In praise of Tesla’s bankruptcy
...A lot of people think bankruptcy looms in Tesla’s future. Of course, Tesla bears have been saying this for years, and they’ve consistently been wrong — but this time, are they right?
Maybe; maybe not. Either way, a far more interesting question, if (like me) you have no financial interest in the business’s success or failure, is: does it matter?
I’m entirely serious. We tend to assume that a company’s purpose is to make money for its shareholders, or at least “not go bankrupt,” because money is how we measure success. And this is in fact true of most companies. But it is not true of Tesla. “When a measure becomes a target, it ceases to be a good measure,” and this is as true of money as it is of any other measure. The purpose of Tesla is not to make money; it is to pioneer fleets of smart mass-market electric cars, and the infrastructure to support them, and battery technology which is not limited to cars. Making money is ancillary...
DaveinOlyWA wrote:...Rumor has it that Musk earned so much confidence in the BIG money crowd that he has a HUGE line of credit at his disposal at any time...
DaveinOlyWA wrote:...this trucking thing? That is a gold mine!...
Patrick0101 wrote:Seeking Alpha writer, Trent Eady, said it well when he wrote, “If Musk promises you the moon in six months and delivers it in three years, keep things in perspective: you’ve got the moon.”
edatoakrun wrote:Tesliacs are starting to defend TSLA's impending financial collapse as a noble lost cause..
Whether or not Tesla itself survives as a company and manages to introduce mass market cars, mass market BEVs undoubtedly will arrive, largely thanks to them demonstrating what could be done.Our goal when we created Tesla a decade ago was the same as it is today: to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.
In Praise of Tesla’s Bankruptcy
https://techcrunch.com/2017/11/26/in-pr ... ankruptcy/
Build fast, fix later: speed hurts quality at Tesla, some workers say
...After Tesla’s Model S sedans and Model X SUVs roll off the company’s Fremont, California assembly line, the electric vehicles usually make another stop - for repairs, nine current and former employees have told Reuters.
The luxury cars regularly require fixes before they can leave the factory, according to the workers. Quality checks have routinely revealed defects in more than 90 percent of Model S and Model X vehicles inspected after assembly, these individuals said, citing figures from Tesla’s internal tracking system as recently as October...
Tesla's Production Problems Are The Company's Achilles' Heel
...I often wondered how it is possible for Tesla to burn so much cash while making only luxury cars--the Model S and Model X--and the Reuters story--quoting recently fired Tesla employees--opened a window on that process. The extensive re-work referenced in the article just should not be occurring now, especially since the Model S is entering its sixth year of production.
Some elements of the car buying public like to fall for the "it was made by hand" rhetoric for luxury models, but I can confirm that no automaker in the world aims for less automation, not more. This is especially true as one goes up the curve in terms of volume, and that is the problem facing Tesla now.
The company has shown no evidence that it can produce luxury cars at a proper linespeed and now it is attempting to build a mass-market vehicle, the Model 3...
edatoakrun wrote:how do you scale labor-intensive hand-built production processes with a vehicle that are claimed to be available (eventually) at a "more affordable" price, only ~$35,000?
GRA wrote:...Whether or not Tesla itself survives as a company and manages to introduce mass market cars, mass market BEVs undoubtedly will arrive, largely thanks to them demonstrating what could be done.