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Tesla has a big advantage in manufacturing efficiency
02 May 2021 (221 views)

In mid 2019, I took a decision to make a large investment in Tesla stocks. One key factor that convinced me was the manufacturing efficiency of the Tesla gigafactories. 

I saw a video of their factory and got the impression that they were highly automated. This would bring down their manufacturing cost, compared to other manufacturers. 

The advantages go beyond reduction of cost. It allows the factory to produce the cars faster and to increase the throughput.

I believe that other large manufactuers, such as Toyota and Volkswagon, would also be highly automated, but they manufacture the conventional vehicles and not the electric vehicles. 

In the electric vehicle market, Tesla would be ahead.

My gut feel was proven correct. Tesla achieved remarkable progress in this field. Many other the other EV competitors are still losing money in manufacturing and selling their cars. Tesla is profitable and the profit will grow exponentially.

This video shows the state of the automation in the Tesla gigafactory. It is quite impressive.

https://www.youtube.com/watch?v=cmP3Y9utUR0 

Tesla will face many competitors in the EV market. But these competitors will have to struggle with high manufacturing cost and low profit margin. Many of them will not survive.

I continue to have high conviction in Tesla, in spite of their high stock price.

Tan Kin Lian

Note - this is my personal opinion. It is not a recommendation to buy Tesla shares at any specific price.

 


Tesla has a big advantage in manufacturing efficiency
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In mid 2019, I took a decision to make a large investment in Tesla stocks. One key factor that convinced me was the manufacturing efficiency of the Tesla gigafactories. 

I saw a video of their factory and got the impression that they were highly automated. This would bring down their manufacturing cost, compared to other manufacturers. 

The advantages go beyond reduction of cost. It allows the factory to produce the cars faster and to increase the throughput.

I believe that other large manufactuers, such as Toyota and Volkswagon, would also be highly automated, but they manufacture the conventional vehicles and not the electric vehicles. 

In the electric vehicle market, Tesla would be ahead.

My gut feel was proven correct. Tesla achieved remarkable progress in this field. Many other the other EV competitors are still losing money in manufacturing and selling their cars. Tesla is profitable and the profit will grow exponentially.

This video shows the state of the automation in the Tesla gigafactory. It is quite impressive.

https://www.youtube.com/watch?v=cmP3Y9utUR0 

Tesla will face many competitors in the EV market. But these competitors will have to struggle with high manufacturing cost and low profit margin. Many of them will not survive.

I continue to have high conviction in Tesla, in spite of their high stock price.

Tan Kin Lian

Note - this is my personal opinion. It is not a recommendation to buy Tesla shares at any specific price.