Re: More Tesla Speculation
posted on
May 04, 2020 06:13AM
Well as you said, it is likely a speculation and an exhibition of wasted time :-). Just the first thesis, that TSLA is going to build a "terrafactory" producing more than 10 mill. cars annually sugest, that the author has not seen a car factory in his live.
I have, for a short period, "lived" in a city producing 400k units and I can assure that it is a logistic nighmare to move all the metal around. Going bigger just does not make sense financially, because the fix costs will kill such project (leaving completely aside the emploee issue). An assembly line must run at least at on 80% utilization to be considered break even. In this case it means minimum 8 mill. cars or aproximately half of the US ICE market.
On the top of that, the author claims, that the factory should be around the CA/TX border. So apparently it is OK to transport around 30-40 thousand units daily from that magic "terrra factory" site for worldwide distribution.
Based on first 3 minutes, this is clearly a promo video of some fanboi of the St. Elon church, trying to to prove, that the "economy of scale" will turn TSLA profitable. IMHO a garbage.