so production scales up and down well with AC use; keeping the electric bill pretty flat with even a modestly sized solar system."

Him: "I might do it someday. Last time I looked, it was too expensive."

Me: "I'd check again. The prices have been dropping and there are incentives that can help pay for it. I'd get a quote from Tesla, Sunrun, and at least one other installer."

Him: "It would be cool to get home batteries too. We don't lose power often, but last winter we did and we had to go stay with my in-laws for a couple of days. I'd pay a lot to avoid doing that again, haha."

This conversation made me think of an expression, “The future is already here – it's just not evenly distributed.” In a lot of ways, our home is part of that unevenly distributed future. We have 2 long-range EVs in the garage, we have solar panels on the roof, and batteries to time-shift our energy use and back up for grid outages. Each one is great on its own, but when you put them together, they have positive compounding effects that allow you do even more.

Batteries are the most expensive component in an EV. Solar and EVs will be the obvious choice by 2030 (if not sooner). Wright's Law and Swanson's Law provide positive feedback loops for these technologies. Prices will continue to drop for solar and batteries; opening a larger market for them; further increasing economies of scale, further reducing costs, rinse and repeat.

So in 2030, if your roof has sun exposure, you can be assured, you'll have solar up there and if you are shopping for a new car in 2030, an internal combustion vehicle will be harder to find than a stick shift transmission is today in 2021.

Disclosure: I'm long Tesla.

Sunday, August 8, 2021

Musk vs Milton :: forthright vs fraud [allegedly]


Federal prosecutors recently indicted Nikola Motors founder Trevor Milton on three counts of fraud for statements that misled investors about the state of the electric truck startup's technology.

I was discussing this topic with a friend and he said, "Milton copied Musk's playbook and now Milton is likely going to jail. It won't be long before Musk shares a cell with him."

"Woah!", I said, "That's a big leap in logic."

His argument went something like this: 

"Musk has made (and still makes) big boisterous, obviously unrealistic, claims to get media attention and investments. Musk claimed that they'd have a "lights-out alien dreadnaught" factory; that never happened. The Roadster, Semi, and Cybertruck have been announced for years and are still not going to be delivered to customers anytime soon (if ever). Outside of a prototype or two, the Cybertruck. is. not. real! He's obviously trolling. Musk has even said the Roadster will fly or hover, this will *never* happen in a production version. It all just chum for the fanbois. Musk is the P.T. Barnum of our day, not the Edison nor the Tesla."

"Milton followed the same playbook. He even named his company after the same guy, Nikola Tesla. Here's the most telling dead giveaway, Milton said he was going to "Out Elon, Elon." Milton made big claims that they'd have a great factory, great products, a great fueling network, partnerships... The only difference is that Milton was not granted the "Elon Time" to deliver on fifty percent of what he promised and then declare victory."

Tesla's original battery factory --

"Gigafactory Nevada," I interjected. 

"I refuse to call them 'Gigafactories'," he said -- "As I was saying (he continued), Tesla's original battery factory is still not as big as Musk claimed it would be when he made the deal with the state of Nevada. It's been years. That's fraud [allegedly]. What about the solar covered charging stations, only a few of them even have solar panels. That's greenwashing and lying to the public. Then there's, the icing on the sham cake, Full Self Driving. It requires an attentive driver at all times. That's *not* self driving, "full" or any other level. It's a driver assist system, with relaxed operational domains and a chump behind the wheel to take the blame when something goes wrong. Musk has been selling this FSD scam for years, since 2016 in one form or another, with the promise that it will be here "soon." All the while taking people's money while making them the beta testers for it, while endangering everyone around them on the roads."

"The system did what it should with Milton. I'm not sure why it has hesitated to do the same with Musk. He has been given "Elon Time" to deliver on these promises and they are still vapor."  

Those claims certainly don't paint a pretty picture of Musk (or Milton). Both men have certainly made incredible claims. There's, however, an important distinction. Musk makes claims about what they *will* do (forward-looking statements). Milton lied about what they *had* done. Let's deal with Milton first.

