Elon Musk tries to clarify on the most recent Tesla drama. During last week, several analysts suggested that Model 3 was being manually produced due to parts of the automated process in the factory being incomplete.
Growing pains in new factories are normal. However, in Tesla’s reality everything is amplified due to the speculative nature of the company and the importance of successfully launching the Model 3. Additionally, because the company is trying to triple its production volume, any miss by the company ends up being very noticeable and with huge impact on earnings.
The video below, probably intended to tranquilize investors, only proves that part of the production process is automated and fails to guarantee that everything is already starting to flow naturally. Nevertheless, I am expecting that the company will be capable of ramping-up production sooner or later.
Investment Gems 