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Fremont is a very inefficient factory, with probably the most expensive workforce you can get for manufacturing (Cali labor rates = $$$$).

It's also in "inherited" facility that was not custom-built to Tesla specs, and it shows (have you seen how they shuttle parts around that place like crazy, etc.?).
And yet, it's still the highest-output auto factory in the country IIRC.
 
Does it? I didn't know that.

I know the BIL will, via the NEVI program, but that hasn't started yet. And it only pays install costs, not ongoing or maintenance costs.
My comment is more of a joke by saying if no one uses EA, their maintenance goes to zero because no one will complain about broke chargers so they will only get free money to install more.
 
That says more about the other auto factories than it does about Fremont's efficiency.
Maybe the "other" factories have to keep changing the product line while Tesla sticks to one finely tuned process, right down to limiting paint colors.

The more you jack with a process (add this, change that, different color, add this kit and that kit), the slower the throughput. Plus, if they use SAP it can take a long time to switch things up, takes 14 planners, then stabilize the process again. Would be a good comparison, change orders per 1K units? More I think of it, shop floor control was Tesla home grown system designed exactly for their products - no SAP involved, especially the shop floor controls. Not to sound too neg on SAP, they make good golf caps and was better than some VAX system of the past. But it's generic so you (and half your staff) have to figure out how to make it fit your scenario.

(Edit, OK feeling guilty for saying all that about SAP. I do believe a custom tailored process is better just from talking to some retired SAP experts from my world. They are paid quite handsomely, but provide zero output to production. I'm sure it works for many, I'll stop my poking now...)
 
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Can someone explain that paragraph to me? What the heck is LCNRV?

Generally accepted accounting principles require that inventory be valued at the lesser amount of its laid-down cost and the amount for which it can likely be sold — its net realizable value (NRV). This concept is known as the lower of cost and net realizable value, or LCNRV.
May 24, 2020
 
So, bringing this back up here for people to give feedback on. @MrMoo has PM'd me saying:


What does everyone think? Is Tesla raising prices a small bit, compared to the massive drop they did in Jan, reason enough to invalidate a bet like this?
I don’t think price increases should invalidate a bet any more than further price decreases would have.

That being said, I’m not sure if you have much in the way of recourse beyond exposing him, as you have already done.
 
All the layoffs from legacy and upstarts happening now and Tesla did it back in April/May of 2022. Was that different circumstances or is that Musk seeing that far ahead than everyone else?
Elon gets zero credit for running Tesla well. Likely different circumstances, but Tesla is still really well managed and run.
 
Painful for anyone invested in Rivian. Or potentially Rivian owners who may end up with a truck with no maker to support it.


Rivian, Lucid, and company followed in Tesla’s footsteps and tried to use the strategy which worked for Tesla. Only the market has changed since then. And it barely worked for Tesla. If Tesla hadn’t been incredibly disciplined about spending and had truly remarkable engineering talent, they’d have never made it. There was a tiny window, they were too slow to hit it, and would have been too fat to squeeze through regardless.
I would argue it should have been easier for Rivian. They had plenty of pre orders and it was easy to raise investor dollars. Unfortunately they lack financial discipline as well as engineering prowess (the cars are great, but they lack the engineering prowess to build them at scale).
 
So, bringing this back up here for people to give feedback on. @MrMoo has PM'd me saying:


What does everyone think? Is Tesla raising prices a small bit, compared to the massive drop they did in Jan, reason enough to invalidate a bet like this?

A wager always has an element of risk, and it can ofttimes be a gamble as well, but not always.

There was a meeting of the minds to the terms and the bet was agreed to and made public.

The honorable thing to do is wait for the Earnings Report and then someone buys someone else a share.

On occasion a bettor may adopt a behavior that is often referred to by a derogatory application of the term used to describe people from Wales. Generally, such behavior is considered less honorable.


...and sometimes there is this to consider as well

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This YouTube video was shared by the Limiting factor:-

What is the difference in system production between Toyota and Tesla? What is changing in the automotive industry? What impact are electric vehicles having on the industry? Why has a long-standing company like Toyota been put in the rear-view mirror by Tesla? In this episode Joe Van Orden, of Arizona State University's W. P. Carey School of Business Supply Chain Management Department, compares the production and supply sourcing methods of automakers Toyota and Tesla. Not since the famous battle of Ford vs. Ferrari have two automakers pushed the limits to develop the ultimate automobile for the times!

Not new information, but an interesting take on Toyota and Tesla.

Mobile service came here today in a blue Model S, nicest service department vehicle I have ever seen.
So far both times I have needed service, it has been mobile service at home with warranty and recall repairs done for $0, in around an hour, with zero effort from me,

This time I wandered out and talked to the guy for a few minutes, but it was obvious he needed to finish up the paper work and get on to the next job.

Both times service has come within a few days of making the booking.

Those who haven't used it, don't know how good mobile service can sometimes be
 
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