Milton [allegedly] had a semi-truck rolling down a hill and passed it off as being powered by their technology. Milton [allegedly] had a supplier's names taped over and then passed the component off as something they had developed. The Hindenburg Report detailed all of these allegations and more. So it's not that Milton wasn't given "Elon Time" to make good on promises. The charges against him are not for saying that they would have a great factory and great products. There are charges against him for misrepresenting things that he was showing to the public and claiming as accomplishments. 

Let's address each of the claims about Musk: 

  • Milton used Musk's playbook - Musk's playbook is to sell the idea of a better future. He is far from the first one to sell the vision of a bright future based on their products, but yes Milton did use Elon as a role model. Milton made similar fantastic claims, the difference was that (in my opinion) Milton didn't have the talent or resources to ever deliver on those blusterous claims. And, most importantly, Musk's playbook does not including showing non-working prototypes and claiming that they work. Musk's playbook does not include rolling vehicles down a hill and implying that it's operational.

  • Alien dreadnaught - Tesla's factories are highly automated (as are all modern auto factories), but it's not a lights-out (no humans) factory by any means. Musk admitted he was wrong about this and called humans "underrated." Being wrong about something, learning, and then admitting you were wrong is not the same as lying. Tesla still built factories, they just changed the plans when they found the current state-of-the-art in robotics to be lacking. 

  • Roadster, Semi, and Cybertruck - Every vehicle that Tesla has ever made (with one notable exception) has been late. Tesla does not just change a few tailfins and release a vehicle calling it a new model. Each one is a clean-sheet design to maximize safety, range, and manufacturability. When a product is not derivative, delays are common (if not inevitable). Tesla has delivered millions of vehicles, there's no reason to believe that these three will be any different. These will go to production. It doesn't matter if it's in 2022, '23, or '24. These vehicles will be the yardstick by which every electric entrant into that market space is measured. Saying things like 'the Cybertruck is fake' frankly makes you sound like you are hating on Tesla with no basis in facts.
     
  • Flying Roadster - The SpaceX edition of the next-gen Roadster will have cold gas thrusters. These are the same type that are used as maneuvering thrusters on rockets. I think Musk knows where to find a few engineers with experience designing these. Sure there may be legal restrictions about where they can be used, but, as wild as this claim is, there are no laws of physics that have to be suspended for this to occur. Just because no one has ever done it, doesn't make it impossible.

  • Gigafactory Nevada is not done - In 2020, the show Super Factories covered Gigafactory Nevada. They said that 13 million battery cells were produced per day. Panasonic later disputed this number but did confirm that in 2019 Gigafactory Nevada producing at a rate of 54 Gigawatt-hours annually. And by the way, this is why they are called 'Gigafactories' because they produce in the gigawatt-hour order of magnitude. So this is a massive factory by any measure. As for the incentives with Nevada, these were based on milestones that Tesla has to meet over a 20 year period to receive the tax incentives.  If Tesla does not meet the milestones, they don't receive the benefit. The contract even has clawback provisions that could allow the state to rescind prior-year incentives in some cases. 

  • Solar-powered charging stations - Tesla has installed charging stations around the world. They have more DC fast-charging stations than the next three providers combined. Most of these are leased areas on the parking lots of retailers like Target or Walmart. Installing a solar canopy would be up to the site owner, not Tesla. And many of those sites do have solar panels on their roofs (not as visible or sexy as a solar car cover canopy, but still there). At the sites that Tesla owns, like Kettleman City, they have solar canopies providing shade and energy. Additionally, Tesla has sold residential solar and commercial solar systems.

  • Full Self Driving - No one is required to buy FSD. It is an option. Tesla is not twisting people's arms to buy it. There's no high-pressure salesman trying to get you into an FSD system today. It's a checkbox on the website, if you think it's worth the money, get it; if not, don't. The people that have bought FSD are overwhelmingly satisfied with it. And, yes, right now FSD is just a driver assist system because it is in Beta. Yes, the people that are using it, are beta testing it because they want to. They are even willing to pay to use and test it. That's their prerogative. With the new subscription option, you could try it for a month or two and they decide if you want to buy it or not (or continue subscribing). 
     
