everman
Member
really? they are building a hell lot more Model S in 2013 than 2012... aren't they suppose to ramp up production to meet demand? how do you achieve that by decreasing capital equipment?
Capital expenditure is not the same as materials making up WIP (work in progress). They spent more money last year buying equipment to complete their manufacturing line than they did this year. Once your manufacturing line tooling is purchased and installed, you optimize process flow and supply chain management to ramp up production. Capacity increases have less and less to do with big equipment purchases.