Comments

  • And that should do a lot of good for Tesla stock value...
  • Well he does worship TFG...
  • I'm no Elon defender at all, but no... Not even close.

    He's just saying that production costs a f*cking sh*tload of money. Building, staffing, hiring, running a new plant is insanely expensive and it's a long time before you see the money back that you sink into them.

    It's why PE and Corporate America didn't build new factories here in America when they needed to, they just went overseas where it was cheaper to do that and hire workers... In hindsight, it made them a ton of money but f*cked all of us in the future. Which is nice :)

    But, he's just saying that building those giant things is just throwing a ton of cash into a fire... but it's a bad analogy. Assuming you do it right, somewhere down the road they pay themselves off and you start making money from them.

    THAT used to be what investing was. You dump in money and work hard and pray you got it right and eventually you make a ton of money from it... or you break even or go broke...

    Nowadays if you don't profit from a move in ten second, the shareholders call for your head.

    It's a terrible way to run a company and a country.
  • He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.

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  • There are times an oversized infrastructure is more efficient. If I need to get 60 kids to school, a full sized school bus is more efficient than 20 trips with a Prius. If I need to get 6 kids to school, the Prius is more efficient.

    The large monolithic factory concept works efficiently when it can run at full capacity building a single product. But if you need to make modifications to the line, or run at less than capacity it introduces its own inefficiencies.

    Tesla's just learning a lesson that the legacy automakers learned 6 decades ago. And Abbot labs learned just this year.
  • Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

    Manufacturing companies plan capacity and expansion at 10-20 year scale.
  • Ivo Shandor: He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.

    [Fark user image image 643x216]
    [Fark user image image 642x225]


    Yup.  It's funny watching Teh Smrtst Tek Bruh EVAR imploding day by day.
  • Mr. Eugenides: There are times an oversized infrastructure is more efficient. If I need to get 60 kids to school, a full sized school bus is more efficient than 20 trips with a Prius. If I need to get 6 kids to school, the Prius is more efficient.

    The large monolithic factory concept works efficiently when it can run at full capacity building a single product. But if you need to make modifications to the line, or run at less than capacity it introduces its own inefficiencies.

    Tesla's just learning a lesson that the legacy automakers learned 6 decades ago. And Abbot labs learned just this year.


    I didn't know Henry Ford was alive in the 60s
  • aleister_greynight: And that should do a lot of good for Tesla stock value...


    How else is he supposed to get out of buying Twitter?
  • Texas and Berlin are in regions where slavery is abolished, at least on paper.
  • Ganon D. Mire: Texas and Berlin are in regions where slavery is abolished, at least on paper.


    Shiat, don't give him any ideas.  He'll probably want prison chain gangs building his cars next.
  • NewportBarGuy: I'm no Elon defender at all, but no... Not even close.

    He's just saying that production costs a f*cking sh*tload of money. Building, staffing, hiring, running a new plant is insanely expensive and it's a long time before you see the money back that you sink into them.


    Well yeah, but this is Elon Musk, the smartest, most brilliant business genius on the planet, buy his own admission.  He's completely in control of his own manufacturing process, without even a pesky union to mess things up.  So if he's so farking smart and has the best product in the world and the best manufacturing process in the word, why is he losing money?
  • NewportBarGuy: it's a long time before you see the money back that you sink into them


    you mean taxpayers?
  • shroom: Ganon D. Mire: Texas and Berlin are in regions where slavery is abolished, at least on paper.

    Shiat, don't give him any ideas.  He'll probably want prison chain gangs building his cars next.


    Arbeit Macht "Y's"
  • Ivo Shandor: He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.


    You know, it's almost as if basing your economy on both global supply chains and just-in-time logistics makes production incredibly brittle and prone to break at the slightest disruption.

    All of this was, of course, entirely foreseeable.  Murphy's Law is known to everyone, even morons with MBAs.  But try telling that to shareholders who are laser focused on profits NOW!  NOW, NOW, NOW, NOW, NOW!

    The good news is that some labor organizer really ought to be able to take full advantage.  Corporations have gotten soft.  They assume they're always going to get their way.  It wouldn't take much for a well-placed strike or two to bring things completely crashing down.

    Ganon D. Mire: Texas and Berlin are in regions where slavery is abolished, at least on paper.


    Berlin, maybe.  But Texas? The home of Texas Correctional Industries?  You may want to reconsider that statement.
  • Anyone know the exchange rate for a Berlin dollars?
  • The factory could be a full fledged member of ERCOT's harem of utility companies -- without ever completing a single car.   Cool.
  • This is only indirectly related but I'mma post it anyway:

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  • Hawk the Hawk: Anyone know the exchange rate for a Berlin dollars?


    Those would be euros.

    /I know you're joking
    //probably
  • Elon Musk accidentally admits he's a terrible businessman

    Apparently there are savvy businessmen somewhere out there who know how to overcome China's shutdowns that destroy their incoming and outgoing supply lines. I'll bet they even know how to operate factories without energy.

    /Subby is an idiot
  • Ivo Shandor: He said some of the tools required to make some cars are "stuck in a port in China" because of a resurgence of Covid there and the resulting lockdowns.

    [Fark user image image 643x216]
    [Fark user image image 642x225]


    I feel like there are some alien brain bugs going around the top tiers of government and business right now that are working their asses off to exterminate the human race. That's the only way some of the shiat that they say makes sense anymore.
  • He's saying this so he can buy back Tesla stock on the cheap. Yes, I'm serious.
  • The Ocho: Welcome to owning a manufacturing company. It requires capital. It requires upkeep. All reduce your ability to stay cash flow positive. You're not in tech country anymore, Elon. You're dealing with mature industry issues now.

    Manufacturing companies plan capacity and expansion at 10-20 year scale.


    Unfortunately tech investors only think in terms of things that can exponentially the span of three years at most, even if those things eventually burn to the ground. The key is to sell it off to some sucker before it implodes. 

    //Hopefully Ford and Volkswagen get to pick up Tesla buildings for pennies on the Dogecoin
  • NewportBarGuy: I'm no Elon defender at all, but no... Not even close.

    He's just saying that production costs a f*cking sh*tload of money. Building, staffing, hiring, running a new plant is insanely expensive and it's a long time before you see the money back that you sink into them.

    It's why PE and Corporate America didn't build new factories here in America when they needed to, they just went overseas where it was cheaper to do that and hire workers... In hindsight, it made them a ton of money but f*cked all of us in the future. Which is nice :)

    But, he's just saying that building those giant things is just throwing a ton of cash into a fire... but it's a bad analogy. Assuming you do it right, somewhere down the road they pay themselves off and you start making money from them.

    THAT used to be what investing was. You dump in money and work hard and pray you got it right and eventually you make a ton of money from it... or you break even or go broke...

    Nowadays if you don't profit from a move in ten second, the shareholders call for your head.

    It's a terrible way to run a company and a country.


    Plus, it can make a lot of business sense to run in the red, at least in other instances, if you got the money to do so.  Bezos intentionally ran Amazon deep in the red for years as it was starting up, in order to successfully undercut all the competition into oblivion and cement its status as the go to place to buy and sell books online.
  • Musk says Tesla's factories in Berlin and Texas are 'gigantic money furnaces'

    ... and he is right which is why auto companies have P/E's in the low teens and not in the high 70's (or whatever Tesla is at now).
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