  • Wild Claims - Musk has big ambitions. He wants to move humanity to sustainable energy production and consumption. He wants to make life multi-planetary... He leads with Moonshot aspirations. He is forthright with these goals. He puts them out there for scrutiny and feedback. So yeah, Musk often misses timeline estimates. If you don't fail occasionally, you are not thinking big enough.

Apparently, my friend is not the only one to draw a comparison between Musk and Milton. Forbes claimed that the indictment of Milton was a "veiled warning" to Musk. Although I didn't see anything in the article to support this claim.

Certainly, Musk does not need my little blog coming to his defense, but if you wind up in a similar conversation where someone equates Musk and Milton because they read something in Forbes or the like, now you understand how they are fundamentally different.

Disclosure: I'm long TSLA

Sunday, August 1, 2021

F-150 Lightning: A Threat To Rivian, Not Tesla


Big players and startups alike are jumping into the electric truck market: Tesla Cybertruck, Ford F-150 Lightning, GMC Hummer Electric, Chevy Silverado EV, Rivian R1T, Canoo Pickup, Nissan Titan Electric, Atlis XT, Lordstown Endurance, Bollinger B2, Hercules Alpha, Fisker Alaska, Alpha Wolf...

2021 is turning out to be the year of the electric truck, well... at least the electric truck hype. We'll see which ones come to market and which ones follow the Nikola Badger and disappear (looking at you Lordstown). 

Ford recently revealed their F-150 Lightning electric truck and the EV media is swimming with Cybertruck vs Lightning articles. I see the headline appeal :: America's best-selling truck goes electric to take on Tesla, the innovative electric up start.

Despite the headline narrative, this seems like the wrong comparison to me. If you are interested in the Cybertruck, then Ford's offering is not likely to sway you. Similarly, if you are interested in a normal-looking truck like the Lightning, you are not interested in the Cybertruck. The Cybertruck is a divisive love-it-or-hate-it wedge design. It literally looks like a wedge and the design acts as a figurative wedge. Certainly, you can compare them on price and range and other factors to pump a story out, but the actual cross-shopping audience is likely very small.

An overlooked aspect of Cybertruck's quirk design is that this allows Tesla to sidestep this head-to-head fight with the electric offerings from the legacy automakers.

The EV startups, not Tesla, are the ones that should really be frightened by the launch of the Ford Lightning. Let's look at one electric truck startup in particular, Rivian. Truck buyers are among the most loyal of brand shoppers, which puts Rivian in a tough spot. If buyers were dedicated to a brand (Ford, Chevy, Nissan...) but wanted an EV pickup, then they are likely to wait for an EV pickup in their favorite brand (F-150, Silverado, Tundra...). 

So this leaves Rivian only with the truck buyers that are not as brand loyal, the ones that are willing to take a chance on a start-up when purchasing the most expensive thing, other than a home, that most people ever buy. If Ford didn't have an EV pickup coming out soon, maybe this would have left the door open for Rivian to woo buyers as their current gas-powered trucks aged. This is how Tesla was able to move into the luxury car market, there was a void of EVs from the majors and Tesla was able to thrive in a space with little-to-no competition for nearly a decade until they eventually reached escape velocity.

This time, however, the majors don't want to allow a startup to take away their most profitable market. They are going to move in with products that will suck the oxygen out of the room, leaving startups gasping for air. 

I guarantee you that the list of EV trucks on the market in 2025 will not be the same list at the start of this article. Most of the start-ups will be acquired or go under. The Fisker Alaska might be Baked Alaska by then; Canoo might float away, Rivian might reach the river's end, the B2 might bomb, the Endurance might run out of steam, the sky may crash around Atlis, and Hercules might not complete the 12 labors. The well-funded startups (like Rivian) have a chance, but Ford and Chevy are not going to make it easy on them. 

Disclosure: I'm long TSLA

Friday, July 30, 2021

Sunrise Applies Heat to ODOT


The Oregon Transportation Commission held a meeting on July 15th. One of the items on the agenda was i205 improvements and expansion of 7 miles from West Linn to Oregon City including the Willamette River crossing. This work would add a third lane in each direction and reinforce the Abernethy Bridge and the eight other i205 bridges in the project area to be able to withstand a major earthquake.

