Tesla’s good intentions have been paved with hellish obstacles until now
TESLA is about to enter the road through hell, and it’s paved with intentions to make a whole lot of electric cars.
That’s how Elon Musk describes the task of meeting the lofty targets he’s set for the Model 3, a cheaper sedan than the future of his company rides on.
Demand won’t be an issue – reservations for the car now exceed 500 000, according to the Tesla chief executive. The herculean undertaking ahead will be to produce the vehicle at a scale the carmaker has come nowhere close to achieving to date.
“Frankly, we’re going to be in production hell,” Musk told a crowd of hundreds of Tesla employees on Friday behind its assembly plant in Fremont, California.
“That’s going to be where we are for at least six months, maybe longer.”
For Musk, making affordable cars at levels of scale that would further drive down the costs of electric transportation would mark the culmination of a master plan he sketched out for Tesla more than a decade ago.
The progress he’s made thus far in executing that vision has catapulted his company’s market capitalisation past carmakers that have been around more than a century, including Ford and General Motors.
Musk has kept investors enamoured despite manufacturing hiccups that have regularly bedevilled Tesla.
The production shortfall of new, bigger battery packs that the company cited when reporting underwhelming sales figures earlier this month was just the latest example.
Avoiding setbacks won’t get any easier though. – Bloomberg