04 May 2023

Tesla's Amazing Feat






















I recall reading opinions a few years back when some thought Elon Musk didn't know how to run a car company. Car making is a complicated and expensive undertaking and he was underestimating its difficulty. 

I admit I was wondering the same things myself but wasn't emphatic as I didn't have enough knowledge to be such. I did think he was overconfident but that may have been his way of assuring investors. Others' efforts to turn ideas and dreams into reality have struggled to deliver. It takes a lot of money to go from zero to hero in the car industry. 

Yet, it seems Tesla is making it. They got the funds needed. They charge heavily for add ons that are not very costly to implement. Production plants are tailored to making electric cars, therefore more efficient than mainstream competitors. The range is not excessive and complicated so materials and componentry are bought in volume and at competitive prices. 

All this leads to an important end product. Profit. I have read that profit margins are the highest in the industry. If so, talk of price realignments out of desperation is well wide of the mark. Factories running at full capacity are the best way to go, provided all the fundamentals mentioned above are in place. 

I must say the cybertruck looks hideous (futuristic amateurism) and a rush job. See the picture below if you doubt my opinion on aesthetics. It has been delayed to get issues sorted. Attractive design it is not but otherwise it has to be a well executed vehicle to succeed in a challenging but profitable segment of the industry. 

Tesla is surviving and by many accounts doing very nicely thank you. Mistakes have been made but they are not ignored and that has kept the reputation of Tesla cars intact. Elon doesn't make friends with everyone but that won't stop people from buying his cars. Nor his solar roofs (see picture above). 

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