The commission says the project will make the section of i205 "safer and allow more reliable travel to access work and critical services, even after an earthquake or other major disaster as well as address congestion."

This meeting included a public comment section. Several members of The Sunrise Movement made their voices heard.

From their website: The Sunrise Movement is a youth movement to stop climate change and create millions of good jobs in the process. We’re building an army of young people to make climate change an urgent priority across America, end the corrupting influence of fossil fuel executives on our politics, and elect leaders who stand up for the health and wellbeing of all people.

The Sunrise members brought up several points:

  1. Expanding freeways increases traffic and does not reduce congestion (citing the Katy freeway in Huston with 26 lanes and yet it still has congestion)
  2. 40% of Oregon's emissions are from transportation
  3. Dollars spent on freeways are not available public transit (give people an option other than sitting in their car on a congested freeway)  
This commission meeting and testimony came right after Oregon's "once in a millennium" heatwave. At least 54 people died because of this global warming amplified heatwave. Other estimates put the number of deaths over 100. So there was a sense of urgency to do something to reverse this "global weirding" trend.

The Sunrise Movement is youth-led and one of the more galvanic testimonies came from a 15-year old that started by scolding the commission, saying that she should not have to wake up at 7AM to tell a bunch of adults things that they should already know. This same testimony ended by asking the commission how many people have to die before they take the climate crisis seriously. 

The commission handled this compelling and emotional testimony very professionally. 

So what do we do? What would you do? i205 is a primary path for goods moving up and down the west coast. I-5 runs through downtown Portland, so 205 is the bypass for freight heading north and south. This freight is typically on diesel semi-trucks. I don't want them stuck in traffic, polluting. Are the lanes the problem or the tailpipes of the vehicles that utilize them? If you allow this expansion, is it just one more slice in a death of 1000 cuts? 

The expansion takes this portion of 205 from 2 lanes to 3. This is far from the 26 lanes of the Katy freeway. Most of 205 is already 3 lanes, so it is not surprising that this stretch, where it's choked down to 2 lanes is a bottleneck. I think each action must be considered and, where reasonable, allowed. 

For me, I go back to the three ways to change the world. 
  1.  Pass laws to change/control behavior 
  2.  Set an example that some might follow 
  3.  Invent a better way that people will rush towards
Generally, I lean toward option three. I see electrified transportation as the better option. People want freedom of movement. People want things delivered to their houses. That means that we need freeways, highways, and roads that are kept up and maintained and yes, in some cases, expanded. I'd like to see a multimodal transit center and charging infrastructure added as part of the improvement plan. These would allow more public transportation options and electric vehicle charging. I wouldn't even mind seeing a few more tunnels to give people another option for personal transportation.

You can listen to the complete testimony (and the EV infrastructure presentation that immediately followed it) here.

Let me know what you think.

Wednesday, July 28, 2021

Portland VPP Supporting The Grid During Heatwave

Portland is having *another* heatwave. And our local utility, Portland General, is dispatching our Virtual Power Plant (VPP) to help alleviate the grid strain that the additional air conditioner usage will cause. 


As I pointed out during the last time the VPP was dispatched, in our situation, this dispatch operation can actually increase our grid load. That's because we are load-shifting and reducing our electricity bill

The VPP control software will improve. Next summer, they'll likely be able to account for our use case. In the meantime, our minor increase in load will be more than made up for by others in the VPP. 

Alternatively, I might disable the VPP temporarily to stay "islanded" so that we don't increase our grid load. After all, I volunteered our batteries to help the grid, not increase the burden on it.

Saturday, July 17, 2021

It Takes Talent - How Tesla is different #95


Most companies advertise their products. Outside of a college recruiting event, most companies don't advertise much if at all to attract talent.

The small amount of advertising that Tesla has done, has primarily been to recruit talent, rather than to sell their products. This is true at Tesla's "Day" events (Battery Day, AI Day...) as well as in their social media. This philosophy extends into other Musk-run companies too. The Neurolink Launch Event did demo the product but they spent an equal amount of time talking about the roles in the company and how they need to hire animal caretakers, programmers, chip designers, signal integrity engineers...

