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Wednesday, 15 August 2018 19:46

Tesla Disrupting the Automotive Industry With Extreme Manufacturing

Written by Pale Blue Dot Research, Seeking Alpha

Index

 

Investor Takeaway

 

The narrative of Tesla's production incompetence and organizational chaos has led to speculation by analysts that 3rd party verified gross margins cannot be met since Tesla is incapable of achieving industry standard cost benchmarks. The onus is not on Tesla to prove that it can achieve industry standard production cost benchmarks because there is no data to support that they aren't achieving them now. If the only argument that they can't is anecdotal evidence from production delays, this is easily explained by Scrum for Hardware a.k.a. Extreme Manufacturing. This explains previously irreconcilable management strategies and decisions that, at first glance, look like chaos and incompetence. It's not called Scrum because it looks pretty, it's called Scrum because it gets the job done.

 

Disclosure: I am/we are long TSLA.

 

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

 

We thank Seeking Alpha for reprint permission.


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