It’s no secret, over the years Tesla Motors has seen its fair share of triumphs and failures. More recently they have been faced with production issues relating to their Model 3, which has seen more than a half-million reservations placed since the company began taking them. At the end of the first quarter of 2018, it was expected that they were going to produce 2,500 units per week. However, as was announced during their earnings call, they have managed to produce 2,200 vehicles a week.
Furthermore, Musk has set these expectations, and when a company’s CEO makes remarks they’re typically taken at face value. The problem here, I believe, is Musk has to learn to under promise and over deliver. It’s a golden rule of sorts that could help Tesla combat it’s currrent trend of missing expectations more and more each quarter. That goes without saying, this quarter they turned a profit, and 2,200 is better than 2,000 or less.
Nevertheless, Musk is now saying that the Model Y, which is due to start production in 2020, will be a revolution in manufacturing. By throwing away the 12-volt battery architecture, they will be better positioned to reduce the required electronic wiring for this model. Therefore, they’ll also be able to add more robots to the manufacturing line. This situation starkly contrasts previously made remarks by Musk, that Tesla may have misstepped by going all in with automation.
The mixed messages, and broken promises in the long run could lead to some major issues for the auto maker. I’m sure that I’m not the only one who feels this way, and for Musk to be a little more aware of what he says and when he says it, the result would speak for themselves. As a consumer, I want to have faith. What Tesla is doing is really changing the game and has been for some time now, but where are they going and how difficult will that road be? Is it a smart move to maintain optimistic outlook on a company constantly faced with quality issues as well? That is pushing harder on automation? Suppose, for the moment it’s anyone’s guess.