One recent interesting example of Tesla "advertising for talent" was a video that starred Tesla's chief vehicle designer, Franz Von Hausen. The video looks more like a cyberpunk video game than real life. It starts with Franz spraypainting Chinese characters on a wall. Someone hands him a tablet, as the glow from the tablet illuminates his face, you can see that he is both impressed and intrigued by the design. He asks, "Who did this?" as the caption asks, "What will you design?" 

Certainly an enticing thought. If you are a designer, you'd want to work at a company that's trying new things, this might catch your attention. The Cybertruck is featured prominently in the ad as an example of something that likely would have never been attempted at another company. 

Tesla plans to design an affordable car for the worldwide market in the Chinese design center that they are beginning to staff with this ad

The specifics of this effort are part of the bigger picture. Tesla knows that to achieve things that have never been done before, you have to hire talented designers and engineers. You have to hire people that are going to push things too far (in a controlled environment), see where they break, learn from that, and use that knowledge to make something that not just a derivative product, but a disruption.

Saturday, July 10, 2021

100,000 kWh!

We installed our first solar photovoltaic (PV) system in November of 2007. We used a local PV installer company called Mr. Sun Solar. Other than a few down days when an inverter needed to be replaced, the system has been in operation for 4975 days. In 2015, we added a second PV system to our home. This time we used SolarCity (now Tesla). 

In the 8 years from 2007 to 2015, solar costs had dropped significantly and PV efficiency had improved. Meaning that our 2015 system was twice the size at half the cost of our older system.

Today, these two systems have each generated about 50 MWh; collectively generating just over 100,000 kWh (100 MWh) from the sunlight hitting our roof.

Solar energy production on our roof

Looking at the above chart, you can see that, despite the older system having an eight-year headstart, each system has generated ~50 MWh. The smaller system took 13 and a half years to reach this milestone. Whereas the larger PV system arrived in just 5 years, 10 months. I been watching for this crossover point, where the larger system would eclipse the smaller one, but I didn't know it would happen so close to this major milestone of production.

How Much Is 100MWh? 

Okay, we've made 100MWh, but how much energy is that? Let's look at it a few different ways.

The average US home uses 10,399 kWh annually. This means that our 100 MWh could power the average home for 9.6 years. 

The 2020 Tesla Model 3 SR+ is a highly efficient EV with a 239 Wh/mile consumption rate. At that rate, 100 MWh could propel this vehicle for more than 400,000 miles; enough to drive around the planet 16 times.

Looking at it one more way, the EPA says that a gallon of gasoline has 33.7 kWh of energy. This means that our 100 MWh is equivalent to nearly 3000 gallons of gas (however, with zero emissions from our solar).

From 2015 to today, solar's price has continued to drop. If you want solar on your home, you can use our referral code.

Saturday, July 3, 2021

The Reason The Boring Co Will Win (That No One Understands)


The Boring Company recently unveiled the Las Vegas Loop. Riders will use an app and select their destination. The app will direct them to a stall number and car; riders pile in and they are whisked off to their destination.

Currently, the cars are human-piloted and only driving at a max of 35 MPH. This, of course, was trumpeted by the Musk detractors. The criticism goes something like this: A car can only hold a few people; a train would hold many more. So, they conclude, tracks should be installed and this should be changed to a tried-and-true subway like so many other cities. This superficial deduction concludes that cars in tunnels is a flop and that trains would work much better.

I find this train-thinking to be stuck in the 1900s. You might even say, they have "tunnel-vision." I'll explain.

Centralized vs Decentralized

Long ago, my day job was as a network engineer. I worked at a company developing network infrastructure products. We analyzed traffic flows (network packets) and methods to reduce latency and optimize throughput. We had contracts with NASA, The Olympics, most of the hyperscaler datacenters, and most of the server OEMs. The network traffic analysis I did there was not the same as automobile traffic, but there were some important lessons. When I started Token Ring was the cash cow, but things changed quickly.

Token Ring

This type of network is not all that different from a train route. Without going into the technology, nodes on this type of network are logically organized into rings. A circulating token controls access. This is not all that different from a train going around a loop, you can only get on the network/tracks when the train/token arrives. The nodes in this type of network are even called stations. This type of network eventually failed because it was not scaleable. As more nodes were added to the network, the effective throughput of any given station slowed. 

