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Musk’s Plans Can Destroy Tesla

10 May

Tesla production, Tesla objective

CEO Elon Musk is trying his level best to ensure that Tesla Motors achieves its ambitious objective

Ever since Tesla had its initial public offering, a discussion is being done between bulls and bears regarding whether the American organization is a very overvalued vehicle maker or a possibly undervalued technology company. The case of bulls- which hold that the electric car maker would be in a better position compared to organizations like Amazon as well as Apple than automobile manufacturers like Ford and General Motors- has propelled the automaker to promote valuations that have vehicle game players both envious and baffled.

Both as CEO Elon Musk makes efforts to guide Tesla through an important transition from a small-batch luxurious car maker to a manufacturer of mainstream volumes, he seems to have been inspired: the automaker needs to be quite like automakers his investors can not stop deriding. During the company’s recent quarterly earnings call he addressed analysts by stating “The key thing we need to achieve in the future is to also be the leader in manufacturing.” This characteristically boastful objective is not  new according to Elon, who says “we take manufacturing very seriously at Tesla”, but the organization needs to go a long way.

Initial praise for the performance and design of the automaker’s automobiles has given a way to a lot of Tesla owner frustration regarding quality and reliability, with a number of complaints ranging from the need to replace the drive unit in Tesla Model S to defected falcon-wing Model X doors. Myriad issues have also been faced with premature rust, door latches as well as window seals- matters that first delayed and then moved down the two models quality ratings.

In the meantime, Elon is putting the company to the largest production challenge ever in the vehicle business, promising to add to manufacturing of electrically powered vehicles from 50,000 vehicles in 2015 to half a million vehicles by 2018. That boost would even top the Model T of Henry Ford, which took 4 years to boost from almost 70,000 vehicles per annum to 500,000 vehicles. But Elon is gunning clearly for the history books, speaking to analysts that his “best guess” at a 2020 manufacturing objective is “close to one million vehicles”.

It is a breathtakingly bold objective under any situation, but Elon pronounced it the day his VPs for manufacturing and production quitted the organization, which left without the major leads required to run it. While the earnings call was being held “the best manufacturing people in the world” to make the effort, stated the announcement of the newly hired people would be done soon. Meanwhile. Elon has himself established his office at the end of the vehicle production line at the company’s factory in the Californian city of Fremont.

For everyone who believes firmly in Elon and his capability to turn huge investments into equally huge profits- as CEO Jeff Bezos did at his organization Amazon- the Musk’s vision to man the car production line is excellent branding.

 

 

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Posted by on May 10, 2016 in Technology

 

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