This is some good looking analysis on Tesla’s current problems.
I don’t know if “Bankruptcy” is a word to be thrown out right now. But it is clear that the Cybertruck is a dud, the Model 2 is allegedly cancelled, and the Model 3 Highland refresh barely moved the needle.
Finally, TSLA sold fewer cars in Q1 2024 while the overall car market grew in sales. It could be an EV-only blip or problem, but in any case, its a clear problem for Tesla.
Overall, the substack article stays focused on GM, Chrysler, and Nissan and how these 2008-era and 1999-era bankruptcies have similarities to Tesla’s troubles today. It seems a bit hyperbolic, but it overall seems like a good read.
Lol Tesla schooling the car industry on how to make cars? That’s never been the case and only marketing talk.
After Musk bought into Tesla, he pushed very hard for fully automated factories, even though everyone said it couldn’t be done. Now this isn’t just people being negative, they said it couldn’t be done because existing car brands already had very highly automated factories at the time. They put in billions each year to improve their factories, but there were issues that were too hard to solve.
But Musk being Musk pushed on anyways and almost destroyed the company. Factories had issues across the board from simple volume, to scheduling, to quality and downtime. And this was with full disregard to safety and hours of the staff working there. In the end they needed to do something or the company would go bust.
So they made a deal with Toyota to basically buy an entire Toyota factory. In the industry Toyota is known as one of the best brands when it comes to this kind of thing. Their factories are highly automated, run like clockwork and produce good quality without a lot of costs. This saved Tesla, allowing them to actually produce cars and not go bust. They started to deliver on volume promises which was desperately needed at the time.
In the end the Toyota partnership was short lived, with Toyota pulling out. But Tesla still has that factory and based the rest of their factories on that one. The push for fully automated factories stopped and for a while it was run like a sane company.
So no Tesla never schooled anybody and were almost destroyed by the effort. But as the saying goes, that isn’t a story the Musk fanboys would tell you.
Recently Musk’s terrible financial decisions have almost destroyed Tesla and the company will probably be sold within the next 2 years.
Oh. Thanks for the information, I read up about it after your post and it checks out. I will have to confess that most of my information come definitely from a fanboy at work, he told me they where something like 50% more efficient and producing cars than the rest of the industry. Although I never understood that number came from or what he measured against I also never questioned it. I just assumed the truth was somewhere between probably having a few cleaver logistical/production solutions and being just an average car producer.
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Toyota and Volvo are both adopting giga press in future manufacturing. Don’t act like Tesla has done nothing.
You know they bought those and not invented right?
Of course, they were just the first people to use it, and for making cars.
That’s innovation whether you give them credit for it or not.