Ethernet (Half Duplex)

The technology that succeeded Token Ring was half-duplex Ethernet. This type of network allowed many more stations to be added to the network without choking throughput (with caveats). During those half-duplex days, networks had limited uses. On half-duplex networks, all of the nodes share a common communications media called the bus. Half-duplex networks function well when there are just a few, short-lived, traffic flows; which is why they worked well back then when most network traffic was periodic client-server activity (like fetching email or printing a document). However, as network communication became more essential with the rise of the internet and streaming, this type of common bus network collapsed under the pressure. Half-duplex is like a walkie-talkie network with everyone on the same channel. You can have as many people as you want on that channel as long as most people are just listening most of the time; however, as soon as everyone wants to start talking frequently, you just have a jammed-up unusable channel. 


Switched Ethernet

We've looked at two network types (Token Ring and half-duplex Ethernet) that didn't scale (albeit for different reasons). Switched Ethernet will be our third and final network technology. Both of the previous network technologies had a centralized control (the ring or the bus). 

Switched (full-duplex) Ethernet quickly replaced half-duplex Ethernet. With switched Ethernet, there was no bus, no shared walkie-talkie channel, every node has its own dedicated channel. When node A is talking to node B the traffic flows from A to B. If C and D are on the same network, the conversation between A and B generally does not interfere with the traffic between C and D. This is the technology that is used today in everything from your home network to massive datacenters around the world. It is far more scalable and has much less congestion.  

If switched networking is so great, why didn't we just start here? The idea of switched networks has been around since the 1960s. The problem was the technology. At the heart of a packet-switched network is a switch that must look at every packet that comes in, determine the packet's destination, and then send it out of the switch via the exact right port for that destination. Multiply this by every port on the switch that is both and sending and receiving and you have a complex forwarding table that has to dynamically update. Then grow the network by layering (attaching switches to other switches), and things (path discovery, forwarding tables...) get very complicated. The switches that allow this type of network to be possible have to be very advanced.

During the era of Token Ring and half-duplex, these full-duplex switches would have been prohibitively expensive (if even technically possible); whereas today, you buy a low-end one for less than $10.

Comparing Network Topologies to People Mover Topologies

So let's tie this back to the topic at hand, The Boring Company Loop system. 

Token Ring is like the train or subway. It has a fixed route; as more stops are added, more people can access it, but each stop lowers the overall speed. More throughput means more latency (longer travel time).

Half-duplex is like a bus. If you charter a bus and your whole party is going to the same place, it works great. But if you have a bunch of people boarding, all with different agendas, things fall apart quickly.  

The Boring Company's Loop design is a switched network. Riders select their destination and are assigned a dedicated car. That car goes to their selected destination directly. They don't stop at all the points in between to allow people in and out of the car. The Loop system computes the most effective route for your car to your destination. There's no stopping along the way.

The Boring Company's topology allows new routes and stations to be added to the network without adding interim stations at which all passengers must stop even when this is not their destination. 

Loop is a scalable transportation network. And it will get faster. 


Scaling

Switched Ethernet started out at a speed of 10 megabits per second (Mbps). This grew to 100 Mbps, then 1000 Mbps or 1 gigabits per second (1 Gbps), then 10 Gbps, 100 Gbps, and now 800 Gbps is under development. I'm not saying that the vehicles in these tunnels will be 80 thousand times faster than their current 35 MPH speed, but they can get 3 or 4 times faster in long straightaways. To be fair, even at 35 MPH, this is far faster than city street traffic. With the stop and go of traffic lights and congestion, city traffic averages about 14 MPH door to door. So even the initial Loop speed is more than twice the speed a taxi / ride-share could offer (although with more limited destination options). 

Today, the cars in the narrow Loop tunnels are piloted by humans. This will change soon. Solving autonomous driving in this controlled environment will be far easier than solving it in city street driving. As regular readers know, our prediction is that Level 5 driving will not be solved until 2027. These tunnels, on the other hand, are the best case for self-driving cars. They don't have to deal with rain, snow, sun directly in the lens, cross-traffic... This Level 4 solution could launch as soon as next year. 

