Re:The stock market and economy have parted ways
by marvin on Monday July 13, 2020 @05:44PM
(#23825904)
>(It was probably a mistake to come out with the Model 3, a sedan, before the Model Y, a crossover)
Maybe. But it seems Tesla has realized very significant production efficiencies on the Model Y contra the Model 3, and given the expected larger volume on the former, it's a big advantage that these design lessons were learned on a model that will carry less of their income.
Changing tooling and production processes for a product that already exists is a very painful strategic gambit. Remember that Tesla's pipeline is bigger than their current offerings; that kind of distraction wouldn't be healthy for their long-term growth.
Greater cash flow from Model Y due to design/manufacturing efficiencies might be a critical strategic advantage.
Maybe. But it seems Tesla has realized very significant production efficiencies on the Model Y contra the Model 3, and given the expected larger volume on the former, it's a big advantage that these design lessons were learned on a model that will carry less of their income.
Changing tooling and production processes for a product that already exists is a very painful strategic gambit. Remember that Tesla's pipeline is bigger than their current offerings; that kind of distraction wouldn't be healthy for their long-term growth.
Greater cash flow from Model Y due to design/manufacturing efficiencies might be a critical strategic advantage.