Scale-out vs Scale-up - How TBC Wins

Trains scale by going faster, adding more train cars, and/or more stations/stops. This is scaling up. There are limits to increasing the speed and limits to adding more cars. As the number of stations increases, it increases capacity and access at the expense of increasing the average travel time for everyone using the platform. Scaling up trains quickly hits real physical limits.

The Boring Company scales by adding more destinations, more tunnels, and more cars. This is scaling out and it allows for more parallel operation. It means that stations, routes, and cars can be added to increase capacity without impacting the throughput or latency of the existing routes. It also means that popular stops can increase capacity by adding more ingress/egress tunnels to/from that station, thereby forming superstations. Alternatively, popular locations could have multiple standard-sized stations (e.g., Convention Center North Station and Convention Center South Station). This is easy to do with the Loop system since additional stations don't burden the system. More capacity, means more stations, more tunnels, more route options, resulting in a better overall system.

With trains, more capacity decreases performance; whereas, with Loop, more capacity improves performance. This is the fundamental difference.

Scalability Adds Flexibility

If you add a stop on a train route that has low utilization, then you've slowed down everyone for the benefit of a few, if any, passengers. Similarly, if you add a bus stop in an out-of-the-way place, you add cost for the bus to periodically drive past this location, even if no one is getting on or off the bus. 

This is different with Loop. All rides are point to point. If a hotel or casino that has low traffic pays for a station, then the network has grown and no one has been slowed down and there is no on-going fuel cost to drive to this out-of-the-way low-utilization location unless it is actually needed. 

I've avoided diving into the network analysis (graph theory) math for this article; instead, trying to articulate the common sense case. If you view each station as a vertex and each tunnel as an edge, there's a vast amount of analysis that can be done to understand the traffic flow within the system. The Boring Company will know every ride that occurs within the system. They'll be able to use graph theory and congestion information to determine the best paths for vehicles to take and which areas need additional capacity. 

If you have n number of stations, the possible number of station-to-station connections is n * (n-1). They'll be able to use historical information to determine the best path for each new tunnel that they add to the network. According to the Vegas Unzipped image above, there are 17 stations currently planned for the Vegas Loop. That's a possible 272 tunnels that could be dug for full-mesh connectivity. This would, of course, be overkill at the start of the system, but it demonstrates their ability to scale capacity as needed.

The Time Is Right

If this is clearly the best method for public transportation, why hasn't it always worked this way? The first answer is the same as it was for Switched Ethernet: technology. Imagine if everyone that got on a train told the engineer where they wanted to go and then the route was computed and the tracks were switched in real-time. That wouldn't have been possible with last century technology. Today, however, route planning is trivial. 

The second technology that makes this the right time is EVs. When a tunnel is designed exclusively for EVs, it doesn't need an elaborate ventilation system. This allows the tunnels to be smaller (therefore cheaper and faster to dig). The other reason that EVs tech is ready is range. Tesla's EVs will have all the range they need for a full day's service. And they have the performance to whisk you at speed quickly to your destination.

Our third item on this "this is the right time" list is Apps. Today, nearly everyone has a smartphone, with the LV Loop app, you'll be able to schedule your ride and pay on your own phone. The route will be calculated before you even click your seatbelt. There's no need to queue up to buy tickets... this is just another way that Loop systems will allow parallel operation.

Conclusion

Loop is in its beta phase, it will improve greatly over the next few years. As it matures, it will become the most efficient public transportation system humanity has ever built. This is not simply because it uses electric vehicles, it's because they have a significant technological advantage over the competing legacy technologies.

This is the same formula that other Musk Co. endeavors use. SpaceX's reusable rockets have a massive cost advantage over "disposable" rocket companies. Tesla's electric cars have a massive efficiency and performance advantage over their fossil-burning competition. 

The Boring Co. has "packetized" transportation and made a scalable "switched" network. This gives them a technological advantage over their last-century-based train competition. 

If you want an incredible transportation system, it's time to change from tunnel-vision to visions of tunnels.